In financial planning, it's important to have flexibility to handle unexpected large expenses without impacting your overall financial stability. This means being prepared for sudden costs like medical emergencies, home repairs, or car breakdowns without derailing your financial goals. One way to incorporate this flexibility is by having an emergency fund set aside specifically for these situations.
Additionally, your financial plan should include provisions to accommodate changes in your financial situation or goals. This could involve adjusting your budget, savings goals, or investment strategy based on life events like getting a raise, starting a family, buying a home, or retiring. By regularly reviewing and adjusting your financial plan, you can ensure it remains relevant and effective in helping you achieve your long-term financial objectives.
