The AI Avalanche: Keep Your Powder Dry

Monthly Money Man on February 13, 2026

The Bottom Line Up Front: AI is disrupting markets, industries, and jobs at a pace nobody predicted. While the world scrambles to react, the smartest financial move you can make right now isn’t buying AI stocks or panic-selling your portfolio. It’s building cash. Here’s why.

I want to tell you about a client I’ll never forget.

He was a financial advisor’s dream. Successful, motivated, and genuinely excited about investing. Over many years together, we built a diversified portfolio that any advisor would be proud of. Stocks, bonds, real estate, international holdings—the whole trail mapped out perfectly.

Then one day, during a bull market that seemed like it would never end, he called me.

“What’s your next best idea?” he asked.

I thought about it carefully. I looked at his portfolio. I looked at the market. And then I said something I don’t say very often:

“I know exactly what you need right now. And it’s not another investment. You need more cash.”

He went quiet for a moment.

“Cash?” he said. “Why cash?”

“Because when this bull market finally stumbles—and it will stumble—you’re going to want to keep your powder dry. You’re going to want the ability to scoop up quality assets at prices nobody believed were possible. And you can’t do that if everything you have is already deployed.”

He took my advice. And two months later, in September 2008, the market began to crumble. The real estate crisis exploded. The Great Recession had begun—a collapse that nearly brought our entire financial system to its knees.

My client didn’t predict it. He didn’t see it coming.

But he was ready. While others were scrambling to survive, he had cash. While others were forced to sell assets at devastating losses, he was quietly buying quality investments at prices that hadn’t been seen in decades.

Preparation didn’t require prediction. It just required building the base before the storm arrived.

I’m giving you the same advice today.

What’s Happening Right Now

Today, February 12th, 2026, the market had one of its worst days in months.

The Dow dropped 669 points. The Nasdaq fell nearly 2%. Software companies that were market darlings just weeks ago lost billions in value in a single session.

The culprit? Artificial intelligence.

Not because AI isn’t powerful. It is. But because markets are finally waking up to something the rest of us have been feeling for a while: AI isn’t just disrupting technology. It’s disrupting everything.

Jobs that existed for decades are disappearing. Industries built over generations are being rebuilt from scratch. Companies that looked untouchable six months ago are suddenly fighting for survival.

AppLovin—a company that just reported record profits—lost nearly 20% of its value today. Not because it did anything wrong. But because investors are asking a simple, terrifying question: what happens to your business when AI renders it obsolete?

That question is being asked across every industry right now. And nobody has a complete answer.

This is the AI Avalanche. It started as a rumble. It’s becoming a roar.

Why the Avalanche Matters to Your Financial Journey

You might be thinking: “I don’t own tech stocks. What does this have to do with building my emergency fund?”

Everything.

Here’s what history teaches us about periods of massive technological disruption:

They create winners and losers at a speed nobody expects.

The winners are the people who prepared. The ones who had financial stability when chaos hit. The ones who had cash reserves when others were scrambling. The ones who could make clear, rational decisions instead of panic-driven ones.

The losers are the people who were already stretched thin. One job disruption, one industry shift, one unexpected expense away from financial crisis.

Right now, AI is accelerating the pace of disruption faster than any technology in history. Jobs that seemed stable are being automated. Industries are consolidating. The economic ground beneath us is shifting.

This isn’t doom. It’s reality. And reality rewards preparation.

The Strategic Power of Cash Nobody Talks About

Here’s what Wall Street understands that most people don’t:

Cash isn’t just savings. Cash is a weapon.

When markets fall—and today is a reminder that they do fall—cash gives you options that nobody else has.

The wealthy don’t panic when markets drop. They go shopping.

When quality assets fall to prices that reflect fear rather than value, the people with cash reserves step in and buy. They acquire real estate when prices dip. They purchase stocks of solid companies at discounted prices. They invest in opportunities that only appear during periods of uncertainty.

The people without cash? They’re forced to sell at the worst possible time to cover expenses. They watch opportunities disappear because they have nothing to deploy. They make fear-based decisions instead of strategic ones.

My client understood this. That’s why “you need more cash” was the best advice I ever gave him.

It’s the best advice I can give you right now too.

Fortify Your Base Before You Climb Higher

Here’s the mountain climbing truth about where we are right now:

When conditions get unpredictable—when the weather changes and the trail becomes unstable—the smartest thing a hiker can do isn’t push harder toward the summit. It’s strengthen the basecamp.

Make sure your shelter is solid. Check your supplies. Ensure you have what you need to weather whatever comes next.

That’s exactly what building your cash reserve is doing right now.

I know some of you are reading this thinking about investing. About putting money into the market. About not “letting cash sit idle.”

I understand that instinct. But consider this:

If AI disruption continues to shake markets over the next 6-12 months, quality assets could get significantly cheaper. If you have cash reserves, you’ll be positioned to take advantage of those lower prices.

