01 May What Happens If…?
When you are deciding to invest, this should be one of the questions you are constantly asking yourself. Having a plan in place for interest rate fluctuations, financial, and changes in interpersonal stands, such as job loss are not fun things to deal with, but a good investor puts contingencies in place for circumstances such as these.
Think of this type of planning as an insurance policy: you put it in the top drawer, only to be taken out if the situation should arise.
Perhaps you work in an industry where your job is stable, but there is the potential for redundancies in the eventuality of a market slowdown. Unlikely, but maybe it’s worth making sure you have the proper insurances in place. Maybe you are highly leveraged and need a savings strategy to cover you should interest rates go up.
Through having a workable plan in place for unlikely situations, you can be more confident in taking up an investment opportunity. Through confronting fear, you’ll also be able to sleep at night, knowing your investment plan is well structured, and not just about guessing and hope.