The Only Certainty is Uncertainty!
New Year! New Laws! New Rules of Wealth! I'm sharing what you must do to navigate your way successfully through economic change.
Last week I shared New Rule of Wealth #1: Invest 15% of Your Income
New Rule of Wealth #2: Create An Income Volatility Account
Income volatility is the new normal. A career with lifetime employment has been replaced with the gig economy.
According to H.R.com, the higher your salary, the longer it will take you to find a comparable job. For every 10,000 in earnings, save one month of expenses. For example, if you earn 50,000, you should have five months of your expenses in a savings or money market account.
Here are a few tips on how you can create your cash reserve account:
- Establish a savings or money market account that is not connected to your checking account. What you don’t see, you won’t miss.
- Set up an automatic monthly withdrawal from your paycheck to this emergency savings account. It won’t get lost on the way to your account.
- Establish a high yield money market mutual fund account with an investment company. Make sure you are earning some type of return on your liquid reserves.
It's not a matter of if, but when! When you experience a setback like a job change or loss, you will have created a safety net to weather any storm.
Got questions about the New Rules of Wealth? Join me on my Facebook page for a Q & A on Facebook Live this evening at 7:00pm click here to follow me and get a notification.
Stay tuned for next week's newsletter where I will share
New Rule of Wealth #3.
To receive the Free New Rules of Wealth Ebook visit https://deborahowens.com.
Have a prosperous week,