Quite simply there are two things that will determine how well you weather the storm CASH and DEBT…
You want more of the first and less of the second.
That being said, there is nothing wrong with manageable debt. For someone with $5,000 in CC debt and $200 a month minimum payment (regardless of interest rate)
I would rather see $5,000 in their bank account with that $200 monthly payment than no cash in the bank and no $200 payment.
Many “wealthy” people have gotten into financial trouble due to lack of liquidity.
I am also VERY concerned about the future, and feel that CASH reserves give me more security than anything else.
For now, I don’t care if it doesn’t outpace inflation. You make hay when the sun shines. I see a lot of clouds right now.
There’s still way too much “irrational exuberance” in my opinion.
Expect a storm with rain, sleet, snow, floods, a hurricane, tornado, and a tsunami. Be prepared for them all.
If it only rains or snows you will have no problem.
Storms don’t last forever. There’s a rainbow after a good rain.