What Does a Financial Plan Look Like? Recession Proof not Pandemic Proof
today at 11:08 am
There is a saying that goes “the best-laid plans of mice and men often go awry.” Considering the current state of the world economy, what does a financial plan look like?
In this economic climate there are 3 types of people, which do you identify with most?
- The financially prepared sitting on capital with great credit waiting to capitalize on an investment opportunity
- The financially perplexed have no clue of what is going on and are simply awaiting government handouts
- The financially piqued those realizing that getting their finances in order and are looking for money-making opportunities outside of their current jobs
Recessions and pandemics have been known to produce millionaires and billionaires, Jeff Bezos is perfectly positioned to possibly become the first known trillionaire as demand has increased for online shopping. In the Chinese language crisis means opportunity and danger, the world is experiencing both meanings of the world simultaneously.
What Does a Financial Plan Look Like? Here is an example of a Financial Pyramid:
The financially perplexed and piqued share similar struggles as neither of them have the proper financial foundation focused on protection. Most skip protection and savings and go right to growth and risk in the form of stocks and real estate investment. Could you imagine building a house from the roof down? Of course not, having a solid foundation is a key to any and everything one does especially as it pertains to their finances.
Take time to ponder is your financial foundation solid? The best way to answer this is by examining the current state of your economic affairs in the midst of this pandemic. If you can confidently answer yes, awesome. If you can confidently answer no, it is time to take the first steps to build your financial pyramid properly.