Follow these 21 Ways to Manage Your Risks and Protect Your Money!
Image source: Fabian Blank @blankerwahnsinn
My friend Dr. Heidi is an internist in New York City by day. By night, she loves ‘Burning Man’. We met at Zumba class. She and her boyfriend ‘Tall Guy’ who’s 6’ 4” attended the 2023 Burning Man Festival or attempted to.
Burning Man festival is “a global ecosystem of artists, makers and community organizers who co-create art, events and local initiatives around the world. Most recognizably, tens of thousands of ‘Burners’ gather annual to build Black Rock City, a participative temporary metropolis in the Nevada desert.” At the culmination of the festival, they burn down ‘The Chapel of Babel’.
Participants including my friend Dr. Heidi arrive early and build a ‘temporary city'.
I have never attended Burning Man nor do I plan to. But I understand that the festival is decadent and anything goes.
Either way, unfortunately, the 2023 annual festival scheduled for August 27th through September 4th was rained out big-time.
According to Axios news service, the 2023 Burning Man Festival was overwhelmed by torrential rains. “The heavy rainfall was the result of moisture from the Southwest monsoon. Multiple flash flood warnings were issued Saturday for this region and other California and Nevada desert areas.”
Dr. Heidi, Tall Guy and according to CNN, approximately 70,000 Burning Man aficionados were stranded in the Nevada desert after heavy rains swamped the festival, leaving thick, ankle-deep mud. Heidi and Tall Guy (and others I presume) were unable to drive their rental car out of the desert.
In fact, Heidi told me that she and Tall Guy walked three miles through the mud in bare feet to get to safety. They filled their backpacks to the brim. Everything else they left behind, including the tent they had built, clothes and their rental car. Frightening!
I checked online and couldn’t seem to find out whether the torrential downpour was forecast. But. . .
I saw Heidi at Zumba a week later and she told me that the weather service had forecast a 30% chance of rain. She told me that the rain wasn’t that heavy for 20 years.
But better or worse, rain Was forecast.
Either way, it was Scary!
Forecast or not, prudent risk management is just smart business. ‘Protective Thinking’ and ‘Protective Action’ could be a downer; but you could help you protect your money; reduce the risk of personal injury and save your life. If nothing else, with knowledge in hand you can take control over your life, make more informed decisions, gain peace of mind and sleep more soundly.
Personal risk management is very important and can help you lead a healthier and richer life. As you know, risks come in all shapes and sizes – health; financial; personal safety; and so on. When you manage your risk proactively, you’ll be in a much better place to live the life you want, largely worry-free.
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Follow these 21 Ways to Manage Your Risks and Protect Your Money!
Figure out what risks and perils you face.
Analyze the risks and perils you may face and what if anything you should do to reduce your risk.
Based on the list you compiled in #1 and #2, figure out the potential losses you may face if things go sideways or south. Losses could include money but health too.
Evaluate how serious (material) would an event (casualty) likely be? How could you be impacted?
Do you have family members who rely on you for support? Then, you’re likely to need life insurance and long-term disability insurance.
Do you own or rent a home? Do you need homeowner’s or renter’s insurance? Or more coverage – in other words, are you adequately insured?
Do you worry that someone might sue you? Then, you might want to carry umbrella liability insurance.
Do you worry that you will outlive your money (retirement assets and income)? You may want to reduce your expenses, save more money for retirement, retire a few years later, get a part-time job in retirement, and/or purchase an annuity product. A popular annuity to consider is a ‘Tax Deferred Annuity’, which is designed to provide lifetime income. You may want to reduce your expenses, work a few more years before retiring or get a part-time job during retirement to preserve your retirement assets and reduce your risk of running out of money.
Are you drinking enough water? Are you dehydrated? Drink more water every day.
Do you eat well? As my doctor says, eat more fruits and vegetables. Eat healthier; eat less.
Do you take a multi-vitamin? This can give you nutrients and minerals.
Do you get some movement or exercise every week? I like to walk and typically walk 1½ to 2 miles, three days a week. In addition, I love my Sunday Zumba class, which is one hour of dancing. Get some aerobic exercise. Try yoga. Move your body, especially if you have a sedentary desk job. Consult your doctor to help you create an exercise plan that’s right for you.
When was the last time you had your annual physical or ‘wellness exam’? Schedule one every year.
