Posted by Rob Minton
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In the past couple of days, I've read a couple of columns that predict the recession is not easing, as some are saying, but that instead the worst is yet to come.
I think that reasoning makes sense in some ways. For example, the fact that gold continues to rise indicates that investors are betting that inflation will become an issue, despite what the feds are telling us. It also makes sense that as our aging population moves wealth from the young to the older people in our society, the large percentage of "savers" rather than "spenders" in the U.S. population will slow any recovery.
All the talk of "the worst is yet to come" and the "next financial disaster" reminded me of a book I read -- "Emergency," by Neil Strauss -- earlier this year.
Now, I firmly believe there is opportunity to add to wealth during these tough economic times. Don't get me wrong. But I also believe there are steps we can take to prepare for the worst, just in case. I am big on backup plans. So amid talk of the next financial disaster coming, ask yourself:
Can I survive a financial disaster?
In Neil's book, he details his own story, how he went from fearful of events largely beyond his control to self-confident in his preparation for such events -- controlling what he can.
Instead of remaining in this fearful state, he decided to prepare himself for what he feared. I found this to be very educational. Today, many people are worried about their financial futures.
However, they don’t seem to be taking any action to prepare themselves. They worry about their jobs. They worry about their retirement. They worry about having enough money to pay their bills. They worry about funding their children's’ college education. They worry, worry, worry….
I certainly understand this fear. What I don’t understand is the lack of action to mitigate these challenges. Why don’t more people do more to prepare?
Think of this in a different way. Let’s assume that for some reason some deadly gang were out to get you and your family. Would you just sit in your home and wait for them to come crashing through the door? Probably not.
You would probably take several precautionary steps to prevent or avoid their attack. You might get an alarm system. You might get new locks. You might arm yourself and have the police department watch your home more closely. You might go on an extended vacation. Hell, you might even move.
If you felt this concern for your safety, you would take action, wouldn’t you? Well, how come people don’t take the same action when they have the same threats to their financial well-being?
I honestly don’t know.
The only way to eliminate worry is through preparation. Neil Strauss learned skills that would help him in the event of a physical crisis. He is now prepared.
Here are a few questions you should ponder:
1. What skills do you need to survive a financial crisis?
2. What would you need to be able to do in order to have complete peace of mind over your financial situation?
3. What would you do if you lost all of your money tomorrow?
You need to ask yourself these tough questions. And come up with answers. I predict that, like Neil Strauss, doing so and being prepared for the worst will give you the courage and confidence you need to make your current situation better.
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