Core Insights - The article discusses five financial challenges that individuals should prepare for to avoid significant financial strain when they occur Group 1: Job and Income Loss - Job and income loss can happen suddenly, affecting both business owners and employees, with current job growth slowing and confidence in job searching at a record low [3] - The risk of being forced to sell stocks at a loss during a recession is highlighted, emphasizing the importance of maintaining an emergency fund covering three to twelve months of living expenses [4] Group 2: Prolonged Illness or Injury - Prolonged illness or major injury can lead to high healthcare costs and loss of income, making health insurance essential [5] - Health savings accounts (HSAs) are recommended for tax-free savings for healthcare expenses, which can also serve as a secondary retirement account [6] Group 3: Major Home and Car Repairs - Regular maintenance and repairs for homes and cars are inevitable, and budgeting for these costs is necessary [7] - It is advised to set aside 1-4% of a home's value annually for repairs, separate from emergency funds [8]