You may think you’re prepared for what will happen in your life, but you’re not. There are major events that can change the outcome of your life. You may get married, have children, lose your job, or go through a messy divorce. All four of these events will not only change your life but heavily impact your finances.

Whether you choose to do these actions in life they all come with change whether it’s good or bad. These changes that you make will have a major and lifetime impact on yourself and your finances. The best thing to do is prepare. Start by saving up and do not allow yourself to get in the red. Live within your budget and save because if you have a hefty savings and you’re unemployed you can live off of the money saved up until you can find full time work or it can subsidize a part time or temporary position.

One of the most important steps you will take in your life is marriage. If you aren’t married yet, live frugally because when you decide to marry you will have two different sets of debt. It’s also important to talk about your debt and financial plans before you tie the knot. One you’re married it will be two times as difficult to pay off the debt than when you’re single.

Also make sure you know the debt your fiancée is carrying around because it will affect your finances and the stars in your eyes may disappear permanently. After the honeymoon you should sit down together and talk about your goals in life and then how to pay for them. You also need to consider long and short term savings as well as mutual funds, bonds, and etc.

The second life changing decision is to have children. They are a blessing but important steps need to taken when you decide to have children. Ideally you should have most debts paid off, good credit and both short and long term savings accounts. You should also save up because babies are expensive and it’s a great idea if possible to save up six months worth of living expenses. Another important thing to do is sign up for life insurance as soon as possible so your baby is protected financially if something happens to you.

Employment
is also a factor that can mess up your finances. Layoffs and unemployment are common in today’s world. If you still have a job make sure that part of your paycheck is going towards savings so that you can buy the necessary items to survive. Losing a job will impact your finances and if you have a spouse, children, a house a car payment and other expenses; money needs to be coming from somewhere. But once you are unemployed don’t live the same lifestyle and put on the bills on a credit card. Start by cutting back and make a list of your expenses then calculate your current income and try to cut back enough that you’re expenses are less than your income. If you’re still over the budget, cut the unnecessary spending and get rid of you’re high payments like a car or motorcycle.

Besides marriage, children, and unemployment, the big breakup or divorce is also going to change your financial situation. More than 40 percent of marriages in the U.S. end in divorce. If you are getting divorced you will face emotional and financial problems. If you’re going through a divorce meet with your financial advisor ASAP. Try to reorganize your investments and make sure that you never stop saving. You may have less money but you can still save up and live a financially independent life.

Life is unpredictable and you never know what will happen. By saving, you can plan for those unexpected turns in your life. If you aren’t prepared and have no savings, your finances can shortly get out of control. Prepare yourself and when changes occur, quickly adjust because finances play an important role in our life and they can either make it or break it.

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