There is no individual or company that can claim financial independence. This is so because you need other sources of finances to supplement your primary sources of income. In life, you do not walk alone and if you do, the higher chances are that you don’t go far. Finances solve a lot of matters. It is most likely that you have monthly bills to pay, kids to feed and educate, and investments to make, not forgetting the everyday expenses. There are various life mishaps that may come in hard and challenge you financially. Without further ado, below are some life mishaps that can be challenging financially:
1. Health Issues
This is one of the many factors that may contribute to financial problems. If for instance, an individual has a chronic disease, they may be in and out of the hospital, every once in a while. In addition to this, the medical bills may pile up with time, constraining them financially. While observing proper lifestyle habits such as cutting back on alcohol, investing in a good eating regimen, and exercising regularly can help improve your health and prevent some chronic illnesses, it is no guarantee that you will never fall victim to them.
Just like health issues, physical or personal injuries in both adults and children may also contribute to financial constraints in a big way. This is especially the case if they lead to disability, not forgetting that some severe injuries can be overly expensive to treat, as well as the fact that they can even lead to trauma and other symptoms or health effects that can be financially draining to address. David Preszler, a personal injury lawyer from Preszler Law, explains that symptoms of brain injury in children can include poor coordination, fatigue, irritability, sleeping and eating changes, and disinterest in toys. While it may not change or reverse the occurrence, getting a professional personal injury attorney can help reduce some of the financial burdens after injury, especially if the accident happened as a result of someone else’s ignorance or negligence.
3. Death of a Spouse
If by misfortune, death strikes and you lose your spouse, it can be a huge blow not only to you but the whole family. This may have a great impact as far as the finances are concerned, especially if the partner left behind has no prior knowledge of managing finances or doesn’t have a solid source of income. In addition to this, some spouses may pass away, leaving behind some cash in their savings account. Now, unless the other partner will opt to work with an attorney in recovering and accessing these accounts, they may face some legal challenges and roadblocks. This experience in life will not only overwhelm the one partner, but in addition, it will cause them financial challenges. Having a legal financial advisor is a solution in case this life mishap comes about.
4. Unpaid Debts
Individual finances may not always be sufficient. Now, in order to meet some financial obligations and to have a supplement, a person may end up approaching a lending institution for credit. There is no danger in applying for credit, the problem is failing to honor the payment terms. A loan can turn out to be a mishap in life when, for instance, the lending institution steps in to claim your assets in case you’re unable to repay the loan. This, in the end, may turn out to be a challenge in your finances.
Did you know that there are more cars on the roads today than in past centuries? This may be a contributing factor to some of the many road accidents. Now, it’s not only road accidents that can cause you financial problems. Even slipping in the bathroom is in itself considered as an accident. The problem is that not so many people are insured against accidents, be it road accidents, work-related accidents or even those that happen in the house. All the same, an accident can exert a huge toll on your finances, especially if you don’t have insurance for the same.
6. Theft and Scams
Sometimes in life, it is common for thieves or scammers to acquire individual credit cards illegally. There so many illegal purchases globally. These are purchases that happen without the credit card owner’s consent. However, without correcting these errors, one can end up having difficulties in clearing debts of money they never utilized. Worse still, is the fact that an individual may fail to access future credit before getting scrutinized by the Credit Reference Bureau. The above life mishap can bring in a financial challenge if not detected and corrected early.
7. Bad Weather Condition
Sometimes in life, the weather has been blamed as being the cause of major financial difficulties. This is especially true in production companies as well as individual businesses. At some point, they may be affected by changing weather patterns. For instance, ice cream production companies and soft drink companies may experience changes in their profit margin, say for instance, during winter. This is because the consumption pattern is low during the winter and higher during summer. More still, an individual in the transportation industry may experience challenges, especially when transporting perishable goods in wet weather conditions. This is in the event where they get stuck and spend too much time sourcing for recovery services. They’ll incur additional costs, not forgetting the time lost in such situations. During some weather conditions, there is a tendency of commodity prices to hike. This, in turn, affects the everyday consumer. Furthermore, catastrophes such as floods, storms, and tsunamis can bring you or your business to its knees as it destroys property and causes other damages, including the loss of lives.
This is one of the life mishaps that can affect your financial position. When this happens, you can easily lose your financial independence. This is especially the case if you had a joint account with your spouse. It, therefore, becomes harder to access your account when one partner is in absentia. Divorce is such a bad experience because it can make you poor in the end result. There are so many aspects at play, including responsibilities like child support, expenses incurred in legal processes, among many other things that can burden you financially. The situation when one goes through a divorce can get even worse, especially if one partner was unemployed. In this case, they are left with limited resources and some financial responsibilities become harder to achieve. In the long run, where one fails to meet such financial needs, stress and depression can manifest, which even make it life harder.
Life mishaps can turn out to be a bad experience financially and without their knowledge, drag an individual into financial woes. The above are just but a few of the situations that one should get prepared for in advance where possible. There is a need to have a good financial strategy, which can help one survive some of these forms of financial challenges.