Student Question:
In my first call much of the discussion revolved around how you
‘begin’ the process of saving and then investing. What if you are not
working and want to grow your nest egg? How, or do, the formula’s
change?
Dr. Scott Brown's Answer:
The 50:30:20 formula doesn’t change unless your at poverty level. Those at poverty level are forced by circumstances to use 100% of their income on needs.
I don’t understand. You say you’re not working. Does that mean you have no income? Or is your income passive?
It’s all base on income. Many people don’t have conventional jobs yet have income… sometimes substantial.
In my first call much of the discussion revolved around how you
‘begin’ the process of saving and then investing. What if you are not
working and want to grow your nest egg? How, or do, the formula’s
change?
Dr. Scott Brown's Answer:
The 50:30:20 formula doesn’t change unless your at poverty level. Those at poverty level are forced by circumstances to use 100% of their income on needs.
I don’t understand. You say you’re not working. Does that mean you have no income? Or is your income passive?
It’s all base on income. Many people don’t have conventional jobs yet have income… sometimes substantial.