Mith my episode on the five things starting a career really needs, I seem to have hit the mark once again. You will remember that I advised young people to focus on four contracts in the early years of their careers: the checking account without a line of credit, personal liability insurance, disability insurance, and the money market fund for the nest egg. The “expert” comments were not long in coming. The first critics were of the opinion that one cannot save at all in this day and age, the second naggers took the view that one had to invest in stocks from the start, and the third skeptics regarded the insurance in the event of disability as gross nonsense.
Apparently I haven’t been able to convey to these readers what really matters when they are young, but maybe they don’t want to hear it either. Therefore, allow me to repeat five things in simple language. Anyone who earns EUR 3,000 gross per month and does not save anything is living beyond their means. Private liability insurance is mandatory because damage can lead to financial ruin. Insurance in the event of disability is an attempt to defend yourself against the worst adversities in life for little money. And stocks are out of the question for building a nest egg. Basta. Read the following example to see how things can continue after that.
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