Broker Check

Hurricane-proofing Your Finances

| August 06, 2020
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We lived in Florida for a few years and this ol’ Kentucky boy had to adjust to a new force of nature: hurricanes. After hurricane Ike hit in 2008, buildings were wiped out and $30 billion of damage occurred. An occasional house survived. 

 

The builders of the surviving houses chose to use concrete, reinforced steel, and other sturdier materials. The builders of the destroyed houses didn’t plan on hurricane-force winds. Their houses were made of wood or cheaper materials. 

 

The wise person prepares for possible disaster before it happens. As the old saying goes, “The best time to fix the leak in the roof is while the sun is still shining.”

 

Our economy has struggled recently. It’s an economic storm for many people. The best time to apply wise financial principles – spending less than you earn, minimizing debt, having emergency savings, giving generously, and investing long term – is before the financial storms come.

 

You may be thinking, “Well, it’s too late for that. I’m in the midst of a financial crisis. The storm is all around me. Now what do I do?” Here’s hope. You start with the same principles.  

 

Perhaps your financial crisis has already happened. You’re now picking up the pieces and trying to rebuild. What do you do? Same answer. You start with these principles.  

 

People ask me, “Now that _____________ is happening, what do I do?” Then you can fill in the blank with just about anything: the COVID response, my company layoff, a stock market decline, or China’s moves. I give the same advice: follow these five principles. If you spend less than your income, if you eliminate debt, if you have available savings, if you give generously, if you set long-term goals and invest accordingly, then you’ll be as prepared as possible.

 

An even better and older saying, “Build your house upon the rock.” Jesus said that anyone who comes to Him and hears His words and puts them into practice is like a wise builder. Not just a builder of strong finances but builder of a life.

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