The author shares their personal approach to managing finances, debts, and education costs effectively. They emphasize the importance of understanding compound interest and its impact on both savings and debts.
The author initially considered pursuing a university degree in the UK, where tuition fees for international students can be significantly higher than local students. However, they ultimately decided to study in Hong Kong, where the costs were around one-fifth of the UK. This strategic decision allowed the author to avoid accumulating substantial debts while pursuing their education.
The author strongly believes in avoiding debts and instead focuses on building up savings in high-yield accounts to benefit from compound interest. They provide a concrete example, demonstrating how $1,000 saved at a 5% annual interest rate can grow to $1,102.5 in the third year, while the same amount borrowed would incur $102.5 in interest payments over the same period.
The author's approach highlights the value of financial literacy, strategic decision-making, and the long-term benefits of compound interest in achieving financial stability and maximizing the value of one's life.
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by Ken Sam Lee às kensamlee0423.medium.com 09-05-2024
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