There are more young and very young people involved in Internet-related industries than in offline businesses, so I hope some of you will find my advice useful. I keep in touch with a lot of young entrepreneurs as well as domainers and certain things related to their stories are often similar.
When you’re making money at a young age, the temptation to spend on “lifestyle”-related things is hard to resist.
Or instead of calling them lifestyle-related things, let’s just broadly refer to them as depreciating assets.
Well, because in most cases, that’s what a lot of young people end up spending their money on.
Useless gadgets, rapidly depreciating cars, you name it.
When money’s coming in, it’s easy to get carried away.
In fact, I’m pretty sure that most of the people who are reading this aren’t keeping track of expenses.
“Going with the flow” is pretty dangerous and if you don’t put an end to destructive spending habits quickly, things can and will degenerate.
Now I’m not saying you should live like a hermit.
Rewarding yourself makes sense, I’d say it’s even necessary but everything has a limit.
I could dedicate a huge post to money management but wouldn’t even be able to scratch the surface, so do yourself a favor and buy at least some decent books about money this week. Possibly the best investment you’ll ever make.
Here are a few recommendations.
1) Rich Dad Poor Dad
2) The Wealthy Barber
3) The Intelligent Investor (Warren Buffet’s #1 recommendation)
4) Fail Safe Investing
Books #1 and #2 are “easy reads” but I’d say very useful for people who don’t yet understand the basics, books #3 and #4 are gems.
I analyzed all of them myself and am not recommending some random books for the sake of it, I’d say these are a decent enough starting point.
So there we have it, I helped you avoid countless financial disasters – you’re welcome