Preparation for the unexpected

Each day at work I have the chance to speak with borrowers, real estate agents, and attorneys regarding financial hardships that people are having in today's tough economy. Many of these financial hardships are involuntary. People often cannot control when they are going to lose their job, have a car break down, require surgery, or even have a spouse leave them.

Certain phone calls seem to make a lasting impression on me. I sometimes find myself asking the question, "Could they have done something to better prepare for this hardship?" or "What else could these borrowers trim from their current budget in order to afford their payments until they can get another job?"

To the individual couple that had a home valued at over $1 million with $400,000-$500,000 in mortgages and only Social Security income--"Why did you not plan differently? Why didn't you think about what would happen to the mortgages when the other income stopped?"

My plea to everyone that reads this post: Please plan for the future! Think about what you need to do to weather the storm if you lose your job. How will your spouse make the mortgage payment if you die unexpectedly? What will you do if you have to get surgery? Please prepare for the unexpected!