You need a crisis management plan...

You need a plan for when an inevitable crisis hits you. 

This is why you have an emergency fund. It is insurance against an unexpected financial surprise. 

The money sits in a savings account, ready for use when the inevitable disaster strikes. 

You should have a crisis management plan for all areas of your life where black swan evens can and might happen. 

The loss of a job, the destruction of property, the cancelation of a vacation or long-awaited plans. 

Having not only the resources, like an emergency fund, in place but also have the plan... when X happens I do these five steps will prepare you for the inevitable shock of an unexpected event. 

The Lindy Effect

The Lindy Effect which was popularized by Nicholas Nassim Taleb in his books The Black Swan and Antifragile is a concept that refers to the Lindy deli in New York City. 

It is named for a deli where comedians would gather and do post mortems on their performances from the evening with the basic understanding that the more material they had the longer they would last in show business. 

Thus born out of this idea the longer something is around the more likely it is to stick around. 

Think of a company like Google. 

Google has been around for over 20 years. So it is safe to assume that Google will still be in business for at least another 20 years. 

Let's compare that to the new tech start-up that is only a few years old. Why would anyone think this business would have a shelf life longer than a few years. It has not proven the test of time it has not demonstrated a long enough track record. 

It is not to say that this new start-up will not be a long-time player. It might very well be the next Google. 

What the Lindy Effect tells us is to be skeptical of claims of hype and the freshness of new. 

This is why Bitcoin will outlast the new altcoins coming to the market every day. Why Apple will still be making new devices people stand in line to buy 30 years from now. 

Or why slight calorie deficits and moderate levels of exercise 5 days a week is the best, most consistent way to lose weight and new fad diets come and go through the ages. 

The Lindy Effect is a mental model we can use to evaluate ideas and concepts and see through the hype. 

There is a reason Tiffany's is a trusted brand and Ford still makes trucks. These companies have withstood the test of time through booms and busts. The likelihood of Tiffany's being in business 100 years from now is greater than a new jewelry company being in business 100 years from now with only a few years of operations under their belt. 

It is not to say any of these are certainties but with regression always going to mean we can confidently estimate with some level of certainty this is more likely an outcome. 

The Lindy Effect helps sort through the hype and shiny new objects and see the realities more clearly.