Investing and managing personal finances, dear graduates, should be a welcome challenge regardless of your GPA. In fact, you should think like an investor even if you've taken on a minimum wage job.
I wrote about this in my first post on the subject which you can read here.
Even setting aside $1 a day or $ 30 monthly in your teens to mid-20s will help you meet your financial goals.
But I'm afraid financial illiteracy still prevails.
Did you learn to think like an investor, develop your personal cash flow and secure your financial future? You've made it through 4 years of high school and/or 4 years of college. Higher education is supposed to prepare you to think critically but most students seem to ring their plastic through the university cash registers quickly and effortlessly without regard to saving and building a wealth base.
But now is your chance to develop good financial habits, including a regular investment strategy. It's so simple. But it does mean you might have to put off eating out every day or buying that shiny new car.
If you took a bagged lunch instead of eating out for lunch, you could save a few thousand dollars over a few years.
This financial calculator shows you the power of savings and the power of compound interest.
To think like a big investor, my advice is start small with $ 25 per month to $ 45 per month. That way, you won't think you can't afford to invest. Why is it so easy to think we can afford to spend but not save up and invest?
Here are two websites I recommend to get started investing or to be reminded why you should think like an investor:
Feed the Pig
Investopedia
Both sites provide the tools you need to educate yourself whether in an easy-to-follow fashion or more in-depth.
Hold your head high as you enter the job market and set solid financial habits to generate personal cash flow and build your future wealth.
1 comment:
Hi! I remember being a member of the "young and the restless" many moons ago. If I had taken your advise back then, I'd be better off today, no doubt.
The problem back then was the physical act of having to put the money in the bank.
I should have taken the time to organise some sort of direct debit payment to counter my laziness.
I realise that some would find this a royal pain in the derriere but it can save you a whole lot of pain, later on in life. Especially when your own kids start popping up from nowhere!
Thank you Don and take care! - Peter
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