Aeroplanes are built to fly.
A flight recorder is built to withstand a crash.
If you build an aeroplane to withstand a crash, it will not fly.
If you build a flight recorder with the same material as a plane, it will not survive a crash.
Financial plans need to be built with that mindset.
Your investment plan is like an aeroplane, designed to fly you to a desired destination. It has to be built for agility. There is an aeroplane for every risk appetite. The smaller the plane, the more agile your maneuver. The bigger the plane, the safer your flight.
Your emergency fund is like a flight recorder. It ensures you have a backup plan to help you reflect on any misfortune, and make necessary tweaks on your investment plan. Your emergency fund is not your investment plan. It will not take you to a desired destination.
– Osasu Oviawe