Financial tips for an 18 year old

Congratulations! You are finally 18! This means you can get your driver’s license, vote and drink liquor (depending on the state where you reside and the type of alcohol you wish to consume!) It also means you can be legally employed and thus earn money.
Now most 18 year olds would be going to college, studying hard for assessments and completing class work.
Yeah right!
Most likely the recently turned adults would be having a good time depending on their definition about it. As I turn 31 I cannot help but wonder what I could have done differently when I was 18.
So here are some thoughts:
 Tip 1 – Get a job: Now this isn’t for those who are pursuing medicine or engineering or any other course which gives you hardly time to breathe. However if you are pursuing any course that gives you some free time during the day, then get a job. Not an internship. But a proper job that pays you money. You will not only start earning but will become comfortable operating your bank account, understand how a company works
       Tip 2 – Start investing in mutual funds: Do you know the greatest advantage that you have is the gift of time. Most individuals begin investing when they turn 28. You have a head start of 10 years. Click here to know how much you can earn by investing just Rs 500 per month for 10 years.
      Tip 3 – Get yourself a health insurance cover: This makes you truly independent. Suppose you are hospitalized because of one of your (mis)adventures your parents need not foot the bill
      Tip 4 – Start buying shares: Wouldn’t it feel great to become a co-owner of some of the biggest companies in the world at the young age of 18? Buying stocks enables you to do that. And they also pay you dividends which are tax free. Warren Buffet made his first investment at the age of 11 – something to ponder over. Be open to the idea that you might lose some money as the urge to execute short term trades for quick profits might be too strong. However train yourself to consistently buy stocks of good companies when markets are in red. Acquaint yourself with basic market terminologies and trends. Most importantly learn to figure out fair value of a share.
      Tip 5 – Create sources of passive income: Shoot videos or create a blog. And keep at it. Many of us stop writing after the initial few posts. Over a period of a decade, it will also become a source of passive income.
      Tip 6 – Network – Network is Networth: This is a cliched line but is also an axiom. And I don’t mean social network. I mean the real network. How many people do you know apart from your close friends who trust you with your expertise? Will they lend you money when you need it? Will they offer you business if you pitch to them? Will they have confidence in you to refer your services to their network? Start building your network and communicate with them. Technology and social media has made it easy to keep track of one’s special dates. Wish them on their birthdays and anniversaries. Not by writing on their Facebook Walls or sending a Whatsapp message. But call and talk.
      And finally, never forget to offer a tip for sincere service which makes you happy.

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