Without a Financial Fall Back plan, things might just get a little too tough if you're living on a weekly on monthly paycheck.
The last two years have been a turning point for many families and individuals. This recession has caused millions to rethink what they are doing and how they are going to compete for the challenges of tomorrow. There are those who were on the verge of retiring, had everything in place and felt they were in their comfort zone. Today almost all of these folks have found their retirement accounts no longer can support their needs during retirement. Many have been forced to look for employment or to continue working and now only have shattered dreams instead of warm sunny days of enjoying retirement life. Some of them are betting again on the rocket upswing in the stockmarket to regain some wealth, but it when again it turns out to be a sucker’s rally (volume is far too low to claim economic recovery) they stand to lose even their last bit of wealth.
Many families have had to move in together under one roof to help with expenses and this alone will add additional strain to relationships, even though in some cases it was the absolute choice between a roof over their head or living in the street. Children in their late twenties and thirties are moving back in with parents. Bankruptcies are up, even though their are signs that banks are easing up on foreclosures in parts of the country, and many self employed boomers have been forced to close their doors. So what do we do when plan “A” has failed?
It has been said that success is how well can you handle plan “B” and it is the most difficult one. The boomers who thought they were getting ready to retire and now find they are forced to continue working are experiencing plan B. Many had no plan B but woke up one morning finding themselves having to deal with a new situation and accepting jobs far below their capabilities and diplomas. Generation X is mad at the boomers for screwing up the system and now try to “steal” their jobs.
Fall back plans are something that most of us never think about. Our grandparents and parents always thought of a plan B. We were raised in a time when everything always seemed good and nothing would ever go wrong with our plan A. For those who actually put pen to paper and laid out a plan B, life is not too bad. They were the ones who said this may not work and what will I do if it doesn’t, that is laying out plan B. Plan B entails looking at living expenses, looking at safety, looking at healthcare, looking at job markets, looking at family budgets and get rid of first the “doubles” (extra cars, extra refrigerators, extra many things we can easily do without). Plan B is looking at what you have each month and build a strategy without credit cards, equity loans or maybe windfalls.
Yes, success is how well will you survive every day of your life, either in plan A or B. When planning for the future, and that doesn’t mean months or years in advance, how about tomorrow? Always have a plan B to fall back on. Ask yourself what would you do if plan A fails, how will you handle it and will it be make your life successful? Success is a form of being prepared for the worst.