Rule Register: Investment And Exposure

R07 / Keep A Simple Investment Path Available

Type: Conditional recommendation. When: When long-term investing is feasible within the household plan.

Action: Study understandable, diversified approaches appropriate to goals, horizon, costs and risk capacity. Preserve a complete path without entrepreneurship or borrowing.

Exception or boundary: This rule does not prescribe an allocation. Short-horizon essential funds and long-horizon capital have different purposes.

Check: Costs, liquidity, exposure and alignment with the stated goal. Basis: S03.

R08 / Borrowing Remains Optional

Type: Conditional recommendation. When: Whenever debt is proposed for an acquisition or expansion.

Action: Compare borrowing, saving longer, scaling down and declining. Read terms; model rates, refinancing, collateral, cash shortfalls and household exposure.

Exception or boundary: A cash-flow-positive forecast does not establish safety. Legal guarantees and lender actions can change the downside. Ability to explain a deal is not proof of an edge.

Check: Debt schedule, opening cash use, stressed liquidity and recoverable exit. Basis: S04; M05-M07.

R09 / Measure Common Exposure, Not Just Source Count

Type: Design rule. When: When income or investments appear diversified.

Action: Map shared employers, industries, customers, platforms, lenders and local conditions. Apply joint shocks where common exposure is plausible.

Exception or boundary: A concentration index describes shares; it estimates neither correlation nor probability. Two earners at one employer can remain exposed to one employment shock.

Check: Shares by source and common group; explicit joint scenarios. Basis: M08; S03.