Step Four: Invest for your Future
Now you paid off your debt and have 6 months’ emergency funds. Well done.
Being financially independent means not relying on anyone even during retirement.
It is recommended to invest 15% of your income for your future. 15% is suggested so you can still have money to cover the necessary expenses, save for the future and move to the next step of total financial freedom. Of course, you can opt in with what the government can offer but definitely it will not be supporting a comfortable life style.
In the US, an Individual Retirement Arrangement allows a person to invest up to $5000 a year per person and a tax-free savings. It’s value of course lies on how long you have made the investment. Investing in stock market and mutual funds to cover the diminishing value of money over time is also an option.
Next Page: Step Five - Save for Education