Odd priorities – and how some are resolved

What are the big risks? How well prepared are we for them? I’ve got friends that smoke and only buy organic chicken, to me, that looks like an odd couple of priorities. Taking care of my health makes a big difference to my life – and prevention is always easier than cure, so effort goes into that.

Of course, trouble can come to all of us – whether healthy or not – so planning for sickness or a job loss makes sense.

I am a fan of taking advice, and recommend that, but some fundamentals are well known: having a cash cushion, an emergency fund, makes a huge difference to one’s ability to face everything from the need for unexpected work on the car to receiving a cancer diagnosis. Some financial advisers I know recommend three months’ income as a guide. They tell clients that if you aren’t in a position to save towards an emergency fund you are in a precarious place – because even a little bad luck will knock you off your perch.

Even with good planning, some risks are too large to effectively save for.