3054: The More Runway You Have, The Safer You are by Barney of The Escape Artist on Financial Independence

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 26 February 2025

⏱️ 11 minutes

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3054: Barney of TheEscapeArtist.me explains how to calculate your runway, why an emergency fund is essential, and how financial independence shifts your options and decision-making. More runway means more freedom, but the benefits plateau after a certain point, making it crucial to define what "enough" means for you. Read along with the original article(s) here: https://theescapeartist.me/2021/10/19/the-more-runway-you-have-the-safer-you-are/ Quotes to ponder: "The moral of this story is that the more runway you have, the safer you are." "You need to have a margin of safety in your life. Some redundancy in your personal finances in case of redundancy in your career." "It is HUGE to go from having no runway to having the ability to take a year off. But just going from 25x to 26x shouldn’t really change your life much." Episode references: The Psychology of Money by Morgan Housel: https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Race the rudder. Raise the sails. Raise the sales.
0:04.0	Captain, an unidentified chip approaching. Over.
0:07.0	Roger that. Wait. Is that an enterprise sales solution?
0:12.0	Reach sales professionals, not professional sailors.
0:16.0	With LinkedIn ads, you can target the right people by industry, job title, and more.
0:21.4	To get 100 pounds off your first campaign, go to LinkedIn.com slash lead to claim your credit.
0:26.7	That's LinkedIn.com slash lead. Terms and conditions apply.
0:31.0	This is Optimal Finance Daily. The more runway you have, the safer you are.
0:37.2	By Barney of the Escape Artist.me.
0:41.0	My dad once learned how to fly a microlight, a flying contraption that looks a bit like a hang glider
0:48.6	attached to a lawnmower.
0:51.0	It's probably not the safest hobby you could choose.
0:57.1	He learned to fly this thing at a rustic airstrip, which by all accounts was just a grass field with a hedge at the end. The hedge marked the
1:04.0	boundary of the field and the point by which you had to have achieved takeoff or crash headfirst
1:10.5	into the hedge. To get airborne, you needed to
1:14.5	start from a standstill at the other end of the field and then go full throttle, bumping along
1:20.5	gathering speed with the stick pulled back until you got up enough speed and enough altitude
1:26.3	to achieve lift-off and clear the hedge.
1:30.4	The moral of this story is that the more runway you have, the safer you are.
1:36.3	In your personal finances, you can think of runway as the length of time that you could go without
1:41.7	working. People that live paycheck to paycheck have no runway.
1:46.0	They spend everything that comes in, go overdrawn at the end of every month, and juggle credit cards.
	...

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