Financial Planning Tips to Help You Navigate Unexpected Changes in Life

Estimated read time: ~6 minutes
Reviewed by: Franklin Mohri, CFP®
Certified Financial Planner ™

Summary: You’ve carefully crafted your life plan, outlining each move and financial goal. Yet, life takes a sudden, unexpected turn. Learn how you can manage financial emergencies with these useful financial planning tips.

You think of yourself as a sensible spender who plans ahead and lives within your means. Suddenly, you receive distressing news from your bank, your mortgage payment is likely to go up. Or perhaps a loved one needs extensive medical care, causing unforeseen medical expenses.

If you’re experiencing unforeseen expenses and worried about your financial future, you’re not alone. In fact, a 2025 report from CNBC revealed that 73% of respondents feel financially stressed, underscoring the importance of financial planning for every adult.¹

Life’s unforeseen curveballs can throw a wrench in the works of your well-laid plans. But by having a solid financial plan that takes into consideration unexpected expenses, you can more likely weather these financial storms.

Franklin Mohri, a Certified Financial Planner™, says, “For many professionals and families approaching retirement, these moments highlight why financial planning isn’t just about investing — it’s about creating a clear strategy that can adapt as life changes.”

Here are some valuable financial planning tips to help you navigate unexpected changes in life with resilience.

1. Build an emergency fund for life’s curveballs

When it comes to financial management, having an emergency fund is vital. Life changes can happen in an instant, so having a financial safety net in place is a must if you want to remain financially independent and as debt-free as possible.

Make it a priority to build an emergency fund that covers at least three to six months’ worth of living expenses, ideally in a separate savings account.

Mohri adds, “For households with higher incomes, business ownership, or variable compensation, it may be wise to maintain even larger reserves to help protect your lifestyle during periods of uncertainty.”

Ensure you save a portion of your income regularly into this fund. If you ever need to dip into your emergency fund, try to replenish it as soon as you are able. This fund will provide a buffer against unexpected events like job loss, medical emergencies or sudden expenses.

2. Review and update your insurance coverage regularly

Another important aspect of financial planning is ensuring you have adequate insurance coverage. Unexpected events can wreak havoc on your finances, but having the right insurance can help provide some security and peace of mind.

Ensure you have appropriate insurance coverage for your health, life, disability and property needs.

“As your income, family responsibilities and net worth grow, your protection strategy should evolve as well,” says Mohri. “Many professionals overlook this step and remain underinsured during their peak earning years.”

Review your policies regularly to ensure they meet your needs and adjust them as necessary. Adequate coverage can make a significant difference in navigating through unexpected changes without compromising your financial stability.

3. Diversify your investments to manage risk

Financial professionals frequently emphasize the need to diversify investments to help protect your assets. Spreading your investments across different asset classes can help reduce risk and maximize returns.

Doing so can help protect your finances from unexpected events such as market fluctuations or economic downturns.

However, diversification should also be aligned with your long-term financial plan, retirement timeline and overall risk tolerance — not just market performance.  Keep in mind diversification does not guarantee greater returns or against the risk of loss in a declining market.

Before you invest, however, consider seeking investment advice from a Mutual of Omaha financial professional to help you build a diversified investment portfolio that aligns with your goals and risk tolerance.

4. Regularly adjust your budget based on changing needs

Creating and sticking to a budget is an integral part of financial planning. So, make it a priority to regularly review and adjust your budget to future-proof it from any unexpected changes.

For many families, budgeting isn’t about restricting spending — it’s about creating clarity around where your money is going and ensuring your lifestyle aligns with your long-term goals.

To keep your financial management and budgeting practice in top form, track your income and expenses diligently, ensure you’re living within your means and saving for the future. Budgeting can help you prepare for life changes by ensuring you have enough money set aside for emergencies and unexpected expenses.

5. Stay informed and proactive about your finances

Ignorance is not bliss when it comes to your money. Keep yourself informed about personal finance matters by doing research and seeking financial advice from reputable sources.

