What Is Your Contingency Plan?

The WSJ had a fun article titled Think You Can Drive a Bulldozer?. It recounted the experience of the article’s author trying to operate a dozer. They are apparently much easier to operate than they used to be incorporating technical innovation like almost everything else.

Despite they’re being relatively easier to operate there is a shortage of qualified operators. The article did not offer an information about where to get training on heavy equipment operation but it is not like it takes two years of classroom time.

By coincidence I have been writing about operating heavy equipment for years by virtue of my neighbor with his backhoe and the extent to which he supplemented is retirement income with jobs around the area.

The way the economy is evolving many people with white collar careers may find themselves needing to completely reinvent themselves. That last sentence was written in a forward looking tense but of course this has been going on already since 2000 so the assertion is that the need to reinvent will touch more people.

I view this as a fallback concept that won’t replace 100% of income but could fill in a decent portion of any income gap that could arise from your job being eliminated. Like with anything in life the more you put in to reinventing yourself the more you could potentially get out of it. It stands to reason that training that takes months will pay more than something that takes a couple of weeks. My neighbor with the backhoe charged $60/hour but he owned the backhoe.

This is also where living below your means comes in. You will obviously burn through savings at a much slower rate living a $4000-$5000 lifestyle after making $10,000 a month. It also makes some sort of fallback that pays $2000-$3000 (or hopefully more) much more of a difference maker compared to needing to replace the full $10,000.

The idea here is contingency planning which I believe should be part of a financial plan. No one hopes this happens to them but it is better to be somewhat prepared if it does.

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