For any successful financial life, we need to follow some basic common sense foundations.
Assuming you are a retail investor who lives on a fixed income and no toxic debts, the the first thing in your mind must be to have a liquid contingency fund at your disposal.
Why?
Assume your income(salary, rent)is not available due to varied reason, then you need to take care of your fixed expenses (rent, food, school fees, insurance)
How much?
Ideally minimum six months maximum one year of your total fixed outgoings.
This fund should be in a easily accessible location (cash in bank, cash certificates)
Assuming you are a retail investor who lives on a fixed income and no toxic debts, the the first thing in your mind must be to have a liquid contingency fund at your disposal.
Why?
Assume your income(salary, rent)is not available due to varied reason, then you need to take care of your fixed expenses (rent, food, school fees, insurance)
How much?
Ideally minimum six months maximum one year of your total fixed outgoings.
This fund should be in a easily accessible location (cash in bank, cash certificates)
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