MasterPo says: This blog is about topics and issues that are of importance to me. I am not one of the countless blogging lemmings that are tripping over each other scurrying down the hill and off the cliff of blogging oblivion trying to write the greatest blog on the latest topic de'jour. Your comments are welcome.

March 4, 2010

To Worry? Or To Plan?

Worry is a natural human emotion. People don't like to feel powerless or helpless. Psychologists tell us that 'worry' is what we do to make us feel like we are doing something when there really isn't anything substantive that we can do.

But so is sticking your proverbial head in the proverbial sand. Human but just as ineffective.

The more people MasterPo speaks to these days about the economy and state of the nation the more is heard this reaction:

"It's very bad, probably will get worse. But there's nothing I can do about it so why worry?"

MasterPo agrees – to an extent.

Worry? No.

But plan, yes!

Besides the obvious of writing to your elected officials and voting in elections, there isn't much one can do on a daily basis about the state of the economy or nation. But if you do believe it's all spiraling down the drain then you can (and indeed should) make plans and implement them.

Save cash.
Perhaps buy gold and silver.
Invest for cash flow instead of growth.
Pay down debt as quickly as you can (you may need the debt service cash later to pay for living expenses).

'Worry' is foolish. But prudent planning is never a waste of time. Yet planning and following a plan is much harder than simply ignoring the situation. And there is always the concern about having spent the time and effort (and perhaps money) planning for something that never happens. It's a risk.
MasterPo has a friend who work in his family pool business. A pool is definitely a luxury item and a discretionary expense. He says sales are pretty good but admits it's probably because people expect to stay home more and not travel or take vacations. But if and when further economic squeeze comes it is discretionary spending that will take the first hit. He should have a plan, a "parachute", for work outside of the family business if/when that economic squeeze comes.

This is an example of planning instead of worrying.
But alas, he doesn't.

As the old saying goes: People don't plan to fail, they just fail to plan.

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