Contingency Plans Beyond Reason

The average American doesn't plan well into the future. In the last few years, I've heard the average American couldn't afford an $800 car repair bill without charging it to a credit card. Over the last, 7 years, I've grinded away hours and hours at the office just to accumulate the wealth I have today.

In the last few years, I've always worried about dramatic events that would destroy my hard work. I always make sure to have health insurance. I don't date crazy women (and don't try to marry them). I don't abuse drugs or drive under the influence. I don't tie myself down with expensive purchases (cars, electronics, large houses). I organize my life based off of the goal of accumulating a fortune.

Despite this, I always know that things outside of my control and destroy all of my plans and efforts. Car accidents, cancer, heart disease, natural disasters, wars, and the destruction of our dollar are always a possibility.

For most "normal" emergencies, there is a way to plan for it. If you are an automobile owner, you can sign up for a AAA membership and get some peace of mind if you break down on the side of the road. If you invest in the stock market, you can put in call and put options that sell your stock if it breaches a certain price. If you are about to marry a woman, you can organize a prenup agreement in case the marriage goes south. These are all ways of mitigating risk.

However, I've thought before about planning for "abnormal" emergencies. In the case of a currency collapse, you would stock your house up with food, water, guns, and emergency supplies before the collapse.

If you have a good relationship with your parents, you would start prying into their personal finances and make sure they manage their money correctly so they never have to beg you for money.

In the event of cancer, there could be a way to prepare for it. Before hand, look up the hospitals or doctors that could handle the required procedures. Before hand, figure out the best way to handle the financing.

These are contingency plans beyond reason. The more time spent prepping for an incident, the better you will be able to handle it.