Disadvantaged is NOT Defeat
Disadvantaged does not mean defeated; nor does it mean defenceless. However, dealing with financial disadvantage can be very stressful, so it requires a calm mind and some clear thinking to find a way out. You need three (3) key elements in your defensive strategy to overcome financial adversity. They are:
- Preparation; and
- Purposeful action
Most of the things we fear never happen anyway. This is because we are good at creating fear and doubt in the first place and we are even better at telling ourselves they are roadblocks. Most tough times and real threats in life can be overcome or reduced simply by making a plan and doing something positive about it. Of course, the most effective plans are those made before the adversity, not after. Nevertheless, it doesn’t take much; just some basic knowledge and skills, and the willingness to change and stay in control, no matter what. Unfortunately, most people take the path of least resistance day to day, which means getting by with the least amount of effort and the least amount of smart brain thinking.
Believing that tomorrow will be the same as today and yesterday gives rise to apathy, laziness and procrastination. Take the example of the 2008-09 Global Financial Crisis (GFC). Life for some changed overnight. For others, it was gradual decline. But amongst the widely reported doom and gloom, there were many who were largely unaffected. Furthermore, there were countless instances of people taking advantage of the many opportunities that arose. The lesson in dealing with adversity is to plan for the best and prepare for worst. Both happen in your life, it is only a matter of how prepared you are.
The second lesson is that we are all human, so many of the things that appear to go wrong in life can be a direct result of the way we are thinking.
In other words, we believe it to be so because:
- We imagine it to be so
- We are repeatedly told it is so
- It looks to be so because we compare ourselves with others
With sudden change comes instant opportunity, regardless of whether the change is good or bad. However, you will only see the opportunity if you are prepared for it, and not myopically focused on the change itself. We must live our lives no matter what is served up. Many older people recognise history repeating itself; and have lived through similar times before. They learn from experience and are better prepared. They know that both good times and bad times will pass, and will probably come again. Having said all of that, there are two obvious and glaring financial risks in life that most people can prepare for:
- Having way too much debt; and
- Suffering financial loss from accident, illness or unexpected trauma
Debt levels are controllable and totally preventable. Unexpected health events, including accident, stroke, heart attack, heart bypass, cancer and death, are almost certainties in life. It is only a matter of when. Whilst the event itself can’t be prevented its severe financial impact can. It is folly to assume things will always stay as they are now, regardless of how things are now.
Learn from the old timers who know these old sayings are true.
“Stay calm and let your smart brain do the thinking.”
“Lemons can always be made into lemonade.”
“Every cloud has a silver lining.”
“Change and opportunity always walk hand in hand.”
“Plan for the best; be prepared for the worst!”
Important … please read this!
What we presenting in this article is educational information only. Our aim is to empower you to manage your own money and make better financial decisions. The factual information presented here should not be regarded as advice. All users of our services should seek their own independent advice about their personal circumstances.