Whenever you have a serious life shake-up, you might lose sight of your finances. However, the right personal financial templates are sure to help you stay in control. In this blog, we’ll highlight how to keep your finances together when everything changes.
Navigating Major Life Changes
You never know what tomorrow might bring. There are plenty of situations that may force you to take a second look at your finances. These include:
- A career change
- Unemployment
- A divorce
- Becoming a homeowner
- Receiving an inheritance
- Paying for college
- Retirement
- A health scare or crisis
Any one of these could massively affect your overall situation. Even positive changes could lead to financial problems if you aren’t careful when budgeting. Ultimately, you’ll likely need to rethink your whole savings plan.
If possible, build a full budget before these changes take effect. For example, you shouldn’t buy a home unless you’re sure you can manage the mortgage. Every life change could snowball into serious debt without proper planning.
General Personal Finance Tips
There are plenty of (small and big) ways you can keep your finances under control. Though not all of these will fit your situation, the right tips will put you on the right path. Above all else, you’ll need a cautious approach to any budget you put together.
With this in mind, here are seven general tips for managing your finances:
- Limit expenses: If your income might be unpredictable, spend as little as possible. Your savings today could make a big difference tomorrow.
- Build an emergency fund: Save at least 3-6 months of income. This will act as a safety net if your situation changes even further.
- Check your taxes: Your life change might have affected your tax bracket. Contact a tax professional to figure out any extra obligations.
- Update your insurance: Always check for new insurance plans. For example, you may take a new medication that another plan fully covers.
- Evaluate your estate: Your life change might affect what you can give to your family. Be ready to change your will to reflect this.
- Manage your debts: You must put as much as possible towards resolving debts. If you struggle, consider the avalanche or snowball methods.
- Seek support: Don’t be afraid to ask friends or family for help. Support groups can also give you the help you need to push forward.
When You Need an Online Form
If you ever need a special form or document to help with your finances, these often cost a lot. In some cases, you’ll spend hundreds on a lawyer to help draft a legally binding template. If you’re in a difficult financial situation, this will simply add extra stress.
Online templates let you access dozens of useful forms and documents. These are often free or low-cost. Financial forms can make it easier to build a budget and even take out loans. You can even find ones that fit special state requirements, such as witnesses or notarization.
Examples of Useful Financial Templates
Organizing your finances helps you track payments and get a better view of your situation. With the right template, you’ll even find it easier to negotiate your debts. With this in mind, here are a few templates worth checking out.
Bill of Sale
These documents formally set out transactions. You’ll avoid future disputes and know the sale is legal. You can use them to track payments and ensure the other side meets their obligations.
Invoice
If you provide goods or services for someone, you’ll need a robust invoice to guarantee timely payments. It must include a clear description of the items and your business name, if applicable.
IOU
An “IOU” acts as an informal way of setting out a person’s debts. These work best when they’re, for example, between you and a family member. However, these are still enforceable in court.
Loan Agreement
Serving as a more formal IOU, a loan agreement also outlines a debt’s full terms. It’ll set out the schedule for paying it back and give details on the debt’s interest rate.
Pay for Delete Letter
You can send this letter to a creditor to ask them to remove a debt from your account. This helps improve your credit score, allowing you to take out bigger loans.
Payment Agreement
This is similar to a loan agreement but focuses primarily on debts rather than the full loan. You’ll have a better idea of your upcoming debts and how to repay them.
Promissory Note
Another loan agreement-adjacent form, a promissory note is more informal and only affects the borrower legally. If you use a secured promissory note, you must provide collateral.
Final Thoughts
Big life changes can happen at any moment – and many of these can harm your finances. You’ll need robust online documents to help you navigate these issues. With smart budgeting, you can also weather the upcoming storm.
