Having a life savings is a habit of the poor (here’s why)
Having a life savings is a habit of the poor.
Don’t believe me?
Then show me a wealthy person’s life savings.
.
.
.
.
.
Nope.
Not one life saving in sight.
What you’ll likely find are assets and property that appreciate (gain value over time).
You need two (and only two) types of savings:
- an emergency fund
- an investment fund
That’s all!
The Emergency Fund
This will keep you out of all sorts of trouble whenever a TRUE emergency arrives — emphasis on TRUE EMERGENCY.
There’s a huge difference between an emergency NEED and an urgent WANT
(I’ll talk more about that in the future if you want)
Your emergency fund should range from $1K to $5K max — depending on your lifestyle, family situation, etc.
(if you don’t know how much, I’ll show you how to find out in the hint below)
The Investment Fund
Once you hit your emergency fund number, stop saving money there and begin saving money in your investment fund.
This is the money you’re building up to invest in the future.
The amount depends on what you’re wanting to invest in.
You can either invest in yourself (books, courses, resources to learn more about investing — highly recommended).
Or you can invest in others (stocks, real estate, other opportunities).
HINT: Not knowing how much money you need to save in your emergency fund or investment fund indicates you need to INVEST IN YOURSELF first.
Want to start investing in yourself?
I strongly suggest:
This: https://www.wadstreet.com/
This: https://www.wadstreet.com/resources/the-richest-man-in-babylon
And this: https://www.wadstreet.com/resources/audible
Peace and Love