Regardless of how much you earn, your earnings must contribute to your long-term financial growth. Here's a wealth building model that can work for you regardless of your starting point.
My good friend Mark Sudbury made this comment on LinkedIn:
"Ideally the savingss / investments would be after your pension contributions. Max the tax advantage where you can."
I definitely agree that you need to have pension contributions in there. I don't have them explicitly mentioned in this article because I view them as bills and so part of the things that go into the regular budget. The way I reason this out is that this is an expense that I know and can anticipate and plan for.
Your thinking might vary in this regard so feel free to adjust accordingly. My main aim is not to advise exactly where each cent should go but to give you a model for how to think about saving and the goal of saving. Understanding that model is the most important thing. My opinions on how to execute it are for those who want a batteries included solution.
My good friend Mark Sudbury made this comment on LinkedIn:
"Ideally the savingss / investments would be after your pension contributions. Max the tax advantage where you can."
I definitely agree that you need to have pension contributions in there. I don't have them explicitly mentioned in this article because I view them as bills and so part of the things that go into the regular budget. The way I reason this out is that this is an expense that I know and can anticipate and plan for.
Your thinking might vary in this regard so feel free to adjust accordingly. My main aim is not to advise exactly where each cent should go but to give you a model for how to think about saving and the goal of saving. Understanding that model is the most important thing. My opinions on how to execute it are for those who want a batteries included solution.
Such an eye opener. Financial freedom start by taking baby steps. Above all i liked your introduction on “why” you should save.
In life beginning with the end in mind is a motivation on it’s own, cause it’s easy to start but sustainability is usually the challenge.
Beautifully laid out BK, loved it.
Awesomely laid and eye-opening. Thanks BK
I like, I like this, Thank you.
To also contribute, the word "Inflation" is also coming into my mind. Maybe it would be factored in on next episode.