Wednesday 3 June 2015

What should I do after I achieve Sufficient Savings?

What should I do after I achieve Sufficient Savings?

After achieved sufficient savings for about 3 months that can cover your daily life in case you lose your income, now we can proceed to the investment. But you need to bear in mind that this saving is to serve as emergency reserve only. It can’t be used as investment funds.

Previously we have discuss on the idea of saving money from your income based on the concept of “budget” in each category that you spend. Now, let’s take a look on the pie chart below again:



From the chart above, what we can observe that the budget for the savings has been replaced by investment category. The remaining categories still with the same budget. You command the money in investment category works for you, to generate more money. This investment category play a role call offence, while the savings achieved previously will be serve as defense. Offence & Defense!

While you still in the saving stage or begin to accumulate money to invest, the first thing to be invested is your knowledge! Without knowledge while investing is to be gambling!



No comments:

Post a Comment