Confidently Uncertain: 6 ways of preparing yourself for when life happens

Life is what happens when you’re busy making other plans, as the saying goes. I had planned to write this Monday Money on my plane back home, but a visit to a hospital in Mexico City said otherwise.

How can we adapt when things don’t go as planned? Can we learn to roll with the punches?

Waking up on a cold floor

That was quite a scare.

Some might know I’ve spent the last few weeks travelling through Mexico. Sunday night was the last night before heading back. We had planned for a lovely farewell dinner, sleep on time and wake early for the plane back.

But things turned out differently. I managed to pass out, twice, (stay hydrated, kids!), which resulted in a nightly visit to the local hospital and a lot of stress (sorry, Ale!).

After some meds, an IV bag and checks, I was good to leave. All is well now, and we made it back home to Amsterdam.

For me, it goes to show that most things in life happen unexpectedly.

Three weeks of travelling without issues, and the last night in the capital is where things go wrong.

What we had planned as a nice last night turned out very differently.

And this seems to be a consistent topic in our lives, isn’t it?

We should almost learn to expect the unexpected. Or at least learn to roll with the punches when they inevitably come.

So in today’s (short) Monday Money, on a Tuesday, I want to talk to you about exactly that. How to roll with the punches.

Life is what happens when you’re busy making other plans

The line can be heard in one of John Lennon’s songs. “Life is what happens when you’re busy making other plans.”

Though it has been said by many before him, too.

It seems to be a consistent trend throughout the years.

The Old Testament says: A man’s heart deviseth his way: but the Lord directeth his steps. Old Testament: Proverbs, xvi, 9. (c. 350 B. C.)

Or what about this one: Man intends one thing, Fate another. Publilius Syrus, Sententiae. No.253.(c.43 B.C.)

As much as we like to make 3-year business plans, New Year Intentions, weekly goals and to-do lists, there is a significant chance that something unexpected will happen.

The question then becomes: how do you deal with unexpected changes? Do you stick to your plans? Do you give up? Or do you perhaps update your plans according to the new reality?

Financial Uncertainty

The above is true for life in general and your finances too.

You can make elaborate financial plans (and I’m not saying you shouldn’t!), but things may and probably will change.

Your investments will fluctuate in value, your income will change (for better or worse), and so might your spending.

You might have unexpected costs or get lucky with an unexpected inheritance of a distant family member you’ve never heard of.

We can’t plan for all of these potential scenarios.

What we can do, is learn to become confidently uncertain.

Confidently Uncertain

Knowing that life and finances are uncertain might make you feel insecure. Or it might make you feel like there is no point in planning, as things will change anyway.

However, even though a lot is uncertain, you can learn to prepare for it and roll with the punches by becoming confidently uncertain.

Accept the uncertainty that life will inevitably bring and learn to be confident in your ability to deal with it. In that case, nothing can truly swipe you off your feet.

Here are some tips that you can start implementing in your (financial) life:

1 - Make conservative assumptions

Estimating costs? Estimate them a bit higher than you think they truly are. This creates some space between expectations and reality.

2 - Only count what you have

Expecting an income raise soon? Only start counting on it when the transfer actually hits your bank account. If you’re already mentally spending money before you’ve received it, there’s no room for the unexpected anymore.

3 - Have an emergency fund

We’ve spoken about this many times before, but it truly helps. Having that backup of cash in your bank account calms your mind. You’ve always got the money ready to solve the problem if something unexpected were to happen.

4 - Identify risks that are not worth taking

Let’s play a game. If you win, I’ll give you a million euros. Your chance to win is 83,33%. Would you take it?

Before you say yes, you should ask what happens if you lose. Because some risks are not worth taking, no matter how high the potential reward is.

Russian Roulette statistically works. When you shoot the gun 5 out of 6 times (83,33%), there’s no bullet in the chamber, and you win!

But the risk, in this case, losing your life, is never worth it.

Identify risks that are not worth taking. It’s about survival in the end.

5 - You can be wrong half of the time and still make a fortune

Heinz Berggruen fled Nazi Germany in 1936. He was not particularly promising in his youth. But by the 1990s, he was one of the most successful art dealers of all time.

In 2000, he sold a part of his massive collection of Picassos and other famous painters to the German government for €100 million. The Germans saw this as a donation, as the collection was valued at well over $1 billion.

How can anyone know, early in life, what will be the most high-value works later on?

Luck? Skill?

The explanation is this: Berggruen bought A LOT of paintings in bulk and had the patience to find out a lot later which ones of them were valuable and which weren’t.

Diversification and patience can get you very far in this life.

6 - Grow your skills and have confidence in your own ability

We know life is uncertain. But by training yourself, growing your skills and learning more daily, you can prepare yourself for it.

Try to spend some time every day learning something new.

I am currently trying the methods of the 5 am club book by Robin Sharma. Every morning, I wake up at 5. I then take 20 minutes to exercise, 20 minutes to journal and meditate and then 20 minutes to learn about anything new that sparks my interest.

By 6, in the quiet of the morning, I already feel like I've had a great day because of the hour fully dedicated to me.

See what works for you. There are many ways.

You can future-proof your career by staying ahead of your field.

You can learn new skills to turn into a side hustle, new business or new income stream.

You can learn the financial literacy skills required to deal with the financial hurdles life will inevitably throw at you. You’re already making a great start by being subscribed to this newsletter.

You can also check MoneyMinds out on Instagram or LinkedIn. Every week, additional content will be posted in short carousel posts. You might pick up something new 😉

Why it matters

Life will throw you many curveballs. We can’t plan everything, and even if we do, life surprises us.

Unexpected consequences can be both good and bad. But by readying yourself, you can learn to deal with whatever comes your way and carry on.

It's a wrap

What are your tips for preparing yourself for an ever-changing world? How do you make yourself confidently uncertain? Please share your thoughts with me by replying to this mail, and I’ll pass them on 🙂

If you need additional help, MoneyMinds also offers coaching!