MYM #003: Prepare for the Unexpected

In this week's newsletter, we'll delve into a crucial topic: preparing for the unexpected, particularly when it comes to our finances. 

Do you ever feel like Jon Snow - ready to fight an entire army of life's challenges? Don’t worry, I think we all feel the same way 😂 

Fortunately for us, by focusing on key areas we can proactively prepare & protect ourselves.

In this issue, we’ll guide you through essential steps to safeguard your finances against unexpected events, empowering you to navigate uncertain times with confidence and peace of mind.

Life's unexpected events can wreak havoc on our financial stability. By implementing these strategies, you can establish a safety net that ensures financial resilience.

Many individuals overlook the importance of preparing for unexpected situations, leaving themselves vulnerable to financial crises when they strike. 

Lack of planning, inadequate savings, and insufficient coverage are common pitfalls that can significantly impact one's financial well-being.

“Failing to Prepare, is Preparing to Fail” - Benjamin Franklin

Key Points:

1. Emergency Fund:
• Importance of having one & How Much is Needed
2. Life Insurance:
• Why do we need it & What Should We Cover
3. Estate Planning:
• Exploring the importance, benefits, and crazy mistakes many celebrities have made!  

Emergency Fund - Having an emergency fund is crucial as it provides a financial safety net during unexpected circumstances. Job loss, medical emergency, or a simple fender bender can wreak havoc on your financial life. Everyone likes to think “oh well that won’t happen to me… until it does! 

• Roughly 40% of Americans will be laid off at some point in their lifetime
• 1 out of every 45 people in Pennsylvania were in a reportable car accident in 2019

The point we're getting at here is this; things can and will happen. Our job is to make sure you are prepared for when these things do happen. 

So what do we do? Generally, we want to see 3-6 months of our essential expenses sitting in your emergency fund. 

However, based on an individual's income & circumstances - this may change. If you are someone who gets paid commission & has fluctuating income - it may make sense to have 6-9 months in your emergency fund.

Ryan had an awesome thread recently outlining everything you need to know regarding emergency funds:

Emergency Fund: How Much and Why?

🧵

— Ryan Greiser, CFP® (@ryanOpulus) May 19, 2023

Life Insurance - We hate talking about this, but it's necessary for financial planning. Nobody likes to think about death, but the reality is it's coming for all of us.

We’ve seen dozens of financial situations get completely upended because of a sudden death of one parent.So we need to figure out what we want to have taken care of in the event something happens to us.

Naturally, it varies for everyone how much they need, but generally things people want covered include:

• Outstanding Debts
• Replacement Income (5-10 Years)
• Education Planning
• Outstanding Goals

Now - we don’t have time today to dive into the different types, pros & cons, and all that good stuff - but we will in another newsletter for those interested!

If you are in a rush and need to know today - check out an awesome video from our friends over at White Board Finance:

Estate Planning - The last thing you want is for the government to decide what happens to all of your stuff. (You’ve already given them enough money…)

Having an estate plan is crucial in ensuring your assets are distributed according to your wishes. This provides clarity and guidance for your family, as well as minimizing any potential conflicts and can reduce your estate taxes!

There are countless celebrity nightmare stories who’s estates have been sitting with the State & IRS for YEARS because of failing to establish a simple plan. Easy to do, also easy not to do! This includes Michael Jackson, Prince, Paul Walker, and many more!

If you are looking to get the basics set up - friends of ours get 10% off using our referral link here: https://trustandwill.com/advisors/invite/kk8utjnb

Actionable Tip:

Start putting the wheels in motion on at least one of these items. Establish a clear dollar amount goal for your emergency fund, figure out how much insurance you need to cover your goals, or start lining up what you need for your basic will. 

It can seem daunting to do all of these things at once, so start with one, gain some momentum & in just a few months you can feel awesome knowing you are all set up & prepared for the unexpected!

Whenever you're ready, there are 2 ways we can help you:

​1. The Master Your Money System. Transform your personal finances into an automated machine with our Master Your Money system. This comprehensive video course will teach you the automated system we use to serve our millionaire private client base to maximize every dollar earned.

2. Become part of our private client group. If you’re in your 30’s or 40’s, earning more that $150,000 of income, and looking to maximize every dollar earned, but need speed and convenience, consider booking a meeting with us to see if we should join forces to work one-on-one.