Four Minute Focus: Are You Prepared?
I hope this might be the prompt you need to get your house in order for the risks ahead. Remember: Proactive Communication, Getting Legal Documents/Insurance in order, and Having a Reserve Fund forms a solid foundation.
Please answer the poll below, and feel free to offer any advice or comment on how you think about preparedness in risk.
This is a great question. I see our core "reserve fund" as cash that is strictly earmarked as an emergency fund. We keep this at about 6 months. However, we have far more than that in liquid, non-tax advantaged investment accounts that would be another source of cash if the emergency fund wasn't enough.
Currently living this exact scenario as I unexpectedly lost my job a week and half ago. While the severance package was decent, the fact that I have about 6 months of financial runway saved up provides significant piece of mind. Now, I can take some time to figure out what I want to do next rather than take whatever comes out of desperation.