With the epidemic over the past three years, the downturn in the overall environment, and the wave of layoffs in the internet industry, we have to think about how to deal with black swan events and improve our risk resistance. Throughout our lives, we will inevitably encounter various happy or sad events. It is relatively easy to stay level-headed in the face of positive events, but when it comes to uncertain black swan risks, it becomes particularly important to consider how to handle them if they occur and whether we have the ability to do so.
Many things are often uncertain, but if we make sufficient preparations and enhance our risk resistance, things tend to become more manageable.
In the past two years, I have also seen colleagues facing various difficulties: having to leave work to take care of sick parents, family conflicts, being laid off, taking a pay cut in a new job, being unable to work due to illness, losing money in stocks and funds, facing the pressure of mortgage payments while also taking care of elderly parents or children. Shouldn't we also consider whether we have enough risk resistance to handle these situations if they happen to us?
The world is changing rapidly every day. The industry I am currently in was a rapidly growing and high-profile industry five years ago. Although it still is to some extent, the market has become saturated, leading to large-scale layoffs and continuous cost-cutting by companies. The downward trend in the domestic environment is becoming more and more evident, and the expansion of the industry is also increasing. Although these changes have not yet affected me personally, they will eventually have an impact. Even if I eventually land smoothly, this process will still affect my mentality and mood. Jobs are becoming more and more replaceable, and core advantages are becoming less obvious, all of which accelerate the possibility of a black swan event occurring in my life.
Apart from the unavoidable aspects of life such as birth, aging, illness, and death, there are only three things: money, time, and health.
So, how can we better face and deal with black swan events? It revolves around these three points. First, let's assess our current vulnerability to risk:
- Over-reliance on a single source of income, currently only relying on a job for income.
- The current job demands a high level of time commitment, leaving little time to deal with things outside of work.
- Declining physical health, with increasing health issues.
- Personal core strengths and influence are not very prominent.
- Heavy debt burden, insufficient cash on hand, with mortgage payments, children, and family to take care of, and future expenses will only increase.
How can we improve our risk resistance? It's simple in theory, just break through one by one.
Single source of income#
Consolidate and improve current income sources#
The current family income comes solely from work, so the first step is to consolidate and secure our job income and continuously increase it. We can increase our income by changing jobs and accumulating assets.
Seek other sources of income#
Take a higher-level perspective to observe and think about things, and seek more opportunities. Currently, we can try:
- Self-media: platforms like Xiaohongshu, Bilibili, YouTube, etc.
- Side projects: engage in some part-time projects to generate income or increase our influence.
- Community management: manage community groups.
- Others
Next steps#
Do well in our current job, improve work efficiency, not only for self-improvement but also for a better work environment and more leisure time for ourselves and colleagues.
Consider changing jobs, continue preparing and accumulating, and seize opportunities when they arise (Priority 0).
Study English to prepare for working in foreign companies, continue learning (Priority 1).
Try operating on Xiaohongshu (Priority 0).
Prepare for side projects in product entrepreneurship and design (Priority 1).
Lack of free time#
It's no secret that in most cases, having money means having time. In the worst-case scenario, if we have accumulated a certain amount of wealth, we can afford to give up our time for money. For specific next steps, we need to first accomplish the next steps of the previous problem. One key aspect to add is: do not waste time; improve work efficiency; make time more meaningful.
Physical health#
Health is the foundation of everything. If our physical condition is not good, everything mentioned above is meaningless. A healthy body is the basis for a healthy future. This is something I haven't done enough of this year, and often, it is the most controllable aspect.
Next steps#
- Control diet, avoid snacks and carbonated drinks.
- No late-night snacks, no eating after 8 PM.
- Eat until 80% full, never overeat.
- Exercise three times a week.
Alright, we've covered the main points and analyzed them. After saying so much, it's important to have a sense of risk awareness and take real actions to improve our risk resistance, rather than only preparing when risks are imminent or have already occurred. Good opportunities are reserved for those who are prepared, and the same goes for dealing with risks. In both situations, having sufficient ability to cope is crucial for better outcomes.
--- Written on December 28, 2022, at 11:00 PM