Worst Case Scenario

Very often, when things do not turn out the way we want it to be, we get sad or frustrated.  Or worse, we get stuck in a lousy situation because we did not expect it to turn out that way.

We had always hoped that things will turn out well, but we were often not prepared for the worst possible outcome.  One useful skill is to understand the Worst Case Scenario in every situation.

Basically, when we consider the worst case scenario, we:

1.  are looking and planning ahead,

2.  have enough information to decide whether/how to proceed,

3.  are mentally prepared because we already foresee the possible outcomes that lie ahead.

Some examples....

A.      You are booked on a 7.00 am flight and needs to be at the airport by 5.00 am.

Best case scenario: You wake up on time and catch your flight.

Worst case scenario: You wake up late and miss the flight.  This causes a lot of trouble requiring you to rebook the flight and reschedule a few things, get scolded by your boss and make your client unhappy .

Question: Can you deal with the trouble that comes along with the worst case scenario? If not, What would you do to reduce its probability of happening?

Mitigation: Sleep early, set two alarm clocks etc. This is one reason for the need to have proper sleep habit.

 

B.     You are unhappy at work, and wish to quit (assuming you have done your best to reduce the unhappiness but to no avail).

Best case scenario: You are able to find another job before you quit the current job.

Worst case scenario: You quit. But are unable to find another job for quite some time.

Question: If you have enough savings to last you a few months without income, then go ahead and quit.  Otherwise, you just have to continue in the current job, and get on with your life.

Mitigation: Start saving whenever and whatever we can.  We will never know when we will need the money.

 

C.     Your friend is asking you to loan him a large sum of money to repay his debt.

Best case scenario: Your friend is able to return the money to you within the agreed time frame.

Worst case scenario: Your friend is not able to repay you (after a few years), or he disappears.

Question: Are you prepared that the loaned amount will never come back to you?  If no, then say sorry to him. It may be worse if your friend takes your money, gamble further and loses.

Advice for all: Many people who need to borrow money to repay debt or for gambling, will not likely be able to find money to return the lender.  Even if they are lucky and make a win in some game, returning you the money will not likely be the first thing on their mind.  They are likely to spend it on something, or bet bigger as they think their luck has arrived.  Of course, there are people who will honour their promise to return the money.  Hence we will need to assess the borrower's character and decide accordingly.