“I’m 81 years old and if I do say so myself – I’m pretty darn sharp.
I’ve been watching how this virus shut down the jobs and after just a month or so the stories began that people couldn’t pay their rent or their mortgages.
And this was happening even though they got unemployment and that extra $600 a week.
What ever happened to the rule that you should keep six months expenses in the bank?
If people had that they wouldn’t have been in trouble.
Or is this 81-year-old mind missing something?”
You are pretty darn sharp!
And, you haven’t missed a thing.
There are lots of solid financial fundamentals that seem to be lost on many people.
One of those fundamentals is to have six months (some say three, some say twelve) expenses in your ‘cookie jar’ – just in case.
The year 2020 has had more than enough ‘just in cases’. Hopefully, people who got caught short will learn this valuable lesson.
All things considered, I think six months of expenses is the minimum I would want my clients to have in liquid. I would be happier with nine or twelve.
I think they would sleep better at night as well.
You are missing nothing, my friend.
If you have questions or comments, please send them to Gene@AskMtM.com