We couldn't remember the title and the author of the book we read a decade ago that inspired us to start our investment portfolio. All we do remember is the various accounts the author asked us to set up.
1. Everyday account
This is the account that involves everyday transactions where the income is deposited into and the money is out to pay bills and expenses.
This is the account that involves everyday transactions where the income is deposited into and the money is out to pay bills and expenses.
2. Savings account
No matter you are a fresh graduate just landed a job or an adult that is in workforce for quite some time, it is important to have the habits of saving a small proportion of your income. The best way is to have a separate saving account from everyday account so you can track how much money you have accumulated.
No matter you are a fresh graduate just landed a job or an adult that is in workforce for quite some time, it is important to have the habits of saving a small proportion of your income. The best way is to have a separate saving account from everyday account so you can track how much money you have accumulated.
3. Rainy day account
Also known as emergency account. No one foresees what will happen to us. We might get retrenched one day or we might be sick or involved in accidents. Rainy day account is there for us to survive during disaster days.
4. Investment account
If we afford to have savings and rainy day accounts, why not increase our capital to set up an investment account. The purpose of investment account is to generate more income. It could be used to buy stocks or properties; start a business if you have a good business idea or business partner.
If we afford to have savings and rainy day accounts, why not increase our capital to set up an investment account. The purpose of investment account is to generate more income. It could be used to buy stocks or properties; start a business if you have a good business idea or business partner.
5. Education account
Even you are loaded with cash but without proper knowledge and financial management, the rate of spending could be faster than the rate of making money. Therefore, it is advised to have an education account; spend money on buying reading materials or attending seminars, the result could change our life.
Even you are loaded with cash but without proper knowledge and financial management, the rate of spending could be faster than the rate of making money. Therefore, it is advised to have an education account; spend money on buying reading materials or attending seminars, the result could change our life.
6. Charity account
We don't need to be Bill Gates or Warren Buffett to have a charity account. Even as an ordinary person, we can afford to do charity. Donation in terms of money or materials to the needy; spend time and effort in charity works. This is to remind ourselves to be grateful of our life.
We don't need to be Bill Gates or Warren Buffett to have a charity account. Even as an ordinary person, we can afford to do charity. Donation in terms of money or materials to the needy; spend time and effort in charity works. This is to remind ourselves to be grateful of our life.
It's amazing how this article actually changed our life. Not only we have the above accounts, we have more than that! All we need to do is put in some effort and take it easy, step by step.
No comments:
Post a Comment