|
The first is to create options for yourself by creating a plan A, B, and C. This idea correctly assumes that you will face a particular problem, however, you will possible solutions ready when the problems pops up. If plan A doesn’t work you should be ready to immediately go to plan B. Remember that problems are like weeds. They don’t shrink by ignoring them. Instead, they grow quickly and take over the place. The longer it takes you to get to plan B, when plan A doesn’t work, the bigger and harder the problem will become. For example, all the warning lights have been lit for the last week on the dashboard of your car. A problem IS coming. You are facing a major car breakdown. Now is the time to list the top three things, in an order that makes the most sense, you can do about this when the breakdown does occur. Plan A – take the day off from work, pay cash, and get the car fixed. Plan B –arrange a payment plan with Joe’s garage and get my car fixed this weekend. Plan C – barter my mint condition Garbage Patch Kids trading card collection to Brian, my mechanic neighbor, for car repair. The second thing you can do is create several non-financial savings accounts. What does that mean? These are “savings accounts” or pools of resources you can dip into when problems arise. If you have a savings account of health, you will not be sick as long as someone who was unhealthy to begin with. You built up your health savings account with proper nutrition, preventative medicine, and exercise. Perhaps you build a savings account of legal and car maintenance knowledge. This abundance of knowledge serves you well when a potentially expensive car breakdown happens or your neighbor files a suit against you because of your barking dog. (I just found out that dogs are allowed to bark for 30 minutes before they are legally considered a nuisance in my neighborhood!) How about a savings account of favors? Favors people owe you because you took the time to help them out of their own sticky situations. These kinds of savings accounts usually don’t cost anything but give out tremendous pay outs when they are used to solve potentially costly problems. The same is true for having contingency plans. If you are watching your budget and expenses as well as the events unfolding around you and your family you will be able to reasonably predict problems that are coming your way. This gives you the chance to make plan A, B, and C and be ready with a quick solution which will save you time, money, and stress. |
