Things you should know about money before 40

Whether you want it or not, money and decisions about issues related to money, will accompany you throughout your life. Almost everyone will face the same decisions at some point in their financial life cycle. You should be very clear if you want, money is not a problem. That prevents you from being happy for the rest of your life. I wish someone had told me the things that I will tell you next, when I was younger. If you are over 40, do not worry, you can still do something.

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  1. Start saving as soon as possible: Many people live a day. Money enters money that spends. Therefore, they condemn themselves for life, dreaming of a stroke of luck that will change their destiny. It does not matter what you win. You can always save some money. That small capital that you can collect from your first salary can be the key to your freedom in the not too distant future. These small savings over time, coupled with good profitability, can be the basis for retirement at 50 or live without economic worries the rest of your life.

  1. Stop dreaming about a good job and try to start a business when you are young. I know many people, good students at the university. Whose main objective was to get good grades to enter a multinational or study for an opposition and have a stable and fixed salary? I think it is a big mistake, because it is going to limit the amount of money you are going to earn the rest of your life. However, if you hit the nail on the head with a good business you can earn a lot of money, sometimes in a short time. In addition to living quietly, you will make others work for you and while you enjoy more of your time or you get to retire earlier.
  2. Invest as soon as you can. Saving is the basis of everything. Moving from saver to investor is a process that many people live and consume too many years. Maybe when you realize that you have been wasting your time with deposits and conservative products that barely cover inflation. You have asked for a lot of time. Other people will never see it or understand it. Equities have an uncertain evolution. It is historically the most profitable asset. When you start investing, you should dream of a bear market. In which you can buy good business to keep them in the long term. If you buy well and bear the bearish cycles, you may only need two bullish cycles to make an asset that many will not earn in their entire lives working from sunrise to sunset.
  3. Do not become indebted too young or directly, never become indebted. To live owing money is the closest thing to slavery in our day. Not only can you go through hardship if you cannot pay. Limit your freedom to decide to change jobs, to decide to have a family, to change cities or take risks with a business to give some examples.
  4. Do not buy things you do not really need. Delay the purchase of what you need all you can if you have to borrow money to do so. They will bombard you all your life through any means. Therefore, you buy better and better things and live a life of permanent dissatisfaction, wishing for the next new object that shines. Be smarter than others and do not be caught up in the competition of who exhibits better properties and status. That will only lead you to an empty life, full of frustration and envy.
  5. Experiences last longer than material possessions and make you happier. I have it clear. There is nothing material that I can buy that makes me happier and that its effect extends longer in time than experiences. If you have to spend money, try to spend it on experiences. That leaves you a mark and makes you grow as a person. The memory of some of these experiences will accompany you throughout life.