19/05/2024
Financial advice for every teenager
1) Start saving as soon as you start earning. Yes, this is a kind of sacrifice of your desires, but in the future, it will pay you off many times.
2) Live on less money than you earn. If you can’t buy a new car for 25,000 euros, buy a used car for 5,000 euros. Avoid loans if possible. When you spend money on interest payments, that’s your lost opportunity. You can spend this money on a goal instead of paying the bank.
Example:
Purchase of a car: 25,000 euros
Own funds: 5,000 euros
Credit from the bank: 20,000 euros
Loan interest: 5.5%
Loan term: 8 years
You’ll pay the bank 24,200 euros in total
Overpayment of 4,200 euros (you can save this money and then buy what you need instead of paying the bank)
3) Learn the compound interest rule
This principle is the foundation of your financial future. Money should not just lie at home, it can multiply on a regular bank deposit.
With a compound interest savings account, you earn interest on the principal amount (the initial amount of the deposit) plus interest that accumulates over time*
*www.bankrate.com
4) Always manage your money, and in the future your assets (property, cars, anything). Regularly evaluate what’s happening in your accounts, how much you’re spending, how much you’re saving, and most importantly, whether your savings are working.
If you are mentally prepared, pay attention to the stock market. Find one successful company whose business you understand and buy its shares. And then hold them as long as possible. In a period of 10-20 years, you can see great results in the growth of your investment.
5) Be patient, all big goals like buying real estate, building a lasting business don’t happen in a year. They need time. The most financially successful people in the world invested years in their business, and in themselves, and waited for great opportunities.
PUBLICATIONS ARE FOR INFORMATIONAL AND EDUCATIONAL PURPOSES AND ARE NOT PROFESSIONAL ADVICE
2024