How to Keep Cash Reserves Intact for Long Term Investment Purpose

It is natural as we explore more investment opportunities; we also become aware of our financial situation. Well to tell you the truth, there are some investors who can maintain small reserves than others. To calculate your cash reserve, you need to answer these questions:

·         What’s your total income?

·         What are your savings after tax?

·         How many cash flow properties do you have?

·         How much cash flow do you have?

·         Are you planning to add major changes to your profile?

·         What is your other source of income?

After answering these questions, you will have a clear situation of your cash reserve. Plan your cash flow according to the cash availability. With the cash flow, your portfolio’s visibility improves. Long term investment is done for creating cash reserve for your future. Therefore always maintain your cash reserve for difficult times as you know things might change.