Life can be expensive at times. Unexpected expenses are truly… not unexpected. Events like a car repair, small medical bill, or broken cell phone are likely to happen occasionally.
Even if you have some investments, there’s volatility that cannot be predicted with certainty. This is an issue for retirees especially, since they want to avoid being forced to sell an investment after a large drop in market value.
Most often, people are referring to the stock market when they use the term “volatility,” but the concept applies even more broadly. If you own rental property or a business, those investments can be affected by market volatility too.
Job changes are inevitable and even common. Last year, the Bureau of Labor Statistics reported that median tenure for men was 4.3 years and median tenure for women was 4.0 years. Shifting to a new role every four years is a lot of change.