The other day I saw the aftermath of a car crash. 2 cars were smashed up, but nobody was seriously hurt because the airbags in the cars deployed. Nobody intends to crash, but if it happens to you, its vital to have a load of safety systems such as airbags, seat belts, etc, as it could save your life. When Princess Diana died in a car crash, only her bodyguard survived, because he was wearing a seat belt. You must take stringent precautions for your financial life. Always keep money in reserve for emergencies, take out insurance, have a budget, have backup plans etc.
Some people say its negative to plan for what to do if you fail, but as the car analogy shows, its good to have a backup plan, just in case. That is how I treat my finances. I never put all my eggs in one basket, and I always ask myself what I would do if I lost a significant portion of my wealth today. I keep money in different accounts to avoid the risk of having one compromised. My investment and wealth building strategy covers many different areas.
No one is lucky all the time, and without a safety system in place, you could lose everything. Even if you think you are invincible, always try to play it safe by doing your due diligence and only risking small amounts of your portfolio at a time.
Taking out insurance (home, car, business, etc) is a vital safety system. Nobody knows the future, and things won't go your way all the time, so plan what to do if things get really bad.
Some people say its negative to plan for what to do if you fail, but as the car analogy shows, its good to have a backup plan, just in case. That is how I treat my finances. I never put all my eggs in one basket, and I always ask myself what I would do if I lost a significant portion of my wealth today. I keep money in different accounts to avoid the risk of having one compromised. My investment and wealth building strategy covers many different areas.
No one is lucky all the time, and without a safety system in place, you could lose everything. Even if you think you are invincible, always try to play it safe by doing your due diligence and only risking small amounts of your portfolio at a time.
Taking out insurance (home, car, business, etc) is a vital safety system. Nobody knows the future, and things won't go your way all the time, so plan what to do if things get really bad.
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