Financial Basics Every Thai Should Understand

The Thai education system has not taught children how to manage money in school. We don’t have a subject on how to do taxes nor do we have a course on how to take out loans and how to pay them. We don’t have lessons on the different ways of opening a bank account. As children, it was not part of our curriculum to learn about the basics of money. As adults, it is essential to know the basics of your finances. It is, after all, the means for you to live a fruitful and comfortable life.

To achieve financial success, it is crucial that you understand the following concepts:

Investing
There is a saying in the financial industry that states that the earlier you invest, the richer you are. This is true because the main factor that makes your investments grow exponentially is time. Having a savings and investment set aside early on ensures a great future. To understand investing, you just need to know about compound interest. When getting financial management help, make sure that you know where you’re money is going.

Budgeting
Perhaps the most important concept of finance is budgeting. Budgeting is allocating the money you earn to the different aspects of your life such as food, rent, bills, clothes, and other things. Knowing what to do with your wage is a skill that is better mastered early in your life. The key is to know where all your hard earned money is going and making sure that it gets to a place which is essential for you to live or profitable for your quality of life to improve.

Getting Bank Cards
There comes a time in your life when, one way or another, you acquire a credit card. This poses as both a disadvantage and advantage for you. It all depends on how you use it, really. Credit cards can increase your credit score which is needed for you to get a bigger loan, say for a house or a car. A person who is able to pay debts regularly can loan bigger. On the other hand, it has a great possibility of drowning you in debt. This is because it’s so easy to use. One swipe and you’re done. So when dealing with bank cards, weigh the pros and cons it will give you.

Money is not too hard to befriend if you start now. If you can master it, then you can make it work for you so you can take a break and enjoy life fully.

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