Like they said MONEY is a great servant but a bad master. So here is what I learned from my 30 years on the planet.
#MoneyMatters
#ANoteToMy20YearOldSelf
1. Saving money is like planting a tree, the best time to plant it was 20 years ago. The second best time is now. #IfNotNowThenWhen
2. The simple path to wealth is #ReduceExpenses #IncreaseIncome #InvestTheRest
3. Put all your saving in the bank and hope for interests is the worst idea EVER because, at the end of the day, Inflation will kill you!
4. Plan your personal finance by yourself, no need to reference from other people because each person essential need is different and unique.
5. It’s always best to have more savings than what you actually need. But you should also put money aside for future investment or other stuffs e.g. real estates, car, weddings, retirement plan etc.
6. Income should = Essential expenses + Savings & Investing + Other wants & needs expenses.
7. REMEMBER: You are the creator of your own goal so that means, it’s up to YOU if you can achieve it or not.
8. Set #SMART goals: Specific, Measurable, Achievable, Relevant, Time-bounded
9. The most importance part of your GOAL should have two things: wants & needs.
10. Always assess and determine your risk management before investing.
11. Categorize GOAL into three different types: Short, Middle, Long term.
12. Everyone should have an EMERGENCY FUND at least 6-12 times of your current living expenses.
13. Even the exact same amount of money today compared to the past but with inflation, the value will not be the same as the price of products from 10 years ago vs now.
14. Investing can help you grow your wealth with compound interest and dividends.
15. The hardest financial plan is the #RETIREMENTPLAN
16. The best time to plan your retirement can start as early as possible, no need to wait until you become an adult.
17. Select your insurance wisely don’t pick it because it’s cheap but choose the best plan that covers all your risk.
18. In this world, there is only two things you cannot escape: Death & Taxes (some can, if only you know how)
19. Choose your assets base on what fit you most.
20. Build a habit of tracking your income & expenses.
21. Investing is not easy but it’s not that hard either. #LearnToInvest
22. Credit cards is extremely AMAZING tool but you MUST be financial responsible. I use credit cards for everything and it’s allowed me to travel the world either on budget or luxurious for almost FREE!
23. Stocks are a very good asset, especially in long term.
24. Stocks are not that hard to invest in if you invest in a good company.
25. Nowadays you can start investing with a very small amount of money.
26. Look for companies that have good cash flow.
27. If you don’t know how to invest start with Mutual Funds.
28. If your goal is for long-term investing, buying Mutual Funds is also a good idea, you can minimize tax this way.
29. Start your financial plan today, don’t wait until it’s too late!
30. At the end of the day MONEY is not everything in life, so don’t forget to enjoy the ride along the way as well!