3 comments on “Tip # 1: Deleverage before you invest

  1. a good rule of thumb is your monthly debt payment (for consumption purchases or credit card payments) every month should be less than or just about 20% of your monthly income … then, depending really on your circumstance, your savings goal every month should be about 10-20% of your monthly income (that should be gross of your monthly income) … if you can’t afford it, then maybe you can lower the percentage … the bottomline is we need to save because..(hah! you think i’d say so as to prepare for the rainy days ;-)) … the quality of our life would be miserable if we dont … we save because the quality of life would be miserable if we don’t… i would be the first to admit that not all of us have the option to save due to low incomes relative to daily expenses … that in itself is a sad reality … but for those who have the means, saving is the only way TO PROVIDE MORE FOR OURSELVES AND OUR FAMILY!

  2. a good rule of thumb is your monthly debt payment (for consumption purchases or credit card payments) every month should be less than or just about 20% of your monthly income … then, depending really on your circumstance, your savings goal every month should be about 10-20% of your monthly income (that should be gross of your monthly income) … if you can’t afford it, then maybe you can lower the percentage … the bottomline is we need to save because..(hah! you think i’d say so as to prepare for the rainy days ;-)) … the quality of our life would be miserable if we dont … i would be the first to admit that not all of us have the option to save due to low incomes relative to daily expenses … that in itself is a sad reality … but for those who have the means, saving is the only way TO PROVIDE MORE FOR OURSELVES AND OUR FAMILY!

  3. hi wawa, true… i’ve lived far too long without savings to understand what you mean. no savings = accumulating credit card debt = miserable life.

    so if i use 20% of my income for debt payment, and save about 20% too, then that’s 40% of my total income already, right?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s