As we all would prefer to never lose anything, loss is a fact of life and one that needs our attention in terms of how it affects our lives financially. From a financial perspective, consider the following categories of potential loss:

•   Material loss (stuff)
•   Personal loss (death, divorce or moving away)
•   Health loss (sickness or injury)
•   Financial loss (investment, fraud or income)
Within each category, there are obviously many different ways that we are affected. The common theme though is the impact loss has on us from an emotional perspective. Whenever there is a significant emotional upset in your life, there will be a negative impact on your ability to make decisions and function effectively. And this is where a solid financial foundation will help you prepare for the inevitable losses that are part of life.
We know that no one wants to face loss, which is why procrastination seems like an easier option. This is the same fear and emotional response to avoiding setting goals: you are faced with the reality of where you are compared to where you could be. From a risk management perspective, this means you have to come face to face with the reality that risks are present in your life. From a goal setting perspective, you have to come face to face with your current situation compared to where you would like to be, and both situations are like the ‘yawning chasm’ that seems daunting and overwhelming.
When you can recognize this emotional block, you can take charge. And, it is in these decisions to build your foundation to prepare for the future that the losses are minimized and the rewards become real.