Avoiding a critical SPOF!

Avoiding a critical SPOF!

I asked my son this question ‘Do you know what a SPOF is?’

He didn’t know, which is not surprising. He is young and is just crossing that threshold into officially being an adult. 

Of course, he should not have known the answer to this question. He has not studied deeply yet at University as he is still in High School, so he wouldn’t have had the chance to come across the acronym.

SPOF means Single Point of Failure. It is usually a term used in engineering, design or similar process-driven situations. 

For the purpose of the conversation with my son, I used it to discuss jobs that he might have in the future and his savings plan.

Simply put, he should be saving and investing his money, earning money in the future from a job or several jobs and working towards creating different income streams. He should not put all the pressure on one income stream. One single point of failure.

Why should he know this?

Well, in my opinion. There is a financial storm coming, and it is going to squeeze hard. He will learn from the experience because so many people are in the position of having a financial SPOF, which will cause so much pain. He will see it and experience it the same way I experienced the negative equity trap when I was younger. The pain of seeing that crush, so many people left me with a savings mindset. It was a tough time back then.

It won’t affect him too severely yet as he is still on his journey to University. It will bite, but he should not feel the full teeth marks. What he needs to do is learn and let it leave its mark on his psyche. 

A profound impact that helps him learn a lesson for life. Learn for the future because there will always be a storm coming.

It’s just life. Financial life.

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