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?
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.