WHAT IS YOUR PLAN B?

2020 was supposed to be "The Year of Plenty". Many people embarked on this year with new hopes, big dreams, and planned to take on new challenges. No one could have foreseen the BIG PAUSE to Life as we knew it that resulted from Covid-19. Have you given up on 2020-The-Year-of-Plenty? Or, are you ready to implement your Plan B in this final quarter of the year?

Just as a matter of clarification: The common perception that Plan B is a replacement or alternative, in case you did not attain your goals, is incorrect. It is rather an addition or an expansion of your original Plan A; a strategic approach to the execution of your plans to get what you desire. Having a Plan B helps you to overcome the brain freeze and emotional turmoil when the going gets tough. In fact, having a Plan B will ensure that you are able to approach changes with confidence and flexibility.

So, what is your Plan B?

No Plan B? Now is the time to plan; now is not the time to give up on your goals for 2020!

The pandemic taught us a few lessons and it would be prudent to incorporate some of the following when strategising for the future:

Have a nest egg. If all your capital lies in assets or insurance policies/investments that cannot be easily realised, you could find yourself in a cash-strapped situation. Make sure that you have accessible cash savings as well as long-term tax-efficient investments.

Minimise debt. You have seen how easily thousands of people were subjected to pay-cuts and retrenchment! Don't spend money you don't have.

Create multiple income streams. Turn spare time into extra earnings. What are your talents, your hobbies, or interests? Turn off the TV and turn on your creative juices!

Spend your money wisely. You managed just fine during Lockdown without dining out, baking your own bread and brewing your own coffee.

Get Risk Cover. Speak to your financial adviser about life cover, income protection, disability-, and severe illness cover; we've learnt that these are not luxuries anymore but provides us with an essential safety net.

Get your estate in order. We learnt death can come suddenly. The unexpected passing of a loved one can leave your family devasted if they don't know where to find the documents required to finalise the estate. Read more on https://www.huizemark.com/news/documents-required-to-finalize-an-estate/

Family life. Social distancing and not being able to visit our friends and family came as a wake-up call! The people in your life are important and one should treasure time with them, so make that part of your plan.

Personal time. Schedule time with yourself. Introspection will give life to what is important to you, and you will be surprised to see just how creative you can be!

Get started on your new plan today. If you are one of the fortunate few that will get a bonus from your employer this year, hopefully, the above will have you 'spend' it differently. If you are in your own business or depend on commission income, you should seriously consider back-up resources or passive/additional income streams by utilising your creative side to work smarter.

Let's not give up on 2020, it could well still be your Year-of-Plenty!