In the business world, leaders and decision-makers often make it part of their strategy to have a Plan B; after all, such enterprises and organizations can routinely be involved in activities whose success or failure has a far-reaching effect. Companies could fold, employees might be laid off; stakeholders must recognize any warning signs and be able to change course quickly.
When the stakes are high, it’s no surprise that participants want to have a contingency plan in place. Yet on the individual level, there are also situations where a person could use a backup plan. Of course, this doesn’t apply to every endeavor; relationships are a notable exception. You may not want to end up like the Utah couples seeking a divorce lawyer, but in matters of the heart, perhaps the only way is to go in blind and roll the dice. In other aspects, if you apply this strategy correctly, it can help you manage risk in these key areas.
The elements of planning
Contingency planning shouldn’t be time-consuming. You only need to outline brief actions in response to things going wrong in a specific activity. Keep the plan clear and concise; limit the scope of the scenario. Identify the desired outcome and the impact and likelihood of potential failure. If the plan must involve others, keep them informed, and if objectives should change, don’t hesitate to revisit and revise the plan as needed.
Anyone who’s looking to achieve financial independence will need to learn the art of budgeting responsibly. Many factors vary from person to person, the size and frequency of household income, existing debt level, and personal lifestyle, among others. But once a person manages to have some money set aside, the consideration of how to invest or otherwise make that money grow comes up. Drawing up a financial contingency is vital in this regard; it allows calculated risks to be taken within a person’s financial limits, allowing them to invest in volatile stocks, for instance, while also investing in lower-yield, long-term CDs.
Work and career goals
You may often hear people complain of being stuck in a job with little to no career growth or opportunities to do meaningful work. Employees may carry on in such jobs because they need the income; at other times, it’s because they are hoping things will change, and their prospects will improve, leading to a promotion. Drawing up a Plan B for your career isn’t about giving up, but simply being pragmatic. Things don’t always work out; some musicians become rock stars while others do weddings. Come up with a timeframe and minimum satisfaction level, and a reasonable career alternative to turn to if things aren’t going anywhere.
Health and well-being
Most people earn and save money with at least one eye on the future; the typical goal is to have a long and satisfying career, then settle down into a comfortable retirement. All of that can be instantly derailed, though, in the event of a severe illness or other medical emergencies. As we grow older, our health can’t be taken for granted; a good contingency plan for long-term health will have emergency contacts, lists of medications, and instructions on what to do, and of course, involve close friends and family.
Create contingency plans for these and other high-stakes scenarios in life; not only will you be better prepared, but you may also even find that you’re able to enjoy your efforts more than ever truly.