The Law of Three:
There are three legs to the stool of financial freedom: savings, insurance and investment.
One of your major responsibilities, to yourself and to the people who
depend on you, is to build a financial fortress around yourself over time.
Your job is to create an estate within which you can be safe from the financial insecurities experienced by most people.
To achieve this goal,
The first corollary of the Law of Three says:
To be fully protected against the unexpected, you require liquid savings equal to two to six months of normal expenses.
Your first financial goal is to save enough money so that, if you lost your
source of income for up to six months, you would have enough put aside to carry you over.
#Financiallesson
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