Risk mitigation is tricky. Not only is it hard to evaluate risk accurately, there are risks we’re not even aware of. Often, the thing we fear most isn’t the most likely. What catches us off guard is usually something we’ve overlooked.

Prepare for bad events so they don’t catch you ill-prepared. Plan for current and future expenses. And have contingencies for major things in life that could go wrong—even the improbable.

If something goes wrong anyway, don’t let a bad experience go to waste—learn from it.