Save 10% of your monthly income and invest right? Apparently it’s not that simple.
So this is the basic principle, I am sure many of us have heard somewhere. The trouble with the advice we hear somewhere, is that we do not know the exact source to verify was it all of the relevant information.
Same is with this advice, it is lacking something… I realize that indeed it does lack something very crucial, so that’s why I’ve been studying personal finances.
Well I found a piece of it, when I read Richest Man in Babylon last weekend. In there the process goes like this:
- Save 10% of your monthly income
- Keep it
- And invest it
The second step of keeping the money is the part that requires work. Once we’ve earned the money, the work should not stop there. We should work further to make sure the money will work for us in the days to come.
So how does one accomplish this second step of keeping the money? By learning, studying and working to find out about the investments.
“You should spend at least as much time investigating the investment as it would take you to earn the investment sum of money.” — Brian Tracy