How much sugar do you consume? In May 2019, I had my annual physical. My primary care physician (PCP) told me that my A1C level – that’s your blood sugar level – was approaching “pre-diabetic” levels. Yikes. I went cold turkey and eliminated approximately 95% of the sugary foods I loved. That brought the problem under control.
When was the last time you visited the dentist to get your teeth cleaned? The dental community recommends at least two cleanings every year. While you’re at it, floss at least once if not twice a day. Rinse too. Unfortunately, I inherited my mom’s teeth – ugh – so I go for four cleanings every year to ensure that I remove any plaque build-up. Sound risk management and protective action.
When was the last time you serviced your car? Take that dusty owner’s manual out of the glove compartment and check the recommended mileage intervals for servicing. Get your oil changed or change it yourself. Check the tread wear on your tires. Etc. Taking care of your car should extend the car’s life, save you money over time and possibly save your life.
Do you have a last will and testament (will)? When was the last time you updated your last will and testament? We had a client who did not write let alone execute (sign) his will. Tragically, he died in a boating accident. His failure to get a will and sign it left a big mess for his family. Get moving on this please! Do Not delay!
Do you text and walk down the street at the same time? Last year, I had some meetings in New York City and was ambling down the street, while texting. I did not hear or see a car pulling out of a parking spot. Thankfully, a passerby grabbed my arm and pulled me to safety.
Do you ever text and drive at the same time? Almost 15 years ago, my parents were driving down Broadway. My Stepmom was driving and my Dad was in the passenger seat. A young woman was driving a Big SUV and texting at the same time. She hit my parents’ car and totaled it. Thankfully, the jerk collided with their car just a few inches behind the front seat. A narrow miss. Thank G-d.
Do you leave odds and ends lying around on the floor in your house? There’s a risk you’ll trip and fall. If you know me, you may know that I am a bit clumsy now and again. I have broken a few toes when I banged the doorjamb. If I (foolishly) leave stuff lying around on the floor in my pathway, I’m likely to trip. Thankfully, I have not fallen (yet). Clean up your house. Declutter so you can move about worry-free. Falls can result in serious injury or even death – especially if you fall down the stairs. A few weeks ago, it was raining and my friend Mike was carrying his dog down the back stairs of his house; he slipped and tore his ACL; needed surgery. Ouch! Thankfully his dog was okay though.
Do you have extra key supplies and household goods in your house? During COVID 19, I’m sure you experienced the impact of the Supply Chain Breakdown. The supermarket shelves were bare – especially lacking paper towels and toilet paper. Why not keep an extra package or two on hand. And some canned food. I do. Be sure to watch the expiration dates. And discard any cans that have dents because this may signal botulism.
Are you ready to handle the unexpected? What if the power goes out? What if your food spoils? What if a water pipe bursts? What if the washing machine or dishwasher suddenly breaks down or dies? What if you run out of gasoline in your car? What if your car breaks down? Without becoming a worrier, take some steps to protect yourself and your family. Build an emergency fund – set aside some money to give you cash in the event of a jam. Recently, I needed new tires for my car; that set me back approximately $1,200; more money than I expected but it’s my life at stake here.
SALY is a myth. And if not a myth, it’s a mistake. ‘SALY’ is a term that auditors use – ‘Same As Last Year’. In other words, an auditor should analyze this year’s balances and accounts with a fresh eye and Not merely assume that the reported activity this year is the same as last year – SALY. Similarly, thinking that a casualty won’t arise again since it happened last year or thinking that since last year’s event was mild, this year’s event will be the same. In the last few years, there were two hurricanes in Fort Myers, Florida; the first was mild; the second one was Ian. Be mindful!
Now I’m Not calling for doomsday or suggesting that you crawl under a rock or worry. But it is worthwhile to take a look at your life and consider the risks you face; and possible losses in the event something goes wrong and the potential cost to you and your family. Then, proactively manage risk and protect your personal safety. Consider whether you should take steps to reduce the risk (mitigate).
With sound risk management, you’ll gain peace of mind and protect your health, well-being, family and money!
We’ll be writing more about risk, risks and risk management in upcoming issues of Budget and Grow Rich®. Stay tuned.
In the meantime, to Save More Money on Groceries, Every Day – click here.
See you next week,
Arthur V.
P.S. For anything that relates to your health and medical, be sure to consult your physician or other healthcare advisor before taking any action!
For anything that relates to your finances and retirement, be sure to consult your financial advisor before taking any action!
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