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What are some basic financial concepts I should learn now to prepare for managing money in the future?
I want to know the basics and work up from there.
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Fred’s Answer
Super short answer:
Start saving for retirement TODAY. Put as much as you can into any retirement plan your workplace offers. If they don't offer one, set up your own.
Investing in the market is a LONG TERM process. Some days the market goes up, some it goes down, but over years, it (historically) goes up. So don't check it every day. I check it maybe every 6 months to re-balance my portfolio.
Try not to use bad debt - things like short term (payday) loans and credit card debt. These are usually extremely high interest rates, making it hard to stay ahead. There is such a thing as good debt - home loans and education are (usually) considered good.
NOTE: I am not a financial advisor, so do not take what I say as a definitive answer. These are simply my personal opinions.
Start saving for retirement TODAY. Put as much as you can into any retirement plan your workplace offers. If they don't offer one, set up your own.
Investing in the market is a LONG TERM process. Some days the market goes up, some it goes down, but over years, it (historically) goes up. So don't check it every day. I check it maybe every 6 months to re-balance my portfolio.
Try not to use bad debt - things like short term (payday) loans and credit card debt. These are usually extremely high interest rates, making it hard to stay ahead. There is such a thing as good debt - home loans and education are (usually) considered good.
NOTE: I am not a financial advisor, so do not take what I say as a definitive answer. These are simply my personal opinions.
Updated
Flo’s Answer
I love this question, Braden! I’m proud of you for asking about money this early in your life. Financial literacy and cultivating an abundance mindset are great places to start.
If you're a reader, I recommend I Will Teach You to Be Rich by Ramit Sethi. He also has a YouTube channel, a podcast, and a Netflix show called How to Get Rich.
His book is straightforward (without losing its essence) and covers topics like beating the banks, optimizing credit cards, preparing to invest, and practicing conscious spending, to name a few.
I paired the reading with The Psychology of Money by Morgan Housel, which complements the concepts well.
Excited for the wealth you'll create for yourself!
If you're a reader, I recommend I Will Teach You to Be Rich by Ramit Sethi. He also has a YouTube channel, a podcast, and a Netflix show called How to Get Rich.
His book is straightforward (without losing its essence) and covers topics like beating the banks, optimizing credit cards, preparing to invest, and practicing conscious spending, to name a few.
I paired the reading with The Psychology of Money by Morgan Housel, which complements the concepts well.
Excited for the wealth you'll create for yourself!