Schroedinger's Cash

Snapping Hand-to-Mouth income dependence requires stepping away from the edge. This is difficult, because the views are best when we push out as far as we can. Savings and Investment come in very different flavours. Two of them are “there, but not there”. That requires taming your inner toddler. A Buffer is an Emergency Fund of 3-6 months’ worth of expenses. Cash that is in your account, but not for normal spending. It is there for smoothing. When unexpected expenses arise, or income disappears unexpectedly. Any spending requires balancing repair work. An Engine is a source of passive income. Powering a stream of income that lessens the burden on your hands. But you can’t spend the Engine. The Engine is working. Spending your Engine is firing it. You can spend some of what the Engine produces. If you spend less than it produces, it will grow. The third type of Savings & Investment is easier. Saving *for* something. You can visualise the reward. Stepping away from the edge requires developing the ability to value what you can’t see.

There, but not there