Before we start this topic we should ask some questions ourselves.
1.
What are My Total Assets?
2.
How Much is my outstanding debt?
3.
Am I spending all my earn Money?
4.
If I left the job how many days will I
survive?
5.
What is my current net worth?
All answers is depending on our spending pattern
which is one of the most important factors for achieving financial independence.
Think about that if you spend all your earning money, you will never retire
& will have to work till for the last breath.
If you invest your 100% earning money and no
spending then Congrats! You are already retired, No need to work for Money. That’s not possible for everyone.
Then how much percentage of money should be invested?
Generally, it is an 80:20 ratio of spending and saving
pattern. we should enjoy 80% of our income for the present life and the rest of 20% of our income for future life.
But this Era is a very sophisticated and
materialistic world. It is not easy to take out 20% of the money for investment.
In today's world, everything is a necessary part of
our life like a car, phone, expensive Clothes, a big home, and many multiple
things. These
all necessary parts can change our spending pattern.
The necessary part of materialistic life should not
be exceeding 80% of our income and the rest of the 20% part should be for Future
Survival risk.
We should sacrifice this materialistic world and awake our needs and wants and be money smarter
Comments
Post a Comment