Future Proofing


Overview

Before you decide on a debt option it is important to think ahead about changes of circumstance that might affect your finances. This is because many debt options and strategies can lead to a financial and lifestyle commitment of one year or longer.

What is future proofing?

By future proofing we mean minimising the effects of future financial shocks by identifying events that we know will happen in the future, and thinking about things that might, or we predict will happen.

In you can get into a routine of future proofing, you can build longer-term financial resilience when your debts are cleared.

Identifying future events

It is true that not all future life events can be predictable, sometimes stuff happens that knocks the wind out of our sails. However, there are effective ways to plan for any eventuality, as well as the anticipated and predicable life events.

There are 4 main types of life events:

  • those that are likely to happen

  • those that might happen

  • those that will happen

  • those that are unexpected