What can cause family financial issues

There are many challenging aspects to family life, but the one that always seems to be beyond our grasp is the financial side of things. There’s a reason why money is the number one cause of arguments among couples. Even if we can take a step back and think logically about things, which can help to reduce the intensity of a negative reaction, that doesn’t remedy financial problems if they exist. In this blog, we’re going to take a look at a handful of examples of things that can seriously derail a family’s financial footing and prosperity. 

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Lifestyle Inflation

Desire is never too far away. If we get a well-paying job, we might say that we’re going to set aside a portion of the income to improve our finances, but as soon as we get that paycheck…there’s a strong temptation to hit the stores. Lifestyle inflation is a real problem that affects many families, yet you rarely hear people talking about it. If you get a promotion, you’ll have to work extra hard not to let desire overtake the sensible course, which is to invest in making your family’s financial health all the more robust. 

Losing a Job

Of course, lifestyle inflation isn’t the worst thing in the world — it does mean that there’s money coming in. If the breadwinner loses their job, then the family will be in for a rough period. Very few people live with the understanding that they could lose their job, but it’s a lot more likely than people realize. In the coming decades, it’s estimated that around 40% of jobs could be lost to automation, and no, not all of those jobs are manual jobs. To prevent this from becoming an issue in the future, it’s a good idea to think about how future-proof your career is.

Injury or Death

If you lose a job, then at least you’ll know that you could get another one, at some point. If the breadwinner is severely injured, or, worse, dies, then the family’s financial future will look a lot bleaker. If you find yourself in this position, then it’s important to take action. If the breadwinner dies suddenly, such as in a car accident, then speak to a wrongful death car accident attorney. They’ll have the knowledge and experience needed to ensure that you can get the financial compensation that you deserve. 

External Factors 

Finally, there are external factors. People can sometimes fall into the trap of believing that they’ve built their fortune on their own, but this is never true — it’s the strength of external factors that influence their success. If the economy tanks, then all the independence in the world may not save a family. While this is, of course, something that you can’t have too much of an influence on, it’s not as if your influence is zero. You can vote for people who you think will be a safe bet for your job/the industry/the climate, and hope they win. 

This is contributed post and therefore may not represent the views and opinions of this blog or its author.

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