Todd PolkeInvestment Strategist l Wealth Coach l Speaker, Todd Polke · Investment Strategist l Helping Investors and Business Owners grow their Wealth Faster

Do you really need a buffer before investing? Check this out. #shorts #money #investing

16 Mar 2023 · 1 min

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In this short video, the speaker argues that having a financial buffer—or emergency fund—is essential before you start investing. While the buffer doesn’t have to be large, it should be sized to give you peace of mind in case of unexpected life events such as health issues, job loss, or family emergencies. The buffer acts as a “sleep‑at‑night” safety net, providing a solid foundation that protects you from having to liquidate investments during market downturns. The speaker emphasizes that you should still aim to begin investing as early as possible, but doing so with a buffer ensures you can weather inevitable road‑bumps and build sustainable wealth over time.

Chapters

Do you need to have a buffer in place before you begin investing? To me, the answer is a wholeheartedly yes. That doesn't mean it necessarily needs to be a big buffer to begin with, and it's all going to come down to you deciding what do you need set aside so if something happens to work or life or health or family, whatever goes wrong in life, you've got to understand, well, what do I need that's going to give me a sleep at night factor? When you have that set aside, what it allows you to do is know that you've got a bit of a bedrock or a foundation which is sitting there and that if something comes our way, that you are safe and you are protected. So I'm always a big believer in getting started investing as soon as you possibly can. But should you have a buffer? The answer is wholeheartedly because you never know what's going to be coming your way. And as an investor, our ability to be able to create sustainable wealth is our ability to roll through the inevitable road bumps that come our way in life.