The dreaded Black Swan event…a phrase coined by finance professor Nassim Taleb to describe an unpredictable event with massive consequences. For example, a brand-new cold virus shutting down the entire planet, leading to toilet paper riots and a homemade sourdough explosion.
We spend so much mental energy worrying about these dramatic, unpredictable events. But here’s the thing: while you’re out there scanning the skies for Black Swans, a whole flock of plain old white ones is waddling straight toward you… and they’re the ones statistically most likely to knock you on your financial butt.
So, if you freaked out about the 35% market drop during COVID – imagine losing half! Or everything! Because that’s the kind of damage a white swan can do to your finances.
Consider:
- 45% of Americans will experience a divorce.
- 1 in 4 people will be forced to retire before planned.
- Over 60% of bankruptcies are tied to medical issues.
- The average worker has a 1 in 3 chance of being laid off at some point.
Those aren’t Black Swans. Those are normal, boring, white bread, suburban backyard swans. And yet they can wreck your financial life faster than you can say “it won’t happen to me”.
Why Don’t We Freak Out More About the Obvious Stuff?
Psychology. We’re wired with something called optimism bias. Really bad things only happen to other people. We have a really hard time imaging them happening to us.
“I’ll never get divorced.”
“I’ll never get sick.”
“I’ll never get fired.”
Take it from me, a divorcee who once swore I would never be one of “those people.” Or from my brother, who was diagnosed with a rare form of leukemia at nineteen. Makes losing a job seem unimportant! Unless you lose your health insurance along with it.
Reality is, bad stuff isn’t reserved for other people. It’s just life.
But, even when we can admit to ourselves that something bad is likely to happen, we still have trouble preparing for it! As if preparing for it is going to somehow manifest the bad thing into existence. (Don’t want to jinx ourselves, right?)
And then, there’s good old procrastination!
We mean to bulk up our emergency fund. We know we should review our insurance or finally get a will done.
But there’s always something more urgent, something more fun….something less like adulting.
Sometimes, perfectionism gets in the way. Or, feeling overwhelmed keeps us stuck. And avoiding uncomfortable emotions? That’s practically our full-time job as humans.
So despite having way more control over “White Swan” events, we often do… nothing.
White Swan Defense
But a little bit of effort towards fending off White Swans can go a long way! You can soften their blow, and sometimes even avoid them altogether.
Here are some things you can do to prepare for some of the more statistically probable things we’re all likely to face.
- Insurance – Annoying to pay for? Always. But totally worth it when you need it! Assess your risks and make sure you’re covering yourself from at least the big stuff!
- Save like something’s coming – because it is. Build that emergency fund and live below your means. That money buys you peace of mind and options, when life dropkicks you.
- Pick your partners wisely. Bad relationships aren’t just emotionally taxing, they can literally cut your net worth in half! So don’t just “fall in love” – choose a partner wisely. Look for shared financial values, clear communication, mutual respect. And when you find a good relationship, guard it like one of your most valuable assets!
- Invest in your health like it’s your retirement plan.
Because, news flash: it is. Move your body. Eat the vegetable. Go to the doctor even when you’re “fine.” Healthy people stay financially healthier, longer. - Stay employable, not just employed.
Skills, connections, flexibility – that’s your real job security, not the job itself.
How to Actually Do the Boring, Important Stuff
As we discussed, knowing you should do something doesn’t mean you will. So how do we outsmart our own brains and take action on all these responsible, grown-up things?
Here are a few tricks to get yourself moving:
🕓 1. Set a 15-Minute Timer
Big, vague tasks feel overwhelming. But 15 minutes? That’s doable. And it’s amazing how small chunks like this add up to real accomplishments over the long-run.
🏆 2. Gamify It
Make a “Boring Adulting” Bingo Card with your tasks. Print it, hang it, get some fun colored bingo stamps and troll dolls. Whatever it takes to get your competitive juices flowing.
💬 3. Make it Social
Text a friend: “Want to do a money power hour this weekend? I’ll finally deal with my will if you look at your life insurance.” It adds accountability, and you can celebrate your good work together!
💡 4. Use Habit Stacking
Pair the boring task with something fun you already do by habit. For example, listen to your favorite podcast weekly? Add your 15 minute of adulting to the end of it that time.
🎯 5. Link It to Your Why
No one is passionate about umbrella insurance. But maybe you’re passionate about family, freedom, or future adventures. When you connect the task to what actually matters to you, even the dull stuff becomes meaningful. Suddenly, boring paperwork is vital to your life’s mission, and nothing could stop you from getting it done!
Doesn’t Matter if They’re Black or White
Black Swans make headlines. But White Swans shape lives. They’re not rare, they’re not random, and they’re coming for all of us. So, don’t waste your energy worrying about the unknowable when you could be preparing for the probable.
👉 Pick one boring task from the list above. Set a timer. Ask a friend. Make it fun or meaningful or both – but make it happen.
Because a little prep today could save your finances, your sanity, or your whole future. Whatever color swan that happens to come your way!
Live a Life You Love
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