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What’s the Right Investment Amount for Your Goals?
Basic Rules of Personal Finance
To get a clear picture of your investment potential, you’ll need to take a closer look at your cash flow. That means keeping tabs on both the money coming in and the money going out. By doing this, you’ll know exactly how much cash you have on hand now, and how much you can realistically expect to have each month, even in the worst-case scenario.
It’s important to have a long-term perspective when it comes to building wealth. To set yourself up for success, it’s essential to prioritize growth over the medium and long term. With this in mind, you’ll want to give yourself the best possible chance of achieving your financial goals. You’ll need to minimize interest payments on any outstanding debt. These payments can eat away at any gains you might make from savings or investments, so it’s important to tackle them head-on.
However, it is true that not all debt is bad, as some types of debt can actually be beneficial. This is called “good debt,” and it refers to debt that provides you with a financial benefit that outweighs the cost of borrowing. For example, taking out a mortgage to buy a home can be considered good debt. Even though you’ll have to pay interest on the loan, you’ll also have an asset that can increase in value over time. Plus, if you rent out…
