Holistic financial planning helps people address a wide range of needs. The holistic approach extends to more than just trying to build your finances. You'll also confront questions about how to prepare for the unexpected. Take a look at how holistic planning professionals work with clients to have the necessary resources in place when the unexpected happens.

Savings

The old-school rainy day fund is one of the most basic tools for preparedness for unexpected events. Foremost, any savings accounts for this purpose need to be immediately accessible. Many savings and money market accounts have penalties in place for drawing them below certain limits. You don't want to have $2,000 effectively unavailable when you need to address medical or car repair bills, for example. Even if it means taking a lower rate of return on those savings, you should set up an account that provides full access to rainy day funds.

Likewise, you want to make regular contributions to this savings account. Determine a threshold for what you might need a large cash amount to deal with. Once you exceed that amount, you can start moving excess funds into accounts with better returns.

Debt Payment and Financing

Credit is another tool for handling the unexpected. You want to have your debt load under control so you can obtain the best possible rates. Financial institutions usually offer higher spending limits on credit cards for customers who have good histories, too. This reduces the cost of emergency credit while also giving you access to more money in a pinch. If you need to pay to patch a roof, for example, you can put the bill on the card without worry.

Insurance

Particularly given the potential expenses associated with unexpected medical bills or damage to major assets, you don't want to solely lean on rainy day funds. This applies even if you're confident you have the money to be self-insuring. Insurance policies can take the pain out of expected happenings.

You should cover your main assets, such as your house and vehicles. It's also a good idea to have coverage for physical disabilities, medical expenses, and the loss of work if something happens to you or a loved one. Life insurance policies will also cover the most extreme of possibilities. Business owners and independent workers may also need liability coverage for their commercial activities.

The goal is to avoid unexpected hits that could range from the tens of thousands to millions of dollars. Always carry insurance policies with deductibles significantly greater than available rainy day funds. You don't want to get slammed to zero because of one or two unanticipated events.

For more information, contact a holistic financial planning service near you.