My Cup Overflows

Invest Only What You Can Afford to Lose.

Investing is important, but so is eating and keeping a roof over your head. It's unwise to take short-term funds (i.e. money for the house mortgage or groceries) and invest them in stocks. As a general rule, investors should not get involved in equities unless they have an investment horizon of at least five years, preferably longer, and they should never invest money that they can't afford to lose. I call it your NET INVESTIBLE INCOME (NII) – the part of your Income that you save for investing. Remember the 50-30-20 Rule – this is the 20% of your income that you separate and invest.