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897: Important Financial Lessons from the FTX Collapse

Radical Personal Finance

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The Ratchet Number

The difference between $100,000 saved and $2 million is massive in terms of a ratcheting effect. You can't live on the income from $500,000; it's just a bigger emergency fund. After $2 million, what's the next ratchet number? Maybe your ratchet number is then the next one is $10 million. These numbers are all personalized.

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