“The prudent see danger coming and take cover.”
So, how do we prepare for the worst and how do we plan for the unknown? When we’re in panic mode it is very difficult to plan and prioritize. A helpful exercise is to imagine ourselves one year from now. Looking back, what would we wish we had done differently in regard to our finances?
Here are a few things that I think are really important:
1. Prepare or update your will.
We all know that we should have a will and keep it updated, but it’s usually a low priority since we don’t plan on dying anytime soon. So, let’s take action and prepare our wills.
This does not need to be expensive or difficult. There are online templates to fill out and you can notarize a will for free at your MLA’s office. My husband and I plan to update our wills this week.
2. Make sure you have life insurance.
Maybe purchasing life insurance has been on you to-do list for a while. Now is the time to put that in place. Why is life insurance important? Life Insurance is a lump sum, tax free payout to your beneficiary upon your death. A life insurance policy can pay off any debts that you leave behind that would be a burden to your family (mortgage, credit cards, car loan, funeral expenses). Life insurance can help you with peace of mind, knowing that your family is protected should something happen to you.
3. Do some research and seek wise counsel.
None of us have ever lived through a global pandemic and the resulting economic fallout. No one knows what lies ahead or how best to prepare. However, we can seek out wise people and learn from them.
Recently, I’ve found tremendous help and perspective from a man named Hans Johnson. For a number of years we attended conferences lead by his wife, Dani. We found a lot of encourage and wisdom at those conferences. As we got to know them, we came to trust them.
Hans is a business man, investor, and philanthropist. Since the pandemic he has posted a number of videos regarding how the economy may be impacted in other the short and long term. He offers a big picture perspective that is eye opening. He challenges us to:
- Prepare for the worst and hope we are wrong.
- Do not panic, but take action.
Let’s be people of action, who see the danger, and take steps to prepare.