Young people should learn to manage money

In the west, 18-year-old young people have begun to support themselves independently and do not ask their parents for money. They gradually manage their money when they are young and become the main competitors in the market when they are middle-aged. In China, the vast majority of young people still rely on their parents, and only when they are middle-aged do they begin to learn financial management. At this time, due to the influence of family and children, their energy is limited. With the growth of age, he is facing retirement. He has a little money in his hand and wants to prepare for his financial resources after retirement. He can't afford to invest his money in a large scale. In the end, he can only do nothing.

Youth is wealth. Everyone envies youth. We can come to such a conclusion with a simple compound interest formula. If you have a 10000 yuan venture fund when you are young, 10 years later, 10000 yuan can become 2 million yuan; but when you are old, the same 10000 yuan can only grow into 60000 yuan or even a deficit after 10 years. Therefore, youth is a golden age. This is not too much.

Similarly, youth is also the most important capital for financial management. Celebrities often say to college students, "young man, your name is wealth!" Because it is obvious from the compound interest formula that time is money and youth is wealth. Compound interest chart gives us a clear financial career planning: when we are young, we should be committed to increasing revenue and reducing expenditure, and start investing, because the money saved in youth contributes a lot to the wealth of old age.

As a matter of fact, it is too late to start financing with some funds in hand when we are old. The correct idea is: investment is the job of young people, and the job of old people is how to make good use of wealth. However, many young people only pay attention to the enjoyment of life in front of them. As soon as they have money, they buy a sports car, a set of high-end stereo or travel abroad. They always think that they can enjoy themselves when they are young and worry about financial management when they are old.

If you have understood the role of time in financial activities, it is not difficult to understand that such a person is doomed to be mediocre all his life. In the real society, there are countless examples of poverty in old age due to the emphasis on enjoyment in young age. The key is that you ignore the importance of starting financial management when you are young. When you become more aware, it's not only getting twice the result with half the effort, but it's too late.