2022-11-28 16:42:40
Financial literacy 101
You need to spend less each month than you earned in the previous month.
Income - Expenses = Delta
Delta>0 - investment resource
Delta<0 - first make it > then start investing
Goal is to save 10-20% of monthly income.
Lifehack: get your paycheck, save up the delta and forget about it.
Then, calculate your daily budget: take your last month's income (minus the delta) and divide it by 30 days. Here you have your daily budget.
If you can't control yourself, you can set a limit in your bank account. If unforeseen expenses come up, than don't take from the next days, use the financial cushion you already have.
Just like that!
If you don't learn to do this with your income now, than when your income grows your losses will grow with it.
Remember the 50/30/20 rule:
50% - for your needs
30% - for your wants
20% - for your financial goals: savings and paying debts
By spending less on things that aren't that important, you will have more for what's really important.
In this blog I will try to simplify as much as I can from my education in investing.
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Gene, CEO of Earnpark
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