LIFE doesn't always go as planned. Unexpected things happen: a broken air conditioner, a leaky roof or a minor car accident — these can occur at any time, often when we least expect them. It's impossible to plan for everything or prevent every mishap, which is perfectly captured by Murphy's Law: "Anything that can go wrong, will go wrong."

When these situations arise, it becomes our responsibility to be prepared. While we can't predict or guarantee these events will happen, it's wise not to be caught off guard. Think of the spare tire in your car, or the life vest on a plane or boat — you hope you'll never need them, but they're there, just in case. With that in mind, it's always best to be ready for life's surprises. Here are a few tips to help you prepare.

Anticipate and contemplate. Think of the various things and events that can happen: in your life, in your family, with your properties. What you can anticipate and contemplate, you can prepare for. For instance, if you have a car, then it may be possible that your car or some of its parts can have a breakdown anytime, or your roof would be needing a repair.

With you or your family, it could be that one would be in a medical emergency or figure out in an accident. It could also be the case that things may happen with your siblings, parents or relatives that you might need to financially support them. But whatever the case, anyone can reasonably look into the different possibilities that can happen such that those can be determined and mapped out.

Backup. I once had been accidentally bitten by a cat, and not a few times that I figured out in car accidents of which I am thankful for that in all, I came out alive. I am also not unfamiliar with car repairs: once, my air conditioner broke down in the middle of Skyway, and there are times when signal lights would go busted. In all cases, they required a substantial amount of money, of which I am lucky enough to be covered.

In the case of the cat bite, the total bill was P72,000 for the anti-rabies shots — and during that time, I was covered with an HMO, so I did not have to shell out a single centavo. With car accidents, my car was covered with insurance, of which I only have to pay minimally. As for the various repairs needed with my car, our family always has an emergency fund (more than six months' worth of our expenses), so I do not have to scramble looking for cash or go into loans.

There was also a time when my eldest had to be confined for dengue, of which she also was covered by an HMO, so again, our expenses have been minimal, of which we also dipped into our emergency fund for this. Of course, I am covered with life insurance, enough to provide my family with expenses until they are able to recover financially.

These items: emergency funds and insurance are then your back-up funds should these events happen to you or your family, giving you the means to pay for the necessary expenses and thus saving you from stress in finding the money needed.

Backup to the backup. There are 36 letters in the alphabet, and if Plan A does not work, there is always Plan B and Plan C, etc. So with that, backups can also be backed up for extra cushion. For instance, apart from the six-month emergency fund, we have established at least three more months of emergency fund should there be a need to fund a huge financial requirement.

When I quit my day job to focus on my financial planning profession, I am thankful that we have more than enough funds to support us while establishing the business and therefore not compromise our family's needs. Apart from our living expenses, I also have supplemental insurance for our children's education needs from pre-school up until they graduate from college, thereby relieving my wife with the stress of having to work for and fund these.

In sum, financial planning is not only about planning and preparing for your goals but for scenarios and events that may occur and have a negative financial impact on your finances. This would provide you with the necessary safety nets so that you can readily achieve your and your family's dreams stress- and worry-free.

Rienzie P. Biolena is a registered financial planner of RFP Philippines. He is president and chief financial planner of WealthArki and Consultancy, a financial planning firm. Learn more about personal financial planning at the 108th RFP program in October 2024. To inquire, email info@rfp.ph or text to 0917-9689774.

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