Good Analogy for the importance of having a Buffer (SANF) in place

[beachy]

I was driving to work this morning thinking that I would have around $30,000 in an offset account and could go out and maybe buy another property in a real estate market that is on the upcycle, then I looked at the car in front of me and I thought...

If I drive really close to the car in front of me; almost tailgating the car I could get to my destination a lot or a bit quicker, but on the flipside, if that car in front suddenly brakes, then I could "crash and burn" and lose the lot!

However, if I keep my required distance of 1-2 cars between the car in front and me, then I will still eventually reach the destination, but reduce my risk of having an accident and losing the lot.

I think this concluded to me the importance of having a decent buffer to assist with the unavoidable or things that pop up and having that buffer gives me SANF plus money for a rainy day. Maybe being a bit like the tortoise isn't such a bad thing

 

[D.T.]

Very good post beachy and wise words.

Personally id love to have a buffer but I keep finding good deals #fwp

 

[Bunlee]

Hi Beachy

Some would say to pull to the right and overtake !

For me I am a bit in no-mans land at the moment. I have an LVR of <20% on Australian property and find myself looking at the Domain.com for something suitable to buy as an investment.

However, my strategy is to sit tight, put excess funds into Super and direct Australian shares whilst waiting for interest rates increase and then look for some value with our low LVR on property. It all comes down to personal circumstances, personality and risk profile.

If I am going to make a mistake I would rather it be on the prudent side and miss opportunities rather than take on, what I consider, too much risk.

Notwithstanding the above, I really enjoy reading the posts here as I have found it to expand my mind and slightly open the possibility of changing my strategy to be not so safe.

All the best

(good anology / metaphor you outlined)