Stay informed about the state of your financial affairs by regularly reviewing your bank statements, investment portfolios and credit reports.

Mohri adds, “For individuals approaching retirement, this may also include reviewing tax strategies, retirement income planning and long-term financial projections.”

Study the markets and stay updated on financial news. The more you know, the better equipped you’ll be to manage your finances and prepare for unexpected events. If this sounds like too much for you to take on alone, know that there are financial professionals, like those at Mutual of Omaha, who are educated and experienced in this area. You don’t have to navigate this all on your own.

6. Seek professional advice during major transitions

Financial planning can be complex, especially when facing unexpected challenges. But you can help make your life easier by building a support network that includes financial professionals, accountants and legal professionals. A coordinated approach between your financial advisor, CPA and estate planning attorney can help ensure that investment, tax and legacy strategies all work together. They can provide valuable insight and guidance that can help you navigate the complexities of life changes and ensure that your financial decisions align with your long-term goals.

Ride out life’s setbacks with confidence

While you may wish for a stress-free life, life isn’t always as accommodating. However, a well-thought-out financial plan can help provide the stability and resilience you need to take unexpected changes head on.

Mohri says, “When your financial strategy is built around your goals, timeline and lifestyle — rather than reacting to short-term events — you’re often better prepared to navigate life’s inevitable surprises.”

By using smart money management and following important financial planning advice, you can handle money problems without significantly disrupting your long-term goals and everyday life.

Consider speaking to a Mutual of Omaha financial professional before you build your plan. They can offer you a perspective that you may not get from a simple online search or by talking to your family and friends.

 

 Wondering how long your money will last in retirement?

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Frequently asked questions (FAQs)

What should I do first when facing unexpected financial changes?

If you’re facing unexpected financial changes, start by assessing your current situation. Review your income, expenses and available savings to see where you stand financially. Then, prioritize building your emergency fund to cover essential expenses while you adjust your budget and financial plan.

Which types of insurance matter most when life shifts suddenly?

The most critical types of coverage to have in place if, or when, life takes an unexpected turn are health, life, disability and property insurance. These policies can help protect your income, assets and loved ones from financial hardship when unexpected events like illness, injury or death occur.

Why is diversification important to weather market fluctuations?

Diversification can help protect your finances by spreading your investments across different asset types, reducing the impact on your investments if one area of the market performs poorly. This approach can minimize risk and help stabilize your portfolio during market fluctuations.

How can I maintain long-term savings even during difficult times?

You can maintain long-term savings during tough times by regularly reviewing and adjusting your budget to keep spending in check, while continuing to set aside money for the future. Staying disciplined with your financial plan ensures you’re prepared for challenges without derailing your long-term goals.

What steps should I take to regain financial stability following a crisis?

After a financial setback, it’s important to assess your current situation and revise your budget to address priorities like rebuilding your emergency fund. Consider consulting with a financial professional who can help you create a plan to recover and realign your long-term financial goals.

What role does professional financial investment advice play in long-term stability?

Professional financial advice can provide you with personalized strategies to help you make informed decisions on saving, investing and managing risk through life’s transitions. A trusted financial professional can guide you in aligning your financial choices with long-term goals, helping you feel confident even during uncertain times.

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Reviewed by: Franklin Mohri, CFP®

Franklin Mohri is a Certified Financial Planner ™ practitioner with more than 25 years of experience in investment and retirement planning. He focuses on clients of all types, including those in their thirties and forties in the accumulation phase and those over the age of 50 who are nearing retirement.

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Sources:

1. CNBC, 73% of Americans are financially stressed. Two-thirds say tariff concerns are the source: CNBC survey, April 2025.

Disclosures:  

Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc.

Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.

All investing involves risk, including the possible loss of principal and there can be no assurance that any investment strategy will be successful.

Not all Mutual of Omaha agents are registered representatives or financial advisors.

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