Steps to Living a Risk-Reduced Life

 

Health and wealth are key resources for a happy and successful life. People in poor health often die young and spend money that could have been invested on health care costs. 

On the other hand, those who practice recommended health behaviors are more likely to exceed average life expectancy and need a nest egg large enough to insure that they don’t outlive their assets.

Poor health and financial outcomes are often couched in vague risk-based terms such as “you are at increased risk for” (heart disease, cancer, outliving your assets, etc.). People see “you’re at increased risk for” warnings and tune them out. Why? Risk warnings are rarely personalized.  We are told that we are “at risk for’ so many things that many people simply “freeze” and do nothing.

While nobody can live a risk-free life, everyone can take actions to limit the amount of risk we are exposed to. These strategies are often shaped by life experiences and expert recommendations. Below are 20 risk-reduction strategies that I personally use.

Car Parking- I park my car on the outer edges of parking lots to avoid getting scratches and dents and for exercise.

Credit Cards- Nobody takes my credit card so I pay cash at restaurants without a cash register. Privacy trumps points.

Decision Rules- I avoid answering phone calls from unknown callers and let them go to voicemail.

Debit Card- I have never had one to reduce the risk of someone wiping out my checking account.

Diet- Since having breast cancer, I’ve been a pescatarian and drink less than one drink a week.

Drive Bys- My husband and I do test drives together to find destinations that one of us has to drive to alone.

Driving- I stay home or wait out heavy rain storms to avoid accidents while driving in bad weather.

Fitness- I typically walk 10,000 steps per day and have never smoked or used illegal drugs.

Hand Washing- I wash my hands frequently to avoid the risk of a cold, flu, COVID, etc.

Income Taxes- I use IRS safe harbor rules to avoid the risk of owing an underwithholding penalty.

Index Funds- I invest in a low expense total stock market index fund to track market returns.

Mail Use- I avoid mailing things and instead use automated payments and online bill pay.

Mask Use- I wear a mask in crowds, in airports, and on planes (same reason as hand-washing).

Leave It Alone- If something is not broken or absolutely necessary, I typically don’t fix it.

Screening Exams and Vaccinations- I do these to reduce the risk of bad health outcomes.

Smart Car Features- I drive a car with a back-up camera and alerts when you are backing up and getting close to things.

Solopreneurship- Earnings from my company are a supplement to guaranteed sources of income.

Stress- I avoid stressful events that I have no control over, including potentially difficult clients.

Text Alerts and Secondary Email Addresses- I want to be alerted about bank and credit card account transactions.

Uniball Gel Pens- When I do use checks, I use pens with special ink to reduce the risk of check washing.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.