I became a widow at the age of 46. I regret that I was not better prepared financially

When my husband accepted the first foreign diplomatic mission, I quit my job. After returning to the States, I started to rebuild my career, but I was far behind my peers when it comes to earnings and savings. However, I did not care too much about our financial situation or slowly growing 403B pension account. We were not very preventive – we repaid mortgage loans, installments for the car, and our children went to private schools. We lived in the conviction that the state would protect us.

The insurance policy saved me at that time

I was alone with an annual salary of 42 thousand. hole. (approx. PLN 165,000), two teenage daughters and an older mother, whom I also looked after as an only child. Fortunately, my husband had a good life policy (he often jacked that “after his death I would be well set up”). It was a real salvation for me. However, I had to understand how to manage these means reasonably.

Financial experts recommend to have an emergency fund for three to six months of life. If someone does not know finances, unpreparedness only worsens the situation. I knew the general picture of our situation, but we always made decisions about daughters' education and buying and selling a house or a car together.

As a beneficiary of a federal life policy, I received a one -off benefit. Initially, I was given wrong information – I thought I had to keep this money on a low -interest settlement account. Only when I found out that I could transfer them to a higher profit account, I felt great relief. First of all, I wanted not to invest, but on ensuring a continuous supply of funds for daily expenses. I used the help of an adviser in our Credit Union and invested money in instruments that were supposed to keep capital, and at the same time bring income to supplement my modest salary.

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I created a long -term financial plan

The advisor offered me solutions that were to help implement the plans we had towards my daughters. I learned with relief that I would be able to leave my younger daughter in a Catholic high school and allow older to continue studying at the current university. Then I repaid some of the highly interest liabilities, which significantly relieved my budget and allowed to limit payments from investment accounts. Later I dealt with issues related to inheritance planning – I updated the will and beneficiaries of all financial accounts.

Although I knew how to use our bills software and log in to bank accounts, the fact that I did not have my own savings and only a ten -year internship in the American pension system was anxious in me. The perspective of independent pension overwhelmed me and I regretted that I was not more reasonable in terms of saving before. Many widowers and widows take huge – and often missed – financial decisions. I, shortly after my husband's death, I was considering selling a house. Fortunately, a friend of the accountant advised me to wait until I was in a better mental state. It's good that I listened to him because the value of the property increased, and after 15 years I sold it at a profit.

I became a young widow and I learned a lot about financial security

In the support group for people in mourning, I saw with my own eyes how others were forced to sell houses or move to family after losing their partner's income. I know that I was lucky – thanks to my husband's foresight, who secured the future, although he was no longer part of her. As my life insurance was only an employee addition earlier, I bought an additional policy so that my daughters had security if my income fell or if I couldn't work anymore.

Although I learned a lot after my husband's death, I regret that I didn't know more about financial planning before. The burden of responsibility for the present and financial future of the family was huge and was still worsening my mental state. However, the use of professional help and conversations with loved ones and a bit of strategic planning allowed me to relieve myself a bit right after this tragedy.

The above text is a translation with American Business Insider edition

Crowd: Mateusz Albin