Example statistics of income and expenses

Before investing you have to be clear about your net profit or loss per month.

Profit and loss account

Net income: 2 500 €

Dwelling: 700 €

Nutrition: 300 €

Car rental: 700 €

Car fuel: 300 € (2 000 km x 10 l/100 km x 1.50 €)

Miscellaneous: 250 €

Result

The income (2 500 €) is higher than the expenses (2 250 €). The monthly profit is 250 €.

Investing

With 250 € per month, investing in different assets is possible:

Cash: save at least 3 net incomes (7 500 €) for unexpected expenses.

Stocks: start buying ETFs as soon as your cash reserves exceed 7 500 €.

Commodities: start buying to diversify your portfolio.

Passive income: read this blog post to learn more about passive income.

Leave a Reply

%d bloggers like this: