This adage means that proactively taking action, often through an offensive strategy, is the most effective way to protect oneself.
Knowing you can handle 75% of what life throws at you makes it easier to weather the 25% you didn’t see coming. And let’s be honest, there’s always something unexpected!
Here’s how to proactively prepare for anything:
- Credit Monitoring: Regularly check your credit reports from all three major bureaus (Experian, Equifax, and TransUnion) for any fraudulent activity. Consider freezing your credit if you’re not planning on applying for new credit.
- Beef Up Your Emergency Fund: Aim for 3-6 months of living expenses in an easily accessible High Yield Savings Account. I recommend Ally Bank.
- Negotiate a Raise: You deserve to be compensated fairly for your work. Check out my guide on getting a raise this year.
- Eliminate Debt: High-interest debt is a major drain on your finances. Create a plan to tackle it aggressively.
- Review Your Insurance Coverage: Ensure you have adequate health, life, disability, and property insurance to protect yourself and your loved ones.
- Develop an Emergency Budget: Create a “worst-case scenario” budget. If you were to lose your income tomorrow, what expenses could you cut? How would you adjust your lifestyle?
By taking these proactive steps, you’ll be better equipped to handle life’s unexpected challenges and achieve your financial goals.
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