You have to start somewhere with your finances, and a Canadian who’s getting started at 18 already has a key advantage. Wanting to learn more about personal finance and thinking carefully about your budget at a young age can put you ahead of your peers.
The Canadian posted on Reddit asking what the journey looks like for a beginner who is just getting started. He has zero debt, but he also doesn’t know anything about investments. The Redditor currently has 4,000 Canadian dollars ($2,897) sitting in his checking account. Redditors offered advice to the 18-year-old Canadian in the comments.
Don’t Miss:
Avoid Debt While In College
The Canadian mentioned that they are going into their first year of university. While the parents are footing some of the bill, there’s a gap in what their parents can pay and how much tuition costs. We don’t know what that gap is, but one Redditor told the 18-year-old to avoid graduating with debt.
“At your age, and still being in college, I would focus on getting through the program with no debt, or as little debt as possible,” one commenter said.
The Canadian said they don’t have to take out student loans for the first year, but student loans will be necessary in the second year. You have to make an income to pay off debt, and it’s best for the 18-year-old to start now. That way, the original poster has enough savings to make the remaining years of college more manageable.
Trending: Bill Gates Invests Billions in Green Tech — This Tree-Free Material Could Be the Next Big Breakthrough
Educational And Career Advice Take The Spotlight
Some Redditors offer basic suggestions, such as saving money and putting extra cash in an index fund. These strategies can help people build wealth over the long run, but one Redditor suggested prioritizing educational and career advice.
“Typically, at 18 years old, financial advice is much less important than educational and career advice. Your education leads into your career, which typically leads to your income,” one commenter said.
The best immediate action the 18-year-old can seemingly take is to make money to minimize how much debt they must accrue to graduate college. Some people are still paying off student loans and looking for ways to get out of debt faster. Getting out of college with little to no debt is a big achievement that requires earning an income as a student. Then, the personal finance strategies that revolve around investing and building long-term wealth become more relevant.
See Also: ‘Scrolling To UBI’ — Deloitte’s #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
Regularly Invest After Getting Out Of Debt
Student debt can take decades to pay off if you don’t pay any of it off during college. Interest accumulation can make it difficult to make any progress with your balance during your first few years out of college. That’s why it is important to pay off debt while in college, but what happens after the Canadian has paid off their student loans?
One commenter laid out a single framework for building wealth over the long run instead of chasing speculative assets.
“Save all the money you can. Invest in an index fund of a major stock market index at intervals, so that all your money does not get invested when the market is very high. Keep on buying for 10 to 20 years; ride out the declines. Never sell,” the commenter said.
Read Next: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Image: Shutterstock
