Budget allocation is one of the most important decisions that any investor have to decide at the beginning of the investment journey. 

Reason being, without proper allocation of funds, there will be funds for investment. Without funds for investment, how can the investment journey even begin. 

I have seen and know of many who profess that they want to learn/start investing. However, after a while they all faded out. A common trend is that, they find it too "difficult". Learning is tough and cutting down on their expenditures, is equally tough. They are used to owning big cars, frequent traveling, owning luxury Watches and bags, going fine dining and comparing with the jones. 

Without a set plan to allocate a fixed % monthly for investment, more likely than not, the money will just disappear at the end or even start of the month.

What I practice is to pay myself self. Once pay comes in, set aside fixed % of income For investment (stocks&options). Prior to marriage, the % is Ard 50-60%. After marriage, it's around 40-50%. After having kid, it become 30-40%. 

The sad reality is that the older we get, the higher our liabilities. It makes it even tougher to invest, even though our income grows with age. Hence, it is always best to start early, start young and let compounding take care of itself. Once dividend stocks start to compound and reinvestment begins, we can put in lesser amount, yet achieve similar or even better results as the dividneds grow more and more over time. The same concept goes for option selling. Powers of compounding cannot be understated.

Another aspect of investment is to also invest in property. That will allow the usage of other people's money through the usage of bank loans as well as have ownership in a property that should rightfully at minimum beat inflation. Instead of paying rental to others, i accumulate my money over time in property. 

My current property monthly allocation is currently 20% monthly. This makes my total investment allocation to still be 50-60% of my monthly income.