Month: July 2022

Last Updated on July 24, 2022 by The MediFi Guy So what exactly is investing? For our purposes, to invest refers to the act of buying one of the following things: 1) Stocks, also known as Shares or Equities (all synonymous) 2) Bonds 3) Cash 4) Property The proper term for the aforementioned things is “asset classes“. Investing differs from saving in that investing grows your money at a far higher inflation-beating rate than simply saving money in a bank account. When you save, you have to continuously keep working…

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Last Updated on July 24, 2022 by The MediFi Guy “How much money do I need to have at my chosen retirement age to be able to live comfortably for the rest of my life without ever having to work again?” The answer to this question is attained by using the 4% rule. A quick summary of the 4% rule is this:  Total yearly expenses ÷ 4% = The amount of money you need for retirement  OR Total yearly expenses x 25 = The amount of money you need for…

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Last Updated on July 24, 2022 by The MediFi Guy Now for the fun part – the world of investing! The very first payment you make upon receiving your salary should be a payment to yourself. More specifically, a payment to your future self. If you do not do so you will never be financially free. This is a necessary condition for financial independence. Without doing so everything else you do will be in vain. What “paying yourself first” means in practical terms, is that one should invest a minimum…

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Last Updated on July 24, 2022 by The MediFi Guy What is an emergency fund? It’s an account containing enough money saved to cover 3-6 months’ living expenses and emergencies. It should be kept in an account that allows immediate withdrawals in the event of an emergency. It’s recommended that you take time to create an emergency fund before you start investing. The reason is that if you start investing before having an emergency fund you might find yourself faced with a situation where some unforeseen emergency arises (eg unexpected…

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Last Updated on July 24, 2022 by The MediFi Guy So how does one achieve Financial Independence? Luckily for us, the entire collection of personal financial theories can be summarised in one short simple sentence: “Spend less than you earn, and invest the difference” So in order to become financially independent, one should: 1) Earn more money 2) Spend less than they earn 3) Invest the difference left over Earn more money “Spend less than you earn, and invest the difference” I think the idea that earning more money is…

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