3 MISTAKES IN PERSONAL FINANCIAL MANAGEMENT
Doctors in the US are often classified as “HENRY” which stands for “High Income, Not Rich Yet” meaning high income but not rich. Indeed, if only calculated by salary, the salary of doctors in the US is in the Upper Middle Class and Upper Class.
However, there are still doctors who wait for a monthly salary to live from month to month. Recently, the medical community in the US has realized the importance of personal financial management and there are strong movements to help doctors achieve financial freedom.
I myself have made mistakes in personal financial management and today I want to share with you, in the hope that it will help you.
I firmly believe that not only doctors but everyone needs to pay attention. this topic.
1. DIDN’T LEARN ABOUT FINANCIAL MANAGEMENT EARLIER
From childhood to adulthood, I only knew how to eat and study and didn’t think much about money, because my parents’ family really didn’t put much emphasis on me worrying about money. Even though my family is not well-off, my parents’ point of view is “worry about studying, don’t think about money and then studying won’t do anything.”
Therefore, I haven’t really spent much time thinking about MONEY. And I have to say that I used to have very “rosy” and naive thoughts like “I will devote myself to life with my talents and efforts, and money is not very important.”
But later when I entered college and met many “rich kids” I was surprised to see that they had been guided by their parents on how to manage their personal finances since they were young. Some of you already have your own account to buy stocks.
At that time, I felt that perhaps I had overlooked something important. But I didn’t think too much.
Then when I entered medical school, like many other students, I had to borrow a large amount of money to go to school (nearly 200k dollars).
And I still clearly remember that one afternoon after returning from school, I received an email from the lender, informing me that every day the amount of interest I was accumulating from the loan was: $187.
At that time, I realized that one day I didn’t do anything, didn’t spend anything, and it was minus $187.
And from then on, I began to focus on learning about personal financial management.
2. JUST FOCUS ON SAVING MONEY
Similar to not paying much attention to personal financial management, I also used to think “Spending money wisely means simply SAVING.” Make 10 VND, spend 2-3 VND, put the rest away. It’s that simple, there’s nothing difficult.
And I myself was very proud that I was a frugal person and didn’t need to spend too much, so living frugally didn’t make me feel limited.
In addition, I’m also very proud of my SALE hunting ability. Do you know Black Friday in America? My lover and I (currently my husband) also went to line up late at night to buy sale items.
Now that I think about it, I feel tired.
Saving is a good thing, but it’s not enough.
Once I heard a saying that enlightened me: “Don’t just know how to SAVE, but find ways to increase your income. income.”
The truth is that we can only save to a certain extent, because we still have to eat to live, and still have mandatory expenses. For example, make 10 VND, save 7 VND. But if we increase our income to 20 VND, after expenses we will still have 17 VND.
In addition, with a higher income, we have more choices and freedom.
3. DO NOT INVEST EARLIER
Another important thing is after saving money, what do we do with that savings?
When I was little, I put piggyback money, when I grow up, I put it in a bank savings account.
Later when I grew up, I realized that if I don’t do anything with my savings, it means I’m burning money. It’s not like I put 10 dong in a pig, and later when I take it out it’s still worth 10 dong. In fact, with inflation, when we take out only 8-9 dong.
So investing is not something that should be done, but something that needs to be done if we don’t want our currency to lose value.
In addition, in investing, the benefit is not simply a straight line but a curve.
This is the result of compound interest and investment. exponentially. So when we are young, in our 20s, time is the most precious thing we have, so let’s start investing. Even if you invest 1 dong, after 10-20 years, that 1 dong can become many dong.
So in the next part, I will share with you the rules for personal financial management based on the experiences and mistakes I have gone through.
Please comment “yes” if the article is useful to you.
