Life is unpredictable and often throws changes at us when we least expect it. Whether it is a loss of a job, a family member being hospitalized, or a recent storm or earthquake causing damage to your property, it is important to have a plan in place so you can protect your family from financial disaster. There are many things that should be considered when creating your financial plan to prepare you for whatever life brings you.
Build Your Savings:
One of the first things that a financial advisor will address when preparing for your future is creating a savings account. Beyond preparing for your future, having a savings account is critical to prevent financial disaster by creating a safety net. When an emergency comes up, having a solid savings can be the difference between facing a struggle and facing a disaster.
Sticking to a Budget:
Creating a budget is important when you are building up your savings, but creating a budget will not accomplish anything unless you are committed to sticking with it. Along with creating a budget it is beneficial to have a pre-created frugal budget that is already established that you can migrate to when you are faced with financial hardship.
Cut Back on Your Debt:
Lowering the amount of debt you have will open more opportunities for you to save your money. Dedicate a time to list all of your debt along with payments you are making on them. If there are any balances that you can pay off now, do it! Cutting back these debts also lowers your debt to income ratio. Which can be very beneficial to you in the long run.
There are many more things that you can do to protect yourself and your family from financial disaster. At Mohr Financial Group, one of our qualified wealth advisors can work with you to develop a financial plan that will help you prepare for all of life's ups and downs. Contact us today to learn more.