If there is one thing that we didn’t learn from the school, that is investment.
Saving and investing is totally different things.
Since young, we are encouraged to save the money in the bank. But in fact, instead of gaining the money through interest rate, we are losing money because of inflation rate! (ie, you buy lesser things using the same amount of money in 5-10 years time)
Investment is not about taking out $100,000 or even $10,000 in one shot, and put into stocks, running a business, buy a property. Nope, that’s too much.
Investment can be as little as $100 per month. Yes.
Just put aside of $100 per month into a regular saving plan. Then with the magic of compound interest, see the money grow by itself. Even better, if you can manage to invest $500, $1000 or even more per month, apply the compound interest, boom!
Finally, investment is always long term. Don’t expect a huge short term gain. Look for 10 years and average of 5-10% annual gain.
Of course, you should have an emergency fund that can last you for 6 months without any income, that’s after the money put aside for investment.
Tips, you could look into index fund as part of your regular saving plan. And that’s plenty of them, just search ETF.
