Everyone has events that occur in their life that they don’t anticipate. These events can be routine, or a calamity. They can be ones that you would expect every day, or something that is out of the blue. Normally it is the negative events that one thinks of, and that is one reason it is important to have some sort of strategy in place to manage life when things happen you don’t anticipate. Having an emergency financial and event plan, a sort of “what if” type plan can be tremendously important to have at such times.
Such things as a fall or injury, or having a family member move back into the home, or a extended visit by a parent, mother in law or other relative are examples of things we can not always plan for or anticipate. In the case of a child returning to the nest, it should be discussed and such considerations as: Should the family member pay rent, or expected to contribute financially in some way? This should not be taken too lightly, as it can create quite a financial strain especially if unexpected.
The lives of people change. A plan to manage new events or crisis should be revisited periodically, at least every two to three years, claim most financial planners. A financial plan is as unique as the individuals it covers. Life events change. People get married, they divorce, they start families, and they relocate or change duty stations. Each step of life is a potential crisis if it is not prepared for in advance. Knowing and having some sort of contingency plan or emergency fund is important also for those events that we truly cannot plan for. Sometimes things happen that we don’t anticipate, and it’s of a positive nature. These events can be as disruptive and stressful as the negative ones, especially if there is not some sort of direction and plan regarding what happens in case of the unexpected. Sometimes things happen, such as unexpected windfalls. Things both mundane, such as an inheritance that you receive unexpectedly, or as outlandish as winning the lottery in a small (or even major way) can create chaos if not expected.
If you receive a large amount of money, the most important thing to do is seek financial advice. There are tax, inheritance, windfall, capital gains taxes, and other issues that a person can literally never have to deal with unless such a windfall happens. Many people assume because they can manage their normal finances well that they will be fine if they receive a large sum. Nothing is less true; it’s crucial to seek wise and professional advice to help avoid unnecessary taxes, penalties or loss of money.
