Most people who are forced to "pull up to paycheck" actually make good money. The only problem is that they do not know how to properly manage their financial resources. The financial cushion provides the following benefits:
insures against unforeseen circumstances;
helps to avoid debts and the need to sell the right property;
can serve as start-up capital when opportunities arise;
protects against poverty and complete collapse in the event of a catastrophic situation.
Maxim Temchenko, a well-known coach and millionaire, identifies 5 levels of relationships with money:
financial danger; financial security;
Those who do not have even minimal savings in the form of an airbag are at the lowest level and are considered the most vulnerable layer of society. As the financial airbag of the family is formed, it is possible to reach the second level. If you do not stop and continue to develop well-being, you can reach the highest level and achieve financial freedom.
How to start saving money
A family's financial airbag is a guarantee of stability and the ability to feel confident in case of unforeseen circumstances. It is formed through savings. There are only 2 ways to create a financial airbag: