August 12th, 2024 | 10:45 AM MST
Written By: Teresa Milner | Senior Wealth Management Advisor with Pearl Capital Management

Life is full of unpredictable events and surprises. No matter how carefully we plan our days, weeks, months, or even years, life has a way of deviating from the plan. The key to navigating these surprises with ease and confidence is the ability to adjust to the changing circumstances of your life.

As a financial planner, I continually remind clients that their financial plan is a living, breathing, and constantly evolving roadmap. When the real world throws unexpected curveballs, your ability to adjust to new circumstances becomes crucial. Everyone faces this kind of uncertainty, so do not let it get in the way of reaching your financial goals.

It can be frustrating to compare yourself to others and feel like you are falling short. Have you ever caught yourself thinking, “Everyone else has a bigger, nicer home,” “She’s earning three times more because she started her business at the right time,” or “They’re already retired—what am I doing wrong?”. Comparing your life to others is not productive, because your path is shaped by your unique circumstances. There is no singular right way or speed at which to approach achieving financial goals.

Financial planning isn’t a one-time event; it’s an ongoing process. It’s important to stay attentive and make adjustments as needed. Your financial plan can be derailed by many things, including, but not limited to:

1. 1. Sudden job loss
   2. Medical emergency
   3. Economic downturn
   4. Divorce
   5. Death of a spouse

However, with a financial plan in place, and the right strategies to implement, you can overcome these challenges and get your financial plan back on course. Here are a few steps to avoid derailment:

1. Assess the Situation/Embrace Flexibility
   • • By evaluating your circumstances carefully, you can better navigate the inevitable twists and turns.  
     • Understanding the facts helps you identify alternative solutions and avoid feeling stuck or frustrated. 
2. Stay Calm/Focus on What You Can Control
   • • Process what has happened and identify factors that contributed to your situation.  
     • Staying calm will help you make informed decisions as you navigate forward.
     • Empower yourself by concentrating on the controllable aspects of your situation. 
3. Review and Adjust
   • • You may need to adjust your goals temporarily. Review both short and long-term goals and adjust accordingly.  
     • This could mean you have to postpone a major purchase or delay your retirement timeline.  
     • Having flexibility in your financial plan is essential to adapt to changing circumstances. 
4. Seek Support/Take Action
   • • Friends, family, and colleagues can provide new perspectives and emotional relief.
     • A financial advisor can provide valuable guidance. They will help you assess your financial plan, develop a recovery strategy, and provide a tailored solution to your situation.  
     • Make the adjustments necessary to move forward, thus regaining a sense of control and momentum. Action will move you closer to your goals.
5. Learn From Your Experience
   • • Ensure you have an emergency fund that consists of 3-6 months of living expenses saved.
     • Contribute to retirement accounts to benefit from tax advantages.
     • Aggressive saving enables you to accumulate wealth quickly and accelerates your path to financial freedom.
     • Participate in company retirement plans that offer a match. View the match as ‘free money’ provided by your employer, which assists you in attaining financial independence.

You can overcome financial challenges in your life, and they don’t have to derail your dream of financial freedom. You can never prepare yourself for everything life hands you, and that’s okay. Plan to get yourself to the point where your finances aren’t the biggest stress point in your life.

A vital life skill is the ability to adjust when things don’t go as planned. Begin by assessing your situation and embracing flexibility. Stay calm, focus on what you can control, and be prepared to review and adjust as needed. Seek support, take proactive steps, and learn from each experience. By mastering these strategies, you can handle life’s curveballs with greater ease and confidence. Remember, it’s not the change itself but your response to it that shapes your journey.

This article was written by Teresa Milner, CDFA a Certified Divorce Financial Analyst who specializes in helping women navigate through divorce and into the next financial chapter of life. For more information, email her at CDFA@thepearlcapital.com.

Copyright © 2024 17 Capital Partners, LLC, dba Pearl Capital Management. All rights reserved.

At 17 Capital Partners & Pearl Capital Management, our expertise lies in investment management and financial planning. We’re committed to crafting robust strategies for your financial future.

This content is for informational purposes only and should not be considered as tax, investment, or legal advice. Always consult with a qualified professional for personalized guidance.