A recent study shows that as many as 64% of Americans feel financially stressed in 2022.
If you’re among those who are constantly worrying about your cash flow, a costly life event can send you over the edge.
Everyone’s definition of a major life events list varies, but there are some financial hiccups that we can all relate to.
What Are Major Life Events?
Major life events refer to instances that change your life forever. They include things like the birth of a child, a wedding, or a divorce.
Not all of these things create insurmountable financial hurdles, as long as you can plan for them. Unexpected events and upheavals are the ones that can cause financial emergencies.
Cash-Sapping Major Life Events List
If you have any emergency funds saved up, three major life events can eat into your stash in no time at all. They are:
A Death in the Family
The death of a loved one brings huge emotional turmoil, and it often comes with financial stress, too.
Not only will you have funeral expenses to account for, but if your spouse dies, you’ll also need to make do without their income.
Life insurance can significantly the death benefits payouts could significantly ease or eliminate all of these financial burdens.
Any injury or illness that prevents you from earning an income creates major financial stress and could result in you losing your job.
On top of that, you’re likely to face hefty medical bills, too.
A faulty vehicle can seriously hamper your ability to earn money, especially if you use it to get to work.
You can get by for a little if you live in a city with a good transport system, or you can carpool with co-workers, but these are never long-term solutions.
If you don’t have access to these solutions, you could lose your job, resulting in even more financial distress.
Losing your job is a devastating life event that can plunge you into serious debt fast. Your bills don’t stop when you lose your job.
If you previously earned a good income, you’re likely paying off big expenses like a mortgage.
It takes time to find a new job, and without an income to fall back on, you can find yourself worrying about where you’ll get your next meal from.
What Are Your Options for Fast Cash?
A loan from your bank can help you out in these circumstances, but not everyone has access to these benefits quickly, especially if your credit score is below par.
Fortunately, if this applies to you, alternative loan options are available online to see you through these challenging times. You can also try crowdfunding or borrowing money from family and friends.
Everyone goes through at least some items on this major life events list at least once.
When your turn comes, you must seek the financial help you need as soon as possible. Otherwise, you could end up with snowballing expenses to add to your stress.
Browse our blog if you’d like more good advice to help you cope with financial turmoil or avoid it altogether.