Running too close to the edge

I keep a large cash buffer in my bank account for emergencies. It is a practice I recommend to everyone. Having a buffer means you won't have to panic when your car breaks down or several large bills come due at once. Of course you need the income and discipline to create the buffer and maintain it, but once you have it it makes life much better.

I see lots of people living too close to the edge of their income. They don't have a buffer and one setback causes them to depend on credit cards or pay late fees which then leads into a downward spiral of more late fees. Living too close to the edge is a bad thing.

It is bad when an individual runs too close to the edge but when a group of people do it in the problem is much worse. In the last few years I have seen state and city governments, businesses, and several types co-operatives spend money without proper consideration for an unusual event. A larger than normal snowfall has caused several groups to spend more money on snow removal than they had budgeted. This level of snowfall isn't unheard of it just hasn't happened recently, and because it hasn't happened recently many groups didn't budget accordingly and will how be short on cash. The floods that will come in the spring will show other groups that have skimped on water pumps and flood prevention, dam repairs and insurance.

When a group runs out of cash because they chose to run too close to the edge the members of the group pay for it but usually the general public pays for it too. The insurance payouts after a flood cause everyones insurance costs to go up, not just those that should have maintained the dam better. The financial bailouts and no-interest loans needed to prop up businesses end up costing the general public because the money has to come from somewhere and it usually means other programs must be cut back.

If I had my way groups would be required to plan for the unusual events that don't happen often but are proven to happen. The leaders of groups that failed to plan would be held criminally accountable for failing to protect the public. But of course I won't get my way, so those that skimp by hoping for the best and demanding rescue when the best doesn't happen will continue to do as they have.