What safety measures do you use when you own a gun? Are you implementing similar tactics with your financial plan?
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We like to use different analogies to relate financial planning with different aspects of life. From planning a vacation to playing chess, various topics will connect with different people and what they are most familiar with. So, today, we will compare financial planning to gun safety. What common safety measures apply to both?
Why take the risk when you do not need to? Even when playing, you never point a gun at someone because it’s a risk. What kind of investment risks are you taking that aren’t worthwhile? Have you had a risk assessment on your investments to find out just how exposed you are? It’s crucial to practice safety.
If you own guns, it’s important to keep your ammunition separate from your guns. Likewise, with your investments, you don’t want them all in the same place. Are yours properly spread out?
Sometimes we get a distorted view of what is entertainment and what is real. From video games to movies, you may think you are familiar with guns without any real experience or understanding. Similarly, financial shows or online tools may make things look simple or only share the success stories. Make sure you know the difference between education and entertainment.
Finally, is everything locked away as it should be? With a gun, you have a gun safe to keep it safe and out of the wrong hands. What about your assets and investments? What kind of safety net and emergency funds do you have set up? Don’t blur the lines between saving and investing. Make sure you have a plan in order to achieve your financial goals.
Listen to the full episode or click on the timestamps below to skip ahead.
[1:15] – How does gun safety relate to financial planning?
[2:03] – Why take unnecessary risk?
[4:00] – Keep your ammunition separate from your guns.
[5:48] – Understanding education vs. entertainment.
[9:20] – Use a safe.
“Investing money will fluctuate; saving money shouldn’t. Saving money and income money needs to be a lot safer than what a lot of people have right now.“