Abstract
This chapter begins with the story of Penelope who suffers a crisis unexpectedly – the loss of her husband in an accident. Nothing could have prepared her for that. And yet with sound money management and a smart relocation, Penelope finds a secure job. As a single mom, she goes on to successfully raise her son, send him to college, and become financially secure. There was no getting around it. Life can throw you curve balls including damage from natural disasters, job loss, divorce, and addiction. These risks can’t be eliminated and the purchase of insurance (Chap. 11) might not apply. How can you be ready for the unexpected? Here are some steps to consider. Most importantly, you need an emergency fund or rainy day fund. Place all important documents in one place. Have an updated will. Decide on advance directives regarding end-of-life matters. There are also strategies to help manage different types of risk including expense risks (explains debt-to-income ratio), credit and debt risks (including identify theft) and asset risk (also addressed in Chap. 7). With a solid financial plan, you are better prepared to handle what is thrown at you.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Hunt Ferrarini, T., Niederjohn, M.S., Schug, M.C., Wood, W.C. (2021). Unconventional Risk Management. In: Teachers Can Be Financially Fit. Springer, Cham. https://doi.org/10.1007/978-3-030-49356-1_12
Download citation
DOI: https://doi.org/10.1007/978-3-030-49356-1_12
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-49355-4
Online ISBN: 978-3-030-49356-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)