Financial Safety Cushion🟡

Everyone has probably encountered a situation in life when something unexpected happened. Your laptop broke, the refrigerator stopped working, your phone shattered, or you got into an accident. Suddenly, you needed money, but there was none, resulting in having to borrow from friends and relatives, or even worse, taking out a loan. Or maybe you lost your job and haven't found a new one yet, but bills still need to be paid.

❗️This is exactly why you need a Financial Safety Cushion❗️ It's a reserve of money meant specifically for such cases, for emergency expenses; you can't spend it on other things. It's your savings account where a certain amount is designated as a safety cushion, which you do not spend or invest (you can keep it in a bank to earn interest). This money should be liquid - available at any moment when you need it.

💰Size of the financial cushion💰 Experts' opinions vary, but a minimal sum can be identified - three monthly salaries is a good starting level.

☝🏻Over time, it's advisable to increase the size of your financial cushion. Ideally, it should cover all your expenses for a year, or even two. This means if you lose your job, you can still maintain your current lifestyle, or slightly reduce it, for a year.

💭Freedom and peace of mind Those who say that investing is about living worse now for a better life in the future are wrong.

A financial cushion is an excellent example, as it makes you more free and less worried about the small things. If your car, laptop, or washing machine breaks down, no problem, you have the money for repair/replacement. You can also afford to change jobs if you need a couple of months to find a new place. This point is very important for people who hate their job, and believe me, there are many.

❗️Your standard of living, both now and in the future, will increase with a financial cushion❗️