GMR 132: Why You Need a Personal Financial Safety Net
You’ve heard of an emergency fund, and that having one is very important. But, to have financial stability and ensure your finances are as secure as you can make them, you need more, you need a financial safety net. In this episode of GMR, we’re talking with Harry Stout, to understand what six elements make up the proper financial safety net.
Show Notes
The six elements of a financial safety net
Basic Money knowledge
Spending 17 minutes per day (2 hours per week) to improve your financial knowledge will pay significant dividends.
Developing a mindset/money awareness
A money mindset requires intentionality. Your money actions need to become good habits and second nature to you.
Adopting reflective practices
A reflective practice makes you think about what you are, and will be earning and spending. Having a budget to guide your spending and saving is a way to adopt the proper reflective practices to help you succeed.
Putting insurance coverage in place to mitigate risk
The proper insurance provides cash for future delivery in case you need it. Whether it’s your car, health, life, or disability, the proper coverage guarantees the payouts if the uncertain event takes place.
Creating an emergency fund
Having an emergency fund enables you to have the resources needed to pay the costs of the unexpected that typically can’t be insured.
Maintaining your ability to make a living
The most important foundational building block of your personal financial safety net has to be your lifelong ability to earn a decent income. The decision you make on the type of college or trade education you get, and the ongoing skills you acquire create the employable person you are.