I did a video with Alan and Simon from The PopUp Business School. It was designed to help self-employed people with cash management but its relevant to anyone interested in financial independence stability during these interesting times.
Enjoy!
The Escape Artist
I send out occasional emails out with my thoughts on investing and news of what I’m up to. You can sign up to receive those emails below 👇
Processing…
Success! You’re on the list.
Whoops! There was an error and we couldn’t process your subscription. Please reload the page and try again.
Thanks for wearing my Stoicism shirt again and great job on the call!
https://accidentalfire.com/fire-lifestyle-designs/
🔥🔥🔥
I wonder if 3-6 months emergency fund is enough anymore. I’ve got about 18 months – 2 years and I used to beat myself up about it and worry that I should be doing something more proactive with it, but now it feels about right. I suspect one of the things that people may reprioritise is safety. Having enough cash, ventilators, and clean water to get you through an ‘unforeseen’ crisis…and not being too reliant on ‘the global market place’ for such things.
2 years worth sitting around in cash feels a little much to me. Depends what stage of life/career you’re at of course. 6 months worth should be enough – maybe have a 0% credit card tucked away in your drawer as an extra line of liquidity and continue to replace this as the 0% deal approaches expiry.
The excess money drip feed into the stock market. In a crisis you can always rein in your spending, do a little extra work etc. And even if you burn through all your cash you can then start selling small amounts of your index portfolio.
I watched this live and as a self-employed person really loved it, thanks. Ideally I’d quite like a 12-month emergency fund, but since I’m quite early in my journey and not yet really close to retirement, it seems excessive and 6 months are probably fine.
“Dig a Well Before You’re Thirsty!” It will be interesting to see what ‘positive side effects’ the pandemic has eh? Great work TEA, good to see you. Jay
Thats wonderful!
[…] many with a more gung-ho approach to cash management were unable to keep up their mortgage repayments and forced to part with their properties right […]