“Prepare for the worst. Hope for the best.” Reality is most likely found somewhere between those extremes.
How can a quote be deployed in the real world?
It’s pretty simple. Preparation to accomplish any objective should be fortified with decision trees that can hard stop, pivot, and keep things moving. Focus on what you can control and control it in a way that your margin for error is huge.
The benefit of this preparation that’s overlooked is the mental aspect. The pitfalls of negativity are many but can be minimized with preparation. Set backs become expected, not blows to the midsection. Better than expected results can be met and celebrated with the joy they deserve. A positive attitude is a powerful tool for success.
For retirement planning, business ventures, personal projects, etc – it applies to all. Gathering, building, planning, and anticipating the resources necessary to make the worst case scenario a success is how you prepare.
I’ll leave you with a quote we came up with, “Failing to prepare is preparing to fail” – I’m kidding, I think Ben Franklin actually gets credit for that one.
Below is a list of things we discuss regularly in regards to this post:
- Estimating expenses: estimate higher.
- Projecting income: project lower.
- Counting on this _____ to come through: work as if it won’t.
- Building a timeline for project completion: no chance….it will take longer
- Estimating hit rate of activity: it’s lower, build in time for more activity.
- Gauging Risk Tolerance: gauge lower
- Expected Returns: Divide by 2
- Savings Rate: Multiply by 2