RE: Liquidity Is A Huge Problem
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This is something I first heard from Raoul Pal in an interview. He said that most people are taught to invest all their money rather than leave some liquid. Then, the problem is that you end up having to liquidate assets if a sudden emergency comes up. Or, you don't have any cash to take advantage of market dips.
Personally, I've learned that if I am going to borrow on margin, I can't max out the loan. Either I leave some buffer, or borrow extra to leave liquid. This way, I can avoid liquidation.
Related to that, I was, for a while, putting all my money into paying off credit cards without leaving some cash for spending. Naturally, I would end up having to put more spending on the cards.
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If we are not very very careful it can be a viscous cycle 😉