Originally Posted by
c0mpumast3r
Just build your financial foundations first.
in my interpretation.. financial foundation consists of:
1.) EDUCATION
2.) A SECURE INFLOW OF FUNDS
having a big savings is not a financial foundation. it is merely a financial buffer used to compensate for fluctuations.. savings can run dry, but a secured source of funds will always keep the party going
never ever use your savings to acquire or build assets. because:
1.) building up savings takes up lots of time (time is the most important resource, its only a matter of time before you kick the bucket.)
2.) it reduces your protection against unforeseen dangers
a secure inflow of funds can be in the form of salaries from a job, earnings from a business, a loan grant(most preferably loans).. anything that puts money in your pocket(bank account).. though you really should set aside a little to put in savings (not in mutual funds or other time deposit accounts) in case of emergencies..
whenever possible, use other people's money to build assets.. do not be afraid to pay interests.. what you are buying is TIME!. and time is more precious than GOLD..