Money, savings and goals

Which money can you commit to a future expense? Start with what you save, check what must stay available, then give the remaining money a goal.

Spark and Cube share a short blanket on a bench; Spark’s knees are covered while Cube’s remain exposed.

Start readingNext lessonSaving, investing and speculation

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Saving, investing and speculationSeparate the income you save from the holding you buy and the right it gives you.
Before taking investment risk, check which money already has a job.
Before you start investingFind what remains unassigned after bills, reserve needs and debt commitments. Check whether you can use the money when needed.
Then assign available money to a specific expense and spending date.
Define your investment goalsWrite a goal record with assigned capital, a dated payment and contributions; calculate the gap and explain a permissible change.

Keep the goal record: its assigned capital, payment date, currency and price basis. Next, measure how prices, payments and inflation change the money available.

Next chapter: Returns and time

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Money, savings and goals

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