Explaining Operation "Invest Away"

I understand that in order for my money to respond to changes in the economic climate, I have to diversify to minimise my risk and maximize my return. My allocation reflects my goals, my risk tolerance and my time. I understand that I have a lot of time to weather storms in the market and as I am young with no dependants and an Emergency fund, the chances of me needing my money on short notice is slim (God-willing).

Using the 110 rule, I’ve decided on investing my money in the ratio of 85% Stocks, 10% Bonds 5% Cash/Equivalent (at least for now). I hope to have more money to put away into stocks and shares in the near future. Although I appreciate the importance of stacking money away early on in life, I really want to be able to claim I am debt-free before the end of 2009, more than anything else at this point.

Being so new to this investing in stocks and shares thing, I've decided to invest in the whole of the market through ETFs. I am not trying to predict the next big stock, or indeed trying to outperform the market. I just want my money to work hard for me by staying ahead of inflation (4.1% as I type this).

In order for OIA to work, the defence has to be solidified. This means:

• Never using more than 25% of the limit on my credit cards (check)
  
• Saving at least 30% of my annual post-tax income (check)
  
• Paying all bills on time (I try)
  
• Planning for a rainy day (I’m doing so… slowly)