When it comes to your financial planning, there are going to be good times and bad times, and you have to be prepared to handle it all. This starts at a young age, as you map out what you want your financial growth to be like, and work out how to handle any bumps that come along with the ride. Here are five life events that you should factor into any financial planning strategy.
1) Getting married
Tying the knot is a joyous occasion, there's no doubt about that. However, it's also a very expensive event. Research from the Australian Securities and Investments Commission indicates that the total cost of a wedding totals, on average, $36,200.
That includes nearly $3,000 just for flowers, and almost $4,000 for photography. If you're going to go for a big professional wedding, your finances are going to take a hit. That's where having a savings plan in place from an early age can help you out - so big events like this don't emerge like a surprise bill.
2) Being made redundant
It's never pleasant, losing your job. And even though the Australian Bureau of Statistics has been recording some positive changes in the national employment market, there are going to be people who are made redundant.
However, if you are partway through a savings and investments strategy, it can be particularly catastrophic, meaning you fall behind on home loan payments and debt begins to spiral out of control. With income protection in place, or perhaps positive cashflow property as an investment, you may be able to stem the tide and keep your finances going until you're back on your feet.
3) Caring for someone else
According to the Australian Securities and Investments Commission, in 2012 there were 2.7 million people registered as looking after someone else that was disabled, or had a long term health condition that required a similar level of care.
This isn't just an emotionally strenuous task for everyone involved,, it can also put a halt on your income. The Fair Work Ombudsman states that there are carer packages available for people in this position, and employers can also be lenient and provide leave. Another way of addressing this is with the appropriate income protection, to ensure you are able to continue this care without putting strain on your family's finances.
4) Literal bumps on the road
The financial and mental costs can still linger.
While the Bureau of Infrastructure Transport and Regional Economics' (BITRE) road trauma statistics improve every year, the fact remains that some people will be in car accidents in their lifetime. Even when people are fortunate enough to escape without serious physical injury, the financial and mental costs can still linger.
One report from the BITRE estimated the cost of minor injury crashes in one year a $2.47 billion alone. Protecting yourself financially in case of road accidents will be important - the right personal insurance and income protection may prove essential in the long term.
As life goes on, we face more and more unexpected challenges - but that doesn't mean you need to go in unprepared. With strong financial planning and a commitment to protecting you and your loved ones with the right insurance and investment strategy, even life's bigger speed bumps can be smoothed out. Get in touch with a local Yellow Brick Road representative to find out more.