For anyone reading this that thinks that it seems a bit crazy or excessive to spend money to solve a “problem” that they consider “highly unlikely” or that brings you worry just to think about… what about Insurance?
We all spend money to insure ourselves against potential losses, many of which are highly unlikely:
Home- we insure the value of our homes against fire and other natural disasters;
Auto- we are insured against accidents and related medical expenses/liability expenses;
Liability/Umbrella- we are insured against someone suing us for inadvertent damages;
Health- we are insured against health costs, especially catastrophic illness or accident;
Disability- we are insured against loss of income due to illness or accident;
Life- we insure our family so they are taken care of if we die prematurely;
And there are other forms of insurance as well…
Most people spend money on Insurance every year IN THE HOPE THAT THEY NEVER USE IT.
This is a useful mindset to think about your financial investment in getting prepared for a potential emergency situation– it’s SURVIVAL INSURANCE. We are insuring our family against natural disaster, pandemic, monetary collapse, terrorist attack, or other threat that could disrupt the regular society safety net we are all dependent on…
And you get the added benefit that most of the things you spend money on (food, water, etc) will be useful to you in your daily life as well.
Think of Preparation Costs as another insurance expense and budget $100, $250 or $500 a month to getting this “Survival Insurance” in place. At the very least, you’ll have improved peace of mind knowing you have done what you can to prepare. And if the unthinkable happens, it could save your family’s lives…
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Rob,
Insurance is always a good investment. I was looking at a hospital statement last month for all my wife’s treatments, it is in the area of 1/2 million….yea…dollars. If I didn’t have the insurance I would be Bankrupt.
Your post is about regret…regret that we never took the time and made the effort to get prepared.
Better to be ready and never need it than to need it and not be prepared.
Lynn Lane
http://www.Warriorofsuccess.com
Equating preparation to insurance is a great framing of the issue. We all need to be prepared for emergencies and unexpected events. The recent earthquakes in Sumatra and flooding in the Philippines is testament to what can happen when we least expect it.
Steve Chambers
Sales Training Speaker
Great way to put it. Thinking of it as insurance is perfect. Nice frame.
Lisa McLellan
Child Care Expert,
Babysitting Services, Babysitting Tips, Babysitters, Nannies
Fantastic reframe, and a softer sell than the doom, gloom and despair approach. Different approaches will suit different people.
http://www.martin-wright.com
Very smart analogy.
Bert (alter ego- Mister P)
MisterP.org/blog
A very valid point and very true! But I do think budgeting $500 a month for survival costs is a bit much. It seems it no longer goes from thinking and hoping it will never happen to actually believing that the day will come. To each his own I guess.
MissMentor
Lisa, I did say $100, $250 or $500… It all depends on your family size and what you need. If you are single then $500 is a lot. If you have a family with 3 teenagers then $100 won’t get you far.
Especially since probably half of what we are talking about is buying ahead for things you will use anyway… thanks for the comment…
Rob
Buying ahead of time and rotating the stock is a good idea. It gets used either way and you can survive if disaster strikes.
Keri Eagan
Anything Alternative
Looking at preparation insurance is a great way to put it
Jose Escalante
http://www.joseescalante.com
Hi Rob,
excellent way to present and frame the idea of Emergency Preparedness as Emergency Insurance for you and your family.
Happy Dating and Relationships,
April Braswell
Online Dating Coach and Relationship Expert
This will sound a little rough, but My liability insurance involves a 12ga. So . . . haven’t had much trouble there. Rob, you make a great point comparing $100-$500 based on family size.
It’s hard for most of us to grasp the risks and potential issues.
Leadership in Education, Kate
Get enough to feed the 12 ga, think bird and buck. (500 rounds)
Pistol is useful for close in work. Knife never runs dry and so darn useful.
Practice.
Peace of mind is big in my book. Plus, living in Southern California there are about 10 natural disasters that I have to be prepared for!
Greg Dougall, Philanthropist-in-Training
Starting at any level is a good start.
The real start is evaluating just how real you think the danger is.
Martin O’Connor
http://smallbusinessdesigncenter.com
Just start where you are.
It really is easy to start stocking up. Probably the easiest way is to just buy one extra of as many items as you can afford each time you go shopping. If you already eat canned kidney beans, for example, having an extra 20-30 cans is insurance that won’t go to waste.
Good start on your blog!
Lisa
http://thesurvivalmom.com
Good to have this info before disaster strikes. I like the idea of being prepared even if I am not sure what I prepare for . . . it’s all about having options, like the option to survive in desparate times!
Katie
I understand the insurance but a person can be insured to death too. If we have a natural disaster, do you think the insurance company is going to cover everyone? They are going to be in the same boat as you – like up a creek with no paddle. Not to sound negative, but if it gets bad enough most people will be on their own and what ever you are insured for isn’t going to matter. Unless you have something to barter or trade for you can still be standing there with nothing.
Vicki http://www.bridal-threads.com
Rob,
Good analogy to rub in your message.
Survival is a powerful instinct.
John Ho
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion
I hate insurance…or probably a more correct statement would be, I hate paying for insurance. I feel this way because I give away a LOT of money and get NOTHING in return (except for a bit more peace of mind). I suppose that if I ever need the insurance, I’ll be glad that I have it.
Health, Fitness for Working People — Darryl Pace