seven things about money that every young person should know around the world in their 20s in order to make a lot of money I learned this after traveling to multiple countries after representing our country United Nations
and spending time in my family business then starting my own company and failing at it and then finally starting another startup and making it successful to now raising millions of dollars
I have listed out seven points that are really important for every young person to remember in their life if they want to actually go ahead and be successful and want to keep their Financial Health intact
and how to understand the really important nitty gritty around the mindset which you need in order to make a lot of money seven things every 20-year-old should keep in mind when it comes to money.
Make money using the Internet
one thing which I feel is every 20-year-old today should learn how to make money through Wi-Fi using the Internet effectively, I feel 90% of the people are reading
they have Wi-Fi and if they have Wi-Fi they should know not only how to consume content on it but they should know how to make money out of it because that's the easiest way to make money
and forget the easiest that's the most necessary way to make money in today's world because of the amount of compounding that you can get through the internet it's incredible and also you get the scale
also usually the scale is easy compounding is easy and the best thing that is there if you learn how to make money through Wi-Fi you will be learning how to make money through your personality or
through your knowledge and that's your mode, it's in a perfectly competitive world where everything is the competition you don't have cost leadership you can't
command more margins but you can if you learn how to make money through internet.
You need way less money than you think to retire
when I ask this question on Twitter how much money do you think to retire less than ninety-five percent of people said less than 10 crores right that
is because when we think of how much money we need to retire most of us think of it like a big pile of cash kept under the bed right we're not thinking about okay this
money that you have saved is constantly working for you to make you last your entire retirement right so for most people let's assume even if you spend like 30 lakhs a year which is a very
comfortable lifestyle no matter where you're living in India you don't need more than a million dollars yeah six and seven crores is what you need but most of the time we don't have a number
in our head like how much money do I need, everybody wants to make money but they don't know how much money they need because they've never
calculated as per their lifestyle as per their aspirations they've just looked at other people
Money is time, not the price
spend money like time not spend like you're paying a price okay for example let's say you want to buy a car okay so when you're buying a car think of it like this is three years of my time.
Most of us don't realize that money is something that we invented it doesn't really exist how has it been defined money as the reflection of the value of our time it's as simple as that
we're just extending our time with each other and it's represented as money, that's it and I feel if people start thinking of that thought they'll make smarter decisions in their life because
they then know which is even worth it because let's say if you are buying a car that is five years worth of your time but the charm of that car is only going to be for one year you're making a stupid decision
right true, so if the charm of your car is only one year spend it like only six months of your time so that at least you're having double the fun of the amount of time you've invested
so this is how you this is how I spend my money so I think of money as time got it right goes with the office.
Know your risk-taking appetite
most people think that the amount of risk that you can take is only dependent on your age so this is the famous 100 minus age rule let's say I'm 26 years old and according to that role I'm supposed to invest 74% of my money in equity
now if you had asked me this last year when I was planning to go to Colombia and I need two crores to pay next year so would I have to put 75 percent of my money in equity it's a stupid decision, right
so your age has nothing to do with how much risk you can take it is only dependent on what the hell is that money meant for right
so if I have no short-term goals coming then I can maybe follow that hundred min stage rule but most people in their 20s are thinking about higher education are thinking about maybe
saving up for a home loan down payment a few years from now so you cannot put 70 or 80 of your money in equity it's all dependent on the financial goals that you have not
the age that you have or the kind of person that you think you are.
Focus on making more money rather than cutting cost
The next thing is in your 20s specifically focus on making more money rather than cutting costs here's why I say this because when you are in your 20s you don't have major spends in your life
so the major spends which is gonna drastically affect your financial life and if you cut costs where it makes sense
let's say buying a fancy house, paying for your kid's future paying, paying for your lavish wedding or going for a fancy vacation, or like buying a fancy car right these are the things if you cut cost here it's gonna have a significant
impact on your financial life right but in your 20s what do you have fun and eat so instead of just thinking like how can I not party how can I not eat how can I not experience more how can I not go out and meet more people think about how can I
make more basically I would put it in this way choose the expense that you want to be lavish upon so for example what people say that don't get a coffee from Starbucks or don't go out to Lavish restaurants
eat inside but I would switch it a little differently if you want to do that it's okay but you need to cut down on something else for me, that is not buying a lavish 50 lakh 60 lakh car right maybe be happy
with the 15 to 20 lakh car and that remaining 40 lakhs I'll use for you know going out to Starbucks and going to Lavish restaurants or another area, where I would cut down, is my
marriage expense let's say instead of inviting thousand people half of them who I don't even know just call 100 people and then save that 50 lakhs and and then maybe go on four or five
International vacations right exactly so choose your expense instead of cutting down everywhere when are you getting married not anytime not before 30.
