Trade The Journey

Trade The Journey

Education: The Best Insurance

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“The best retirement plan in the world is education. Train yourself so that you can make a living with your mind long after your older legs can’t win the 100 yard dash.” – Master Your Budget,  Patrick Finegan Jr.

Although this quote is about retiring and this post is about preparing for the unfortunate incidents that may occur in our lives, what do they have in common with each other? Both situations require you to make changes in your life whether they are welcomed or not. Having a second and third income is the best way to ensure yourself against financial destruction in either situation. While reading this book, I found this quote was able to be applied to other aspects of my life. Most aren’t prepared for either situation, where for one reason or another your skills are no longer needed in the labor market. It could be your age, relevancy of your skills, competition or combination of the three.

Many fields are not as stable as they once were and massive layoffs are more the norm than the exception. Finding something that you can do well outside of your primary occupation is one goal worth having. It will carry you through the rough times and can assist you in preparing for the future. Your cash flow naturally fluctuates throughout your life time with some months providing more income then needed and some months not enough.

Although sense to most, saving in the great times in preparation for the bad times should be a law. But take a second to think about a situation in which you are experiencing an increase in cash flow and there is an additional passive income to complement the increase in cash flow.

That means you will be able to more than provide for yourself when the times are the bad. If we take it a step further, bad times in some cases could be a response to a downturn in the economy. If it is, this when your investment mentality should be kicking in. If your going through bad times, its almost guaranteed that others are experiencing bad times as well.

They might not be prepared for the bad times and may need money immediately and are willing to sale investments and other assets at a cheaper price. Now you have the cash flow available to take advantage of this opportunity. This all began by you taking the initiative in developing a education in an area of life other than your job which allowed you to create another source of income. Goes back to opportunity luck.

Education truly is the best insurance you have.

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