A junior college student asked me to give a talk on financial planning to her school. My points will be quite simple:
1. Save 15% of your earnings.
2. Keep the money in a bank account to earn interest rate at 1% or 2%.
3 Do not invest the money in financial products that offer poor value
4. When you have sufficient savings, invest in a low cost unit trust (after you learn about the principles of long term investments.
5. When you get married and have family responsiblilities, but a term insurance policy to cover you for 3 to 5 years of your income.
When the salary is so low enough to have 3 square meals a day and rental and utilities, how to save 15%?
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