Topic: Resilience
3 posts tagged “Resilience”.
Leave Room for Error
Morgan Housel calls the gap between what you think will happen and what you can survive "room for error" — and argues it is the most under-appreciated force in finance. A plan that only works if everything goes right is not a plan; it is a bet.
Buffers Beyond the Emergency Fund
An emergency fund is the first cushion, not the only one. A calm financial life runs on layered buffers — one for genuine shocks, one for the lumpy bills you can see coming, and one for opportunities — so that no single demand on your cash ever catches you out.
Why the Emergency Fund Comes First
Before you invest a single dollar, build a cash buffer. The reason is simple arithmetic: without one, an ordinary shock gets paid for with debt — and at Singapore credit-card rates of around 26% a year, that turns a manageable problem into an expensive one.