How do you plan for an uncertain future? On one hand, financial planners want you to quantify your goals for retirement, children, etc which can be 10/20/30/40 years down the line. On the other hand, we are frequently jolted by uncertainties of life and we don’t really know what will be our priorities just 5 years down the line. No?

Paradoxes are part of life. Like, you can’t teach an old dog new tricks. But then, learning never stops. Take your pick! .

More often than not, these paradoxes stop you from taking action. And not taking action results in regrets later.

Your financial plan is a compass. It gives you a direction but does not give the exact location of where you need to go. An important part of your financial plan is flexibility and constant review. There’s also the need of having plan B. In other words, flexibility and having plan B is also an important component of your financial plan.

You follow all the financial rules: a six-month emergency fund and no credit card debt. You live within your means and have all the right insurance.

Yet sometimes, disaster strikes, and you’re wiped out monetarily anyway. A recent State Farm survey found that although 81 percent of adults believe it’s very important to have a financial Plan B, only 45 percent have such a plan in place.

“You have to have a Plan B, there are some extreme things you can’t control. But you can take steps to have a backup plan and be flexible.”

Assemble a team of experts

As a basic rule of thumb, your Plan B should include strategies for insurance, savings and investments. But it can also include things such as career planning (in the case of layoffs or business failure) and living arrangements in the event of a crisis.

To get this plan solidified, these steps can be useful:

1. Tell a spouse/partner/child/trusted friend about your plan.

2. Hire a professional you feel comfortable with to help you put your plan into action. This might include a financial planner, accountant, lawyer or insurance agent.

3. Get it in writing.

Even those who are adequately insured sometimes find themselves scrambling for policy information in an emergency. As such, make sure you are familiar with the terms of your coverage, and keep all important documents in an easy-to-find location—and tell loved ones where they can find them.

Stay informed

In cases of unemployment, it is important to avoid tapping into your cash savings for as long as possible. “If you have the cushion of a spouse working or a severance package, you can buy yourself a little time. “But you can’t be lazy and take a sabbatical.” Instead, find something short-term or part-time while you look for a full-time position in your field. Also, keep an open mind about your job title, industry and location.

“There is nothing in the law that says that just because you’re doing XYZ, you’re going to do that for the rest of your life. Economies and industries change.”

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