4 ways women can prepare their finances for unexpected, life-altering events

You may feel like your finances are in good shape now, but would you be prepared if life threw you into a financial downward spiral, such as an unexpected problem with your home, medical expenses, or unemployment?

Here are some ways every woman can be financially prepared for whatever comes her way.

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Be aware of your current financial situation

If you don’t usually handle your family’s finances, do an audit of your family’s finances.

Samantha Melting, Senior Vice President, Head of Consumer Banking at synchronization. “[Take note of] Account numbers, current balance, payment amounts, and how to access accounts – passwords, user IDs, website address, etc. This includes bank accounts, retirement accounts, and insurance. ”

Thaw recommends keeping a record of this information in a safe place.

“This becomes very important if someone else, like a partner or wife, is taking care of your finances and you’re suddenly left trying to figure that out during a difficult time,” she said. “I wasn’t prepared to lose my husband, who had been managing our finances, and finding out after the fact was so hard and only made me sad.”

Build an emergency fund

Another important way to prepare for an unexpected event in life is to have an emergency fund that can help you weather the financial impacts of the event without having to go into debt. Ideally, you should have three to six months of living expenses in an emergency fund.

To help your money grow faster, consider putting your money in a Certificate of Deposit. Whereas traditional certificates of deposit charge you a penalty for withdrawing funds before the CD matures, the Synchrony option allows you to access your funds without penalty, which is especially useful if you need the money for an unexpected expense.

Another option for your emergency fund is a high-yield savings account. This account has no minimum balance or deposit requirements, and no monthly fees.

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Real estate plan development

In order to be prepared for the unexpected loss of your partner, it is important to create an ownership plan.

“Have a plan, will, or estate plan that involves transferring wealth and assets,” said Hilary Fiorella, executive director of the American College of Women’s Center in Financial Services. “Make sure you have a living will, power of attorney, and enduring power of attorney for any health care needs.”

Reevaluate your financial goals

After any life-altering event, it’s important to make sure you get your finances back on track so you’re ready for the next curveball.

“It’s time to reset your financial goals to reflect your new life,” Melting said.

This is especially true if you have experienced the loss of a partner.

“Are you saving enough for retirement if you are now the only one saving? How will your lifestyle need to adjust to the potential loss of income?” Thaw said. “This is the time to assess your expenses, savings, and investments to fit your short- and long-term goals.”

After a major life change, it may be helpful to seek professional guidance.

“You may be comfortable making these decisions on your own, but it’s also okay to seek help from experts to help you create a plan that works for you,” Melting said. “This may be a difficult time in your life, but making this investment in you now will enhance your financial success in the future.”

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This article originally appeared GOBankingRates.com: 4 ways women can prepare their finances for unexpected, life-altering events

The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

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