Big changes — like growing your family, getting married, or moving into a new home—are exciting. But they come with stresses and responsibilities that often distract us from larger life planning. In fact, marriage, pregnancy, the gain of a new family member, a change to a different line of work, and a mortgage over $20,000 all appear in the 20 most-stressful life events, according to Dartmouth research.
The truth is, though, there are things that should be at the top of your to-do list when you’ve passed a milestone or taken a big step. Here are a few must-dos you should consider:
1. Assess your savings
A life change is a good opportunity to make sure you’re protected (how’s your emergency fund?) and that you’re putting money away for the things that matter. For instance, if you’ve just had a child, do you need to start a college fund? If you just got married, do you need to start saving for a house down payment? Are you putting enough away for retirement? Sit down and list your goals—now and in the future—and bump up savings levels as needed. (Hint: Experts recommend having three to six months of your spending needs in a savings account.)
2. Check your estate planning
This won’t be a must-do after every major life change, but some big steps in your life—like getting married, adding a child to your family, or getting divorced—warrant a look at your documents. Or, if you don’t have any documents, it may be time to see an estate planning attorney.
Having a complete estate plan—generally considered to include a will, a living will, a healthcare power of attorney, and a financial power of attorney—sets you up for success if something happens to you, even medical incapacitation. This includes what happens to your assets if you die, who cares for your children if they’re still minors, and who makes healthcare decisions on your behalf if you can’t speak for yourself.
If you already have estate planning documents, a big life change is a great time to look them over. Make sure all your beneficiaries are up to date, that the person you’ve chosen as the executor of your will still makes sense, and that all of your designations are still current.
3. Think about life insurance
Major life changes tend to come with a theme—you’re often acquiring more or different responsibilities, whether that’s a mortgage, a spouse, or a child. If something happened to you and the loss of you and your income, life insurance can help protect those people who depend on your income.
“What would happen if you weren’t there for your family?” says David Quinn, assistant vice president of marketing at State Farm. “Having an ability financially to pay off debt, to pay for college education, leaving something to your church or place of worship—there aren’t a lot of ways to do that for some of us.” Talk to an insurance agent about what kind of policy would be appropriate for your situation.
4. Review your property and health insurance
If recent events have demonstrated anything, it’s that anything can happen, and it’s wise to have enough protection in place and know that you’re paying the right price for it. A local insurance agent can help you look thoughtfully at the coverage you have and determine if you need a different policy. You may even need additional coverage, like an umbrella policy that protects you if a liability claim exceeds what your car or home insurance can handle.
Health insurance is another checkbox. If you’ve added or subtracted a member from your family or changed your marital status, there’s generally a “life event” window in which you can add them to your health coverage—or they can add you to theirs. Don’t miss it.
5. Take care of yourself
Big changes can cause stress and disruption. Make sure you’re taking steps to keep yourself healthy and stick to any routine you already have. That means eating healthy food, getting enough sleep, and keeping up regular exercise (or adding it if you aren’t doing so already). If you’re not sure what to do, go for a walk! Research suggests that even a 10-minute walk can help relieve anxiety and depression. If there are activities you enjoy—reading, hiking, knitting—make time for them when you can. The more you can care for yourself, the better you’ll be able to tackle any challenge.
By Kate Ashford Carpenter
