Once you have Automated Saving System or ASS setup and running for a while. ( I bet not many of you yet ) You may wonder, "What a crap! I am not financially free yet!"
Thanks to a case study reminding me to move on after ASS is setup. Also inspired by a silent guru - Meshio - somehow some reason I started scratching on a piece of paper when I review that case study. So in short, this may represent what happens after ASS ...
- Choose an account that gives highest interest you can find for your ASS account
- Decide how much emergency fund you need in your ASS ( usually in number of months or years of your monthly expenses )
- Once achieve the emergency fund amount, the overflow should goes into investment
- Your investment potential return should be significantly higher than your ASS return
- move the emergency fund to FD, Bond Fund or Money Market Fund if interest is higher than your ASS account.
- Continue looking, learning, categorizing and revising until your investment return is Passive and higher than your active income.
Finally the most important one #7, comes buy me a bottle of wine and tell me how MalPF can be improved based on your experience.
God did rest on Sunday didn't he ?