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4 Life-Changing Events that Could Tank Your Finances

In an instant, life as you know it could never be the same. That’s how quickly a life-changing event could tank your finances. Without advance preparation, you could very well see your savings depleted instantly, your credit cards maxed out, and find yourself without money to live off.

Four events are particularly devastating in nature—physically, emotionally, and financially. By being aware that these things could happen to you at any given time is a reminder of how delicate the lifecycle is. You give and take constantly without prior notice of what comes next.

Death of a Loved One

The death of a loved one is a complex matter that can significantly affect your finances in a negative way. If your spouse was the one who earned a majority of the income in your household, you could be at a loss as to what to do next. Similarly, if you left your employer to care for a sick or dying parent, you could find yourself in the poorhouse very quickly. Even if your spouse was a “stay at home mom” with small children and didn’t earn a cent outside the home you may have additional expenses for childcare while you are working.

Major Accidents Involving Motorized Vehicles

Handling catastrophic injury claims following an automobile accident is something personal injury lawyers know all too well. They see the devastating effects accidents have on households financially. With the injured person not being able to work, they may fail to pay bills, and their responsibilities become burdensome.

For a minor injury, you may not have to contact a lawyer, but more complex cases due to medical bills, lost wages, property damage, and lasting psychological impact, could likely benefit from an attorney’s professional consultation. Many people think they won’t have enough money for a lawyer, but most personal injury attorneys work on a contingency basis, which means you only pay them if they win or settle your case.

Divorce

If one spouse earns more than another or doesn’t work at all throughout a marriage, it can be financially crippling for the person under-earning. Being dependent on your husband or wife’s income and then suddenly not having it can lead to big financial woes. Many a battle in court have happened because of dependency issues and money.

Natural Disaster or Manmade Disaster

If a fire, flood, tornado or hurricane damages a person’s home or property, it can be hard to recover from the loss. That’s why it’s important for families to review their insurance policies regularly to make sure they’re getting the best coverage for the money they’re paying out. They don’t want to find out too late that something isn’t covered in their homeowner’s or renter’s insurance policies.

Though you can predict when one of these events will befall you, you can be prepared with plans and information for resolving your issues. Don’t let these tragedies catch you completely off guard.

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