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Lesson 3 of 4 · 3 min read

Buffer first

Why you shouldn't invest without an emergency fund.

3-6 months of expenses

Keep 3-6 months of fixed costs in a savings account. That prevents you from having to sell at the worst possible moment.

3–6 month bufferonly theninvesting
Build a 3–6 month emergency buffer before you start investing.

Only invest after that

Without a buffer you're a forced seller at every setback (a broken-down car, job loss). The buffer gives you peace of mind and freedom.

3–6 month bufferonly theninvesting
Build a 3–6 month emergency buffer before you start investing.

Remember this

  • Keep 3-6 months of fixed costs as a buffer in a savings account.
  • The buffer prevents you from having to sell at the worst possible moment.
  • Without a buffer you're a forced seller at every setback.
  • Buffer first, then invest — it's your real risk management.

There is a quiz for this lesson

2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.

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Buffer first