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chart above, what we can observe that the budget for the savings has been
replaced by investment category.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!
