I like to think about life, money, and fulfillment.
Perhaps too much.
My mind runs amok when it is free of work obligations. I worry. I get paranoid. I constantly wonder when I will run out of financial ammunition.
And from there, other thought bubbles pop out.. like weeds in the garden.
What if I get retrenched tomorrow?
(I was asked to leave during my first job.)
What if my investments halved in value?
(My investment portfolio took a hit during the start of COVID.)
What if my 1-person business generates $0 in revenue?
(Yup, yup. It happens. I rode along.)
And these questions drove me to think about the inevitable, unavoidable, and unenviable source of psychological jitter.
What if, and what if, sh!t happens… and the money runs out?
Of course, there are all kinds of insurance. Travel, car, personal, term, and so forth. They serve one purpose.
It is like buying a put option to hedge your stock investments. You want the protection to be there before the stock market collapses.
Try buying one during a financial apocalypse. All the best to you. You cannot.
All you can do is sigh and tell yourself it will eventually rebound. Most of the time, it does. Occasionally, it doesn’t.
Why bet on chance? It is a terrible idea.
It is like searching for the life vest when the ship captain announces that a collision has happened and the ship is sinking. Avoid that. You are more likely to be caught in a fist bump with the person beside you scrambling for that elusive life vest.
Have it with you beforehand.
Preparation is king.