Saving & investing = Consumption

Is the ideal condition where the savings & investments are in proper balance with expenditures, that is income received only 50 percent is used for consumption, while the rest for savings and investment. Usually this pattern is suitable for young unmarried which the liability / debt does not exist. To reach it we must work smart, how our money can work hard for us and generate passive income.

Saving & investing = Consumption – Debt

In this pattern of saving and investing less due to the debt obligation, in this is indeed under ideal conditions but still reasonable. This stage usually occurs for those who are married. The times and the financial industry, encouraging the growth of debt instruments, this led to the use and attempts to get the debt become easier. Now more and more found debt-based consumption (credit card, or credit without collateral, etc.).

Saving & investing = Consumption – + Debt Protection

This pattern is most wise for those who have married and had children, although saving and investing is not for the previous stage but the cause is the allocation of funds for protection (risk management) is usually in the form of insurance premiums.

In line with insurance industry and increase education funding would also affect financial freedom. Because we have to meet the element of protection for himself and family in the form of insurance and investment funds for education.