By Victor Tan
- Don’t spend all of your salary. Save as much as you can. Live within your means as much as possible.
- Don’t spend money like life is short. People are living longer than ever, and it’s very unlikely the world will end tomorrow. Plan for the future that you are most likely going to live to.
- Make some investments. You can invest in stocks, funds, etc. but do invest your money depending on your appetite for risk and the time frame of your return.
- Watch your small expenses. You might think that buying a TV for $1500 is expensive and you’re more sensible than that, but those $12-$18 takeaways that you buy for dinner add up over time and can drain your bank account faster than if you bought 2 $1500 TVs. Small expenses add up in ways that you don’t expect.
- Don’t worry about getting rich quick. Not only is it not possible, but wealth that lasts will always take time to develop.
- Give yourself some room to splurge or have fun every now and then. Think of your future, but if you’re not enjoying yourself there’s no point in saving money.
- Buy something because you need it, not because everyone else has it. Practicality trumps social standing. Ironically, the people who matter in your life care more about you than your expensive belongings. The people who respect you because you have something expensive don’t actually care about you.
- Always have an emergency fund. You never know what could happen to your job, and you will thank yourself for the peace of mind.
- If you can work on a side project that brings in some income on the side, then do so! But don’t feel that you have to do it in order to achieve your financial goals. Do it because you love it.
- Don’t spend recklessly, but allow yourself to have money to spend on the things truly important to you. Money spent going above and beyond for the people who love you is never a bad thing.