Have you set up a financial plan for the coming year? If not, then take note of these financial trends in 2022 as your guide.
The pandemic has caused much distress and distractions to peoples’ lives in the past two years. Aside from the health threats, many families have faced an unprecedented financial crisis due to sudden income loss. Businesses have closed down, and others that remained open had to make abrupt changes to keep their businesses thriving. The shift has affected families and prompted many to make adjustments to their financial plans. Will it be the same for the year to come? Read more to know the financial planning trends for families in 2022. Use them as your guide as you evaluate your plans and insurance policies.
Invest in Life Insurance
Insurance is always a key piece of financial planning, but it was only when COVID-19 took millions of lives that people truly saw how critical life insurance is. Life insurance is
a safety net in case of the untimely death of a loved one. It protects your family from financial difficulties and stress from one’s passing, and it can also be an investment that grows in time.
Do you already have life insurance in place? If so, your next step is to review your policy and perhaps include your parents in the coverage.
Track your spending
Take control of your money and keep track of your financial habits. There are many ways to do so. You can take note of your spending using a spreadsheet or download an app on your smart device. List all your income and expenses to see the accurate cash flow and understand where you can make adjustments if need be.
Involve your family in the process. Share your spreadsheet or your app with them to sync your budget. This will help everyone keep track of their spending habits, not just yours.
Look for affordable housing
Many families have opted to move houses during the pandemic. Some chose to sell their homes and profit and moved from the city to less dense areas. Others have discovered the value of homesteading.
Other families who were renting took their extra savings and decided to put it on a downpayment for a new home. With the decreased mortgage, it has become easier for families to stop renting and own a home.
Many had already been financially strapped before the pandemic, but it got worse as the pandemic spread. The death toll continues to rise, and the economy hasn’t fully recovered yet. New strains are emerging, and so we keep on fighting. This has taught us a valuable lesson – that financial stability isn’t, in fact, that stable in the face of a global crisis.
Create your financial plan for the next year and ensure that your family is prepared for any unfavorable situations to come. Save, invest in life insurance and track your spending. Call us if you don’t have a policy in place or if you want to re-evaluate your life insurance.