How to Deal With Financial WIPEOUTS!

Is it wrong to feel joy and laugh while watching people get smashed by giant arms, hit with large objects, sprayed with gooey sauces, or thrown through the air? If you answered YES … then I confess … I’m guilty!

One of my family’s favorite TV guilty pleasures is a hit show called WIPEOUT! The show pits average everyday people (definitely not athletes) against one another in a competition for $50,000. To win, you must have the fastest time through a variety of obstacle courses. So what’s the big deal? What makes these courses so challenging? It’s the seemingly endless variety of cleverly hidden traps that will slap, hit, smash, throw, and beat the contestants into exhausted lumps of human flesh.

Surviving A Financial Wipeout

The funniest wipeouts are from the contestants who never pause. Nope, they just run as fast and as hard as they can without ever taking a second to analyze the challenge in front of them. Of course, there’s the flip side of this. There are some people who want to over analyze the course. For these overly cautious few, the show created the whammy bar! That’s right, if you don’t want to move forward then will smash you forward.

Financial wipeouts can really hurt! Heck, given the choice I would choose to participate in the TV show. At least there I have a chance to win and my greatest pain will only be my bruised ego. But when you get hit financially by an unforeseen “whammy bar” it can knock the breath out of you. Moreover, it may cause pains that last for a really long time.

Lessons To Learn From Wipeout Winners

So how can we possibly win when dealing with things we can’t see or even begin imagine? Let’s take some tips from successful WIPEOUT winners.

1. Prepare For The Unexpected

All contestants prior to running the obstacle course must put on a helmet and pads. When dealing with our finances we should do the same. Call it your WIPEOUT money! When the AC goes BANG, your car goes SMASH, or your plumbing makes a SPLASH you’ll be able to take the hit and keep moving forward. Make your own decision on how much money you should keep for this, but I typically recommend at least $1,000. If your income is below $25,000 annually then I recommend $500.

Editor’s Note: Learn more about emergency funds from Dave Ramsey.

2. Look Before You Leap

Successful contestants quickly assess the obstacles before them, make a decision, and move on it. Before you spend or invest your money you should do the same. Make sure YOU understand anything you spend your money on. Don’t get caught up in the hype of anyone or anything.

3. Don’t Stand In One Place Too Long

Sitting in one spot for too long is a guaranteed way to get hit from behind. Think about the people who check their rearview mirrors, see no one, and stop their cars in the middle of the road. While they may be safe for a moment or two, if they sit there long enough their guaranteed to get SMASHED! The same holds true for those deciding their next financial move. While I strongly recommend studying, don’t let analysis become you’re paralysis! Perfect conditions rarely exist in the financial world. You need to keep moving forward.

The Real Man View

Nobody likes getting the snot knocked out of them. I’m no exception. As a Real Man with Money I do my best to prepare myself and my family for the things I can’t predict.

The best WIPEOUT players are the ones who get knocked down and come up with a smile! Usually these people are little more physically fit and ready for the challenge. They knew coming in to the game they were going to take some hard knocks, but they had the good sense to plan before they played. If you want to come out of a financial wipeout smiling then start preparing now.

What’s your financial preparation plan? How have you handled a financial wipeout? Are your finances physically fit and ready for the challenge?

Photo by Eliya