When the economy turns sour, it’s smart to think in terms of hedging your bets. A smart “hedge” concentrates on reducing the risk of negative events by taking an offsetting position or by making plans in the event those negative events DO come into play. There are several smart moves you can make when the economy turns bad, but first let’s decide what’s important. What assets do you want to hedge?
Hedge against the loss of income.
An income producing asset almost always has a greater value than one that doesn’t produce income. In a bad economy, income producing assets will take on even greater importance and your job is probably your single greatest income producing asset right now.
How do you hedge against losing this income stream?
1. Always have a Plan B for your job.
2. Be the person that makes life easier for your boss.
3. Constantly pursue ways to make yourself more valuable through additional training, volunteering for difficult assignments, or mentoring new hires.
4. Keep your resume updated, fresh, and sharp. Consider using a resume writing service to help you polish it.
5. If you have some information that your job may be in jeopardy, be prepared to make a move to a new job should the opportunity present itself.
6. Always be on the lookout for ways to make extra money.
7. Give some serious consideration to disability insurance.
Hedge against the loss of your health.
How do you hedge against losing your health?
1. Eat only non-processed foods, the fresher the better.
2. Get plenty of rest and take a day off at least once per week to just relax with friends and family.
3. Exercise regularly.
4. See an eye doctor (pun intended).
5. Go to the dentist.
6. Get an annual physical and follow your doctor’s orders.
7. Wear your seat belt.
Hedging against a loss is the smartest move you can make in a bad economy. It takes some forethought and some planning, but protecting your job and protecting your health are two of the most important areas of life you should hedge.
Don’t be caught blind sided. Always have a backup plan.