From personal experience, before you put all your spare money in the stock market, make sure you have the basics covered. Ask yourself, "What would happen if my partner or I couldn't work for a few years?"
Money: Set up life insurance, income protection insurance, and decent medical coverage.
Accommodation: You don't need to own your own home, but have some money available to cover rent or mortgage if needed.
Social: Don't let your social life revolve exclusively around work colleagues. Invest time in family and broader groups. Find a way to have achievements outside of work.
So this happened to me. My wife and I went from a very comfortable double income to countless hospital visits and no time or energy for anything else. And this is just after we had kids.
I'll be forever grateful that my wife set up the safeguards above. I was 100% invested in work, financially and socially, so it has been a huge shock and could have been much worse.
We found out my wife had cancer ("of unknown primary") in May last year. We're in our early 30s so this should not be happening. Anyway, I think the same advice would still apply for more mundane situations like a recession or a failed business.
Money: Set up life insurance, income protection insurance, and decent medical coverage.
Accommodation: You don't need to own your own home, but have some money available to cover rent or mortgage if needed.
Social: Don't let your social life revolve exclusively around work colleagues. Invest time in family and broader groups. Find a way to have achievements outside of work.
So this happened to me. My wife and I went from a very comfortable double income to countless hospital visits and no time or energy for anything else. And this is just after we had kids.
I'll be forever grateful that my wife set up the safeguards above. I was 100% invested in work, financially and socially, so it has been a huge shock and could have been much worse.