What should you do when you are afraid you will run out of money?

Whenever you are afraid you will run out of money, what should you do? Untitled design (22).png Source

You should channel your fears into action

There is nothing that beat action. When you act, there is every tendency that you will have results. And whenever the dreadful feeling of running out of money shows up, instead of folding your arms and waiting around for disaster to strike, act.

You should channel your fears in preparation

Another thing you can do is to prepare. It's said that proper preparation prevents poor performance. When you are prepared, nothing surprises you. This is because you might have seen them coming and you did create those strategies to overcome whatever life throws at you

You should channel your fears into developing contingency plans

Contingency plans. More than like preparation above. What if plan A doesn't work, you have plan B. This is because life is full of uncertainty and the human with no plan B might as well consider himself an idiot. A contingency plan dances to the tune of your "what ifs" because with these plans in place, you can handle any emergency.

You should channel your fears into building buffers

Buffers. Everyone says everyone needs one. You cannot tell with precision what the future holds and you can't control it either. But there's one thing you can control, how much you save. And you should save a lot of money.

Saving will help you jump ship whenever you should without worrying about surviving until a lifeboat comes around. A buffer keeps you sane when things go sour. And this is the only thing that you can control, so take charge, and create buffers every time you are afraid you might run out of money.

You should channel your fears into maintaining a large margin of safety

A margin of safety. Always planning for when your plan doesn't go as planned. Everything in the world of finance and the route to financial breakthroughs is centered around odds and uncertainties. So, you should always look for a range of possibilities.

Looking for this range of possibilities means you accept that things may not go as planned and if they don't, you create scenarios where you can survive long enough to finally reach your original goals.

Summary

I am not going to write much. This is basically a summary of the posts I have written in the last two weeks. And you are welcome to visit them for a thorough breakdown of each of these points and more.

One most important thing to take out is that you must be paranoid with your money and never ever underestimate the presence of luck and risk when you are dealing with an industry that is mostly run by emotions too and not facts alone - Finance

A legitimate form of discipline needed to build wealth

Why financial pessimist tend to have more audience than optimist

When people buy the top they are mostly chasing performance

Everything has a price including your desire to reach financial independence

Plan for emergencies for they are an inevitable part of our existence

Striking a balance in your investment portfolio reduces future regrets

Plan for emergencies for they are an inevitable part of our existence

What the pending job cut at Credit Suisse can teach you about preparing for uncertainties

Invest in something cared about, and there can't be a loss

The quickest way to have less money is to spend it to show people how much you have

Controlling your time is the biggest dividend money pays

The Surprising Role Luck Plays in Building and Sustaining Wealth