When I first started university, I wanted to major in both finance and history. I had recently changed my mind and switched from software engineering to business school. I’m still not sure if it was a wise decision. Maybe if I had heard from more software engineers who had later turned to sales or business development, it would have been different. But at the time, I thought if you majored in software engineering, you had to be a software engineer for the rest of your life. It may seem illogical to you, but our education system teaches us to see in a straight line. Why did I switch to finance? I wanted to see how to make money. Coming from a low income family, money had always been a predominant issue in my childhood. Money was stressful. It caused arguments and distress. I wanted to avoid this in my life.
I switched to finance to learn more about how to invest and save money. Looking back, I’ve learned much more about personal finance reading on my own than I did from those college classes. Personal finance reading is free compared to the huge college investment.
Andy Clarke, a Vanguard blog contributor, shared his one piece of investment advice in a recent blog entry. Saving is more important than fancy investing. If you start saving at 25, your money will have more time to compound. You will end up with more money in your retirement account than the person who started saving at 35. 10 years is a huge difference in terms of letting your money grow.
So with this I leave you with save, save, and save. I know it’s hard. I myself struggle with our savings all the time. Living costs money. We don’t live a very luxurious life, yet sometimes I wonder where is all our money going? So, try to save as much money as possible. Put it in another savings account or transfer it directly to Vanguard; out of sight, out of mind.