Recession-Proof Yourself

In our exploration of investing and the economy, we’ve touched on a few more pessimistic topics.

We explored how the value of work is declining and how good jobs are disappearing. It’s important to face these facts with a clear, unbiased view so that we can prepare ourselves and avoid being left behind.

This is also true in assessing whether a recession is coming.

Based on historical trends, we are overdue for a recession. On top of that, we’re in the midst of a trade war that some economists think could push us into a recession.

Whether you agree with that assessment or not, it is important to make sure that you are prepared for a recession so that if and when one does hit, you don’t lose your financial footing. Continue reading “Recession-Proof Yourself”

Your Emergency Fund

Everybody knows that they need an emergency fund (despite the fact that not enough people have them). Nobody wants the stress of being unable to handle a medical emergency, the loss of a job, or a car that needs repairs. But what priority level should your emergency fund be compared to paying off debt or saving for retirement? How much do you actually need to save? And should it be in all cash or invested? These are the issues we’ll be looking at today.

When to Start Saving

The loudest voice in personal finance is Dave Ramsey. Ramsey tells his readers and listeners to first save $1,000 in an emergency fund, then pay off all non-mortgage debt, then build the emergency fund to 3-6 months of expenses. And all of this before contributing anything to retirement savings.

If you’ve been around here for any length of time, you know from my framing of the last paragraph that I am about to disagree. Continue reading “Your Emergency Fund”