When/what is sufficient for me?
Recently I’ve been asked by a Friend on how much should he be investing if he has $20,000…..
My question back to him is this… What kind of life do you truly want to live in the next 20-30 years ?
The fundamental question that everybody tends to neglect or thinks that he/she has the answered to it.
In order to know how much stocks you should buy/invest, you need to have the answers to these 3 questions.
1) What are your current spending habits? – Both fixed and variable expenses (% of your salary)
For e.g : You currently take home $2k a month and spend $1k (50%) of it on phone bill, food, transportation, housing loan and groceries.
The value in understanding how your money is being spent will allowed you to find areas where you can cut them down.
For e.g …