1. Save on commuting to work 

I sincerely enjoy exercising. A bike is my primary way of commuting to work, and my boys also like to pedal to school. If you can swap your car for walking, cycling, or riding an electric scooter for short-distance journeys, you'll save not only on fuel and fees but perhaps on medication as well 😊. Be active every day and invest the money you save instead. You'll be doing something for your current and future self.

2. Buy used cars 

When you get into your brand new car for the first time, make sure to enjoy the ride. It will probably be one of the most expensive ones of your life. Once you park, the value of your car will have dropped by about 10%.

You would probably expect rich people to drive expensive cars. You might be surprised to know that most of them, especially abroad, own perfectly ordinary mid-range cars.

If the rich treat themselves with a more expensive car, they usually do so only after building up a considerable fortune. At that point, buying a more luxurious car no longer harms them.

Personally, however, investing the money I save with the vision of a family holiday (even if we travel by an ordinary car) makes me happier than owning an expensive car.

3. Buy new things only once you need them 

Whether clothes, food, or any consumer goods are concerned, be thrifty in this respect too.

Seeing all those seemingly perfectly happy and carefree people on Instagram makes us long to own everything they do. After all, that's the only way we can also be satisfied, right? False. We're all different and we often forget what brings US the most joy in life. If it's, for instance, time spent in nature, with our kids, or with our dog, it won’t cost us anything.

Don't get manipulated by your surroundings and only buy things when you miss or can't fix something. You will save a lot of money and energy.

4. Teach your children financial literacy

Do you think your children will be made well-off forever if they inherit a large fortune?

Up to 70% of affluent families lose their wealth shortly after they pass it on to the next generation. And up to 90% of families lose their wealth when the third generation inherits it. Similar statistics apply to those who win the lottery – most erase their entire award within just a few years. As you can probably guess, the problem is a lack of financial education and poor decisions.

Unfortunately, finance is not taught in schools, and children are left to be educated in good habits by their parents. That is the only way they will be able to secure a good financial future for themselves and, in the event of inheritance, handle their wealth wisely.

I teach my children not to fall into the trap of consumerism and bad debts from an early age. They already understand the magic of passive investing. Simply, I teach my children what I live myself.

In addition, we have launched the financie.sk project in Slovakia. It aims to bring financial education to primary and secondary schools. Keep your fingers crossed for us.

5. Take retirement into your own hands 

You may be surprised, but most rich people can also expect a low state pension. Mine will be around €425.

At the time I founded Finax, Slovak investments were dominated by mutual funds in banks, on which clients paid not only high fees but also a tax on profits. You can read about their poor performance in our comparison.

At Finax, we have managed to contribute to the popularity of ETFs in Slovakia. We have made investing easy for ordinary households – tax-free and with low fees. Thanks to this, every Slovak can take his or her pension into his or her own hands and start saving, even if it's just €10. Of course, the more you set aside, the nicer your pension or earlier your retirement.

Once I decide to retire (I decide = I will not wait for the state to start paying me a pension, as I want to retire much younger), I will convert my saved assets into an annuity so that my current bank account will receive money from my investments every month.

6. Don´t let money lose value in the bank

Everyone has felt the price increases. The only way to win the fight against inflation is long-term investing. Don't let your hard-earned money lose value in the bank or under your pillow. Remember, only invested money earns returns. It always amazes me that people are willing to devote 160 to 200 hours a month to making money but won't find 30 minutes to manage it. Don't be discouraged by a lack of knowledge or experience. At Finax, we'll choose the right investment strategy for you, and teach you everything you need to know.

Want to learn how much you can earn by investing? Try our calculator.

Ďuri's brother Dominik Hrbatý also invests in Finax. Check out his transparent account to see how easy it is to invest in ETFs. You can invest under the same conditions.