It would be nice if life went exactly as we planned it. Everything would go smoothly and we’d reach our goals without any hiccups. Really though, that just doesn’t happen.
Regardless of how hard we work towards our goals, something is bound to come up. It could be a challenge like increased expenses or reduced income. On the other hand it could be a financial windfall or surprised promotion at work. Even the expected can be drastically different than what we envision.
With proper planning we can easily adapt our approach on the fly or we might have a contingency plan already in place. We don’t have to overwhelmed and left scrambling to figure out what to do.
I admit I don’t have proper contingency planning in place beyond an emergency fund. Just having that cash easily accessible is not enough. Sure the money helps, but what are you going to do beyond using that cash to deal with your emergency? What if a 2nd emergency hits before you refill your emergency fund. Just like how a business should have a contingency plan, so should your own finances.
Now that I’m self employed it is definitely something I’ve been thinking about more, but I really should have something more concrete laid out just in case.
What about you? Do you plan for the unexpected?