A Big Mistake IF Committed High Debts at Young Age

Financial Planning must start at young age if you want to achieve financial freedom earlier.

When young, the priority should be learn Investing, save more & Invest.

No financial planning is bad, but if you committed high liabilities at young age, this is worse than no planning.

IF you have just started working & earn a salary that barely enough to cover your monthly expenses, you are making a BIG mistake if incurred big DEBTS by buying a new cars & a house with minimum downpayments at young age.

You will end up incurred a huge liabilities owing to Banks, on top of daily expenses, you have to pay monthly installment & interest from your salary. Nothing left after all this expenses, means no saving for YEARS untill you finally settle your bank loans.( this will take you many years to settle, unless you are so capable that your promotions & increment beat the average salary earner)

It is advisable to avoid to purchase BIG ITEM like new car or house at young age, use the limited financial resources (salary) to save as much as possible, learn investing, invest your saving to earn extra income.

This investment income will be your second source of income, your employment salary is the major one. At some point of time, your investment income will grow & final overtake your salary as the major source of income.

Then this is time you can start to invest in House or purchse a better car without affecting your saving & personal wealth.