Maintain a liquid emergency fund from "summary" of CONQUER The CRASH-You Can Survive and Prosper in a Deflationary Depression by Robert R Prechter
To protect your financial well-being during a deflationary depression, it is crucial to have a liquid emergency fund. This fund should consist of readily accessible cash or cash equivalents that can cover your living expenses for an extended period of time. In times of economic turmoil, having a safety net of cash can provide you with a sense of security and peace of mind. A liquid emergency fund serves as a buffer against unexpected expenses, job loss, or other financial emergencies that may arise. It allows you to weather the storm without having to resort to selling off investments at a loss or going into debt. By maintaining a sufficient emergency fund, you can avoid financial stress and uncertainty during challenging times. It is important to regularly review and reassess the size of your emergency fund to ensure that it remains adequate based on your current financial situation and needs. As a general guideline, experts recommend having enough cash to cover at least three to six months' worth of living expenses. However, in a severe economic downturn, having a larger emergency fund may be prudent. In addition to having a liquid emergency fund, it is essential to keep this fund separate from your other investments. This separation helps to prevent you from dipping into your emergency savings for non-essential purchases or investments. By maintaining a dedicated emergency fund, you can ensure that you have the financial resources available when you truly need them.- A liquid emergency fund is a critical component of your financial preparedness in the face of a deflationary depression. By establishing and maintaining a sufficient emergency fund, you can protect yourself against unforeseen financial challenges and uncertainties. Your emergency fund serves as a financial lifeline during tough times, providing you with the stability and security needed to navigate through economic downturns with confidence.
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