RE:RE:RE:Next Wednesday G- I love your idea that businesses clearly ought to emulate contingencies in year after year whether they need it or not as do banks or insurance companies.
I was a CEO of a company in Canada in a food industry for the past 45 years and within short time as a young CEO , I got my CFO's to implement contingency plans for potential problematic doubtful accounts and clients. I also always got him to build in contingencies against rising interest rates and volatile US $ .
I could sleep at night knowing that I could always cover unexpected or expected issues or dilemmas.
Actually, every household should apply your idea on personal level and always have contingencies for a RAINY DAY such as a loss of job etc . These funds should be invested in daily interest which will ( lol) generate small income and in some cases better than problematic accounts. If all is perfect, then simply keep revolving the set amount and great news will be if you don't need to use it and moving forward each year increase it only by 10% . And if the company sells, all allocated funds will go back to the bottom line for the shareholders.