This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Are you TOO reliant on your job?
They don’t have an emergency fund in place.
They only have a single income source.
They lack long-term savings.
1. No Emergency Fund In Place
People underestimate the power of the emergency fund. When you have one in place, you eliminate the need to ever go into debt.
When people have emergencies, their first savior is often a credit card or personal loan. You can avoid these routes by having a solid emergency fund.
The best type of emergency fund is one that lasts up to a year.
Your average recommendation will recommend a minimum of 3–6 months. Still, when you have a 12-month emergency fund, you have room to breathe and time to relax. Hence, you make more thoughtful and intelligent decisions about your path forward.
2. Single source of income.
Many fear losing a job or taking a break from working full-time because they don’t have additional income outside their primary income source.
When you have a single source of income, you place yourself in a risky segment of people. These people rely 100% on their job, and in the case they need to take a break from working or get let go, they fall flat on their faces with all of the worries in the world, such as:
“How will I pay my bills?”
“How will myself and my family eat?”
“I need to get my next job like yesterday!”
“How will I be able to afford my living situation?”
None of these statements have to come out of your mouth or even be a thought in your head if you put multiple streams of income in place.
I say go for ten income streams, but if you don’t do this, go for a minimum of two income sources. When you lose one, you have another, and you can replace the other one quickly, not because you have to, but because you want to make yourself financially bulletproof.
3. No long-term savings.
Most people can’t take long vacations, go on sabbaticals (link article), or quit their jobs because they don’t have any long-term savings.
Long-term savings is the equivalent of power.
When you have savings, you have the power to make decisions for your life instead of leaving it in the hands of others like your employers or people who financially take care of you.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.