To get more out there and understand what is important in people's finance's plus for the occasional fun question, we've introduced the Quora Question of the Month. We'll source a question that appears to be getting plenty of attention on Quora.
This month we'll take a look into the question of how important is it to hold onto your cash once you have a "significant" amount of it. Let's address a key question first:
What is a "significant" amount of money?
Unfortunately the answer to this question is that it depends on your desired type of lifestyle and if you want to increase the type of living that you undertake once you have that "significant" amount of money. A decent guide for this is to calculate your current expenses and look to add 10% to give yourself a cushion. Having said this it will then also depend on the housing costs you are have and your projected future costs. This is why you are the main person who will know what a "significant" amount of money is. Now that we've addressed that, on to the question of the month
How important is it to hold onto your cash once you've made a lot of money?
If you wish to remain "financially free" if that is your goal then holding onto your cash is paramount, vital *insert other adjective here*. While it is not life threatening if you happen to lose or reduce all of your cash or assets, this would be a significant strain psychologically if you were to happen to lose your wealth with all of the effort you had put into gaining it. At the same time let's put another perspective in there and say that provided your wealth wasn't inherited, it is likely you've got or understand the method or a method on how to re-build. Having said this it's probably easier to not lose it in the first place :)
Before we go though wealth and acquiring cash can be about more than that. Stayed tuned on this in the next article for more
What are your thoughts, how important is it to hold onto your cash once you've made a lot of money
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