This is a frequently asked question. How much should I invest? The answer is simple. As much as possible.
There were times when I invested 100% of my income. Yes, you read it right. 100%.
Still these days, approx 90% of my income goes to investments. Even though, sometimes the passionate investor in me feels, I could invest more. Honestly.
I don’t have much expenses. I don’t have any liabilities, so no EMIs so far. I don’t like spending unnecessarily big, though I do wherever it’s necessary. This leaves me with judicious cash every month. With nothing much to do with it and rather than keeping it idle, I invest.
Some may call me miser. Well you are free to say so. I really don’t spend unless I think it’s wise to do so. Anyway, in my initial years, I used to spend what I earned, to grow my business. So technically I’m not a miser. I ‘spent it all’ on my business. And thankfully, the risks paid off. Now some may call me lucky. Well surely I do am lucky. More on this later.
The point is, invest as much as possible & avoid reckless mindless spending. If it’s possible for you to invest 50% of your income, go with it. 30%? Sure. The goal is maxing out your incomes to the last possible penny and turn it into investments and let money make money for you.
Ultimately money saved and invested is money earned.
The more you invest, the more assets you build and the more you’ll thank yourself and yours truly later.
