Do you have a Financial Comfort Zone?


Exploring the Range

Try to imagine the enormous range of possible financial conditions in which human beings can live.

At the lowest end is bare subsistence—the minimum food and shelter possible to sustain life. At the highest end is unlimited wealth—multi-billionaires with more than they, their children, and their grandchildren could possibly spend.

Think: Abraham Maslow’s hierarchy of needs.

So - Do you have a Financial Comfort Zone?
What is it?

Emergency Funds
Dr. David E. M
7 months ago

1 answer


Bare minimum $1m, so you can still invest at my stage of life.
$20M high end to provide enough cash flow to replicate current earnings.
emergency funds used to be 90 days, since 2008 I have become increasingly conservative on this point. emergency needs to be closer to 1 year or more. again, I am in my 50's, this entire answer would be different if I was 28 years old.

and, I did start with zero. or less than that, as I had to put myself through BBA, MBA, CPA license.

Lorraine Teel, MBA, CPA
7 months ago
EFs: For docs, I've been advocating for`1-2 years cash equivalents; CRAZY? - Dr. David E. 7 months ago
Yes, I am aware of the “paradox-of-thrift” conundrum. But, do you want to help the domestic GDP, or your family; you decide? Personally, my own concern is not the macro-economic milieu. - Dr. David E. 7 months ago
David, not crazy. since 2008 cash needed on hand has grown substantially. LT - Lorraine 7 months ago
True; as well as the insane state of domestic healthcare today. CHEESE - Dr. David E. 7 months ago
David, Healthcare is a whole other issue. It was my #1 cost the last few years, exceeding my housing costs by 20%. Do you feel that as well? what is comfort for you, today? LT - Lorraine 7 months ago
Sorry no; healthcare is not an issue. Im a doctor and professor. - Dr. David E. 7 months ago
I grew up in the hood and armpit of Baltimore City. Most old kid friends are dead or drug addled. I am indeed blessed, - Dr. David E. 7 months ago
Ahhh should have read your profile on being a doctor. LT - Lorraine 7 months ago
Mea Culpa! - Dr. David E. 7 months ago

Have some input?