TOPIC 1 - 1.7 CONTINGENCY PLANNING

An individuals personal financial plans evolve as the persons circumstances change. for example when someone leaves home, gets a job, gets married or has a child.
1. Most of the time these events can be planned for. However, some can be a surprise so these need to be considered/included in a financial plan.
Contigency planning means to attempt to plan or take into account unexpected events.
FAVOURABLE EVENTS
1. Getting a job
2. Having an increase in income/promotion
3. Winning the lottery
4. Paying off a personal loan
5. An increase in saving or the value of an asses such as your house
UNFAVOURABLE EVENTS
1. Losing a job
  1. Unemployment is a problem for someone who already owes money as it will be harder to pay off debts.
2. Rate of income tax increasing
3. Becoming ill and having to stop work
4. Unexpected car repair costs
When interest rates fell, it made loans cheaper. however, banks changed their lendings policies so it was harder for first time buyers so get a loan.

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	Created by lucy blackman over 7 years ago