One of the biggest problems with most financial advice/plans is that asset management conversations and recommendations tend to start and end with how to increase risk exposure to savings (and thereby fees for the managers), while dangerously ignoring the fact that human life is already full of great risk everyday. This is like focusing on the potential top speed of a car without any concern for its safety and soundness or the likelihood of getting to one’s desired destination intact. Solid finances, that serve to shock-absorb and mitigate life’s daily risks, are built and preserved from the bottom up. This segment does a good job of discussing some of these issues.
Protecting Yourself Financially for Unexpected Life Events: Debt Free In 30 – A Personal Finance Podcast. Ep. 222 The death of a spouse and divorce bring an emotional burden, but sadly such catastrophic events also create financial consequences. In fact, the death of a spouse or divorce are both common reasons why people file bankruptcy. Without proper financial planning, my clients find themselves unable to cope with existing debt and often take on new debt to pay the bills. Doris Belland, our guest today was left with $400,000 in debt after the death of her spouse. After struggling to repay that debt and rebuild her finances, she embarked on a mission to learn more about how to cope financially with a traumatic event like a death or divorce and now works as a financial literacy educator to help people be prepared when it comes to money. Our advice today is good for anyone struggling with debt or who want to be prepared financially for any unexpected life event including job loss, illness, divorce or the death of a spouse. Here is a direct video link.
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