Pencil out what your financial safety margin looks like (how long will you be financially OK if the worst-case scenario happens—e.g., you lose your job and your investment assets fall to be only half as much to account for possible price falls, taxes, and inflation). Then do that calculation for others, add them up, and you will have a good picture of the state of your world. I’ve done that with the help of my partners at Bridgewater and find it invaluable in imagining what is likely to happen.1
