Financial Security

Preparing for Expected Financial Transitions

By January 5, 2023No Comments

Life happens. Things change. You have lived enough to know that some things in life are unexpected and cannot be planned for. However there are many things in life that can be prepared for! When it comes to your money, making a plan for these expected changes protects your long term health of your finances. So what is an expected financial transition? I’m glad you asked! Expected financial transitions are things that can absolutely be planned for: marriage, divorce, engagement, weddings, starting a family or growing your family, switching careers, buying or selling property, the list goes on. With these transitions come a financial component that changes. There is an increase in expenses and possibly debt, there may be an increase or decrease in income. And while some of these may come as a surprise, there is usually time to get things in order before the occurrence of the actual event. 


The problem that some people face is the lack of planning. The lack of planning can make you feel stressed out and unprepared for when the event actually comes up. It can create a financially traumatic response that can leave you having a negative relationship with your money for months and years to come. With the list of events above, they can be a “surprise” here are some ways you can appropriately plan to make sure you enter your new transition with ease: 

  1. Marriage
    1. Discuss income, debts and current monthly expenses
    2. Do a cost analysis of how a wedding fits into your long term financial goals and plans
    3. Discuss and be vocal about financial expectations in the marriage 
    4. Make individual and joint financial goals 
    5. Consult with an attorney and financial advisor about a prenuptial agreement 

      2. Divorce

    1. Assess current financial situation 
    2. Do an analysis of costs associated with leaving a marriage (moving, splitting assets, attorneys, etc.)
    3. Discuss ongoing financial responsibilities and decide who is responsible for what 
    4. Discuss assets and how they will be divided 
    5. Review important documents such as deeds, insurance policies, 401k, state laws regarding divorce


3. Growing your family

4. Job Change or Career Switch


This is a short list to get you started in thinking about where you are in your current life stages. 

If you need guidance in planning for your next financial transition, you’re in luck! I am offering a 2 part course on creating your plan with ease. Additionally, you can book a consultation to get a customized plan of action in place. I look forward to meeting you soon!

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