I wish to give some advice for young people, especially those who have just started work.
You should budget your monthly earnings for the following:
> repayment of study or other loan committed previously
> contribute towards the household expenses (if you are staying with your parents)
> your monthly expenses for travel, meals and clothes (be frugal)
> put aside 15% of your earnings as savings
If there is a balance, you can use it for travel, entertainment or other luxury.
Most importantly - set aside 15% for your savings. You may need to draw down on your savings if you lose your job, or you change your job, or you need cash to meet an emergency. Keep the savings in flexible form.
Avoid investing in a life insurance policy, as the savings are locked up and inflexible. If you need protection, buy term insurance.
Avoid borrowing on your credit card. The interest charges is very high. It can cost you a lot of money.
Read this FAQ:
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