While times are good, focus more on building your financial foundation so that you can weather the next storm and then capitalize on it on the back end.
Below are the four pillars of a strong financial foundation. If you take care of your business in these areas you’ll be in a good position to weather almost any storm.
Maybe this one is obvious, but your financial foundation starts with generating income. The more money you make, the bigger your shovel to help with the other three pillars.
Not having any consumer debt is a superpower in today’s world. While you may pay down some low-interest-rate debt, eliminating that expense will pay off big down the line. Paying off debt builds the muscle to save and invest once the debts are paid off.
Having an emergency fund will provide you with a financial safety net in case you suddenly lose your job. It can also allow you to pivot out of a job you dislike or leave the corporate world to start a business. An emergency fund will provide you with options, in both good times and bad.