At times, I will wonder if there is a necessity for me to allocate more of my networth to the investment portfolio which will in turn generate dividends on a continuous basis. If I do so, there will be lesser buffer for me to rely on the reserves especially during the course of the economic downturn. It is very likely that the share price will tumble during the period of economic downturn. On the other hand, this is an excellent opportunities for me to average down on the portfolio. When the economy recovers in future, the investment portfolio will rise in accordance to the market.
Currently, I can sleep soundly at night even the investment portfolio is at the time low. I continue to invest the fund monthly on a continuous basis. This is regardless of the status of the share price especially in the economic downturn. The fund is derived from my active employment. The buffer which I allocate for myself, is untouched and relied upon as my emergency fund. It can last me about 100 months of monthly expense. I do not need to liquidate the investment portfolio in order to sustain the monthly expense. This is so called peace of mind which I am having at the every moment. This peace of mind allows me to sleep soundly at night regardless of the market condition.