Do you ever wake up in the morning feeling like something horrible is going to happen? Don't feel alone – many people wake up with that same feeling these days. I've developed this masochistic habit of turning on the news after I grab a cup of coffee. This habit must stop, and it did the other morning – the day after the plumber sapped my checking account by a few hundred dollars, the cable went out.

I panicked at first – for me, no cable means no phone, no television and no Internet. As a writer and self-employed individual working from home, the lack of these tools means that I can't work, right? Wrong – I remembered that I did not need the Internet for writing, because I have a library filled with books and my writing software doesn't rely on Internet connections. I have a cell phone that works if no one can reach me via the land line, and I have no need for television if I have a radio/CD player.

Contingency plans – that's what it's all about. Contingency plans make it easy for a person to roll with the punches, to become what other people call a “survivor” and to keep even when life seems to conspire against the simplest goals. Contingency plans make it easier to continue with life's work (and play), and they can build bridges across those chasms that seem to appear out of nowhere when people and events don't act according to plan.

September is nationwide National Preparedness Month, a month when the government deems it necessary to urge citizens to prepare for disasters. So far, something has happened every day this month, something in a conspiracy to bring me to my knees. But, I've lived through hurricanes and earthquakes and tornadoes before, and I've lived to experience a few floods and landslides. Natural disasters are one thing. Man-made incidents, however, are another.

National and state governments have developed elaborate Web sites that deal with natural disasters. These sites can forewarn residents about the safest route to travel in an evacuation and they even provide information for those individuals who stubbornly stay with property during natural disasters. You can find lists of items that you should have on hand in case of emergency, such as flashlights, weather radios, blankets and canned food (even a note to tell you to use a hand-operated can opener, because electric can openers don't work when the power is gone).

But, none of these Web sites offer advice or “kits” for disasters such as Bernie Madoff. Nor do they offer information about what to do if your portfolio has dipped to zero. I haven't found information about how to handle a living situation if I would lose my home to foreclosure or if I am surrounded by neighbors who constantly break laws.

Where would you go from here?

Contingency planning is better than going through a man-made disaster and squeaking through by the seat of your pants. The latter option can provide a person with the knowledge on how to survive these incidents – both natural and man-made – in the future. But, if you plan ahead, then you have alternative methods available on how to survive many situations now.

For instance:

1. If you were a victim of an investment scheme, you may realize now that you recognized warning signs all along. To avoid such a situation, research your investment thoroughly before you part with money. Plan ahead for the possibility that even a well-researched investment option might fail.
   
   
2. To that end, the person who has a diversified portfolio may make it through this recession easier than someone who did not diversify. Some market sectors are doing quite well, despite the recession. You might need to expand the lens of your searches to include international investments, and these resources are viable options – there is nothing to stop you from finding them, researching the resource and investing, except, perhaps, a lack of money.
   
   
3. This note deserves a special space – you have not “lost” anything unless you sell it at a loss or if you invested in a loser from the beginning. Unless you need that loss for tax reasons, a bit of patience and some time may prove you've picked a solid investment after all. If not, then read the last sentence in #1 again.
   
   
4. When you purchase a home or some other large investment that you need to live with for a year or more, then investigate your options carefully. Plan for a job loss. Plan for law-breaking neighbors (which is something that is more difficult to investigate on the front end). Look into ways to save for the future, where your money won't suffer from market variability and so you have cash on hand to pay for several months' worth of bills and mortgage payments.

Finally, a note about your credit rating. You may have seen your credit rating plummet recently, even though you pay bills on time and you pay over the amount owed. Do not panic. Anyone who has a balance on a credit card may be experiencing the same issue as you, as credit card companies lower the ceiling on credit limits and raise interest rates ahead of upcoming credit legislation. I would advise, however, to stop spending and pay off those cards now. Granted, anything can happen at this point; however, in most cases, credit ratings rise a few months after credit cards are paid off. Practice patience and rigor, don't miss a payment, and all may be well around the bend.

Granted, it's not possible to think of every event that could occur when planning future options. But, if you listen to the news these days, you can learn about how many doors are marked for failure. In fact, you may find the time to write a book about man-made disasters and how to prepare for them. If so, the government may want your ideas so they can develop a Web site that tells people how to prepare for such events.

Plan on it. But, plan for other options, too.

Until Later,