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How can I be prepared for this drop, or any period in between?
Should I stick it out here as long as I can beforehand?
However, as you become 40, then 50, that window gets much smaller, Sethi said.
You basically lock yourself into needing to work to pay for things that you bought years ago.
Consider Your Retirement Accounts and Other Investments
Investing in your retirement is important for all ages.
However, if youre younger, Sethi suggested, You want to be investing aggressively.
You build the habit, and that money tends to compound over time.
Sethi called these investments very impressive and said it shows a demonstrated ability to invest.
The bigger that buffer, the better.
Youve earned the financial ability to do that.
Sethi suggested keeping those as close to 60% of your income as possible.
It depends on all of these factors, not just income and expenses.
Sethi advised running a number of scenarios such as:
What if you lose your job?
What if you buy a car or a house?
What if you take a trip this year instead of next year?
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