2020 is a hot mess so far – everything I planned for in every worst case scenario on all of my nerdy personal finance and budget spreadsheets is happening. Even though I’ve always been a firm believer in preparing for the worst case scenario, I still never thought so much would/could ACTUALLY go wrong at the same time. This is NOT a drill.
This year is a prime example of why the principles of the FIRE (financial indepence, retire early) movement are so important. A sudden, devastating virus called COVID 19 has knocked the world on its ass. In the US, we’re looking at 20% unemployment, mandatory stay at home orders, and a travel industry at a total standstill. Before all of this happened, I spent many hours pondering what the next great financial crisis might be and debating it with friends and random people online. Many insisted they’d be ready for the next “crash” but when I did a line graph of the previous recessions (yes, I’m a nerd), I was struck by the revelation that each one was totally different and largely unpredictable. My gut told me another recession was looming, but I was uneasy because I knew it wouldn’t come as a neat repeat of a previous disaster.
Sure enough, enter March 2020 and I’m left with my mouth hanging open…
This is NOT a drill. The FIRE principles of living far below one’s means, saving aggressively, and investing for the long term are exactly the things that allow me to weather this sort of unexpected storm without breaking much of a sweat.
This is the 4th recession or major financial crisis I’ve experienced, but Covid-19 eclipses the Dot com bust, terroist attacks of September 11th, and the great recession for me as this is the first one where the worst case scenario actually hit me personally – a work furlough, tenants unable to pay rent, the sudden passing of my uncle. If this crazy situation has caught you off guard, too, please don’t beat yourself up; instead, use this to strengthen your resolve to be ready next time. Things will get better and then they’ll crash again in about 10 years…promise me that next time you’ll be ready. Next time you’ll be free.
COVID-19 has been the perfect, terrible reminder that there is no safety at someone else’s table…I never had a seat and never will, but I don’t care, because I have my own table and it is ladden with value – value I created, defined, and stacked carefully in case of emergency. My goal now is to help you and others do the same.
As the world crumbles around me, I sit quietly with my mouth hanging open – shaken but still FREE. This is NOT a drill.
Freelennial 