Going to be ready

Iosi Pratama

on July 10, 2022

What needs to be done so that I’m ready to work in a situation where I get less paid or uncertain revenue?

Those are questions that I need to ask myself because it could happen anytime to me as it happened to many people out there.

Am I ready if that happens?

Well, let's figure it out.

An emergency fund is playing a crucial part when this bad time happens. It will cover the expenses while I’m looking for another job or starting a new business. An emergency fund is supposed to be a few months of monthly expenses.

I can’t say my emergency fund is solid enough right now which covers 6 months of my living cost. Seems my expenses are getting bigger as my salary is rising. I’m in the mode that financial guru called the hedonic treadmill. I buy more and spend more than what I did a few years ago.

I think my Emergency fund can cover about 3 months of my living cost which is not that bad as well. It already passes the bare minimum.

I also invest about 70% of my money in the stock market which is a long-term investing instrument. Ideally, I don’t use it for short-term emergencies. I need to let it grow and compound for at least 7 or 10 years to see the result. This is also the reason I didn’t save for 6 months emergency fund yet. I prefer to put in on the stock which has a higher return possibility.

I think theoretically I’m not ready financially. But if that worse thing happens, I believe I can survive.

Why being ready for the worse is important?

I think it is crucial for me so that I’m not dependent on the company I work for because of my paycheck. I also can focus on delivering values and doing the things I’m passionate about.

In case there is something that the company do and it is not align with my values/principles. I can fight for that or in another case I quit.

The feeling of detachment from the company is so nice that I can work professionally. Knowing that I can leave anytime give me focus to give the best for the company output and goals.