3 Essential Wealth Buckets to Secure Your Finances

We need to fill three buckets. The first bucket is liquidity. That for everyone. Their undoing is being able to buffer against the unforeseen circumstances. So they need cash. How much cash do you need to have available to buffer against the unforeseen and have a war chest? For most people it's between three months of their expenses and if you're in retirement, potentially it's up to three years of living expenses. Right? Your next bucket is your income bucket. We need to hold assets that produce high income and that's usually commercial property and blue chip stocks. And the reason why we want that income is because we can eat the income, right? It's regular, it's consistent. And that's what tops up our first bucket, our liquidity bucket. However, typically income producing assets don't appreciate a lot. So then our third bucket is growth. And that's where we want growth based stocks and residential property and also building a business that can be sold because that's where we're going to compound our wealth.