If you have no cash—if everything is already deployed and your emergency fund is empty—a disruption that hits your industry or your job puts you in survival mode, not opportunity mode.

Survival mode and opportunity mode are not the same place.

What This Means for Your February Mission

We’ve spent February building Safety Net #1: one month of cash reserves.

I want you to look at that mission differently now.

You’re not just building an emergency fund. You’re building strategic positioning.

Every $100 you add to your safety net is:

Protection against the job disruption that AI is accelerating across every industry

Stability that lets you make rational decisions when markets get volatile

Ammunition that positions you to take advantage of opportunities when they appear

Freedom from the panic that financial fragility creates

The people who will thrive through the AI avalanche aren’t necessarily the ones who understand AI best. They’re the ones who have the financial stability to adapt, pivot, and act when others can’t.

The Basecamp Principle

In hiking, you never abandon your basecamp until it’s solid.

You don’t push toward the summit with a leaky tent, insufficient supplies, and no safety rope. You prepare. You fortify. You make sure your foundation can support the climb ahead.

That’s what we’re doing right now in February.

The market is volatile. AI is reshaping the economic landscape faster than anyone expected. Industries are being disrupted. Jobs are changing.

This isn’t the moment to sprint toward the summit.

This is the moment to make sure your basecamp can handle whatever weather comes next.

Build your cash reserve. Strengthen your safety net. Fortify your financial base.

Because when the avalanche settles—and it will settle—the climbers who prepared will be the ones who reach the summit.

Your Action Step This Week

The market dropped today. AI anxiety is real. Economic uncertainty is real.

Here’s what you’re going to do about it:

Add to your safety net this week. Whatever amount you can. $50, $100, $200.

Not because you’re scared. Because you’re strategic.

You’re building the financial foundation that gives you options when others have none. You’re preparing your basecamp for whatever conditions lie ahead on this trail.

The AI avalanche is coming. Maybe it’s already here.

The question isn’t whether it will affect you. It will affect all of us in some way.

The question is whether you’ll be ready.

See you at the top.

The Power of $100 at a Time: Why Your Emergency Fund Starts Smaller Than You Think

Monthly Money Man on February 6, 2026

The Bottom Line Up Front: Building your first $500 doesn’t require huge sacrifices or perfect planning. It requires understanding that small amounts—$50, $100, $200—compound faster than you think. Here’s why thinking smaller might be the key to saving bigger.

If you’re reading this, I need you to pay attention—especially if you haven’t been watching economic conditions closely.

For those who have been paying attention, you already know: a storm is brewing.

Just like any mountain journey, your financial climb won’t always happen under clear skies. Sometimes the sun shines. Sometimes the trail is perfect. And sometimes—like right now—clouds gather on the horizon.

Unemployment is ticking up. Inflation is climbing. Market volatility is increasing. I could list a dozen other warning signs, but I won’t. There are enough news outlets drowning you in doom. That’s not my job.

My job as your guide is simple: inform you, educate you, and help you prepare.

And right now, preparation means one thing: building your cash reserve.

February’s focus on emergency savings wasn’t random. It wasn’t just another financial planning exercise. It was strategic. Because when storms hit—and they always do eventually—the climbers who survive are the ones who prepared while the sun was still shining.

Even when conditions are unstable, even when the news is bad, even when it feels like the worst time to be thinking about money—that’s exactly when you need to be working on your safety net.

You can’t control the economy. You can’t control inflation or unemployment or market crashes.

But you can control whether you have one month of cash when the storm arrives.

That’s what we’re building. Not because the sky is falling. Because the weather changes, and smart climbers prepare for it.

The Lesson I Taught My Son About Becoming a Millionaire

A few years ago, my son asked me how people become millionaires.

He was thinking about lottery winners and tech founders and inherited wealth—all the dramatic stories you see on TV.

I told him something simpler: “You want to know how to become a millionaire? Save or earn $1,000. Then do it a thousand times.”

He looked at me like I was oversimplifying.

But I wasn’t.

A million dollars isn’t one impossible number. It’s a thousand achievable numbers stacked on top of each other.

Getting to $1,000? Most people can figure that out. It might take a month, or three months, or six months depending on where you’re starting. But $1,000 is tangible. You can see it. You can plan for it. You can reach it.

And if you can do it once, you can do it again.

Do it a thousand times over your lifetime—through saving, earning, investing—and suddenly you’re a millionaire.

The impossible becomes possible when you break it into pieces small enough to actually accomplish.

That’s the lesson I taught him. And it’s the same lesson I’m teaching you about your emergency fund.

Your Safety Net Works the Same Way

Most people look at “one month of emergency savings” and see an intimidating number.

$2,000. $3,000. Maybe more.

That feels impossible when you’re starting with zero. So they don’t start at all.

But here’s the truth: you don’t build $2,000 all at once. You build it $100 at a time.

Your goal this month isn’t $2,000. It’s $100.

Then do it again. And again. And again.

$100 twenty times = $2,000.

