How Much Money Knowledge Do You Need? And the Folly of Future Proofing

Mark poses a question -- how much knowledge about money does someone need? As in, how much time and energy should one devote toward investing, planning for future needs and problems, and other future considerations? Jesse offers some examples of how people often seek assurances, guarantees that their future income (and circumstances) will be safe. The reality, however, is that if you are in business, or even if you are an employee in a business, you are taking risk, and that risk cannot be mitigated to zero.

 

One takeaway from this conversation is that when you live within your means and create financial cushion in your life, you leave yourself open to take advantage of future opportunities. And as Jesse points out, the personal bleeds into the business. Business IS personal. So the same thing holds true for both the business' balance sheet and the business owner's balance sheet. When there is ample cash on hand and the owners live well within their means, the business can take more risks and take advantage of opportunities that would have been closed otherwise.

 

Mark Butler, Virtual CFO

The Money School: https://moneyschool.works

https://markbutler.com

https://letsdothebooks.com

 

YNAB

https://www.youneedabudget.com