The title of the article could have been like this: dead money vs living money. Anyway, let’s come to the main discussion. For sleeping money I have extinguished your accumulated money and the living money I have invested in your invested money.
We basically have or have money in two ways. One is saving money and investor money. Many people save money and invest money together. These two types of money have two values, have different purposes, cost differently.
What is sleeping money
Sleeping money is the money that you have deposited with you month after month, cash or savings. The value of what is now and will be the same in the next 6 months. For example, if you are earning twenty thousand rupees per month, you are spending Tk 4,000 and Tk 4,000 is coming from you. These lazy four thousand bucks are sleeping money for you. Read More – Educational Stories for Traders
Do you need sleep money?
Of course there is a need. This money is your friend of danger. In case of an emergency you are spending money from this fund. Hospital bills, outpatient visits, haute cuts, and all these deductions are available from your fund. But if sleeping money is more then wastage is more. So you can invest the rest of the money by guessing.
What is living money
The money you spend on a business or investment for a specified period of time is therefore living money. This means that whatever money you invest today, that money will remain in the next six months and there may be some profit.
Like if you bought a small land, and sold it after 2/2 years. It may be that he planted 20 trees, etc. But whatever you invest in the fund, keep in mind that it is lawful.
What is the need for living money
This is a visible investment. There is no alternative to investing to be wealthy. You cannot live life with a single income. In line with the age, you need to find a way to earn extra by investing.