Handling and managing money properly is not easy. However, you don’t have to be a financial expert to manage your finances well. You can do simple ways to manage your finance, like starting to saving, investing, and managing expenses can help you build wealth.
Check out 4 simple ways that can help you be more active in managing finances based on CNBC :
1. Start investing in your 20s
The earlier you start saving and investing, your future will be better.
Actually, you have to invest more in your 20s than in your 30s if you can since the younger you start, the more time to save and invest.
However, keep in mind that all investments carry risks. You can never guarantee whether you can get a 12 percent return on investment, or even less than 12 percent.
2. Don’t focus too much on savings
If you only save but don’t invest, then you can lose money in the long run. Additionally, inflation causes prices to rise, and makes the value of the currency weaken over time. The antidote to losing money because of inflation is investing.
3. Stay calm
Stocks are experiencing a turbulent year. However, many people often change their market because they are worry about their stocks.
In fact, a legendary investor, Warren Buffett says that the best thing you can do when the market is down is to ignore it.
The money was generated from investment, through investing and having a good company for a long time.
Furthermore, if they buy a good company, buy it from time to time, they will be fine 10, 20, 30 years from now.
4. Understand how debt holds you
Debt does not only burden you with money. On the other hand, debt also influences other important parts of your life. For example, it can hold you back from getting more and preventing you from getting what you want professionally.
In addition, debt can make you feel out of control and dependent on others.
Therefore, debt repayment might be a top financial priority. Regardless of debt, you will have trust. Thus, get out of debt and stay away from debt, the sooner the better.
Read more: How to Manage Personal Finances during Discount Events
