Preparing for the Worst Case Scenerio

Many people make bad decisions by assuming their lives are always good and sweet stories. Most people who fall in bad situation are the people who never consider any worst condition. I am not only taking about investment, but our lives in general. The recent worst floods in Kelantan, Terengganu and Pahang showed the mentality of average and most people in similar background. I am not talking just about the population, but also those who are in commands at various levels. Interestingly, I have never seen any of those in higher power especially at the affected states shown that they have appointed any academician to make 100 years study of floods in their respective areas. Their study should be correlated to various parameters such as weather, current tides, moon position, ecological disturbance, people living locations etc. Most of the feedback I received from those who being on the affected areas shows the floods were worst than before. But, I did heard something interesting from Terangganu but the plan was not executed fast enough.

In property investment, we cannot simply make assumption and calculation in our head. There are only a limited number of possibilities or scenarios we can calculate using our internal head. But, as the number of scenarios grows our head can easily get confuse. To make thing worst, our feeling will easily influence our logical decision. If we seriously want to make a property investment, we should reach out for something look impossible to be done. What are the rewards between something impossible to invest with something very easy to invest. It is a good motivation to go ahead.

However, no matter how much is the investment, it is always a good practice to write down your investment scenarios: the best and worst scenarios. You will be surprised that by writing them down, you will find new possible solutions. You may also write down the possible solutions so that by the time you really need the solutions, they are readily available. Normally, when people already in trouble, their mind is not clear enough to think the correct solutions.

As what happen during the floods, there were some comments made by those who don't understand the behavior of those who were hit by the flood. Some of them don't even bother to work together with the volunteers to cook, pray, adjusting their lives and so on. They are actually in a great shock that they cannot think of anything. They need counselors!

So, if you have never consider the worst case scenarios in your property investment, by the time one of the worst case scenarios really occurred, you may be like those who were hit by the flood! Blank!