Listen to a Business English Dialogue About Cushion theory
Faith: Hi, Ella! Have you heard of the cushion theory in finance?
Ella: Hey Faith! Yes, it’s a concept that suggests maintaining a financial buffer to protect against unexpected expenses or losses.
Faith: Right. The cushion theory emphasizes the importance of having savings or liquid assets to cushion the impact of financial shocks or downturns.
Ella: Absolutely. By having a cushion, individuals and businesses can better weather economic uncertainties and avoid falling into financial distress.
Faith: That’s correct. It’s like having a safety net to rely on during tough times, ensuring financial stability and peace of mind.
Ella: Indeed. Plus, having a cushion allows for more flexibility and freedom in making financial decisions, without having to worry about immediate financial pressures.
Faith: Exactly. It’s about having a prudent approach to managing finances and being prepared for whatever challenges may come our way.
Ella: Right. And while it may require some discipline to build and maintain a cushion, the peace of mind and financial security it provides are well worth the effort.
Faith: Absolutely. It’s a fundamental principle in personal finance and business management to always have a cushion to fall back on in times of need.
Ella: Agreed. The cushion theory reminds us of the importance of being proactive and forward-thinking in managing our finances to ensure long-term stability and resilience.
Faith: Well said, Ella. Having a cushion not only protects us from financial shocks but also gives us the confidence to pursue our goals and aspirations without fear of financial setbacks.