There is one additional consideration when you invest your excess net income. Passive income is not a guarantee from your investments. If you are not careful your investments may generate a passive loss. To avoid this scenario, you need to consider and invest with an intentional asset allocation.
Finance Like an Adult
Simple solutions are your best option to solve complex problems. Now that you understand your personal finances and the spending in your intentional life, do everything you can to generate passive income to fuel your intentional life.
If you want to start with a high-level summary, please skip to the end and read the 50 Word Takeaway before continuing.
Risk versus Reward
The purpose of taking on risk with your personal finances is to generate an additional reward.
The most important concept to grasp with investing is the risk you take on. The risk with your investment is that you will not receive any of your money back, for example, if you purchase stock in a company and it goes bankrupt. More common investment risks involve the company losing…
