53. The Law of Three
There are three legs to the stool of financial freedom: savings, insurance, and investment.
One of your major responsibilities, to yourself and to the people who depend on you, is to build a financial fortress around yourself over the course of your working lifetime. Your job is to create an estate within which you can be safe from the financial insecurities experienced by most people. To achieve this goal, you need to maintain the correct proportions of your finances in each of these three areas: savings, insurance, and investment.
The first corollary of the Law of Three is To be fully protected against the unexpected, you require liquid savings equal to two to six months of normal expenses.
Your first financial goal ...
Get The 100 Absolutely Unbreakable: Laws of Business Success now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
