Saturday, October 27, 2007

Introduction to Saving Plan

Before one has money to invest, he need to learn to save first. Without any saving,one cannot invest unless he has inherited million dollar legacy from his late parents.

To a lot of people, saving means keeping aside a small percentage of monthly allowance for future use. The amount of monthly saving is diferent for one person to another. It depends on one's liability (car loan, bills, etc) and lifestyle. As a basic rule, the least that need to go into saving each month is 10% of paycheck.

As a graduate engineer, I may earn at least RM2000. This means RM200 should go to my saving account. But that's not all, the hardest part of the journey is to minimize the expenditure and maximize the income. Thus, I can save more.

It is important to set a goal for the saving plan. People may save for retirement, for house downpayment, for children education, or for marriage.

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