April 19, 2023

Prepared for anything

When you are young, it is hard to imagine life will be anything but moving up – from school leaver to learning the skills you need, developing a career or successful business and enjoying a loving relationship.

The older you are, the more you realise life doesn’t always turn out as perfect as that picture.

You may experience a job loss, a business failure, an accident, an illness or the breakdown of a relationship that meant a lot to you.

When you are young, fit and healthy, you can fall and typically get up and running again without too much of a setback.

When you are older, particularly if you are not in good shape, a fall can put you out of action for a long time.

The same is true for your financial life. If you are prepared for anything, you can come back from even the biggest financial disaster.

If not, it will take much longer, and you may never fully recover.

Laura du Preez
Editor Smart About Money

Set yourself up to come back from anything

Planning for life

Anticipated and unexpected: life is full of challenges

Change is something you should expect in life. It will include those events you anticipate, like a new job or getting married. It will include changes that are more challenging such as illness or injury or the changes that creep up on you like the end of a relationship or being able to retire.

Avoiding and adapting to these changes is easiest when you are anchored to a good solid financial plan that provides for the unthinkable. Read more: When life happens … are you anchored?

Self-sufficient

Providing for yourself goes beyond an income

Being employed typically comes with built-in protections against periods when you are too ill to work, are disabled or reach the age when you no longer want to work. When you are self-employed, you have no less a need for this kind of protection. Creating your own benefits is important for those who are self-sufficient.

Good to know

Celebrate a union that will never leave you financially stranded

Getting married or formalising a relationship is a life change many of us hope to experience and enjoy for years. But life happens, leaving too many married people in situations they did not anticipate. Understanding your marriage contract and being sure you choose the right one can help you stay on track. Read more: Do you understand the ins and outs of your marriage contract?

Policy wise

Solid protection against the unthinkable

Becoming disabled is a life change few expect. Disability cover can protect you. Taking a little time to be sure you have cover that will pay you out when you expect it to is a good investment of time. Read more: When will a disability policy pay out?

Resilient

No room for expensive debt

Paying off debt and then staying out of it is the best way to ensure you are financially resilient and able to take on any of life’s challenges. It also gives you room to save for your goals. Once you are committed to getting rid of your debt and have found some additional money to pay it down, there are two ways to watch it fall. Watch: Two ways to pay off your debt.

Celebrate a young person in your life by preparing them for any challenges

Do you know a young person who is at the start of a potentially exciting life? Help them keep their dreams on track by being prepared for any financial curveball. Please share this newsletter with them by clicking the Forward button in the footer.

If there are topics you would like to see covered, drop us an email on editor@smartaboutmoney.co.za and watch out for new topics by subscribing to this newsletter on www.smartaboutmoney.co.za or following us on social media.