Building a personal financial plan is a marathon where it is important not to run faster but to start running earlier. Even if you are a student, you will always have some income, at least a tenth of which can be spent on investing.
When should a student start investing?
If the student receives a scholarship, they can start investing 10% of it. The method works for one simple reason, no matter how ridiculous it may appear: you develop the habit of investing. And when a person goes to work, develops a business, has a steady stream of money, there is no question of what to do with it. Also, for example, when you go to the gym, nobody puts on weight right away.
Where to get money for investments?
You can easily live on 90% of your income. Again, an increased scholarship, work, money from the business. You can and should work to ensure that your monthly income also grows. Then there are more investment opportunities.
Business vs. Self-employment
Many people confuse business with self-employment. How do you make it out? You’re self-employed if, for example, you work as a Spanish tutor. In that case, your “ceiling” will depend on how many hours you can charge. In addition, there is a limit on the cost of an hour of such a lesson. In business you hire a Spanish teacher, take money from him for finding clients, then you can hire a second, third, speaking English or French, and, in fact, your income will be limited to the number of such specialists.
The same thing if you work as an essay writer and do some kind of school/college work for your classmates. Undoubtedly, you will provide a quality essay writing service, but your earnings will depend on the number of people who will need your service. On the other hand, you can work for a company that will look for clients for you, but in this case, you will no longer manage investments or be self-employed. This is more of an option of where to make money to start investing.
Logically, a business always involves development, and there is always a limit to self-employment.
Self-employment is not a bad thing. But you need to be clear about who you are and who you are not.
What can you invest in?
A product approach is possible when you have money and you want to invest it. This …….