Ndubuisi 'Andy' Egwim argues that every doctor needs an emergency fund to avoid liquidating investments at loss and to provide freedom (he was able to leave his salaried GP role three years prior). He gives an anecdote about a doctor couple whose boiler and car failed and who had family expenses during a stock-market downturn (cited as occurring around Donald Trump’s trade wars); because they had a healthy emergency fund they avoided selling depressed investments. He also notes income protection insurance defends against loss of earnings if one partner falls ill.
Chapters
So one of the reasons I was able to walk away from my salary GP job three years ago and not be worried about looking for the next job or something. I mean, money wise doctor came several months later when I was getting too, too bored of just sort of twiddling my fingers. But it's having an emergency fund. Having an emergency fund gives you a bit of gap. It makes sure that any small financial issue doesn't turn to a disaster or a catastrophe or an anxiety inducing issue. For instance, I had this couple who are currently in the Mastermind financial coaching program and in one month their boiler blew up and their car had issues to fix. And they also had like family relative that they needed to help and they at the point they were already investing in the stock market. This was about the time when Donald Trump came up with his trade wars and the stock market was depressed. So many stocks were crashing down. So at that point, if they had to sell their investment to be a bad timing, they were going to lose money. But because they had a healthy emergency fund and they are both doctors, they were able to fall back on that emergency fund for that period and then build up back from there. Now the question is what if one of them was ill? Then they had their income protection insurance in place to defend that angle. Okay?
