How much of my savings should I invest in Buying Assets or Liabilities

This question I found trending in Reddit, and little edited here to make it a complete question. But why I am answering here? Perhaps many of you readers who are beginners may not have thought yet about savings. This blog is not about Money but Money is key to Career Progression. You need it for self improvement, for well being of family, for social causes and for national development.

The biggest example in India is Tata Group, investing 65% for social causes is not a Joke and they build it.

Investment is tough topic, once you find a job focus on Spending, Savings and Investing starting day one. Power of compounding is huge, small businessman understand this very well. Compound interest formula is taught in school and you move next on solving Differential Calculus.

The money lesson should be taught starting from childhood, practical money lessons which are absent in curriculum beyond passing examinations.

Plan investments well, when you invest in an instrument first ask yourself is this a Liability or an Asset. You can take liabilities when you have a solid asset base. Build Assets first then invest in Liabilities.

I am not a financial planner, but my suggestion is invest 20 to 30% of your earnings. I would say 

Beginners should invest 10 to 15%, Experienced, up to 25% and Experts up to 35%. When I was writing for a Forex Market Investor I dive deeper into Data and from there I learnt investing is an skill that build slowly, you experiment, you gain, you loss, and you learn from experience.

Do not invest based on instincts, do you Maths, chose between to Invest in a Liability or Invest in Asset Building.

For deep learning read The Richest Man in Babylon could be the First Finance Management Lesson for many.

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Question Source: Reddit Top Trending Today