Whether you like it or not, money and decisions about money-related issues will accompany you throughout your life. Almost everyone will face the same decisions at some point in their financial life cycle. If you can learn something from the mistakes and successes of other people on issues related to money, why not take advantage of it?
There are some things you should know about money before 40 and that you should be very clear if you want money not to be a problem that prevents you from being happy for the rest of your life. I wish someone had told me these things that I am going to tell you next when I was younger. If you are over 40, do not worry, surely you can still do something.
1. Start saving as soon as possible.
Many people live daily. The money you enter, the money you spend. And so they condemn themselves for life dreaming of a stroke of luck that changes their destiny. No matter what you earn. You can always save some money. And that small capital that you can collect from your first salary can be the key to your freedom in the not too distant future. These small savings over time, coupled with a good return, can be the basis for retirement at 50 or live without financial worries the rest of your life.
2. Stop dreaming of a good job and try to start a business when you are young.
I know many people, good students at the university, whose main objective was to get good grades to work in a multinational or study for the opposition and have a stable and fixed salary. And I think it’s a big mistake because it’s going to limit the amount of money you’re going to earn for the rest of your life. However, if you hit the spot with a good business, you can earn a lot of money, sometimes in a short time. And in addition to living quietly, you will get others to work for you and while you enjoy more of your time or get to retire earlier.
3. Invest as soon as you can.
Saving is the basis of everything. Moving from saver to investor is a process that many people live and consume too many years. Maybe when you realize that you’ve been wasting your time with deposits and conservative products that barely cover inflation, you’ve asked for a lot of time. Other people will never see or understand. Equity has an uncertain evolution but is the historically most profitable asset. When you start investing, you should dream of a bear market where you can buy good deals to keep them long term. If you buy well and endure bearish cycles, you may only need two bullish cycles to make a heritage that many will not earn in their entire lives working from sun to sun.
4. Do not borrow too young or directly never borrow.
Living owing money is the closest thing to slavery in our day. Not only can it make you suffer hardship if you can’t pay. Limit your freedom to decide to change jobs, to decide to have a family, to change cities or take risks with a business by giving some examples.
5. Don’t buy things you really don’t need.
Delay the purchase of what you need as much as you can if you have to borrow money to do so. They are going to bombard you all your life through any means, so you can buy better and better things and live a life of permanent dissatisfaction, wishing the next new object that shines. Brand clothing, technology, watches, jewelry, a better car, a house, a better neighborhood, etc. Be smarter than others and don’t get caught up in the competition of who exhibits better properties and status. That will only lead you to an empty life, full of frustration and envy.
6. Experiences last longer than material possessions and make you happier.
I have it clear. There is nothing material that I can buy that makes me happier and that its effect lasts longer in time than experiences. If you have to spend money, try to spend it on experiences that leave your mark and make you grow as a person. A trip, a concert, a show, a leisure activity, a game … The memory of some of those experiences will accompany you throughout life.
7. Most of the things that can make you happier do not cost money.
A caress of your partner, the sincere hug of a child, the unexpected visit of a friend that you had not seen for a long time, a good time of laughter with your loved ones, the gratitude of a person whom you help, who listen to you, who I love you, that they value you, the joy with which your pet receives you every time he sees you after your absence, the recognition of your work … and so countless things.
8. Learn things, put yourself challenges.
When we are little we are a sponge. If you live in an enriching environment you learn a lot of things without realizing it. When we are older, knowledge and training should not stop. There is nothing that makes you richer as a person, then everything you learn. Invest in yourself. Spend money on interesting books to read, take courses, strive every month, every year to learn new things. Your concerns will keep you alive until the last of your days.
9. Think about what you want the money you enter, save and invest.
The only way that all this makes sense is that you have really stopped to think so you want the money. What do you want to get? Buy a house? Have money for an unforeseen? To go to college? To have a good retirement? Saving and investment, if they have a defined goal, lead you faster to their achievement. Otherwise, you do not know how but the money is lost along the way in superfluous expenses. Plan.
10. Spend money on third parties.
There is nothing more satisfying than spending money on buying things for others or to help other people. Seeing how a gift from you makes another person happy, it is priceless. If you can afford it, donate, give and help.