Whether you are an entrepreneur or not, saving and investing is going to be vital for long-term financial freedom. Here’s my 2 cents on saving and investing…
Ever since I was a teenager I became focused on investing and saving. I understood it was the answer to long-term freedom when I grew older. This led me to often saving over 50% of my wage and eventually investing into real estate in my 20s.
For a decade, I lived way below my means to get some form of financial freedom or at least financial backing that I’m lucky enough to enjoy today still in my 20s. On some months when saving for a house or investing into a property renovation, i would save over 80% of my monthly earnings.
As hard as it is, I recommend you save at least 25% of your salary per month/year and eventually invest it into a sensible solution that provides a steady and safe ROI.
For me, that investment has always been real estate 🏡 and will likely continue to be so throughout my life, moving more into commerical buildings and block apartments.
If you’ve not made a major investment yet, the first step in my eyes is to save for a first house eliminating the $1000-2000 you are probably paying monthly on rent. Luckily, with the popular first time buyer schemes you can do that with a relatively small down payment of perhaps $10,000-$20,000.
By doing this, you are instantly going to be saving monthly by paying into a mortgage, with 97% of that payment going into a form of savings rather than throwing it away monthly on a rental or lease.
There are exceptions to this, for example business owners that may rent/lease and get a bigger ROI with their money, but for 99% of people working on a salary, i think the earlier you can get a mortgage the better. In my eyes, saving heavily for 2, 3 or 5 years is going to reap massive rewards for you long term.
In summary, save every month in proportion to your earnings. When young, live below your means for years before blowing half your salary on a sports car lease or other wasteful pleasures such as bottles in a club or expensive clothes, watches etc (not that I’m saying don’t do that, just get a balance).