Cushion

‘Cushion’ is the second of the three pillars of financial freedom outlined by the authors of Your Money or Your Life Vicki Robin and Joe Dominguez.

It refers to saved money that can act as a safety net or emergency fund.

Your ‘cushion’ may be a few months’, or even a few years’ worth of expenditure. It’s there for you to rely on if you lose your job, or if your investments suffer.

See also: Cache, Capital

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