Without a good sense of where you are financially, recent changes in credit card minimums, the fact that many adjustable rate mortgage re-valuations will take place next year, along with high deductibles on insurance policies can all make a tight budget unbearable when something unforeseen happens.

Some financial disasters come with plenty of warning but are often ignored. Many folks will find themselves making tough decisions when they find out how much it costs to heat their homes this winter.

These are signs of financial stress that should be identified in a good plan and steadily eliminated or at least brought under tighter control. This might not be much fun but the flip side, which would be bankruptcy for instance, is even more unpleasant.

Planning for what lies ahead can be as difficult but still requires a frank discussion of the possibilities - a sort of "what if?" conversation. The easiest way would be to make sure your property is adequately insured for disasters that might happen in your area. That could include adding flood insurance, protecting your property against high wind and rain problems before they become issues, adding earthquake protection, etc. Getting the coverage you need will offset an unexpected problem that could cause a serious financial bump in the road.

Insuring one or both of your incomes with a disability policy is probably one of the least expensive and most under used type of insurance. And statistically, you are more likely to become disabled during your working career than die. While disability insurance doesn't, as the commercial says, provide enough income for take-out Chinese food paid for by a duck, it will allow you to stay financially even while you are recovering. For the best deals, check with your employer for group policy rates.

If you are in a relationship, keep both parties fully involved in the planning. A good plan requires a good understanding of where the financial problems might be, where the important papers are and how to gain quick access to them in times of emergency. Once again, a safe deposit box can be helpful with copies of policies and account numbers kept in a safe, easy-to-axcess place in case of an emergency.

Flexibility is the heart of good plan. A long range plan should include many of the major spending plans for the year including remodeling jobs, vacations, holiday and birthday spending, etc. It should also be revisited monthly and readjusted as necessary.

Squirreling cash away for a rainy day is also important. Too many times, we confuse saving with putting money away for future spending. Having enough money saved for emergencies is extremely important. And not just cash in a savings account. Actual cold hard cash is also important. Having credit cards that are balance free can come in handy as well.

The right amount of emergency money is difficult to determine. While most financial planners suggest three to six months on income, that might be incredibly hard to achieve. To build the account with a more attainable goal, folks should save 10% of your total yearly income. It is far better than nothing and can be built upon once the good habit is developed. Throw any bonuses, tax returns or raises into the account for painless savings.