If you have financial goals, then, first, well done! Many people don’t, and one day they’re going to look back and think “I wish I’d thought about these things earlier.” So, first, it’s a good that you have them. However, be aware that it’s not just enough to have targets; you also need to be actively aware of the things that can derail your journey if you’re not careful.
I wanted to make you aware of some of the things that could hinder your financial goals.
You Lose Your Job
The economy isn’t what it was a few decades ago when a job could generally be considered a “job for life.” Unfortunately, with the rise of AI and other things that are a threat to workers, that’s unlikely to change in the future, either. So even though you may have a well-paying job right now, there are no guarantees that you’ll still have that job a few years down the line. They say you should have the equivalent of six months salary in savings so that you can look for another job without falling into dire financial straits.
You Suffer An Injury
Even if your job is relatively secure, you could still be hit by something that affects your salary: an injury. If you’re injured and have to take a significant period of time of work, you could be facing months of living with a reduced income. If this happens to you, then you don’t have to just accept your new economic circumstances; you can work with a disability lawyer to receive the money that you’re entitled to. You can’t always prevent severe injuries from happening, but you can prevent them from having an all-reaching effect on the quality of your life.
All Your Eggs in One Basket
It’s good to take risks sometimes, but if you’re putting all of your financial hopes on just one thing, then that’s too much of a risk. You can’t have all of your eggs in one basket, no matter how much of a sure thing you might think it is. It’s best to diversify where you’re putting your cash. If it’s spread across, say, five different areas, then it won’t be a complete disaster should one of the areas you’re storing your money turns out to be a dud.
A Problem with Your House
Did you know that most Americans couldn’t find the money to a $400 problem with their house if required? While it’s a good idea to put money into savings and investments, don’t forget about that “rainy day” fund; you’ll almost certainly need to draw on it at one point or another as you work your way through life!