Why You Should Have A Back-Up Plan

  • October 22, 2019

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

Why You Should Have A Back-Up Plan

Having a back-up plan for some people seems like defeat. You want your Plan A to work, and if you prepare for something else, then you might feel as if you’re not fully committed to your plan or don’t believe it will work. However, it is essential to have a back-up plan and when you find things aren’t working, jumping to your plan B might just give you the motivation and the inspiration to get back on track with Plan A.  

While it’s imperative to have a plan, never assume that what you plan today will work for you tomorrow. So not only do back-up plans keep you calm when things get rocky and stressful, but they also give you two essential attributes that you should always have before planning anything in life: flexibility and adaptability.

Flexibility means that you to change plans without notice which means you can adapt to any situation that arises to achieve your intended goals. There are areas in life where you should always have a back-up plan. We know one thing for sure: that change is constant. You have to be able to handle change, whether good or bad. Here are some suggestions in areas that may need attention.

Your Career

Always back-up your career because if something goes wrong and you get laid off and have no idea what to do if they don’t find another job in your field. Always find something else you can do if your dream job doesn’t work out. Also, keep a phone number for a wrongful termination attorney should the worst happen and keep your CV and LinkedIn profile updated too. 

Your Finances

Financial planners recommend that you have at the very least two months pay saved up. If you get laid off or worse, fired, there is no guarantee of a severance package. If a medical condition occurs you and you need to take an extended leave of absence, this is a security blanket that will see you through to your recovery. Even if you cannot seem to save that much, save something or meet with a planner who will help determine the plan best for you based on your current salary that will stick.

Also, make sure you have a retirement plan and while it’s not something you want to think about it is also a good idea to plan for divorce and plan to be widowed. It is as simple as starting a separate savings account and making sure you have a living will. You should also have a life insurance policy too. Always make sure to insure valuable items such as engagement rings, family heirlooms, antiques of value in your house, etc.

Your Personal Records

Always back up important records too. It’s a good idea to plan a day each month to back up your files on your PC, laptop and work computer. Buy yourself an external hard drive which you can get reasonably cheaply now, and in various different sizes, so you’ll find one to meet your needs.

>