There are times in life when unexpected things happen that change one’s financial situation. This may be the loss of a job, a separation or divorce, the death of a spouse or a major home or car repair. All of these circumstances can cause our finances to suffer as we try to figure out how to make adjustments.
When facing something unexpected it is helpful to be as prepared as possible. One way to do that is to have an emergency savings account. If you are not sure where to start, here is a guide to get you started. Also, here is some information on how to calculate what you might need for money in an emergency. Emergency funds can make a difference when you have unexpected expenses as well as if there is a loss of income. Unexpected expenses such as car or home repairs can be costly and can really throw off your normal expenses getting paid on time. Having an emergency fund allows you to make those repairs and pay your normal bills on time, while feeling less stressed. If you have recently lost your job, figuring out what to do to move forward can be difficult. One thing you can do is check to see if you are eligible for unemployment benefits. If you are not sure what is next you might want to talk to someone about making a plan. Whether you need help with updating your resume or learning interview skills, you can find a local Career Center or New Ventures Maine in your area to help you.
Permanent Loss of Income
If your situation is more permanent such as loss of a second income due to divorce or loss of a spouse, we have some resources and tips for you. A divorce may be a painful time in which you would rather not think about your finances but it is necessary. Check out this article about divorce and your money to help you get started with this process.
Another painful time can be when a spouse dies, especially if his or her death was unexpected. This to-do list provides some guidance about what financial items you will need to handle immediately and what can wait while you grieve.
These events may still be unexpected but with a little preparation you may be able to reduce some stress in these situations.