Financial Risk Mapping
Humans are often worried about a 10% stock market dip but drive without a seatbelt. In personal finance, Risk is not volatility; Risk is permanent loss. You must learn to distinguish between “annoyances” you can pay for and “disasters” you must insure.
- The 1% Rule: If the financial hit is bigger than your savings account, you must transfer that risk to an insurer.
- The Order of Operations: Why you must build a “firewall” of protection before you are allowed to worry about the stock market.
Watch this video to map your risks and lock the back door to your wealth.