Tuesday, May 13, 2008

Buffering Up Your Safety Zone


Money doesn't grow on trees. There's never enough money. You have to sacrifice or work hard for money. Money is the root of all evil. Whew! Such clichés about money make you squirm? Well, money isn’t really the most essential thing in life, but it’s practically close to oxygen on the ‘gotta have it’ scale.

Have you ever been to the circus and watched aerial acrobats perform their live routines on a high wire act? Then, you should also have noticed, at least momentarily, that the safety net strung out directly below the trapeze artists serves a critically important function! Likewise, to thrive in our financial lives, we too need a 'safety net'.

More specifically, I urge you to establish a reserve fund for 3 - 12 months' regular expenses. This reserve fund or cash buffer or economic safety net shall serve as an emergency buffer fund. Its fundamental purpose is to provide both fiscal certainty and emotional stability.
Do whatever you must to develop a certainty about money, a certainty that you deserve money and that money will be a resource to assist you in your contingencies and in the accomplishment of your goals. There is one key secret known by all of the world's money masters: money by itself has no power whatsoever. The power or energy of money lies in our attitudes, beliefs and control about it. And this is true for you.




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