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Module 2

Protect the Balance Sheet

The defensive priorities — reserves, high-cost liabilities and single points of failure — that precede asset accumulation.

Purpose

Why this module exists.

Ensure the household balance sheet is resilient before productive assets are accumulated.

Account required

Protect the Balance Sheet is part of Full Access

The defensive priorities — reserves, high-cost liabilities and single points of failure — that precede asset accumulation.

What you produce
Ensure the household balance sheet is resilient before productive assets are accumulated.
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Educational material only. Nothing here is investment, tax or legal advice.

Lessons

4 lessons

  1. 1
    Reading Your Own Balance Sheet≈ 13 min

    Constructing a household balance sheet that separates productive assets, personal-use assets and liabilities.

  2. 2
    Sizing the Protective Reserve≈ 13 min

    How the framework thinks about reserve sizing, and why the target depends on income volatility rather than a fixed rule of thumb.

  3. 3
    High-Cost Liabilities First≈ 14 min

    Why liability interest rates set the hurdle for every allocation decision, and how the framework sequences repayment.

  4. 4
    Single Points of Failure≈ 12 min

    Identifying the concentrations — income, insurance gaps, custody, documentation — where one event can undo years of accumulation.

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