The other day I was walking down the street and I heard one guy quip to his friend that he still had a couple of months of runway before he would be eating dog food.
I instantly thought of this homeless old lady in my neighborhood who is forced to drag her four suitcases wherever she goes.
In terms of outward appearance, she seems pretty normal, all things considered. This is just what life has come to.
How did she get to this place? Maybe it was…
- Something bad, like an addiction
- A life calamity like an accident or bad health
- A sudden and permanent change in cash flow from the loss of a working spouse
- Outliving her cash
Eating dog food is a metaphor for a place that none of us would ever like to get to.
If family is your safety net, then breathe easy. This outcome does not apply to you. (Keep a picture of this in your pocket, though, and it will make you more humble and compassionate.)
If, however, you cannot rely on an outside financial safety net, then commit to making a thoughtful assessment of the following:
- How much cash do you have?
- What’s your monthly income and expenses?
- If you needed to more tightly preserve cash, could you?
- How many more years do you see yourself continuing to work?
- What’s your cash position look like under BAD, AVERAGE and GOOD scenarios at a couple of different age points in the future.
Stating the obvious, future realities sometimes deviate from present expectations, so we all have to plan accordingly.
PEACE.
