Investing for your future should be a part of your quest for financial freedom. This is very crucial because the amount that you will put in your investment will be earmarked for the time that you are retired from work. Although there might be an amount that will be received during retirement, most likely, that amount will not be enough to cover for the lifestyle that you would like to live.
Before putting money in your investment, you should make sure that you have saved on the side an amount for your emergency fund. This should be at least three months to six months of salary. Emergency fund should only be used for emergency expenses. Once your desired amount for your emergency was reached, it is then time to save every month for your investment. You can now start building your investment for the long term. Following your budget of 10% from your earnings, you are gradually building up an amount of money.
The investment instrument that I would be looking for are Unit Investment Trust Fund. Mutual Funds and Stocks are also good investments. Although bonds and money market are less volatile, they can only earn a very low returns that is almost the same as a bank savings account.
If you are already on your 50s, don’t worry, it’s never too late to start. If you are still young, starting early will be on your advantage.