What important things does a 20-year-old need to know about money and finance?

Even though it is hard, for 20 year old’s to understand the importance, of good money management. There are a few facts that they will easily understand, so that they will be able to make better decisions when they start earning and spending cash or when they start using credit or debit cards.
1) Credit cards should be used sparingly, so they can be paid off every month. This means it is good to have a good idea of what your income will be and limit yourself when you use the credit card, so the payment will be easily made at the end of the month. As the card must be paid off every single month, as it is good to avoid the addition of interest.
2) It is not too early to learn about stocks and bonds, and how to trade as you get ready for retirement. When you learn how the Stock Market works, you will be ready to invest wisely and increase your ability to earn, when the time is right.
3) Money will quickly disappear when you have not made a good plan for it. It makes almost everything easier, but it causes jealousy, misery and envy. Don't tell too many people about your financial matters.
4) It is not good to lend money to friends unless you won't need it in the future. It is always good to write a contract that you ask them to sign, before you hand over the money. A lot of friends have been known to forget about loans.
5) Find a way to save, no matter how hard it is. Keep it liquid or in an account that has a debit card. So a crisis won't find you with nothing to spend. When there is an emergency you might not be able to find persons who have money to lend. And you never know when you might lose your job, and need to be able to keep on taking care of yourself.
6) Gambling is for people who have no good plans to earn and they are willing to take risks with their future. It is easier to throw your money away, before you expect to win when you gamble. Think of the amount of people who lost their money before and the posh looking places where gambling takes place and you will realize that most of the gamblers are the losers. So you will eventually say, gambling is a waste of time.
7) Never just work to have more money. It is good to invest as you earn, so you are constantly increasing your income.
8) Keep good accounts, or keep track of your money, so you are always able to remember what you have done with it. Keep your receipts and a record of all your income. It is very easy for money to slip away and you could end up not having it, when you need it most.
9) Money can help you to become financially stable or it can leave you with big problems. Spending in smart ways will help us to be financially stable and spending in stupid ways leaves us with nothing.
10) Investing in real estate is always a good thing to do. We will always need to live in a house, and spending all our money on rented properties can leave us homeless when we retire. It is always better to spend your money on other people's properties when you can be spending it on your own. And you can be making yourself financially stable while you spend on your own home. As your investment will keep on increasing in value when you keep on spending on it's upkeep.
Nguyen Kinh Luan
I love to travel and have taken time to experience life in many countries. I made this website to share useful information with the community. If you have the same hobby, please connect with me. I wish you success! Best regards!
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