As if life isn’t hard enough, Mother Nature has to step in every now and then to remind us that most of life’s challenges are rarely as devastating as she can be. Remember the tsunami that hit Indonesia? The San Francisco earthquake back in ’89? Hurricane Andrew in 91? Hurricane Katrina is unforgettable. And now, over Labor Day, Hurricane Dorian nearly wiped portions of the Bahamas right off the map.
We humans prepare for life’s challenges to the best of our abilities. We attempt to anticipate the worst-case scenarios starting with our health and the health of our families, our homes, our jobs and our finances. If we prepare well and stick to our plan, chances are we will be able to endure whatever storms come our way.
However, there are some challenges so devastating it’s difficult to anticipate them. A Category 5 hurricane that doesn’t move for 48 hours is one of those. I read that as a hurricane moves up from one category to another that the danger increases not by a factor of 1 or 2, but by hundreds or thousands of times.
Some financial disasters are like a category 5 hurricane, such as the Great Depression that grew out of the great Wall Street crash of 1929 and the global financial crisis of 2008. When you prepare to the best of your abilities you may be able to survive the most devastating financial blows with a setback instead of ruin.
Do you have a solid financial plan in place, one that is not dependent on the ups and downs of the stock market? Let Mother Nature be your reminder to take action now.