“You can only milk a cow for so long, then you’re left holding the pail.”
What kind of plans have you made for the future? Do you expect everything to go as it always has, or do you have plans to cope with pitfalls you may eventually face?
Many things could happen to change your current status. Loss of your job, a health issue, a drastic increase in utilities, taxes or fees, or even a lawsuit or divorce can make a sudden shift in your ability to cope with your circumstances.
As Mr. Aaron put it, do you have another cow if the one you are currently milking runs dry? Having a backup cow in the barn is a really good idea.
In our last episode of Daggers Of The Mind, a quote from George Takei was featured. In his book “ To The Stars”, he said that as soon as he was earning some money acting, he began buying real estate rental properties. By its very nature, acting doesn’t always give a steady paycheck, he wanted a more stable form of income while being free to accept and turn down roles as he saw fit.
At its most basic application, your extra cow could be a savings account you slowly accumulate over time to cover emergencies, and eventually retirement. Start a steady contribution to a plan you don’t have easy access to, and then some type of savings you could access in small emergencies such as unexpected car repairs.
According to Suze Orman:
If you are worried about job security and do not have an adequate emergency fund (ideally eight months’ worth of living expenses stashed away in a federally insured bank or credit union), you need to focus more on saving money than paying down the balance on your credit cards.
We could all use some adjustments to our financial lives. Make sure you have an adequate backup, but then continue to milk that cow while it is in the barn!!