Financial Planning Resolutions For 2020
Ensconced in the numerals of the new year 2020 are two important financial planning dictates. First, you must invest more than 20 percent of your monthly income. Second, the repetitiveness of the numerals suggests that your investment too must be repetitive. A point to note here is that we have asked you to invest more than 20 percent and not save it because saving is a passive strategy whereas investment is an active strategy. Saving is the balance money left after deducting your monthly expenses from the monthly income. However, an investment is an asset or item acquired with the goal of generating income or appreciation. It orientates toward future returns, and thus entails some degree of risk. The question is how do accomplish this resolve. The answer is to invest before you spend and to invest repetitively. The first Resolution is to invest more than 20 percent and let us deliberate on this. The obvious question that arises when we talk of investing more than 20 percent...