A Buffer is a form of
self-insurance. Like a salary that only meets your expenses is hand-to-mouth survival, actual
insurance takes the bumps out of life in exchange for a premium. It is
hand-to-mouth risk control. You pay someone else to remove the bumps. A Buffer
is Capital that you can draw on if you need to. Some months you spend more than
others, because of expected unexpected events. Flat tires, broken toilets,
dropped vases, leaky fridges and rats in the roof. These are annoying but
hardly unusual. If you have breathing space between what you earn and spend,
building a Buffer can take care of you. The bigger the Buffer, the more you
only need to pay for insurance for the smashes and canyons that would wipe you
out. A Buffer is temporary, till things right themselves, support. An Engine
would be enough Capital to give you Financial Security without requiring you to
be a productive financial asset. An Engine would be the breadwinner, and rock,
in your family so that you can build a life. And rock.
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