6:2:1:1 Your Lucky Number to Financial Independent

6:2:1:1 is a general rule for you to monitor your cash flow. You should allocate your income in-order to meet today and future needs.

60% of your income will spend in your daily expenses such as food, rentals, transportation etc..
20% of your income should and suppose to be saved for your future
10% on your hobbies, games or leisure activities etc
10% for your wealth creation such as investments

In general, 80% goes to expenses and 20% goes to savings.

Wealth accumulation is a hard job where you need to create and accumulate.

Saving= You are able to generate income by working day and night. But, you will not be consider wealthy if your pockets are empty especially during end of the month. So, try learn to keep the hard-earned money! Learn to save part of your income first before you spend!

Discipline= Consistency in doing savings

Time=Your money needs to work hard for you. The younger you start saving, the better it is! As your money has more time to work for you!

Return=The greater the risk, the higher the return and vise versa. Place your money into places where they can work really hard and make sure you understand the investment you done as this helps to reduce risk.

Wealth accumulation= Saving x Discipline x Time x Return

Please be aware that, these are the four important elements for wealth accumulation. You wouldn't be able to achieve your mission if you missed out any one of the elements!

So, start planning for your future!

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