You need a Back Up Plan.
Let’s talk about back up plans. I was in the business of contingency planning because things go wrong. And when they go wrong, they can go really wrong, really fast.
So, how do you go about planning your backup plans? Keep them simple. Everyone needs to know what they are. Make them easy to remember, easy to memorize, and make it common sense. What happens when you’re trying to get out of dodge after a raid and your helicopter taxi ride doesn’t show up like you’d planned? What about when comms go down? Got a casualty? Driving to an objective and the bridge is out? Link up plan gets derailed? Friendly forces start firing at you? Indigenous forces run out of water because they use it to wash their feet and not drink? Bundle drop burns in? Ripped out the crotch on your only pair of pants before a briefing to a senior officer? Ammunition resupply compromised? Man, there’s lots to think about… and lots to plan.
But we’re talking about money here, so it’s simpler right? Maybe…
I’d suggest financial backup plans are more than about money. It’s about your freedom. About your TIME on this planet. And using your powers for good.
So let’s get into it.
P.A.C.E.
It stands for Primary, Alternate, Contingency, Emergency. You could use this for all aspects of your life that need planning help, not just financial. Biggest thing? Write it down. Then think through it. Discuss it with your significant other. Talk through different scenarios. Hot wash it.
What happens when my POS car needs a repair? Refrigerator conks out? Emergency dental work needed after opening a beer bottle with your teeth? Hot water heater busts? Tire blows out on a car while doing donuts in the mall parking lot? You get the deal.
Build a Cash Reserve
A financial plan to Build a Cash Reserve (Step 3 of Navigate to Financial Freedom) could look something like this:
So, in this eerily similar example to HGB’s own Cash Reserve PACE plan, the total is $35,000. Maybe you need more, maybe less? Remember, it’s your plan… you decide what works best.
If finances are important to you (and they probably are, since you’re reading this blog), maybe use PACE to figure out your financial backup plan? And perhaps, you could use PACE planning for other things that are important in your life.