The X-Curve concept of Wealth and Responsibility:
This concept theorizes that a person's responsibilities generally decreases and wealth generally increases over time. Every peso you save will correspondingly go towards decreasing your responsibility.
While we are young, we are generally less secure as we are still starting up; our salary is low, our kids are still schooling, we are still starting out in life and most probably no house or car, yet. So, at this point in time our responsibility is at its highest as well. At this stage in our life, our concern is what if we die too soon? The solution for such is to have an insurance so that our family will be taken cared of and their needs for education and sustenance will be provided should you, the income earner, unexpectedly die or be disabled.
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| * Courtesy of IMG. |
On the other hand, as we grow older, ideally, we should have accumulated enough wealth
to make our responsibilities go to zero. At this stage,
