Some item may be new to you; some item may be irrelevant to you. Anyhow, it is always good to know because Financial Matters.
- Generate Income
- Allocation of Income into Saving and Expenses (aka Budgeting)
- Allocation of Saving (into various form of investments)(aka Assets Allocation)
- Lastly, distribution of Saving by Will and Trust. (aka Assets Distribution)
There are basically two type of income
- Active income generated by rendering services e.g. Salary, Wages, Consultancy Fee, Commission etc.
- Passive income generated by Investment (Saving from the income earned in Active Income and also other Passive income)
There are many forms of saving you can use:-
- Keep the portion of income not spent in Bank's saving account or fixed deposit account;
- Keep some with insurance company under a participating-fund policy;
- Keep some with Broker firm to buy shares, warrants, ETF etc.
- Keep some with fund manager in Mutual Fund.
- Keep some in the Property in the form of equity. (installment - interest charges = equity)
- Convert cash to "things" that can be sold later at higher value.