It is sad to see how thousands of young people begin their adult life with the burden of a debt in their lives. Especially when can everything be so differently to implement basic principles of money management that should be taught as part of the basic preparation for every young person’s life. How can we change this worrying situation of youth debt? The solution to the problem is simple: defer the pleasure. However, it is not so easy to realize. Said than the fact there is a long way. Filed under: Gary Kelly. It requires discipline and financial education, as well as the provision of swimming against the tide that incites to spend our money on excess to possess more and more consumer goods. But it can be achieved. If you are young and lack the education necessary to manage, Save and invest your money with success, is a thing of starting to change their situation today! Did you know that you can use the same mechanism of debt with these soaring interest rates, causing so many headaches you, in your favor? The secret is learning to use the incredible power of compound interest which, according to Albert Einstein, is one of the greatest inventions of mankind.
As a young person, you have a tremendous factor in their favor: time. If you discipline are restricted in their expenses and decides to reverse the curse of debt, you can invest your money and take advantage of the tremendous potential of interest composed in his favor. If you have 20 years and wants to retire as a millionaire, the only thing you need to do is save $20 a week or $80 a month. With 11% of annual interest rate, you will have 1 million at age 65. On the other hand, if you have 40 years, must gather 8700 dollars per year and, if you have 50, 29,000 per year to achieve the same result. Do you see it? His situation of indebtedness can be reversed.
Leverage is young. Don’t ruin his future throwing a tremendous burden on their backs and their future families. Make an effort today to educate yourself on the correct handling of money, invest wisely and sleep quiet during the remainder of his life.