Financial Planning

Now that I’ve started earning, I’ve realised that I’m terrible with money. I can’t remember where I spent it, don’t think before buying anything, and have no restraint. OK, I do have a little restraint, but not nearly enough it seems. My friends seem to be different from me. I know people who’ve already invested a majority portion of their salary. I know people who’ve already started thinking of retirement plans. The difference most of the times is that they have some plans—for further studies, for investments, et cetera. My only plan so far is to have fun. My only guiding principle so far is that money is useless unless it’s spent on something you want, and I have a lot of wants. OK, in these last four months or so, I’ve spent 21.8%? of my earnings on books. Of course this figure’s boosted by my purchase of The Complete Calvin and Hobbes, but I plan to continue spending at least 10% of my salary on books. I think it’s stupid to make major investment plans when you’re 22 years old. When you don’t know anything about finance, nothing about the stock markets. It’s criminal to think about how much money you’ll have saved up when you’re 60 at this age. My rules of thumb for managing money when you don’t have a clue: Do live a little. Don’t be too stupid with money for now, and the rest should (hopefully) fall into place sometime in the future. And this one most of all: don’t be afraid to waste money. Financial wisdom does not instantly come. Oh, these will not make you rich. When I figure that sucker out, I’m gonna keep it all to myself.

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