5 Important "Money Tips" you should know at your 20s and 30s

I was travelling a while back and I remembered I should pay for my credit card. "Oh Crap!" I said to myself. While in midst of an assignment completion, my inner belly fire (Not gastritis) arousing me to write some learning I had regarding some of the most important lessons about money management I learnt in the hard way, observed and I want to share that with you. Sri Lanka as a nation is starting to loose the habit of saving and more borrow. Lets make it a habit to save or invest. This include an exercise as well. You might have different opinions, post those in the comments section below. 

1. Credit cards are GREAT!

I know your reaction now. "Shafraz, are you serious?". Yes credit cards are great, but it has a game you need to play by its rules and most importantly you should have a great CONTROL over your DESIRES. Most of the credit cards companies in Sri Lanka, give you good offers (Eg - HSBC, Sampath). Yes so what? Here are some tips. 

• Remember credit card companies only give you first year only interest free. Make sure you use it, pay it off on time and cancel it :) 
• Use only for the offers which are not on installment basis and pay off the money before interest is calculated. (Installments will make you pay more child). Eg Hotel offers, clothing offers but dont use to buy the latest iPhone
• Credit cards are great if you are going abroad. But settle off once you back in the country. 

See I have mentioned you to "pay it off", make it on time. If you have a credit card older than one year, I'm sure how they rip you off with the interest :) 

2. It's the 20 rupees, 50 rupees going to make you feel great 

Salary? Huh? Thats a beauty who only stays for maximum of seven days soon as you get it.  Few months back I bought a jar as you saw at the start. I get a lot of coins and change money like 20, 50 and sometimes 100 rupees. I started putting all those change to that jar I bought from Arpico. Once the jar was full I started to transfer money to a till (කැටේ). Few weeks back the till is now full. I opened it with my mother and counted to viola, I have collected somewhat nearly 5000 rupees. Felt really awesome about it and I started on a project of mine to make more people do the same which I will explain it in another blog post. 5000 rupees! Isnt that great just to collect that amount within few months time through change money that we get by travelling buses, buying chocolates or maybe even selling off your old news paper lot?   What did I do to that money? Invested to promote my apps ;) Most importantly it has developed new habit in me, a habit to continue collecting change money. Infuse habit of savings in a borrowing filled world.

3. "Am I buying an asset or a liability"

Once you get a job the first thing you might want to buy from your first salary is a fancy phone. You might pay the full amount or you go for a loan. Few months down the lane you want to lease and buy a car. Now you are happy. You maybe in par with your manager. Few months down the lane your phone breaks down and it didnt had a hardware warranty. Holy cow. Now you have to pay it. While you were worrying about it an idiot came, hit your car and ran off. Now Holy Double Crap Cow. In out flows >>>> cash in flows.  

Have you ever faced such a situation? Or do you have anyone else who has faced such a situation? then share this article with him / her. 

Assets are which you can make cash. Assets has its own liquidity levels. Assets are there to bring you money. Your fancy expensive Android phone can bring you money if you are an app developer or a photographer. Most of the time its to satisfy psychological needs which Abraham Maslow nicely explained in hierarchy of needs. Car is an asset if you are an Uber / PickMe Driver. 

Liabilities takes off money from you. 

Here is an exercise for you, according to the above assets and liabilities categorization, list down the assets which you have bought from your own money (not inherited) and liabilities you have. Then you will see where you are. 

Liabilities are your assets for the ones who have enough excess money to spend. 

Be mindful of what you spend on during your 20s and 30s. The best days you have your will power very strong. 

4. Get Rid of Bad Habits 

<All sorts of bad habits goes here>. Get rid of it all which would cost you money. For your future sake

5. Invest your money

Invest in share market? Not exactly. Share market is unpredictable. Unless you know the dynamics you might loose the entire savings. Then where should we invest? Here are some points. 

• Invest in your own skills development 
• Invest in developing a side business
• Invest in a product or a service you can build by yourself after work (Eg : www.ideamart.lk can help you ). No one said no to extra cash ever. 
• Invest in buying real assets. Eg - A house, Land 

Phew! What do you think? We all in the same boat aite? See, human nature is such that we are animals of emotions and lots of desires. We want to feel important, dont we. To make that happen we are ready to spend as much as possible. But our body doesnt stay younger as we grow unlike our desires. These are 5 things I have to share with you. Some I practice and some I'm trying to practice. 

Let me know what you think of this blog post in the comments section below. In the process of making an app to make you all do that micro savings on a daily basis. Will keep you updated about it in a future post. 

Seems a little too late? Its never too late 👊

Damn hungry. Off to eat. Peace ✌