Jen Glantz has taken steps to improve her finances, but she realized her finances were not prepared for emergencies. As a new mom, she wants to change this for herself and her child. Her main financial goal for 2025 is emergency planning.
Glantz is doing five things to protect her money and prepare for worst-case scenarios. First, she is rebuilding her emergency fund. She had built up three to six months of living expenses, but dipped into it during the pandemic.
She is now aiming to contribute $500 a month to replenish the fund. Second, Glantz and her husband are finally getting life insurance. They have been putting it off, but as parents, they feel it is essential to keep their finances afloat and provide for their daughter if one of them dies.
Third, Glantz is growing her passive income streams.
Glantz’s emergency financial planning goals
As a solopreneur, her income depends on how many hours she works and new projects she books.
She has taken on more childcare responsibilities, cutting her work hours in half. To increase her income, she is expanding three passive income streams, such as AI speech and vow writing tools for her wedding business. Fourth, Glantz is getting disability insurance.
As a solopreneur for almost 10 years, she has taken a big financial risk by not having this insurance. If she couldn’t work due to illness or injury, disability insurance would provide her with a monthly income to replace what she lost. Finally, Glantz and her husband are building an estate plan.
After becoming parents, they knew it was important to have one in place. An estate plan protects and carries out asset distribution without involving the courts, which could be lengthy and costly. It would also specify how their assets should be managed and distributed to their daughter if both of them were to pass away.
Image Credits: Photo by Towfiqu barbhuiya on Unsplash
