Financial Foundation: What Is It And Why You Won’t Become A Millionaire Without It

Question: Do you know what a financial foundation is?

Three Pillars

-       6 months expenses saved minimum

-       Insurance

-       Cash flow

The point of the financial foundation is to be able to BUILD something on top of it. If it has cracks or gives in altogether, then its not going to hold anything that’s meant to last.

If you don’t have this together, then any investments or savings you have will be in danger of disasters and timing. Investments don’t always go up. Many times they’re in the red and when they are, there’s a chance other things are going wrong too and you don’t want to cash out of them and take a loss.

Without the FF, you’ll have no choice and will end up hurting yourself twice. 

 6 months expenses saved minimum

-       COVID-19. Financial crisis of 2008. Fires in California. Floods in Louisiana. Stock market crash. Disasters WILL happen to you on a micro and macro scale.

-       6 months expenses can be stretched longer if you cut back when having a harder time to find a job

-       Gives you a chance to evaluate the best move for you and your family instead of taking something out of desperation

-       Don’t have to go into debt and have interest worsen your situation

Insurance 

-       Generally, I mean health insurance and other forms that are legally required such as car and home-owners insurance. 

-       Insurance provides a safety net from disastrous events. Car accidents, injuries and illnesses can drain your resources incredibly fast. 

-       Protect you and your family. 

-       Its unfortunate health insurance costs so much in the States but do what you can about it

Cash Flow

-       For most people, this is going to be their job or jobs. Its incredibly common to have a side hustle nowadays. Not always a good thing.

-       Make sure any side hustles are worth your time or you could spend that time developing a skill that enables you to make more money in less time. 

-       This needs to cover you basic needs such as food, housing, transportation and daily expenses. 

-       If you can’t meet basic needs, then you need to reconsider your job and what you need to do in order to upskill to earn more. Getting a second job if your first job cannot support your basic needs normally means you need a different job in the first place

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About the Podcast

If working a 9-5 for 60 years so you can retire with a little money and die a few years later is what you want to do, then this is not the podcast for you.

Stephen is an executive coach that works with executives and entrepreneurs to build the life that they want, personally and professionally.

This podcast is about contrarian investment strategies around time, energy and money to build the 4 types of wealth and utilize lifestyle design to create the life we want. The interviews are with hi-earning individuals on how they make money so you can copy us and grow wealth too!

Reaching that first $100k milestone is crucial and then the game changes.

Learn how the wealthy view time, energy and money so you can apply these proven strategies to your life.