Financial_Planning

Financial Planning for Loss of Income

Loss on income can happen due to many reasons, not necessarily anything to do with your health. It could simply be that the company you work for is finding it difficult to get clients and so have to retrench some staff.  Good financial planning by an expert financial advisor can mean the difference between losing your home or not losing it.

In fact, it is not only people who are paying off a home that would be negatively impacted by a sudden loss of income. With rent as high as it is these days, it is easy to get to the stage where your income is not enough to both pay the rent and buy food. But a good financial planner will allow for these kinds of problems when working out a plan for you and your family.

You may think it’s impossible to save up enough so that there is several months worth of rent put by in a special savings account, but it is much easier than it seems when you have a financial expert on your side to plan for you and show how it can be done. Having that emergency fund full to the top can make a great deal of difference to how you cope with loss of income from illness, injury or simply from losing your job.

No one wants to find themselves out on the street after losing their job. With an emergency fund you will have time to send your resume out to other companies who may need your skills. Or if there are no nibbles, you might consider retraining to upgrade your skills or get different ones needed for a different kind of job. Many people have more than one interest that they don’t have time to pursue when working full time.

Losing your job can be a blessing in disguise, giving you the time and incentive to pursue or get training for a job that suits you better. It may even pay more than the one you just left, or be easier to do, especially if you are getting older and are not as physically fit as before. Financial planning can certainly take the stress out of those curve balls that life tends to throw at us from time to time.

When your professional financial expert shows you how easy it is to save without denying yourself everything you like, you’ll be thankful you followed their advice, especially if some kind of emergency happens. It can be as simple as a bad bout of flu, or the need to go to the dentist that puts your finances into disarray. But with the correct planning and implementation, there will be enough finances in your bank account to cope. In fact, there is likely to be more than enough.