While many of us concentrate on investing wisely, how many of us ask ourselves "I my investing enough"? And how do you know if you are investing enough?
- One way is of course by setting yourself some goals, e.g. somebody wants to make $1m by the time he is 40, another enough to be able to retire at the same age and then working backwards to where you are now.
- Another may simply match interest rates or stockmarket indices.
- Another way is to match your spending, so every Ksh/$S/£ you spend, you put another in your investment/savings.
- You can also set yourself a target that mirrors your earnings e.g. 30% of your income.
3 comments:
That graph is very interesting. It looks like I have a few years before my pay plateaus. May be the plateauing represents changing jobs due to forced lay-offs.
The plateau represents that fact that on average once you get to middle management, your career slowsdown because promotion to senior management is depedent on a lot of factors outside of your control.
The ideal investor should increase his / her investments each year by the same propostion as his / her salary has increased
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