Climate Change's Impact On Personal Finance & Long Term Financial Security?

Climate Change's Impact On Personal Finance & Long Term Financial Security?

by daranstrom on Feb 16, 2019

If you do not think climate change will impact your personal finances and long-term financial security, I would suggest think again.

To start with listen to Dr. J Marshall's Ted Talk "3 kinds of bias that shape your worldview."  

Then consider the following regarding natural disasters.

  • According to an article in the Economist, 8/29/2017, since 1970, the number of disasters worldwide has more than quadrupled to around 400 a year. 
  • The same above-mentioned Johns Hopkins Report stated in the United States in 2016 there were 43 natural catastrophes leading to huge property losses, almost double those of 2007.
  • 2017 was the costliest year on record for natural disasters in the United States, with a price tag of at least $306 billion.  The National Oceanic and Atmospheric Administration, which tracks billion-dollar disasters, reported in January, 2018 that the record total came from 16 separate events with damages exceeding $1 billion.
  • When the numbers are all in, it is likely that 2018 will exceed 2017 in total cost.  
  • In a recently released report the National Oceanic and Atmospheric Administration stated due to sea level rise, high-tide flooding is happening across the USA at twice the rate it was just 30 years ago.  In a recent study published by Elementa: Science of the Anthropocene addresses projected sea level increases and projected impact and costs to coastal communities. 
    • Another source of information is the recently published book, October, 2017, “The Water Will Come:  Rising Seas, Sinking Cities, and the Remaking of the Civilized World” by Jeff Goodell.

I am not a futurist, but I would suggest there will be economic consequences with climate change which will relate to long term personal financial security.  Also, like any economic event, there will be winners and losers.  It's will be better to be a winner.  

By the way, if you wondering how the world's your view us, listen to "The disarming case to act right now on climate change" by Swedish teenager Greta Thunberg.  This is also a Ted Talk.  

The intent in this blog is not create fear, but rather to encourage individuals and households to include the effect of climate change on personal finances and long term financial security.  Equally if not more important, expect local and National politicians to do the same.  

 

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