Despite our best efforts to plan and budget, sometimes things happen that throw our families’ finances so far off track that we may wonder whether we will ever be able to meet some of the financial goals that we had set for ourselves. Things like retirement, college educations for the kids, and even home ownership can seem like distant fantasies when times get tough and you are living in survival mode. The good news is that as bleak as things may seem, all is not lost. You do not have to give up on your family’s financial goals. With some creative thinking and strategic planning, you might be able to get back on track sooner than you think.
The assortment of things that can happen to throw a family’s financial plan off track is seemingly endless. Health issues can come up suddenly and without warning, and the same goes for layoffs, job losses, and forced early retirements. There are also things like the housing market, which can eat up the equity that you worked so hard to build, and the stock market which can take your retirement savings plans for a ride. While not all of these issues are avoidable, the financial fallout from them can be contained or reduced.
Things like checking the allocation of your retirement funds to ensure that they are not overly vulnerable in the event of falling stock prices and refinancing your home if that would make it possible to have more equity and/or pay it off sooner are things that you could look into now, even if your financial situation seems secure right now. Also, building an emergency fund may seem like just one more expense but if it can prevent you from having to access funds in retirement accounts and other accounts where there are withdrawal penalties and where you have worked so hard to accumulate funds, it is well worth seeing what changes you can make to your budget to make it happen.
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