Basics of Finance Tips

Basics of Finance Tips

When I was 22, I landed my first job that paid reasonably well. I made $2,000 in my first month, which was a lot of money for me.

In a way, I did. But, being a typical adolescent, I wasted it all. Here are the things I would tell my past self if I could change things:

The sooner you start investing, the better. Do nothing but buy the index fund of your choice. Don’t do the labour yourself, and give the firms a stake in the profits.
Spending money means sacrificing some independence in exchange for the item purchased.

Family matters
Learning increases one’s earning potential.
Donate freely: Don’t hoard cash the way a dog hoards a bone.
Time is a nonrenewable resource, but money can always be made again.
Have faith in your money management practices; save, invest, and spend wisely. Later, the results will show.
You should increase your savings rate as your income rises.
You only need six months of living expenses saved up: There’s no need to be a saver maniac, either.
Stop worrying too much about when you can retire: Don’t be too hard on yourself if you aren’t yet in your prime career years; most people’s highest earning years are in their forties and fifties.
The aforementioned money ideas may appear easy and clear, but putting them into practice is anything but learning from experts

SourceThe Compounding Effect
“You will never change your life until you change something you do daily. The secret of your success is found in your daily routine.”

Your good habits might not have an immediate payoff, but in the long term, they will change your life.


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