30% Of My Salary SUFFICIENT ?

How do We Start our First Step on Investment ? 1. Plan your budget. Prepare Emergency Buffer. It is very important that you work out your financial health index before you make any investment. Being a “healthy” investor, you’ll want at least 2-3 months buffer (monthly expenses) in your risk-free tools (FD, Saving account or Current account).

This is to avoid cases when you are force (need to use money urgently) to sell your investment when they may be making loses. 2. Less Commitment. I think most of the successful buyer have very less dedication before these are rich. For example, 2 traders, A and B, each per month who are gaining RM10k.

Investor A bought a BMW, bought a terrace house in high class place, like to eat in high class restaurent and his credit cards exceptional balance is 3-4 times of its regular monthly salary. Investor B, drive an extremely cheap car, our lovely Myvi, stay static in a medium course condo, prefer to eat in normal restaurent and also have 0 excellent balance in credit cards. I believe you will certainly know that Investor B will have significantly more money for conserving and investment.

  • The Protestant Ethic and the Sprit of Capitalismis written by
  • PRS Member
  • Stakes for the Telegram campaign will be allocated at the end of the bounty
  • One automobile worth significantly less than $4,600 after deducting any security interest

Besides, Investor B will have benefit on mind power and time horizon also. I have a pal who ask me, Chee Hong, may i know how much i need to reserve for investment ? 30% of my salary sufficient ? My answer is simple: There is no generic answer, you will need to invest predicated on your commitment. You spend less, you have more money to invest.

You spend more, you have less money to invest. So, we will spend less now, make investments more, only spend much whenever we are really wealthy then. 3. DON’T BELIEVE start small is a waste materials of time. I have talked to numerous people who wish to invest. That is an extremely common mistake.

Remember, everyone start from small. You save RM100 monthly into an investment which offer you 8% per calendar year. You shall get RM7397 after 5 years, RM150,030 after 30 years. See, with RM100 per month, you have the ability to get RM150k after 30 years. So think start small is a waste of your time never.

4. Risk Profile. Everyone in this world is unique. This is actually the same as it pertains to investment. Someone likes to make investments into very high risk investment (high risk high return), someone who first rule is “Never loss an individual cent in investment, i simply want something slightly better than risk-free (FD) rate”. Can i afford to reduce 30-40% of my capital in this investment ?

What is my expected rate of return ? Is it as high as possible or simply slightly better than FD ? Just how much time i have because of this investment ? Just how much knowledge i’ve on this investment ? 3 years) because of this investment,you want high come back, and also you have enough knowledge with this investment, then you can take high risk investment, otherwise, invest moderately or conservatively. 5. Monitor Your Investment. You need to always monitor your investment performance.