I budget every month "mentally" - it's just an idea of my expenses for the next 30 days. And I invest the rest right away, with a bit of cushion.

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I wonder if homeowners tend to invest less in the stock market than renters because they know the value of real estate and put their capital in real estate instead.

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Thank you, Ben. I look forward to reading and sharing it.

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“How likely you are to be sick or injured for a prolonged period of time”

I’d like to say that at 44yo when I was healthy, active, and at the top of my earnings, a little nasty virus took me down and within two years, I was disabled and unemployed, forced to live on a fraction of what I was making. If you had posed the above question to me on my 44th birthday, I would have said there was very little risk of my being sick or injured for a prolonged period of time. But, one of my favorite sayings was always, “my crystal ball is in the shop.”

One usually cannot know what illness or injury is coming for them. Oh, how I wished I had planned for this contingency and saved or invested more money when I actually had it. I also lost half my retirement money in the COVID crash, but again, I had it invested somewhat aggressively given my age and the assumption that I had 20+ years of f/t work ahead of me. <sigh>

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Thanks for sharing that Amy. Sorry to hear about what happened, that is a tough situation. Sadly, what you are describing is much more common than most people realize.

Most people's financial plans work under the assumption that they will get to choose how long they keep working at their current income. Whether it be a changing economy or an unexpected injury or illness, many people don't get to choose when they stop working at their current income.

It's past time for me to write a full article about this subject, will be on my "to write list" now.



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