CZ's advice to young investors: Don't just think about investing, first learn this balance

Binance founder CZ recently shared a profound perspective on personal financial management on the X platform: young people need to find an “almost optimal” balance point among spending, saving, and investing. This seemingly simple advice touches on many common mistakes made by young investors.

Financial Challenges in Youth

Why this topic is so profound

CZ pointed out that the characteristics of youth are lower earning ability, but the financial decision-making pressure is actually the greatest. During this period, one needs to make choices in three areas:

• Spending: meeting current living needs
• Saving: building a safety net for the future
• Investing: including financial investments and self-investment (learning, skill enhancement, etc.)

These three seem to be in opposition but are actually interdependent. Most young people make mistakes by either overspending, over-saving, or blindly investing, and few truly find their own balance point.

The key is “almost optimal” rather than “perfect”

CZ emphasizes the phrase “almost optimal.” This means there is no absolute correct answer, but a dynamic process of continuous adjustment based on individual circumstances. This viewpoint is worth deep reflection—especially in the field of crypto investing, which is full of temptations and risks.

Insights for Crypto Investors

Why crypto investors need to heed this advice

In the crypto industry, we often see extreme cases:

• Someone invests all their savings into a single coin at once
• Someone, due to fear of risk, completely avoids crypto assets
• Someone minimizes time and funds for self-investment (learning, research)

These are all signs of imbalance. According to the latest news, CZ expressed optimism about three major directions: tokenization, payments, and AI at the Davos Forum. But seizing these opportunities requires investors to have a healthy financial foundation and rational decision-making skills.

How to do it specifically

A more pragmatic approach is:

1. Spending: ensure basic quality of life, neither overspending nor excessive frugality
2. Saving: establish an emergency fund covering 6-12 months, which is the baseline
3. Investing: among remaining funds, both financial investments (including crypto assets) and self-investment (learning industry knowledge, improving analytical skills)

The benefit of this approach is that when the market fluctuates, you won’t be forced to sell at a low point due to lack of savings; when opportunities arise, you won’t miss out due to lack of knowledge.

A Deeper Reflection

CZ mentioned the book Die with Zero, whose core idea is that life is not about accumulating wealth but about spending the right amount of money at the right time. This contrasts interestingly with many crypto investors’ mindset of “always bullish, always holding.”

True financial freedom is not about how much money you have, but about having a rational understanding of money. This is especially important in the crypto market, where volatility amplifies human greed and fear.

Summary

CZ’s advice may seem like a life philosophy, but it is actually an investment philosophy. Finding a balance among spending, saving, and investing in youth means:

• You have enough security to withstand market fluctuations
• You have enough knowledge to make rational decisions
• You have enough patience to wait for real opportunities

This balance is not static; it needs to be continuously adjusted according to life stages and market conditions. For investors aiming for long-term success in crypto, the value of this advice far exceeds any short-term trading signals.