Thursday, September 25, 2008

First .... Income !!

First, you should have some sort of INCOME first :)

You may work for someone, you may be your own boss, you may be a kid or you may be retire ... but still you should have some sort if income before you talk about Finance Planning.

Income can be active or passive, either way you NEED finance planning.


2 comments:

Anonymous said...

Does 'income' means something that comes in regularly?

Are you sure 'income' is the word you want to use in this post?

Because, I have money in my bank acct doesnt mean i ve an income regularly isnt it?

**

How one should judge if 'income' is enough or not? Should I start thinking how much would i need to use for the basic clothing, food, accomodation, transportation from today till 70-year-old?

Is that how I should start to worry about my future?

Michael Tsen said...

Income can be regular (salary) or irregular ( business, investment etc. )

Money in bank is not an income. But the interests you get every month or year are income :)

Income is basically the NEW money 'COMing IN' to your life :) as oppose to expenses money going out from you ...

'Quantity' of income is a personal favor question and it is irrelevant in personal finance. Automated Saving System however is critical and that is the part should AT LEAST be able to settle your basic necessity in rainy days - before moving on to growing and investment.

The key part of your last sentence is 'start'. You may 'start' by calculating how much do you need AT LEAST. But you would usually 'end' with what do you really want to achieve in lives ... ( usually ppl refers to what other abundances they want )