If the Covid-19 pandemic has thought us anything over the last two years, it is the importance of planning. Billions globally could never have envisioned that our lives and economies would be shut down temporarily by the news that the virus had reached our own country’s shores. Depending on the industry you worked in the impact was more severe as the disruption may have meant having to expose yourself to contracting the virus, like those in the retail or hospitality sectors. No amount of planning could have avoided this exposure but the need of back up funds at a time when over 20% of the population was unemployed would have undoubtedly covered a number of obligations within most people’s public and personal life. But what about funding beyond emergencies? After all, an emergency is only one of life’s events.
How much of an emergency fund do I need?
This “number” differs from individual to individual and family to family and our own recommendation is to have at least 9 months of your annual salary set aside for the emergencies that life throws at us. This is often not an easy sum to accrue but can instead be set aside over time in order to prepare for its use. In particular, it is in periods of employment or major illness when most people realise that loans and individual credit ratings can get severely strained. Nonetheless, the reactive nature of emergency response can be proactively managed by accruing funds during the times of calm. This means that these matters are best addressed when you can assess your situation in a clear and concise manner. Having to make decisions during times of stress or urgency often leads to impulse decisions that are quite often not well thought out.
Funding beyond an emergency
Emergency funding is of great importance and rightly deserves a high place at the table of financial discussion within any home, but true financial planning involves more than this. This is because there are many aspects to each of our financial lives that are not emergency based but longevity based. These involve plans to start a family, purchase a home, childcare, school or college fees, and even retirement planning to name a few.
A Certified Financial Planner™ can make sense of your Financial Life plan and then review those changes on at least an annual basis if not more frequently, especially if a major life event occurs such as a family member’s major illness or redundancy. The quality of the advice is often a reflection on the quality of the information provided and this cannot be achieved in any meaningful way without first understanding your whole financial life.
Planning that surpasses an emergency
Whether you are focused on emergency funding or trying to make more sense of your financial life, our experienced approach at Aspire Wealth Management will give you the confidence to build the financial lifestyle you desire and, most importantly, keep you on course to overcome emergencies and more besides.
Contact us today on 01-8455827 or email Advice@aspire-wealth.com to discuss emergency funding and beyond.
Find Out How We Can Help You
Improve your financial future by arranging a call back or online meeting.
Simply book yourself into an appointment at one of our available times.