Suddenly, the math doesn’t feel so impossible.

Why $100 Matters More Than You Think

Let me show you what happens when you focus on $100 at a time instead of the full amount.

Scenario 1: Thinking Big

You set a goal: “Save $2,500 for my one-month emergency fund.”

Week 1: You save $75. You look at your balance: $75. You’re 3% of the way there. It feels pointless.

Week 2: You save another $80. Balance: $155. Still only 6% there. You’re discouraged.

Week 3: Life happens. Car needs gas. You skip saving this week.

Week 4: You look at your $155 and think, “This is taking forever. What’s the point?”

You quit.

Scenario 2: Thinking Small

You set a goal: “Save $100 this month.”

Week 1: You save $75. You’re 75% of the way there. That feels real.

Week 2: You save $25. You hit $100. Goal complete. You celebrate.

Next month: New goal. Save another $100.

Week 1: You save $80. You’re 80% there again.

Week 2: You save $20. Goal #2 complete. You now have $200.

See the difference?

Same amount of money. Same timeline. Completely different psychology.

When you break the goal into $100 chunks, you win early and often. And winning creates momentum.

The Math of Small Wins

Here’s the simple truth: three $100 wins feel better than one incomplete $300 goal.

Most people don’t stop at $100 once they start. They hit $100 and keep going because they’ve built momentum.

You aim for $100 in Month 1. You hit $140.
You aim for $100 in Month 2. You hit $120.
You aim for $100 in Month 3. You hit $150.

You targeted $300 over three months. You actually saved $410.

That’s the power of thinking smaller to achieve bigger.

The First $500 Changes Everything

I’ve watched this pattern play out hundreds of times with clients.

The hardest part of building an emergency fund isn’t getting from $500 to $1,000. It’s getting from $0 to $500.

Because $0 to $500 is where you prove to yourself that you can do this.

It’s where the mental shift happens from “I’m trying to save” to “I’m someone who saves.”

And once you hit $500, something psychological shifts.

At $0: An unexpected $300 expense is a crisis. You panic. You reach for a credit card.

At $500: An unexpected $300 expense is still annoying, but it’s not a crisis. You have options. You can cover it and rebuild.

$500 isn’t financial independence. But it’s financial breathing room.

It’s the difference between panic and problem-solving.

And you get there $100 at a time.

Your Focus This Week: Hit Your Next $100

Forget about the full amount for a second.

What’s your next $100 milestone?

If you’re at $0, your goal is $100.

If you’re at $150, your goal is $250.

If you’re at $320, your goal is $400.

Pick the next hundred-dollar milestone and focus everything on hitting it.

Here’s how:

Option 1: Find it in your spending
Look at this week’s expenses. Where’s $25? Can you skip two restaurant meals? Cancel one thing? Buy generic instead of brand name at the grocery store?

Do that four times = $100.

Option 2: Earn it
Can you pick up one extra shift? Sell something you don’t use? Do one freelance job? Babysit one weekend?

One small gig = $100.

Option 3: Capture it
Got a birthday coming up? Tax refund? Work bonus? Unexpected cash?

Any windfall = straight to the safety net until you hit your next $100.

The method doesn’t matter. What matters is hitting that next $100.

What Progress Actually Looks Like

Real progress isn’t a straight line. Here’s what it actually looks like:

Weeks 1-2: Save $125 total.
Week 3: Emergency drains $40. Back to $85.
Weeks 4-6: Rebuild to $300.
Week 7: Skip saving (family expenses). Still at $300.
Week 8: Save $80. Now at $380.

It’s messy. There are setbacks. But the trend is up.

By Week 8, you’re almost at $400—even with an emergency and a skipped week.

That’s $100 at a time adding up.

The Storm Makes This Even More Important

Remember what I said at the beginning: a storm is brewing.

When economic conditions get rough, the people who survive aren’t the ones with the highest incomes or the fanciest investment portfolios.

They’re the ones with cash reserves.

$500 in the bank doesn’t sound like much when times are good. But when unemployment rises, when hours get cut, when unexpected expenses pile up—$500 is the difference between weathering the storm and going under.

You can’t control what’s happening in the economy.

But you can control whether you have your next $100 saved before the storm hits.

Your Action Step This Week

This week, I want you to do one thing:

Hit your next $100 milestone.

Not your full emergency fund goal. Just the next $100.

If you’re at $0, get to $100.
If you’re at $200, get to $300.
If you’re at $450, get to $500.

One hundred dollars. That’s it.

Find it, earn it, or capture it. But get to that next hundred.

Because here’s what I know from watching hundreds of people build their safety nets:

The ones who succeed aren’t the ones who save the most at once.

They’re the ones who keep hitting the next small goal, over and over again, until the small goals turn into something substantial.

$100 at a time might not feel like much.

But do it twenty times, and you’ve got $2,000.

Do it a hundred times, and you’ve got $10,000.

Small numbers compound. You just have to start.

See you at the top.