Have you ever gone through a period in your life where everything seems to be going ok? Where all of your plans are being carried out without any disruptions and there are no big obstacles that are derailing you? And then there are the times where everything seems to go wrong. Where all of your plans encounter problems. Financially, things hit us like this as well and they can add a lot of stress in our lives. That’s why we need to prepare now financially for those unexpected problems that will eventually find their way to us.
Let me give you a recent example in my life of unexpected financial problems. After returning home from a recent vacation (which, of course, had it’s own added expenses that were a surprise to us) I found out that my employer was drastically changing my retirement options. I had been in a good plan. It was a plan that ensured some measure of peace in my later years.
However, with the pandemic debacle and it’s ensuing financial impact it’s having on hospital systems, they are revamping this plan to be more “financially stable”. What this means is that I’m losing the security I once had. Now, don’t get me wrong, it’s still a nice plan and one that I’m grateful for but it just proves that nothing financially is guaranteed in life.
We Have To Prepare Financially Now, Not Later
What this means is that we have to take measures into our own hands as much as possible. You see, when we rely on others, there is nothing guaranteed. It’s definitely a blessing to have options available to us with our employers. Some nurses I know have a great pension because they work for the state. Others are being matched with their 403(b) or 401(k) but have no pension. Others get no help at all so it’s completely left up to them.
I know of nurses who are retired who live on a very meager retirement and social security. I also know nurses who were avid investors who are very comfortable today. The main difference between the two wasn’t luck. It was just financial priority and planning.
I’m sure you’ve seen this same story where you work, no matter the industry. There are those who seem to suffer with their money no matter what. They are always under crisis mode. And then there are other co-workers who seem to be comfortable. When disaster strikes they at least seem to be able to handle it better than others. They seem less stressed over money.
When we live on the edge of financial disaster in “normal” times, such as having no emergency fund, it becomes very traumatic when problems arise.
The Story Wasn’t Over Yet
On top of my sudden financial change, I found out my mother had a new diagnosis of cancer and was going for surgery. Then shortly after the surgery she developed severe pneumonia and had to be hospitalized. This meant that my sister and I had to be there for her which meant no work for either of us. Eventually, my mother got better, thank God. It seemed touch and go there for a while.
Granted we both had vacation/sick time available to us, but it reminded me that had it been a different story, we might have had to lose more work. This could affect our lives financially as well. My mother might also need financial assistance during the duration of this illness. We’re a close-knit family so we would of course be there for her.
This made me think that preparing financially may go beyond our own personal situation. It can be affected by others as well. Our finances aren’t strictly limited to only our needs. The needs of others affect us as well.
My extended families problems could affect my personal finances too.
It Helped To Be Financially Stable
Although this month has been a roller coaster ride, it certainly helped that I was stable financially. It made things less stressful in a very tumultuous month. The unexpected always happens. So, it’s good to be prepared financially for these unexpected surprises. I like to imagine my finances as having as much protection as possible. Like a steel door, it needs to be resistant to attack.
Sure, nothing is guaranteed in life, including our savings. But being prepared makes the stressful times bearable. Remember to do a few key things along the way:
- Build up and maintain an emergency savings account (you never know when you’ll need it).
- Start slow if you need to because every dollar matters here. But be focused on building it to eventually 6-8 months living expenses.
- Keep your eye on your expenses. These detract from your ability to save. Remember, debt destroys our future.
- When possible begin an aggressive investing habit. Take part in building your financial future. Don’t leave it to your employer to take care of you.
- Begin to develop financial intelligence. The more you learn the quicker your money will grow.
It’s intimidating to try to do this all at once. Don’t worry, you don’t have to. Begin small and slow. Start by reading financial articles and take your learning one step at a time. Do this for a couple months and you’ll be surprised at how much knowledge you’ve gained!
Prepare now financially for the unexpected.
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