Your own economic backup plan

“Despair is most often the offspring of ill-preparedness.” – Don Williams, Jr.

Two natural disaster stories in 2010 can remind us of one of the themes often discussed at The Quarter Roll. That theme is preparing for hardships and challenges even when all seems well.

The May 2010 flooding in Tennessee and then the BP oil spill in the Gulf of Mexico were unforeseen disasters. Regardless of the reasons why they happened, the point is that disaster did happen and what do the people living through these catastrophes do in order to work through it and then move on with their lives?

Rightly so, the first thing one thinks about in situations like these is personal safety for yourself and family. Once personal safety is secured the next thing you think about is economic security. How do you maintain or quickly rebuild your quality of life and the standard of living you were accustomed to?

The reality is for all of us that whatever the intensity of the hardship is, there will be challenges to our economic security at some point in our lives. It doesn’t necessarily have to be a natural disaster; it could be job loss, health loss, or even loss of personal property. You can not go back in time and change things in order to be in a better position to deal with those problems, so why not look forward toward the horizon now and identify possible threats to your economic well being?

Having an economic back up plan should be part of your overall financial plan. Without a financial plan your efforts to improve your and your family’s economic prosperity will not be as effective. The same is true with a back up plan. Knowing ahead of time how you will respond to different crises allows you to start working on solutions now one step at a time instead of being forced to respond to hardship all at once.

Quotes from ThinkExist.com

http://en.thinkexist.com/quotations/preparation/2.html

 
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