What to consider financially if your personal circumstances change.
Life is full of surprises, both good and bad.
Whether you receive an unexpected windfall, get a new job with a higher salary, or experience a change in your personal circumstances such as a divorce, it's important to consider how these changes will impact your finances. Here are some important considerations to keep in mind:
Review your budget: Whenever your personal circumstances change, it's a good idea to review your budget to make sure it still reflects your new situation. If you've received a pay increase, you may want to increase your savings or adjust your spending accordingly. On the other hand, if you've experienced a loss of income, you may need to cut back on expenses.
Re-evaluate your goals: Changes in your personal circumstances may also impact your long-term financial goals. For example, if you've had a child, you may need to save more for their education. If you've experienced a divorce, you may need to adjust your retirement plans. Take some time to re-evaluate your financial goals and adjust them as needed.
Consider taxes: If you've received a windfall or experienced a change in your income, it's important to consider how this will impact your taxes. You may need to adjust your withholdings or make estimated tax payments to avoid underpayment penalties.
Update your estate plan: A change in personal circumstances may also require updates to your estate plan. For example, if you've gotten married or divorced, you may need to update your beneficiaries or make changes to your will. Make sure your estate plan reflects your current wishes and situation.
Review your insurance: Changes in your personal circumstances may also impact your insurance needs. For example, if you've had a child, you may need to increase your life insurance to ensure your dependants are taken care of if anything happened to you. You may also want to review your Total & Permanent Disability, Trauma and Income Protection to ensure your family would be protected if you were sick or injured. Your Financial Adviser can help you work out what amounts of cover you need.
Consider seeking professional advice: If you've experienced a significant change in your personal circumstances, such as a divorce or the death of a spouse, it may be helpful to seek advice from a financial professional. They can help you navigate the financial implications of your situation and make informed decisions.
Like we said, life is full of surprises and changes, and it's important to consider how these changes will impact your finances. By reviewing your budget, re-evaluating your goals, considering taxes, updating your estate plan, reviewing your insurance, and seeking professional advice when needed, you can make sure your finances remain on track no matter what life throws your way.
This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.