Experts' Corner

guru forex ask

There is no future in any job. The future lies in the man who holds the job.

  • Heng Kim
  • Posted Articles: 13
  • Last Posted: 2017-05-27 02:00:07
    • Guru StarsGuru StarsGuru StarsGuru StarsGuru StarsGuru Stars

Thou Shalt Not Commit These Financial Mistakes

2016-04-12 09:15:41

Based on a FINRA Investor Education Foundation study entitled The Financial Capability of Young Adults-A Generational View, only 24% of respondents can answer their financial literacy test rightly. The number is not that impressive, though. It implies how financially uneducated young people are when it comes to managing their money. And not to mention their generation experienced the Great Recession.


Young investors, if you want to unlock financial freedom, you shall not commit the following financial mishaps:


Thou shalt not spend to and fro. The very purpose of budgeting is to control spending and avoid impulsive buying. You can do so by writing down all your expenses and monitoring your spending periodically. It also helps to determine your poor financial habits and break those little by little. That way you dodge incurring unnecessary debt or breaking your wallet. Bear in mind to live within (or below) your means. And if you have debt, settle it as soon as you can.


Thou shalt not empty emergency fund. Save for the rainy days. Plan ahead. Create or bolster your emergency fund. Many financial advisers tell their clients to save up enough money to cover three to six months of living expenses. Majority of emergency funds are deposited in checking or savings accounts, enabling quick access to your money.


Thou shalt not ignore financial planning. This entails investing in various instruments, safe and perilous ones. Millennials are lucky at this rate because they have all the time in the world to invest in riskier derivatives and recoup their losses. Be financially prepared. Come up with an emergency cushion, repay debt (if any), and avoid impulsive spending as much as possible.


Here are the golden rules to follow in order to achieve financial liberation: curb spending, create an emergency fund, and plan. The first step to financial literacy is to read books and online materials, discuss money matters with people whom you trust, and seek professional assistance.