Money Management – Money Challenges of Today's Youth

We are living in 21-century but most of the old money laws still apply. So, what “old” laws I would like to tell to my kids or relatives who are soon turning 18? What are the money problems or challenges of today's youth?

Here is a list of things which come to my mind. Let’s say, I would be today a very rich man if someone had told these things to me 25 years ago.

Education

Many of today’s millennial's don’t have any common understanding of money. It is frustrating that they don’t teach any personal finance skills in school and it’s even more frustrating if the youngster does not get this very important education from home.

Budget Plan

They have never make any budget what comes to money. They just spend without knowing do they have money to buy stuff or not. This will lead to problems mainly because the interest rates in credit card loans are beneficial for lender not for you!

No goals or destination

It is common that they spend every penny they have. They don’t have any investment plans or goals. For example, they will have 50k$ in stocks when they turn 40 or they 50% left of mortgage.

Time

They think time is on their side and they can start saving a little bit later. Unfortunately, it is another way round due to compounding. Start saving today and invest this money, by doing this you will have much more in the future.

Lack of Knowledge

They will invest into very risky businesses and lose their money. It is true that risk and profit goes hand in hand. So, please remember the diversification. It’s your free lunch.

So, let's take care of our youngsters. Please try to teach them the money management ABC's. I know, it will be hard and painful, but hopefully they will thank us later. :)

Regards,
CVM

please also check my new site:

www.freedomsearcher.com

Best Personal Finance Books - My Book Recommendations

To know more than 95% of people you should read the following books I recommend here. By reading the books you will learn:

• You won't be millionaire in one night.
• It takes time, unfortunately quite long, so better start today :)
• Difference between good and bad loan
• Difference between rich, middle-class and poor
• How to maximize your time
• And much more

Here is a list of my favorite books:

Investing Related:

Rich Dad Poor Dad by Robert Kiyosaki

Intelligent Investor by Benjamin Graham

Random Walk Down Wall Street by Burton Malkiel

Self-Help

The 4 Hour Work Week by Tim Ferriss

Tools Of The Titans by Tim Ferriss

How To Friends & Influence People by Dale Carnegie

Happy Reading,

CVM


Please check my new site:

http://freedomsearcher.com/

Money Management - 7 Hobbies You Can Afford

Having a hobby can be very expensive. The costs can rise over four digits per month easily in certain sports. The costs are coming from rent, interval of practices and training costs. For example, ice-hockey, horse riding and figure skating are very expensive. I have two kids and am just hoping that their hobby selection would be from the cheap end :)

Off course you can watch TV all day long or play free games with your tablet or mobile phone, but at least for me these are not "free hobbies" even though those might be free. It would be beneficial for you if you would skip the TV today and you would go outside for having some fun and sweat :)

So, what could be a hobby which does not cost much? Here are my findings:

Reading

You can borrow a book from the library for free. Nowadays you can also use google play store or other similar provider which offers some books for free.

Learning a Language

You can borrow a book from the library or use internet based cheap learning programs, like duolingo, memrise or hellotalk.

Body Weight Fitness

Just go outside, you can go running, cycling or do muscle exercises to which you use your own body weight.

Drawing

Every has a pen and paper?

Writing / Blogging

You can start a blog at no cost at all. You can use free platform providers like blogspot or wordpress. If you want to have own website, prices start at 4-5 €/$ per month. Cheapest host is BlueHost.

Cooking

Making your own food is much cheaper than eating in restaurants. You can also prepare next day lunch, so you can skip the canteen lunch.

Programming

This needs a little bit skills but you can learn programming skills almost at no cost. You can also turn this to profit by making your own apps and programs.

Have fun with your new hobbies,

CVM

Please check my latest post on my new site:

http://freedomsearcher.com/2017/08/14/7-hobbies-you-can-afford/

Personal Finance - 7 Things Everyone Should Know About Money

Hi All,

Summer vacation is over and back at office. The vacation went again way too fast but hopefully somewhere in future the vacation is much longer. 😀

But, now to the topic of the day. Today I want to highlight 7 things everyone should know about the money.

1. Don’t Lend Money to Friends or Family

It is very hard to get good interest rates for lending money to friends or family. It is easier and much more profitable for me to say just use your credit card or etc.

2. More Than One Income Source

Try to get as many as possible income sources. You can do this by owning things which put money on Your pocket, not taking it away.

3. Financial Destination or Plan

Create a budget! By doing this you are able to really know where your money is going and you can create a plan. Will it be traveling, house or etc, but you need to have a plan.

4. Don't Use Bad Dept

Never use dept for example from your credit card. The interest rates are very high and this kind of dept will put you on bad situation.

5. Try To Maximize Your Saving Rate

By saving more today you will have much more in the future due to compounding effect. 

6. Don't Try To Outsmart The System

If something sounds too good it probably is. There are no quick ways!

7. Don't Panic

Time is your friend! When you do investments 48% of the time you will see red figures. Buy & Hold is the best strategy for many of us.

The next topic will be monthly summary, so stay tuned!

Regards,

CVM