Money – like your socio-cultural and personal beliefs- is basically a “mindset”. Mindsets change over time. So does the way in which you manage your personal finance. In fact, changes in your life goals necessitate changes in your financial goals as well. The way you plan your finances changes with changes in the way you start seeing life. These changes may be “forced” or voluntary. Life may either choose to throw curve balls at you or else roses. Today, you may be staring at an uncertain financial future because of your impending divorce – or else – at a fortunate turn of events where you are in a position to even contribute to charities (that you had always wanted to do but couldn’t – quite simply because you had no opportunity to do the same).
Today, in the course of the post, we’ll discuss a few tips with the help of which you should bring about changes in financial planning when your life goals or situations change. Read on to unravel.
You want to dedicate yourself to full-time volunteering activity
There is no dearth of inspiration around. The kind of financial fortune you have always had – actually let you make significant contributions to the society. While all this while you were happy contributing to non-profit organizations while enjoying your abundance, you have now decided to dedicate yourself to full-fledged volunteering activities. It could have been that trip to a village inhabited by impoverished families that heralded the change in you. The premium luxury retirement village that you had invested in – may not really be in your scheme of things anymore—quite simply because you think that such opulence is mere selfishness, when there are so many people struggling to meet ends.
That brings us to the fact that retirement (or rather financial) planning is not only for the ones living from paycheck to paycheck but also for the ones who actually enjoy excesses. Your finances will definitely be impacted by your decision.
You will need to figure out the kind of money which will be required to fulfill your “social” goals—are your retirement savings enough or is there a post-retirement part-time job on the cards?
The retirement villa you had invested in – is now useless. You cannot let it lie unused. Figure out whether you would want to rent it out or sell it off.
Since you have understood the simple joys of life you will no longer be spending on expensive bags, clothes, shoes, and jewelry. This will obviously lead to lower expenses. Lower expenses mean that the amount of money that you will be drawing from your saving is lower as well. The expectation of your return from the corpus will be lower as well.
You’re getting a divorce
That calls for long-term financial changes as well. All this time, your finances were understandably tied to that of your partner’s. You might as well have been completely dependent on your partner as far as keeping a track of finances was concerned. The key is to start tracking. As you sense that a divorce is inevitable, do make sure that you are slowly taking hold of your own finances and preparing a future budget well ahead. Revisit the ways you have been handling finances all this while.
Which needs were exclusively met by you? Do you think that you’ll be seriously cash-strapped once you’re single? Have you already started looking for an apartment for rent? Is that within your budget? Would you have to reach out for quick cash assistance in the form of Lendgreen quick loans online to fund your needs? Invest time in tracking down possible expenses post divorce and weighing your ability to meet them. Do bring in joint investments as well. Bring all this before reality hits you—i.e. before you’re actually divorced.
You’re changing your career route
You might as well be on the verge of leaving your job to materialize your entrepreneurial dreams. Do not forget that business capital is not only meant to sponsor initial business needs like hiring, setting up inventory and zeroing in on online or offline store addresses but also it acts as a cushion when it comes to handling cashflow crunch. What was your salary? Can you expect a similar turnout in the first few months? If not, are you ready to embrace the lifestyle changes required to compensate for the gap?