What would happen to your home, your car, your family if you suddenly faced the unexpected? Physically or mentally not able to work due to an injury or illness for a month, 6 months or more?
One month after our blended family wedding with our six boys, my new husband suffered a spinal injury then lost his job in construction. Suddenly my one income went from supporting a family of 3 to a family of 8 with also increasing medical needs.
Suddenly instead of celebrating being a newlywed after 15 years of divorce, I became a newlywed caregiver. My life is a living example of how fast an injury or illness can shift a family’s finances.
Over 1 in 4 of today’s 20 years olds will become disabled before they retire according to the americanbar.org
An article in the American Journal of Medicine reported that 62% of bankruptcies were due to medical debt, the average person being a 45 year old, well-educated, middle class homeowner with health insurance. What was the #1 factor for filing the bankruptcy? Income loss.
I am not sharing statistics or my story to scare you but to share the keys to building financial resilience for life’s unknowns. Growing up with a financial planner father in the founding days of the 401k plan, I heard about planning for retirement since I was 3 years old. My father would draw out money concepts onto a napkin at breakfast to teach my sister and I key financial concepts every Saturday morning. (And he still does to this day!).
While planning for someday is important, there is an urgent need to plan strategically for today. You should be able to live life to its fullest now. Travel, spend time with family, work less hours and care for our bodies more. Growing up in the hustle culture, I was always preparing for the next stage in life instead of living in the moment. I do not want any of my 6 sons to do the same.
Helping the younger generation build key protection systems that ensure financial resilience today for life’s unknowns has become my passion. For myself, my sons and for you.
Just as a tree relies on multiple roots to stay firmly planted and thrive, we too need multiple income streams to make sure everything around us is secure no matter what unexpected storm may suddenly come to blow us over. In Jeremiah 17:8, we read the following verse:
“He is like a tree planted along a riverbank, with its roots reaching deep into the water—a tree not bothered by the heat nor worried by long months of drought. Its leaves stay green, and it goes right on producing all its luscious fruit.”
From this verse, I see this financial guidance God is giving us to build financial resilience. Life’s unknown changes can bring the heat of increasing financial needs along with drought of resources. By setting your financial foundation close to His strategies, planting diverse roots of income sources near His continuous flow, we can endure financial challenges while still producing fruit (income) for a lengthy period of time.
What are Challenges when Life Changes without Multiple Income Streams?
Loss of Primary Income: When the main source of income is lost, it can lead to immediate financial stress.
Medical Expenses: Injury or illness often brings unforeseen large amounts of medical bills, straining finances further.
Debt Accumulation: Without a steady income, debts can pile up quickly, leading to high-interest payments and financial pressure.
Inability to Cover Basic Needs: Essentials like housing, food, and utilities can become difficult to afford.
Mental Stress: Financial instability can cause anxiety and depression, impacting overall well-being.
Limited Savings: Without diverse income streams, it’s challenging to save for emergencies or future needs.
Dependency on Others: Financial hardship may force reliance on family or friends, straining relationships.
Reduced Quality of Life: Financial struggles can diminish your ability to enjoy life and pursue passions.
Retirement Plans at Risk: A single income source under threat can jeopardize long-term financial goals, including retirement.
Lack of Financial Growth: Sole reliance on one income stream limits opportunities for wealth accumulation and financial growth.
What are a few Strategies for Creating Steady and Passive Income Streams that can endure a sudden life change?
This is a very individual discussion and should be answered by your financial advisor. (If you don’t have one, I’m happy to share my team with you). But I want to give you a few options to start becoming familiar with that I will be talking about a lot.
I want you to consider strategies that provide continuous flow, resources like a stream. This stream of Income should come from several diversified roots that absorb no matter what drought, heat, illness and injuries life brings.
From living benefits in a term life insurance policy, built up cash value in a family bank (whole life policy), interest, dividends, digital products, rental properties to affiliate marketing, in today’s world we have endless possibilities. The key question I would like for you to consider: is there was a drought due to life’s changes, would these strategies be able to provide for you and your family for at least 12 months.
Then ask yourself the following:
Would these strategies provide a reliable and consistent flow together?
How would your roots strategically tap in?
Do you have automations set up that allocate the income, pay bills, pay taxes?
Do you have an outside party you can trust to oversee if for some reason you were not able to make decisions?
There are many more to consider, but these are a starting point.
By creating multiple streams of income, we can root ourselves firmly in financial stability, ensuring we thrive even during extended hard times. As a new blended family of 8 that suddenly went from one income supporting my two sons, to now the same income supporting a disabled husband along with providing support for his sons, preparing families to be financially resilient for droughts greater than one year is an area I am very passionate about.
Start small, stay consistent, and continuously seek new opportunities for financial growth and security. With faith and wise financial planning, we can each be like that tree by the water Jeremiah was talking about. Wealthy with evergreen and fruitful income, we can build a firm foundation that provides financial resilience through life’s unknowns.
If you are looking for additional help, come join us over at www.ExpandingtoEnough.com where I offer a FREE weekly challenge to heal your money mindset before the weekend begins, or schedule a personal session with me to build your financial resilience today!
With Wealthy Blessings,
Tricia
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