The last chapter of Your Money or Your Life deals with what you do once you have reached the crossover point. The authors suggest putting your money into three piles. Capital which is what earns you income. Cushion which is six months of savings. And cache which is any extra money you accumulat, this can used for unexpected expenses or for a splurge.
The original edition recommended putting all your money in US Government bonds. That strategy wouldn’t work very well today and the new edition reviews other investment options.
This is the last of my series on Your Money or Your Life. Next week I plan on posting an interview with Monique Tilford one of the co-authors of the new edition.
