Sunday, November 8, 2009

My Cash Flow Framework

Creating a framework is good for me to keep track where my money comes from and where it goes. You can see from the diagram, I have stated what are the things to be done in each of the five core areas namely Income, Expenses, Saving, Buying Asset and Passive Income.

Income:
I will concentrate on increase my monthly income and find other income sources.

Expenses:
I will identify what are the necessities and try to reduce my liabilities.

Saving:
I will split my saving into two portions. One portion will go into my investment, and the other portion save inside the bank.

Buying Asset:
I will identify what shares or ETFs to buy, and plan out a strategy on when to buy.

Passive Income:
I will use the dividends for reinvestment.


1 comment:

Extreme Power said...

Interesting stuff man...

Have you started your journey towards financial freedom?

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