My financial goals right now are all about planning for the worst. I'm doing 5 things to prepare for uncertainty.
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Jen Glantz
- I've taken a lot of steps to improve my finances, but I'm not prepared for emergencies.
At the start of the year, I took inventory of my finances and realized they were not emergency-proof. If I had to deal with a natural disaster, another pandemic, a health challenge, or another crisis, my finances wouldn't hold up. Now that I'm a mom, I want to change this not only for myself but for my child.
That's why my main 2025 financial goal is emergency planning. Here are the five things I'm doing so I can protect my money and prepare for worst-case scenarios.
1. Rebuild my emergency fund
In my early 30s, I worked hard to build an emergency fund from scratch. I wanted to make sure that I had three to six months of living expenses saved up in case my income as a freelancer shifted.
When the pandemic happened, a lot of my work opportunities disappeared, and I started dipping into that emergency fund. I haven't replenished or grown the money inside that high-yield savings account in over three years.
Since my income varies and can be easily affected by world events or my own personal health challenges, It's important that I have an emergency fund in case my income drops.
While it might take me a few years to fully rebuild my emergency fund, I'm aiming to contribute $500 a month to this account so that I can get back on track.
2. Finally get life insurance
My husband and I have been thinking about getting life insurance for a few years, but finding a plan kept falling lower on our to-do list. Now that we are parents, it's essential to us that we both have life insurance policies to keep our finances afloat and provide for our daughter if one of us dies.
One of the biggest disagreements my husband and I have is over what type of life insurance plan to get. I want whole life insurance coverage, and he wants term life insurance coverage. We realized we do not need to get the same plan and have set up an appointment to talk to an agent for more information.
3. Grow my passive income streams
I've been a solopreneur and freelancer since 2016. A lot of my income depends on how many hours a week I can work and how many new projects or clients I can book. But in recent years, I've taken on more of the childcare responsibilities in our household and have cut my work hours in half.
While this is a decision I chose to make, and it does save us $3,000 to $4,000 a month in daycare or nanny costs, it also cuts down on how much money I'm able to contribute to our financial goals.
In an effort to increase my income, I've decided to focus on expanding three passive income streams. That way, I can have ongoing revenue streams that don't require my daily attention or in-person services.
For example, I just launched a suite of AI speech and vow writing tools for my wedding business and a spin-off eulogy writing tool as well. These tools require a few hours a month of my time and bring in a few thousand dollars a month in income.
4. Get disability insurance
As a solopreneur for almost 10 years, one of the biggest financial risks I have taken is not having disability insurance.
If something were to happen to me and I couldn't work because of an illness or injury, this insurance policy would provide me with a monthly income to replace what I had lost.
5. Build an estate plan
After becoming a mom two years ago, I knew that it was important to have an estate plan in place. My husband and I just never got around to working with a lawyer on one.
If one or both of us dies, the estate plan protects and carries out asset distribution, without having to involve the courts, which could be a lengthy and costly process.
If both of us were to pass away, the estate plan would specify how our assets should be managed and distributed to our daughter while she's still a minor.