Savings to Discretionary

Why very often in the first year Savings goes into Discretionary expense ?

Thank you, Max

Comments

dan royer's picture

Hi Max, I guess I'd have to see your report to understand what you mean. What does "Saving goes into" mean? That sounds like you are often seeing a recommendation to withdraw from Saving the first year.

The short answer is that anytime you see a withdraw from Saving it's because that money is needed to sustain a smooth discretionary spending pattern. There must be more spending than income in that year.

Dan

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