MoneyAge

We've finished talking about the Life Stages, which served as the backdrop for our topic on Age. Age affects the level of income we get. This of course, presupposes that you have become more successful in your business or your career as you grow older. Not only that, this also hypothetically assumes that all investments go up the yield curve in the long term.

Normally, this does happen. It's expected that by age 35 or higher, your position should be more than just rank and file. This actually intertwines with another concept I've raised and that is passion. Passion at what you do will dictate the kind of income you will get as you go along the business or career cycle.

Not only does age dictate the amount you earn, it also dictates the amount of expenses you spend and the amount you will be getting for your investments.

As we've discussed, your income rises the most at the stage known as "The Show". After that, your active income will slowly decline as your expenses, particularly health care costs, start to rise.

It is important that you start your saving as early as age 25. If you want to enjoy your salary by spending mindlessly, I suggest you do that on your first job fresh from graduation until the 2nd or 3rd year of your job. Collect all the receipts, enter them into a ledger or what. What's important is you keep a record of all these.

Then, after the 3rd year, review all these expenses. Let's see if you think that kind of lifestyle is sustainable or not. What's more, let's see if you are not appalled by your own wasteful spending. You just might cringe and start a new leaf.

I'm keeping this entry short. That crazy bombing (although this is still unclear at the moment) has made me cringe re: investments. But if we check on history, this is one of those rare, extraordinary occasions when you can buy good stocks at a bargain. Even after the 9/11 attacks, the US stock market has already gone back up, even making new highs (except Nasdaq).