protect your wealth from financial shocks — man, I wish someone had screamed that phrase at me back in 2022 when I thought “eh, I’ve got a couple grand in checking, I’m basically set.”
I was living in a one-bedroom in a kinda sketchy but affordable part of Raleigh at the time, working remote for a mid-size SaaS company, feeling pretty smug about my $800-a-month rent and my habit of DoorDashing poke bowls way too often. Then bam—appendicitis. I wasn’t. Ended up with emergency surgery, four days in the hospital, and a bill that made my stomach drop harder than the actual pain meds.
That’s when I learned—really learned—that protect your wealth from financial shocks isn’t some abstract rich-person advice. It’s survival shit for regular people who still cry when Costco gas is $3.89.
Why Most of Us Suck at Protecting Our Wealth from Financial Shocks
Look, I’m not here pretending I’ve got it all figured out now. I still impulse-buy $14 oat milk lattes sometimes and then hate myself in the parking lot. But here’s the brutal truth I’ve lived:
Most Americans are one car repair, one root canal, or one “surprise” vet bill away from eating ramen for three months straight. According to the Fed’s own survey (yeah I actually read those now like a nerd), something like 37% of adults couldn’t cover a $400 emergency with cash in 2024. I was in that group. Multiple times.
The first time my car’s alternator died on I-40 during rush hour, I had to put it on a credit card at 22% APR because my “emergency fund” was literally $47 and some loose change in the console. Felt like an adult failure on steroids.
Claim Settlement Offer: How to Spot Lowball Payouts – Appraisal Engine Inc
Step 1: Build a Real Emergency Fund (Not the Fake One I Had)
I used to think $1,000 was enough. Cute, right?
After the appendicitis fiasco I swore I’d never feel that helpless again. Protect Your Wealth So I started small and ugly:
- Cut every subscription I wasn’t literally using that second (goodbye, three different streaming services I rotated like a psychopath)
- Sold a bunch of random crap on Facebook Marketplace—old gaming consoles, clothes that didn’t fit my “work from home dad bod,” even my barely-used air fryer
- Stopped pretending “eating out is self-care” and started meal-prepping the same boring chicken + rice + broccoli situation
It took me about 14 months to get to $10k sitting in a high-yield savings account (Ally was paying like 4.2% at the time, felt like free money). Now I aim for 6 months of expenses because life keeps finding new ways to punch me.
Pro tip from someone who learned the hard way: Hide the account app on your phone. Make it annoying to get to. I literally buried mine in a folder called “Taxes 2023” so I have to think twice before raiding it for a new PS5 controller.
Step 2: Insurance Isn’t a Scam (Even If It Feels Like One)
I used to skip the extra dental coverage because “I floss sometimes.” Then I cracked a molar on a rogue popcorn kernel during a Netflix binge. Root canal + crown = $2,100 out of pocket. Insurance would’ve dropped that to maybe $400.
Same with umbrella insurance. I thought it was bougie nonsense until my buddy’s dog bit a delivery guy and the lawsuit almost bankrupted him. Now I pay like $18 a month for a million bucks of extra liability coverage and sleep better.
If you own a house or have any assets worth protecting, look into an umbrella policy. Seriously. It’s boring but it’s one of the cheapest ways to protect your wealth from financial shocks that come from other people’s bad luck.
Step 3: Diversify So One Thing Doesn’t Nuke Everything
I had way too much in my company stock back in 2021. Felt smart until the tech layoffs hit and the stock tanked 60%. Suddenly my net worth looked like it got hit by a truck.
Now I keep:
- Emergency cash in high-yield savings
- Retirement stuff spread across index funds (mostly VTI and VXUS because I’m lazy)
- A tiny “oh shit” brokerage account with some individual stocks I like (and can afford to lose)
- No crypto because I panic-sold my Bitcoin at $19k in 2022 and I’m still mad about it
Point is, don’t let one dumpster fire take everything down.
The Stuff I Still Mess Up (Honest Edition)
I’m not perfect. Last month I blew $600 on new hiking gear because “I’m gonna get in shape this fall” and then it rained for three straight weekends. Classic me.
I still occasionally dip into the emergency fund for dumb stuff and have to yell at myself to put it back.
But here’s the thing: protecting your wealth from financial shocks isn’t about being flawless. It’s about stacking enough small, boring wins that when the next hit comes, you don’t completely implode.
So yeah. Start today. Even if it’s just moving $50 into a separate account labeled “DO NOT TOUCH, IDIOT.” Your future self will thank you. Or at least hate you a little less.
