Avoid These Money Mistakes in 2021

Money Finance investment personal finance

image: hindustantimes.com

 

Not caring about Personal Finance

Before I personally think Personal Finance is for rich people, I barely got 30–40 dollars to spend in a month. why do I have to use math for spending them? Why do I even count that money? My parents will pay for my tuition fee, food and other stuff. But I was wrong!

The most important thing is If you don’t have a lot of money, You are still forming a habit. Which will help you once you start making a lot of money, and having less money is easy to finance. If you think you will start after once you will have heavy money, it will gonna messed up and you can’t invest or save money as effectively as you can.

Compound Intrest:

Try understanding it with this example: If you have 100$ Invested for 40 years to grow at the interest of 7 %. In 40 years you will have 22,858.40$. But if you Missed 10 years then if you invest 100 $ every year for 30 years at 7% interest rate then you will have 10,868.53$ at the end you can have the difference, it’s a lot “that’s the magic of the compound interest”.

But if you are young or In your 20’s. And you don’t have enough money, the best thing you can do is

Invest in yourself

Start investing in your education, courses, trips, or whatever helps you, invest in that.

Best time for taking Risk

Here, people take the meaning of risk differently, but it means not letting others suffer from your bad financial condition. When you are 20’s or something you don't have family and that's the main reason to take risk earlier because once you will start a family you can’t afford the risk. If some of them dare to take the risk then most of them gonna broke and few of them can only achieve, so there will be a high possibility of success if you start earlier. Once you get into family your complete mindset will change and you can't be proactive as you were before. Your first priority will get changed. so “At the end try something new in your early years”.

Impressing other’s

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When you compare yourself with other (those who are wealthier) then instantly your mindset changes and instead of investing in yourself, you start investing on the thing you don’t really need. Like buying expensive fashionable cloth or stuff. For once the people you wanna impress may pay attention to you, then they instantly forget it, After a certain while you got stuck with the loans, the things you don’t really need. So the worst thing you can do is to impress other with Clothes and things. This is the most basic thing why you should not impress others. But actually you don’t have to be rich when you are 18 or 20, you can rent a apartment and live with multiple people. None gonna care because you are just starting your life. You can do whatever you want or what ever suits you.

I’m not a financial adviser. But if your country currency is losing its value in the market think about buying euros or dollars.