The Four Levels Of Wealth(2)

First Level Wealth - Financial Stability(2)


If you have not achieved financial stability, you would need to do the following:


1. You must aim to clear off your outstanding debts to minimize on the negative cash assets that are taking a cut off your monthly salary.


2. Save at least 10-20% of your monthly income.

This is on top of any mandatory saving plans such as CPF or 401K.

You should save up at least 3 months equivalent of your monthly salary before thinking about investing your savings.

This is to make sure that you have sufficient cashflow to handle emergencies.



By Mike Wang