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.

Published by Schmitt Trading Ltd

Schmitt Trading Ltd is an international software company and develops trading robots. We want to share with you how we live our dream to become financially independent. Join us at our thrilling day-to-day adventure trip to freedom. Follow us for more information. Subscribe to our latest blog posts.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: