Not really sure how I got thinking about how Thanksgiving relates to needs vs. wants but I think it does. For most of us, it’s easy to think of reasons to be thankful but it also makes me think how precarious life as we know it can be. Life as in ‘lifestyle’. An accident, failing health or a unfortunate set of circumstances can lead to a chain of events that doesn’t always have a happy ending.

We’ve all heard that we should have car, life, accident/illness, home and business insurance but that doesn’t always negate the challenge tough times can bring. How many months would you be able to manage on a reduced salary (short or long term disability) or employment insurance? What if you are single, lose your job and don’t have a safety net to cover the loan payments, credit card payments and rent? What if 1 person stays home with the kids and the other loses their job?

The key to all these scenarios is what planning you may have done in advance and in the event of a tough situation and how you manage it once you’re faced with it.

1. Recognize the potential risk in a situation
2. Take steps to reduce or minimize the risk as soon as possible

Most people do not have sufficient insurance, an emergency fund or spare cash lying around because life is expensive and we make choices on what to spend our money on now versus the unknown future. Bearing that in mind, it doesn’t hurt to be very clear on what your needs are compared to your wants and to do your best to be adaptable if faced with having to make the choice. Are your indulgences ad hoc or are you locked into a contract? It’s valuable information to know what your minimum expenses are…to cover your needs only. Nimble financial feet can keep you in good shoes!

Have a happy and safe Thanksgiving.