Four financial buffers to manage money: a sleep-at-night buffer for living expenses, an investment buffer for market opportunities, a stuff buffer for big purchases in the next 18 months, and a growth buffer for coaching and education.
What are the different buffers, the different ways that we need to split up our capital? Your personal buffer is your sleep at night factor. That's just all about how much capital do you need to set aside so you can put your head on the pillow at night and you can sleep easy. The second buffer is your investment buffer. This amount of capital, it's like a slush fund for your investment portfolio. The next buffer is your stuff buffer. It's for any big expenses that you know that are coming up for— Over the next 18 months. The next buffer is your growth buffer. It's the investments in yourself, like coaching, mentoring, learning, growth, whatever it is, so that you can actually level yourself up.
