Something that may have flown under most Americans’ radars recently was a financial stress test the Fed performed on select U.S. banks to gauge their strength and ability to weather a crisis. In this simulated economic panic, all 33 banks that were tested passed. That’s encouraging news.
Would your finances pass a stress test? Now is a great time to find out by asking yourself these 3 questions:
1. Do I have enough savings to cover 3-6 months of living expenses if something unexpected happens?
2. If my income dropped suddenly by 20-30 percent, are there any non-essential expenses I could cut back on or eliminate to free up cash flow in a pinch?
3. Does anyone else know my wishes about financial and/or healthcare directives if the worst should happen to me?
If you answered no to any of these, we should talk. Working together, we can help you feel better prepared to face life’s inevitable disruptions. These articles can help you understand some of the issues stressing people out recently as well. Let me know your thoughts or if you have questions.
My team and I wish you a joyous Independence Day celebration filled with family, friends, and the joy of freedom!
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