by Steve20

Created on: November 08, 2009   Last Updated: November 09, 2009

Financial Preparation for Life's Surprises

Downsizing and government cutbacks have created new life certainties almost as inescapable as death and taxes. If you haven't planned for a possible job change or job loss, your children's education and other potential financial requirements, consider why: Denial, ambiguity, avoidance? Don't let those barriers stand in the way of creating your means to cope and control.

Job Loss

Over the last years, many people have been touched by downsizing, out placing - whatever you prefer to call job loss. Individuals who are self-employed or who are at higher risk for personal liability also face significant potential for income or property loss. Whether the economy is in a recession or a growth period, it's important to devote as much time and energy to figuring out how to survive without a workplace as to survive in it.

Have a "money conversation" with yourself and your spouse about a job loss scenario before it happens. That way, regardless of any severance package that might accompany a job loss, you can go about your lives secure in the knowledge that your money is looked after - and can be dealt with separately from the emotion and anxiety that can accompany unemployment. Again, it's a question of creating a condition where money is separate from emotion, of taking control before a potential crisis occurs.

Simplifying Your Life

Where many people have lost their jobs, others have become tired of the fast track and are voluntarily simplifying their lives by taking a sabbatical or early retirement, changing careers or working four - not six - days a week. Simplifying, in whatever form it takes, reflects a quest for our very personal perceptions of quality of life.

Determining realistic goals and creating a plan to achieve them is the most important part of ensuring you actually do what you want to do with your life. If the goals involve money - for example; money to finance a sabbatical - you and whoever might be sharing the dream with you have to design a way to make it happen. And be prepared to re-examine your approach.

Creating the strong financial position that gives the flexibility, control and confidence to pursue your dream can only start by talking about your plan. And with the abundance of books, newsletters, courses and Internet sites to help you simplify.

Preparing for Costly Financial Emergencies

Many get so caught up in the day - to - day engagements, we often overlook another responsibility: Protecting

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