Re: Asset and liability, one key factor for poverty among most Africans
snip~
.
.
And most of all better to know reality than illusion. I wonder how can an average earner person survive if 70% to 80% of his income goes to assets. People have to pay rentals, monthly bills, and personal maintenance, food, transportation etc.. For a normal employee or a minimum wage earner, it is lucky to have an excess of 20% of their monthly salary. In my place in order for me to safely invest my 70% income, I need to earn at least $5k per month which is impossible because the minimum wage in my country is only $10.15 per day taxes and miscellaneous charges haven't been deducted from that. It is ideal to save and invest but the percentage OP is suggesting is way overkill!
Don't forget when you are earning more then you will also spend more that is called lifestyle trap this can happen for anyone like when they are jumping from $6K salary to $10K they will add something into their life to show off but that can be completely avoided in the sense when we realize the importance of savings and investments which are the ways to achieve financial freedom and early retirement..
.
And most of all better to know reality than illusion. I wonder how can an average earner person survive if 70% to 80% of his income goes to assets. People have to pay rentals, monthly bills, and personal maintenance, food, transportation etc.. For a normal employee or a minimum wage earner, it is lucky to have an excess of 20% of their monthly salary. In my place in order for me to safely invest my 70% income, I need to earn at least $5k per month which is impossible because the minimum wage in my country is only $10.15 per day taxes and miscellaneous charges haven't been deducted from that. It is ideal to save and invest but the percentage OP is suggesting is way overkill!