Posted by HJey > 2013-09-03 12:12 | Report Abuse

Want to follow your dream? Pack your bag and leave on the next flight. Do it with a plan. Want to achieve financial freedom? Start your own business. Do it with a plan. Ok, this is my current plan to escape the 9 to 5 job, terrible cubicle and stressful commuting to work. 20% goes to investment in stock market. This is where your money can multiply or gone. There are different stock types such as blue chips, dividend/income paying or penny. Know your risk acceptance and managed it properly. Read more and study the company and its business. Don’t simply jump in without any knowledge. 20% goes to fixed deposit. The interest rate is low but still better than current and savings account. My preferred term is 1 month. Open a 1 month term deposits. You can change it to 2 or 3 months. The bank will automatically renew the FD when it matures. This is the magic of compound interest. 10% immediate cash flow. You won’t know when unexpected expenses said “I’m here” to you. This is where the 10% acts as cushion. You are not Almighty God or some saint, so always be prepared for emergency case. 50% allocated for your routine expenses. How much you spend for your food, housing, debt repayment and other expenses? Calculate thoroughly and find out additional possible savings from one of them. You certainly can reduce your food bill by switching to cheaper restaurant or café. Do you really need Starbucks everyday? Hahaha. If you buy things you don’t need, you will soon sell things you need. - Warren Buffett You can change the allocated % based on your requirements. Disclaimer The information on this post represents my personal experience. It’s DEFINITELY not a recommendation for everyone. Follow at your own risk.