Invest Early

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One of my biggest financial mistakes after graduating from university is not investing my money. Instead I would waste my money on expensive trips, cars, partying, dinners, and clothes. I had no idea what to do with my money other than spending them to buy nice things. And as all of you already know these items are all liabilities and not assets because they are not generating positive cash flow. My advice to everyone wanting financial independence is to start investing early. Save aside a certain percentage of your income every month and let it grow. Even if your income is low you should get into the habit of investing so that down the road when you do have money you’re already used to it. A good percentage of income to save towards investing is 10% but as your income gets larger, this percentage should also go up. What’s the best investment? The answer is it depends. Some people thrive through the stock market, other’s prefer real estate. It’s crucial to do research in different types of investments and the associated risks and decide what works the best for you. A tip is to stay diversified and don’t put all your bags in one basket. Each investment has their own pros and cons. Real estate is good for building long term wealth but can be pricier to get into while stocks require less capital but the markets are volatile. Stocks are more liquid whereas real estate can be hard to sell. We will get into more details about types of investments in later posts but the goal of this post is to get you in the mindset that you should invest and let your money do the work for you rather than spending them on depreciating purchases. Another investment type people don’t talk about much are self improvement investments. One of the best investments you can make is in yourself. So spend some money and buy books, take a class or learn a new skill that will bring you closer to your financial goal. This type of investment can make the greatest returns. So next time you’re about to spend money on something you might not need, think about what you could be investing instead. Becoming a millionaire is a mindset.