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

  1. Basic Money knowledge

    • Spending 17 minutes per day (2 hours per week) to improve your financial knowledge will pay significant dividends.

  2. Developing a mindset/money awareness

    • A money mindset requires intentionality. Your money actions need to become good habits and second nature to you.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

Resources

Harry Stout - website and resources - https://www.financialverse.com/
Debt tools and other free resources - https://leosabo.com/resources
Online Budget Course - https://courses.leosabo.com/
David’s website - www.stewardshippastors.com