Prepare for the worst

[kimberland]

You know
one thing people keep forgetting about the Great Depression
was
people survived.

If it happened again,
people would also survive.

Reminds the gal with most of her net worth in the stock market.

 

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[AroundTheWorld]

How I deal with "Crisis"

Most of us have faced crisis at one time or another in our lives. (if you haven't yet - you will eventually... probably just means you are younger than I am!)

Some people are now wondering if they will be facing a financial crisis over the next few months or years. I just wanted to take a moment and share how I have dealt with crisis in the past, and how I am dealing with this potential impending financial crisis of the economy.

The first crisis I faced was learning that I had cancer. Of course, with a diagnosis like that, emotions are the first thing to come to you… well, after denial, that is. (crisis has passed... it was years ago. I am healthy )

Maybe it is anger, or outrage, or a feeling of injustice (I have a very large tax bill due this month, and it is to bail out who????). The Base of many of these emotions can turn out to be fear. As it was with me then (my children growing up without me) and it is with me now (a tanking economy, renters that don't pay, etc.) This fear could become paralyzing if you don't recognize it and do something about it.

These are the steps I took then (and am taking now)

1. Acknowledge the fear. It won't go away if I don't. And - pinpoint it, exactly
2. Put a back up plan in place. (Cancer: write letters/ make videos / to my children Economy: Address my plan to survive and my plan to thrive)
3. If the plan does not take a major investment of time or money (it usually doesn't) - then go ahead and do it. I sleep better at night knowing that it is there. The investment of time or money is worth the peace of mind.
4. This eliminates the stress and the fear. If it doesn't then find something that does. Maybe for you, it will be meditation, yoga, your particular religion, nature hikes - what ever works for you. I have also found that for me I am totally unproductive if I am living with stress. I think that I have actually read somewhere that it has been medically "proven" that people are very unproductive when feeling stress
5. With stress gone, and the saftey net in place, the next step is to FOCUS ON CREATING ABUNDANCE in your life. The "doom day" may never happen. In fact, until it does, assume that it won't. Focus on creating the best life for yourself that you can. For me, this means:Access my envrionment. Eliminate the toxic and Grow and Create the Positive. Financially, how can we "create the positive?" Ask yourself: What is going on? Where is there a need? How can I contribute or add value?
6. Make a DECISION and stick to it! Indecisiveness can kill you. It squanders your precious time and the opportunities pass you by...

Then, take action. Every day. Start off the day with a focus on eliminating stress and bringing peace. Maybe this means checking on my saftey net - to be sure it is still there. Maybe it means a little time in meditation and gratitude. Then, it is on to living my life and creating more abundance and opportunity

 

[hatterasguy]

A lot of people are doing quite well, I keep hearing of many areas around the country where builders are cranking out and selling new properties.

However prudence is the key. Nothing wrong with being positive, I usualy am, but you have to keep the big picture in mind.

For example I wouldn't seriosly consider a big sub division, not until people are less scared and their is a good chance of selling 30 houses, in a reasonable period. But building a few "cheap" houses which sell, is IMHO still a safe bet.

 

[unicon]

We are all builders and searchers !! The speed with which we grow is by testing ourselves.

Problem solving is the test and creates our wisdom.

In order to problem solve we must be able to see reality, we must see behavior as it really is, including our own.

In other words defining your house falsly as an asset because it is considered as such by the IRS, all accounting theory, by the general population, on Corporate balance sheets, it is tangible, etc, etc, etc. Even though I understood cash drains and cash flow to the nth degree, had accounting and finance degrees, years as a corporate controller, financial vp, wrote a incomplete book on accounting theory, owned my own companies, and fixed up troubled companies, ------------

I NEVER TRULY GRASPED THE EXACT IDENTITY AND TRUTHFUL IDENTITY OF AN ASSET!!!

RK's "SIMPLE" definition was earth shaking, and reverberated through everything I learned even though I was by definition a success.

I suspect the answer was in front of everyone's nose but they could not see it. Some even reject it when it is explained to them. Which is beyond baffalling, it is a behavior problem.

The tool for searching for information, a true identity, and solving problems, is the simple concept of a list put in written form. The act will disseminate fear and is the substance of all planning in its most basic form.

Since behavior problems, including or own, disguise true identities and slow us down, it is necessary to study human behavior as a source of all problems.

The list being a powerful technical tool will first prioritize all needed action.

The above is a system of growing which builds a real base is the process that is valuable not necessarily the acquired asset, each stage is increases our context and vision (enlarged).

How bad is the current behavior problem in Washington?

What is the reality of the problem? How is it being distorted? How strong is the existing foundation to withstand economic title wave?

How long has the problem been developing? What is the capacity to solve the problem? Is it too late? How does it affect the individual versus the major corporations?

What are the capacity and reserves of ourselves as individuals? Are we alert and ready to act?

Questions are the answer and increased clarity is preparation!!

The trend is downward in this economy and the question is the balance between cash flow and debt. True production to increase cash flow has been slowing and debt is rising. In the most conservative sense if you have no debt you eliminate vulnerability. Debt is a promise. It is about credibility. Cash flow is a commodity based concept and production geared tangible asset conversion which means food and shelter. This is stripped down to raw form, the ultimate substance. With production and food and shelter you can always live to see another day. Defaulting on debt will not kill you but it will kill your credibility and spirit.

Do you think the government and wall street has any credibility?? Are they trying to regain credibility overnight by borrowing from taxpayers to bail out debt promises not cured by real work?? Is this a spirit drain as well? Do they think this is hidden from the rest of the world?

Does the taxpayer have any say in the increasing amount of government debt? Who really has control here?

Individual control is factually attained by starving the government and avoiding all taxes, and exposing the behavior problem that spends without accountability. A penalty must be paid and this enforcement is done by the individual as a last resort. You must be alert, passivity is death. Emails to lawmakers have already gone out against incurring any more debt in the bail out.

One would suspect that the debt issue is really more related to the soul whereas cash flow is more related to physical survival.

Which is more important? If you lose your soul, what good is physical survival?

 

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[memenode]

I think the mentality for the crisis comes down to this:

Prepare for the worst.
WORK for the best (you create a big part of your own world, your own economy).
Hope for the best (can't hurt)
Expect the most likely.

The last one is because the worst is just the worst, but what's the thing you can predict as the most likely next good or bad thing to happen? Expect it and work with regards to it.

And in addition to this mantra there is also the fact that:

You ALWAYS have a choice. Thus you're always powerful. No matter how bad things get you always get to sit and make your next move. The only way you can lose this power is being dead.

I thus developed a "backup" plan, a plan of "defense" from the worst which makes me more resilient and immune the further I go in implementing it. I will spend a little time on days that I decide going through a separate "backup" todo, doing the things I can do to face off the threats. This way, the crisis is only making me stronger, not weaker.

Btw, also note that back in the 1929 depression we didn't have the technology we have today. Times are very different.

Anyway, that's what makes me feel better at least.

Now back to biz.

 

[msa1]

Lightning, The only way to "secure" a credit line right now is to pull the money out of it. Banks are running around cutting limits on both cards and HELOC's. The only way to guarantee you have the money from a credit line is to take it and hold it.

 

[msa1]

I was just thinking I need to buy a few more bars this week.

 

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