I believed most of us (me included) are still having our day job and earning the active income while looking for ways and means to add additional streams on income as passive as possible. Stocks Investment of course is one of the means.
Of course, before we can invest in the stocks, we need to have capital and most of the time it is from our savings. Today, I would like to share my 10:20:70 Rule that I am currently using to segregate my monthly active income :
10% : Saving - Emergency Fund
20% : Saving - Investment Purpose
70% : All monthly expenses/liabilities
[My expense ratio is higher as my wife is pursuing her study and hence I am contributing all the monthly expenses]
Do you maintain such ratio for your monthly active income? Of course, different people has different level of liabilities and hence the ratio ...
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