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The Importance of Having a Financial Plan

What if life suddenly changed for the worst, and you were left in the wakes? Would you know what to do financially while grieving? Would you have options, or would you just be left wondering “what next?”

I know that this isn’t something we like to talk about. Nobody wants to imagine a world where tragedy strikes and takes away their loved one. But let’s face it. We need to talk about what happens when a family is left behind without their breadwinner. I lost my dad two years ago, and I don’t want anyone to go through what I did.

 

Going into financial crisis after the loss of a loved one is all too common. Protect your family by having a financial plan for emergencies and tragedies.

 

My Family Tragedy

So what would you do? After my dad’s sudden death in a car accident, I looked around and I realized that everyone else was as lost as I was. My dad had always been the glue to my entire family. His parents, brothers, and sisters were all wondering what to do from this point on. Wondering how we were going to pay for the funeral; How we were going to cover the bills; How we were going to make it without our rock. My dad was the person that always had the answers, and this time, we didn’t have any.

My mom completely checked out. I knew that I had an important part to play, and I did everything I knew to help. Luckily, I was close enough to my parents that I knew where to look for important documents, and I knew some of the passwords that were needed. After finding what I was looking for, the reality hit. We were in a downward spiral with no plan to handle it. 

 

Shopping For Life Insurance

My parents were always huge believers in benefits, and we had discussed life insurance many times. I was panicking as I remembered a conversation that I had with my dad about two weeks before. He had been shopping for a new life insurance policy. Since he had a full-time job, it was hard to find the time to research for a new plan. He didn’t know that there were people that would help him shop for the best plan for free.

Since I have become a Financial Planner, it is devastating to see how many people are either underinsured, uninsured, or don’t have what they think they have. My family is not alone in this situation. It is happening all over the nation.

When I found the packet that I thought contained all of the answers, my family looked through it all and learned that the policy had expired a few months before. I found myself trying to figure out how to keep our lives from falling apart without my dad around.

 

Related: My Amazon FBA Failure: Retail Arbitrage

 

Our Financial Arrangement

Chris and I were teen parents.  Long before the accident, we had made a commitment to my parents and my Grandpa. My Grandpa had bought a house to rent that was split into two different apartments. After some discussion, my parents had decided to rent to own through him. 

We split all of the bills. It was a great way for Chris and me to save our money, and for my parents to put extra towards the mortgage. After a few years of this, though, we were ready to be on our own. The year of the accident, Chris and I had just bought a major project house. We had plans to move into it by the end of June. On May 14th, only two weeks after we had closed the deal, we lost my dad in the car accident.

We had just taken on a large purchase with many time commitments. My parents had planned to adjust to their more costly living expenses as well. Suddenly, it was just my mom and an empty house. 

 

What next?

Chris and I decided that we would stay with my mom and try to work on our home instead of moving right away so that my mom wouldn’t be left alone. We were afraid that if she was, things would only get worse for her. The financial strain was such a huge stressor for all of us. Trying to cover our bills and help my mom in every way we could. Even worse, I was struggling to keep up my normal frugal lifestyle through the stress, so our day-to-day expenses were going up instead of down.

I stopped couponing and bringing in the little bit of money that I had before. I was burning everything I cooked for months. Finally, I caved and started buying more expensive convenience food just to feed my family.

Then, when I finally started to be able to focus, instead of focusing on being frugal in my home, I just wanted change. Anything to get me out of my rut. I was ready to take the next step in becoming an entrepreneur and started Amazon FBA. It never crossed my mind to do both.

 

Having A Financial Plan Is Important

It has taken a long time to dig out of the hole that we fell into when we lost my dad, both emotionally and financially. He was an amazing man. I miss him every day, and he is a huge motivator for me to help change the lives of everyone that will give me the chance to help them.

Money could never replace him, or take away the pain of losing him, but, I wish that we could have had the opportunity to grieve. To support each other with love and kindness rather than struggle with the tension of handling his loss without any money.

It took about a year before Chris and I were able to really start processing our emotions because we had all shifted into survival mode just trying to get by. Chris, Me, my Mom, even my brother, and my Grandpa all paid the price of not having a financial plan in place. I can tell you that after losing one of the most important people in our lives, a challenge was the last thing we needed.

If you or your husband died tomorrow, what would happen? Would you have a financial plan and all of the information that your partner would need to keep your family running? Because that is the reality of not being prepared. Tragedy happens all of the time, and often families are left in the wake, just like mine was. I offer free financial reviews that will help you protect your family and reach your goals. Please reach out to me at keri@familiesandfinance.com so that I can help you avoid living the same nightmare I did.

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