Monday Morning Money Moment: Your Greatest Asset
Happy Monday friends! I hope you all enjoyed the beautiful weather and had a chance to relax. Also, a big shout out to all the mother’s I know, (a lot more recently…) I hope you had an amazing Mother’s Day! Today our topic is about your most valuable asset. Many people think it is their house or their car. Some people even think it’s their phone or their wardrobe. What if I told you the most valuable asset you own is yourself and your ability to work. It is something that we take for granted, especially when we are young. In this post, I’m going to talk about why the ability to work is so very, very important.
I have clients that make over 150K a year and I have others that make close to 20K a year. Despite the huge variance in their incomes, both their financial plans depend greatly on them making money. Your current income level will determine a lot for you. That’s a no-brainer, we all know that. What I want people to start thinking about is what would happen if you didn’t have that income. For most, not having an income or even a slight reduction in their income would be devastating. Here are some statistics to prove my point:
68% live paycheck to paycheck
26% have no emergency savings
52% have less than $1000 in emergency savings
Those are some scary numbers. They show just how dependent on our paycheques we are. This becomes problematic when that paycheque is gone. I am going to bring up an example from my own life to illustrate my point.
Many years ago, the restaurant I worked at went under. One day it was open, the next day it was not. At that moment in my life, I was up to my neck in debt. I also only had $600 to my name. Within one month that money was gone and I was left penniless. I had just started a job, a crappy one, just to get by. It was tough but it had to get done. I worked that crappy job for a few months until I could find something better. My $600 in savings left me vulnerable. Sadly it wasn’t even enough to pay my bills. Today, I have made sure I have 1 year’s expense in an emergency fund just in case.
I think it is important for all of us to understand how important our incomes are. We have to do whatever it takes to maintain them, upgrade them and protect them. Truly understanding how your income affects your life is vital to any financial plan. Tomorrow I will over some thoughts on how you can upgrade and protect your income. Doing so will ensure you achieve all your goals and dreams. Thanks for reading friends and have a great week!
“Without health, life is not life; it is only a state of langour and suffering, an image of death.” – Buddha
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at budgetboss.ca.