Managing your personal finances early is a way to build a solid foundation of assets that will help you achieve your goals in the future. Learning how to save, balancing spending and saving, choosing effective investment channels are good habits for effective money management.

Save from today

In addition to the essential daily expenses, you always need to have a reserve to use in case of illness or accident. According to experts at the Federal Reserve Bank of New York, $2,000 is the average amount of money an average person will need to deal with an unexpected crisis. Therefore, saving early is very important and imperative to have a solid and safe financial foundation. Only when you have a reserve can you consider saving money for other goals such as buying a house, buying a new car or investing, etc.

Balance between spending and saving

When you are young, you often spend a lot of money on experiences, enjoying life by shopping, traveling, etc. So many times before the end of the month you have returned with an "empty bag" and all items. The savings goals set out initially could not be realized. To avoid wasteful spending, you need to balance short-term spending with long-term savings.

Another important thing, you need to increase your savings by %  of your income instead of spending more. Make your own choices, try to maintain a reasonable spending level and save as much as possible to lay the foundation for your sustainable financial future.

Choose an effective investment channel

Don't believe the ads on social media, get rich quick ways, my advice is to remember that wealth is real and definitely needs to be built over time. High-return investment channels often come with risks and possible risk of capital loss.

If you are an office worker, a salaried employee or you are young people, you should choose a safe investment channel, stable profit and optimal capital preservation. Saving in a bank is one of the low-risk and safe investment channels. The reason why depositing money in a bank is the choice of many people due to its advantages such as diverse terms, flexible interest rates for each term, high liquidity (you can withdraw money anytime you need). , pledge to borrow when needed, ...