When I was 20, I thought the money was only to try to survive month by month with my salary. I used to imagine investing great capitals and thought that investing was for Millionaires, that saving was a punishment and that borrowing was normal. Today, after 15 years in the financial world and accompany thousands of people, I realize that no one teaches you to handle money without a small scolding.
So here goes a letter to my 20 -year -old self. And maybe too, if you feel that you are late or that finance is an impossible chaos to order, you are not alone.
You do not need to be perfect but constant
Dear friend, it is not about saving half of your salary or having portfolios with sophisticated investments full of shares of companies to the avant -garde and the latest generation. It is about starting with an amount, even if they are 100 pesos per month. The important thing is not the quantity, but to build a habit.
Money works like health. If you go to the gym once a month, you will not see significant changes, on the contrary, you will experience pain in the reconstruction and recovery of the muscle. But if you go a few days a week, you will notice true advances. The same with your finances. How to implement it? Open a separate account to make automatic savings. Don’t think about it, just program it.
Having debts does not make you irresponsible, but ignore them yes
Many young people feel bad about having debts. But most of us have gone through that. The problem is not duty, but not having a plan to pay. Even here among us, leverage can help meet greater objectives when we lack liquidity. Eye! There are better debts than others, if you doubt how to prioritize them, think about whether it is a necessity or will generate a return over time. It is not the same to use debt to go to a festival, than to use it to buy a new laptop that will allow you to work more agilely.
Additionally, do not ignore your account states. Knowing your debt will give you the necessary power to make smart decisions. How to improve your situation? Make a list of your debts, organize the amounts and interest rates. By this you will know the financial cost they have, so you could start their reduction through the avalanche or snowball method, that is, starting with the highest rates (reducing the cost) or by the smallest (reducing the number of debts).
Investing is not risky, postponing yes
Many people avoid investing because they think it is complicated, risky and useless. Although the real risk is to postpone it for “a good moment.” Inflation does not expect, the years either, and time does not recover. When we are young, the greatest asset we have is time, with this in our favor, any project can mature in a formidable way, in return what we require is patience.
When bamboo is sown, during the first five years nothing happens on the surface. You can water it, pay and care for it, but you will not see sprouts or visible signals of growth. Many would think it failed. However, underground, bamboo is developing a strong and deep root system that will allow it to sustain. And when it finally springs, it can grow up to 30 meters in a few weeks. This is how investments work, if you have patience and discipline, the time will come when growth is very relevant. Investing is like sowing bamboo, the difficult thing is not to plant, but to believe in the process as long as you do not see immediate results.
Start with investment funds or CETES. Learn along the way. You don’t need to know everything before starting.
Your decisions today do not define your future, but they condition it
In personal finance (as in life) it is easy to feel trapped by the mistakes of the past: debts, impulsive expenses, bad decisions or simple moments of misinformation. But there is a powerful truth: your decisions today do not define your future. The important thing to be aware of errors is to learn from them and not repeat them. Change habits, start saving, investing with intelligence or training financially does not erase the past, but it does build a different future. Every step we take, however small, has the power to straighten the ship. Because your finances are not a fixed photo, they are a movie. And you decide every scene.
How to go to work? Define clear goals for the next 12 months: pay a debt, invest 10,000 pesos, take a course. Write it and set it.
You do not need to compare yourself with anyone
In a world dominated by social networks and the Internet, it is easy to fall into the trap of thinking that everyone is more successful, more money or a life more resolved than ours. Remember that what we see is only the showcase, not the warehouse. The photos do not show the debts, the resignations, nor the invisible support behind each apparent achievement. Each will go to their own rhythm, with different resources, challenges and circumstances. Your financial path is unique. Do not run another’s career.
Before finishing this delivery, let me remind you that you do not need to have everything solved to start improving your finances. You just need one thing: commitment to you and your “I” of the future.
At age 20 I would have liked to know that money is not the enemy. It is just a tool. And like any tool, if you use it well, it can help you build incredible things. Start does not mean that you will risk everything, but you will ask yourself questions that you never asked yourself and you will find increasing answers with greater wisdom, I wish you much success and see you in the next installment.
About the author:
*Juan Carlos Cruz Tapia is the author of the book 100 questions to understand investments.
Ig / tt: @ juancarlos.Trader
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
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