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2 Timeless Financial Lessons from Aesop, "Umbrella" Protection, James Clear on Breaking a Rut, and More

Author

Benjamin Daniel, CFP®
June 14, 2025

Read Time: 4-minutes

Happy Saturday,

Here is this week’s edition of 6-Point Saturday — financial insights to help you make smarter money decisions.

Let’s get into it.

Point #1 — Aesop’s Fable: “The Ants & the Grasshopper”

One of Aesop's classic fables is titled "The Ants & the Grasshopper.”

For the uninitiated:

"One bright day in late autumn a family of Ants were bustling about in the warm sunshine, drying out the grain they had stored up during the summer, when a starving Grasshopper, his fiddle under his arm, came up and humbly begged for a bite to eat.”

"What!" cried the Ants in surprise, "haven't you stored anything away for the winter? What in the world were you doing all last summer?"

"I didn't have time to store up any food," whined the Grasshopper; "I was so busy making music that before I knew it the summer was gone."

The Ants shrugged their shoulders in disgust.

"Making music, were you?" they cried. "Very well; now dance!" And they turned their backs on the Grasshopper and went on with their work."

The fable concludes with the lesson:

"There's a time for work and a time for play."

Why it matters:

2 big lessons here.

  1. The obvious: it pays to be prepared.

Plenty of things are outside our control, and the ants were wise to prepare for a "cold season" outside of their control.

  1. The non-obvious: find a way to make preparation fun.

There will always be activities and purchases that tempt us to spend, spend, spend…

So, we have to find ways to make saving more attractive.

The simplest way?

Reframing.

Reframing is simply adjusting the "frame" in which we view something. For example:

Saving for an "Emergency Fund" might not sound appealing. You might be tempted to think: “Things have been going fine, what are the chances?”

We all sense the foolishness in this logic.

Alternatively, we can view it as a "Stability Fund."

Most people like stability. The idea of having to pile up credit card debt to cover an unexpected expense is unappealing.

So, viewing savings as a Stability Fund can instantly make preparation more appealing.

Point #2 — In The News

Many individuals are being impacted by the new administration's policies, including downsizing the government and tariff-related layoffs.

Typically, I recommend 3 to 6 months of living expenses for your Stability Fund.

If you're exposed to some of these new changes, I don't mind you bumping up from 3 months to 6 months or from 6 months to 1 year. I explained why:

“‘The longer your financial runway, the more resources and freedom you have to explore different paths,’ said financial planner Benjamin Daniel.

If you’re worried about layoffs, he added, ‘having six extra months of cash can help you reskill, relocate or simply give you the means to wait for the right opportunity.

Optionality means you don’t just survive disruption. You give yourself a shot to come out better on the other side.’”

Then, be sure to update your overall financial plan as your life changes:

"Daniel recommends people revisiting their financial plan at least once a year, or anytime there’s a significant change in their life, such as a new job, a move or a change in household size. ‘Your finances need to reflect your new reality,’ he said.

For instance, what felt like a necessary cushion during a stretch of uncertainty in 2025 might be more than you need when the economy or your personal situation becomes more stable. ‘That doesn’t mean it was a mistake. It served its purpose. But now it might make sense to redirect it toward a new goal,” such as investing, Daniel said.’"

Point #3 — Money Terminology: “Umbrella” Policy

To build wealth, it’s smart to first prioritize avoiding the things that destroy wealth.

That’s where an “Umbrella” policy comes in…

What It Is: An Umbrella policy is liability insurance that kicks in after your home or auto policy limits are exhausted, if you’re sued for damages or injuries caused to others.

An Example: Let’s say you get in an automobile accident and are found liable. The other driver’s medical expenses you’re responsible for are $400,000. Your auto liability covers you to $300,000. If you have a $1,000,000 Umbrella policy, it would cover the remaining $100,000.

What It Doesn’t Cover: It doesn’t cover your personal medical costs or damage to your property. It also doesn’t generally cover business-related liabilities or intentional acts.

How Much It Costs: Umbrella policies typically cost $150 to $300 per year for a $1,000,000 policy. As such, it’s one of the most cost-effective ways to protect your wealth.

Point #4 — Lessons on Financial Independence

Morningstar's Christine Benz with some lessons [emphasis mine] after attending a "Financial Independence” conference:

“Define Financial Independence on Your Own Terms

A lot of people have a caricatured perception of the FI [“Financial Independence”] community. They assume that everyone is trying to live on $10 a day in order to hang it up at age 35. And I did indeed meet some very young retirees who were committed to living on tight budgets in order to step away from paid work. Topics like travel hacking—using certain credit cards to rack up points to score free or deeply discounted travel—are a source of endless discussion.

But I also met people in their 50s with thriving businesses, parents of young children who worked in highly remunerative careers, and people who had retired early with excellent pensions. Many are still working, but all had concluded that they wanted to build up their financial reserves so they could walk away if they decided that work no longer suited them. I already knew that the FIRE community was more nuanced than many people give it credit for, but hearing people’s stories drove this home. Not everyone is committed to quitting work early or a frugal lifestyle. It’s the financial independence piece that’s the unifier, and I think it’s a worthy aspiration for all of us.

If Work Is Making You Miserable, Look for Something Else

That said, the ‘retire early’ in FIRE is alive and well. There was a lot of talk about people hitting ‘their numbers’—the amount that they had determined they needed in order to declare themselves financially free. People shared stories of how their work lives were a complete and utter grind, to the point of being unhealthy, and that prompted their desire to pursue FIRE. It got me thinking about how suboptimal it is that people work to the point of burnout.

Most people I talked to at the conference allowed that if you love your job, you should keep working. But I found myself feeling a bit defensive about work, sensing that people could be underestimating its benefits. My career has brought me a lot more than money over the years, including a sense of identity and making a difference, as well as some enduring friendships. I disagree with the notion of work as a miserable slog to be gotten through. If your job is soul-crushing misery, by all means get out. But it doesn’t have to be that way.”

Point #5 — Quotes of the Week

Ever feel you’re stuck in a rut (financially or otherwise)? These posts stood out this week as quick reminders that regaining momentum starts small.

Point #6 — My Question of the Week

To help calculate your Stability Fund, how much is 1 month of “living expenses” (exclude any savings and investment contributions) for you? These are expenses you’d want to cover if, for instance, you found yourself without an income and looking for new work.

A well-funded Stability Fund has at least 3 months of living expenses set aside.

Thanks for reading — I hope you found a helpful idea or two.

I’ll see you next Saturday with more.

Have a great weekend,

Benjamin Daniel, CFP®

Founder, Money Wisdom

P.S. Want to take control of your money (and stop stressing)? Here are 2 ways I can help:

  1. Financial Health Check: Get your biggest money questions answered, understand where you stand financially, and get a personalized action plan from a CFP® professional. Book a free Intro Call here (or purchase today) to see if you’re a good fit.

  2. Financial Coaching: If you’d like some accountability in getting your finances into shape, engage in financial coaching. Build the habits & systems to help you start building wealth, pay off debt, and feel confident about achieving your goals. Reply to this email and say “Coaching” to join the waitlist.

Disclaimer:

This material is not investment or tax advice. No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading this material can be accepted by the publisher.

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