Investment plan

This is a highly biased investment plan. It takes into account your current risk tolerance, and monthly expenses. A lot of the concepts are taken from the amazing series from professor Coletti on youtube however, this is a reinterpretation of the concepts and do not accurately reflect the video. For this reason, I highly recommend you watch his series and not rely on this calculator too much.
There are four main ways we put our money to work:

• Cash: Monthly expenses
• Savings account: Emergency fund to cover unexpected expenses
• Bonds: Money you will need within the next 10 years
• Stock: long term investing

Main idea behind this is that you WANT to invest into stocks. However, you need to have enough cash to cover your monthly expenses, a savings account to cover unexpected expenses and bonds to cover big expenses you foresee within the next 10 years. The rest should be invested in stocks. If you do not plan to EVER invest in stocks, do not use this calculator.

A key concept is that you should always be able to take out money from your savings account without losing money. This is why we put money in a savings account and not in riskier assets.