Monday, June 01, 2020

Building Capacity


A Buffer is cash that helps you breathe. Yoga is “stilling the waves of the mind”. A Buffer is an Emergency Fund of 3-6 months’ worth of spending. You can’t plan all spending in advance. There are unexpected things that mess up even the best laid plans. A Buffer isn’t there to spend, it is there for when a particular month is a little greedy. If you orbit zero in your bank account, then the waves can knock you off course. Practicing Financial Yoga by gradually building up a Buffer requires internalised discipline. The default becomes having a little space. Protecting that little space. Building that space up again after it gets used. A Buffer creates lung capacity. Breathing in and out with calm, steady, control rather than gasps.




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