Toby Caswell: Yes, YOU ALWAYS INVEST NO MATTER WHAT, using your cashflow to invest is the right thing to do.
Sabra Roers: Is the equation you posted from Mr. Kiyosaki? Because it's wrong. Total income-total expenses=NET INCOME. Cashflow=total income-total outgo. If you have debt, the portion of your payment that goes toward principal is NOT and expense, only the interest is. The principal part of the payment is an asset conversion, in this case you are converting cash into equity in whatevey you haveborrowed money on. Also, things that you buy that you expect to use for more than a year are not expenses, they are assets.Now, your question is "Should I invest." The answer is, IF you have 3-6 months of living expenses socked away for emergencies, and IF you have no debt, THEN you should invest as much money as you can....Show more
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