I guess it boils down to Consequences, Cost, Effectiveness, and Probability.
That is the Consequences if the scenario occurs, and you are unprepared.
That is the Cost of being prepared.
That is the Effectiveness of the measures to help.
That is the Probability of the scenario occurring.
What makes the most sense to prepare for is a scenario where:
The Consequences are High
The Cost is Low
The Effectiveness is High
The Probability is High
Example: Say high school sweethearts are having regular sexual intercourse. Let's say a pregnancy and baby at that age could be very bad for their futures. Maybe they decide to 100% use condoms and birth control pills.
Consequences: High-------------Cost: Low-------------Effectiveness: High-----------Probability: High
You get the idea.
What makes the Least sense to prepare for is a scenario where:
The Consequences are Low
The Cost is High
The Effectiveness is Low
The Probability is Low
I think this scenario is not often an indulgence.
I think the most gray area is a scenario where:
The Consequences are High
The Cost is High
The Effectiveness is High
The Probability is Low
Is it worth putting 90% of all your financial resources in to preparing for something that is not likely to happen in your lifetime? I would answer No to that question.
So this post deals primarily with this last scenario. Different people will evaluate each scenario differently. Maybe at some point it is a matter of vision versus blindness. Maybe at some point it is a matter of sanity versus paranoia.
So what do you think?
That is the Consequences if the scenario occurs, and you are unprepared.
That is the Cost of being prepared.
That is the Effectiveness of the measures to help.
That is the Probability of the scenario occurring.
What makes the most sense to prepare for is a scenario where:
The Consequences are High
The Cost is Low
The Effectiveness is High
The Probability is High
Example: Say high school sweethearts are having regular sexual intercourse. Let's say a pregnancy and baby at that age could be very bad for their futures. Maybe they decide to 100% use condoms and birth control pills.
Consequences: High-------------Cost: Low-------------Effectiveness: High-----------Probability: High
You get the idea.
What makes the Least sense to prepare for is a scenario where:
The Consequences are Low
The Cost is High
The Effectiveness is Low
The Probability is Low
I think this scenario is not often an indulgence.
I think the most gray area is a scenario where:
The Consequences are High
The Cost is High
The Effectiveness is High
The Probability is Low
Is it worth putting 90% of all your financial resources in to preparing for something that is not likely to happen in your lifetime? I would answer No to that question.
So this post deals primarily with this last scenario. Different people will evaluate each scenario differently. Maybe at some point it is a matter of vision versus blindness. Maybe at some point it is a matter of sanity versus paranoia.
So what do you think?