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Do you understand the importance of uncertainties in your financial planning? We all rely on uncertainties when planning for our future. What is the guarantee that you will wake up in the morning tomorrow? There is no guarantee. You can die in your sleep. However, you cannot plan on such a probability, right? These are common sense presumptions that each and every individual makes when planning for the future.
However, these presumptions about uncertainties do not stop here. Is the recession ongoing? How long do you expect it to continue? Your answer will have a huge impact on your planning. Until the recession ends, you may simply refuse to take any financial risk.
If you expect the recession to end in the next six months, you would obviously start adopting a risk friendly approach once this period expires. If the recession does not end for the next two years, you may end up taking huge financial risks in a depressed economic climate. This can have a huge impact on your finances.
Just as we anticipate negative aspects about the economy, we also anticipate about the positive aspects. What are the chances of securing a job after you complete your education? People give themselves anything around six to twelve months to find their dream job. They do not save for more than 12 months.
They believe that they deserve to find a job within one year of completing their education. The actual situation on the ground may turn out to be completely different. It is not possible to control these presumptions and uncertainties. However, you must identify such factors and minimize risk involved in decision making.
