Where does money go: a guide in house accounting

Where does money go: a guide in house accounting

Where does money go: a guide in house accounting

Find out here how to optimize your savings and achieve our financial goals

Where does money go: a guide in house accounting

In the book One Million for my Daughter an Italian professional trader Pietro Di Lorenzo, gives practical demonstration of how he intends to achieve his ambitious financial goal, which is well stated in the book title. One of the first focus points answers the question:

how much money does one need to reach 1 million?

To answer this question, the author insists that, with periodic savings, it is essential to evaluate the amount of money to allocate into the project, as an incorrect formulation of this value could significantly affect the entire path towards the million.

Much like choosing shoes for a long journey, correctly identifying how much money we can set aside to reach our financial goals if pivotal.

Although through time you can vary the periodic savings amount as you wish, it is important to have a clear path ahead. In order to do so, one should always have a full understanding of his/her financial health. Periodic financial check-ups and accounting are necessary. Why so? It is common that, in the course of life, the capacity to save will change and we can consequently vary the amount we allocate to reach the million. It is therefore important to periodically check the financial situation, especially when we are about to have a structural change in the flow of expenditure.

For new parents like the author, or for those who are sending a child to study abroad, or who have a new mortgage payment for the purchase of a house, it is extremely important to stop for a moment and “do the math”, to avoid that situation where you are surprised by the fact that you have no money in your pocket (or account) and you have no idea how you spent that money.

How and where to begin? Read the book to discover where does your money go.


Pietro Di Lorenzo