But how much is “enough”? 50k? 200k? 1 million? or just $1 more than the amount you need? Without defining what does “enough” mean to you, it’s very difficult for you to set your financial goals. So the first thing that you need to know before doing any financial planning is your definition of “enough”.

I’m not going to guess what is your answer. So I’ll just assume you are like most people I know, and your definition of “enough” is to be able to retire comfortably, without having to worry too much about money when you’re no longer working.

If that’s your definition of “enough”, then I have a few tips which might be able to help you achieve your goal.

• Go for conservative investing. When choosing a type of investment to put your money into, always go for conservative type of investing. Say NO to short-selling or active trading (be it stocks or funds). Go for those which are safer, but have lower returns. Index fund is a good option while FD (interest rate is too low at the moment), and stocks (too risky) are not.
• Pay attention to the cost of investment. Most investment types need you to pay a certain amount of money for their services – especially stocks and mutual funds. Pay close attention to the amount of money you need to pay for such things. Because most often than not, these fees will greatly reduce the amount of earnings you get from your investments.
• Minimize spending. It’s okay to get your WANTs every now and then but always take into consideration your financial goals. Will buying item A has any negative impact on your financial goals? Will it slow down your overall progress?

I think these 3 simple rules will be able to help you in achieving your “enough” and enable you to live comfortable upon reaching your retirement age. I can’t say that it’s going to work 100%, but I really believe it WILL help you to move closer towards that direction. But bear in mind that, these 3 simple rules are not going to make you rich…. they will only be able to make you achieve “enough”…. just enough for you to live comfortably.

p/s….. conclusion, if you are looking to achieve “enough” (as in enough to live comfortably upon retirement), you should avoid going to risky investment types such as property and stocks, and also avoid spending too much on services such as those incurred by mutual funds.