Should a 21-year-old save money or spend it all on things that make him happy?

As a 21 year old child, you have time to stay with you. Over time, you can use compound interest to enrich yourself.

I have John and Adam. As you are now, two very good friends accidentally become 21 years old.

John promises an investment of $ 5000 a year. He invested money on Index Fund with an annual average return of 7%. Fourteen years later, when John became 35 years old, he simply decided not to deposit money into his investment account to increase the balance.

Meanwhile, Adam postponed its investment in investment until the age of 35. But like John, Adam promised to invest $ 5,000 in the same index fund. And he gave him an average annual income of 7%. He will not stop donating

Adam: He started investing at the age of 35, but he ceased to add more money. He donated $ 155,000 in 31 years.

You can read more about money, personal finances and early retirement in my blog. It has just begun, but I think you will like it!

When you think about making you happy and making it smarter about its usage, money can be important in life. Talking to people who have been working for 4 to 5 years, they regret that they did not save or invest a small part in the first few years. Please try to spend enough money for you to enjoy

People always discuss whether money can buy happiness, but research is obvious: it is possible, depending on the money you use. Collecting garbage that you never use never makes you happy. Using money for experience will make you happy - save it to a good career or save it so that you can be more economical and safe. So try to earn more money, but do not waste it in a foolish way. If you are looking for work, the employment manager will want to know what you do for the company. She does not mind how bad the work you need. If you want to build friendship with someone or start dating with someone, they would like to know what you add to their lives. You do not have the right to get angry about this as you think the same way. To get what you want, look at things from their perspective.

Saving money is a fundamental economic goal. However, one of the few things you should spend is to create a lifetime experience. Travel is a rich experience, you can not purchase money, and saving too much on travel can be detrimental to the safety and security of travelers. After all, travel is the only thing you can buy that can give you more experience, wisdom and memories. You will spend your money on what is not short-lived or short-lived.