If you have been reading investing blogs then you have come across some investment rules of thumb. It is a general guideline that you can approximate a value quickly.
The number one rule of thumb is ‘Pay Yourself First’. You need to set aside your money for savings every month before using it for other purposes, including investment and etc.
The question of how much do you need to invest depends on:
• When you started investing
• When you plan to retire
• Whether or not you plan to continue working part-time,
• Whether or not you expect passive income to pay out at the rate which is currently promising you,
• Whether or not you’ll have any pension income or EPF savings