If only I had known...
 

Im putting together a list of financial dos and don’ts. (Yes I know there are lots of them out there but I’m looking for some TOTV wisdom) from what I consider the obvious like ‘Save first’ to the more controversial ‘put startbucks out of business’. If it helps what would you tell you 20 something self..

So list items like:
1. Save first
2. Put Starbucks out of business.
3. Brown bagging it sets the tone for frugality.

Also if there was a story you’d like to share where you learned a financial life lesson please share it. Like i said if you care to share Ill really appreciate it. Thanks RayinPenn

My financial philosophies have been:

1. Spend less than you earn
2. Save what you don't spend
3. Invest what you save

1. Be frugal and be proud of it
2. Never borrow money
3. Never invest in anything that you do not understand
4. Listen to Clark Howard podcasts

1. Pay yourself first.
2. Take advantage of any offers from your employer for matching funds or discounts on company stock (aka free money.)
3. Pay off credit cards every month.
4. Never lend money to relatives (I know this from experience....)
5. Never co-sign anything for anyone)
6. Get a good financial advisor, certified financial planner, that has your interests first, then listen to their advice, and as stated above, if you do not understand the investment, do not do it.
7. Eat at home, making your own meals.

Buy what you need, not what you want

Don’t keep up with the Joneses or your brother-in-law

IMHO all of the above is excellent advise and has allowed us to live as we do. #4 does not ring true for us though, we loaned both our sons the down payment for a home and both loans were repaid in full and before they came due.

Even when you're married and both working, purchase based on one income including big expenditures like house and cars.

My two cents worth
 

[QUOTE=RayinPenn;1577406]Im putting together a list of financial dos and don’ts. (Yes I know there are lots of them out there but I’m looking for some TOTV wisdom) from what I consider the obvious like ‘Save first’ to the more controversial ‘put startbucks out of business’. If it helps what would you tell you 20 something self..

So list items like:
1. Save first
2. Put Starbucks out of business.
3. Brown bagging it sets the tone for frugality.

Also if there was a story you’d like to share where you learned a financial life lesson please share it. Like i said if you care to share Ill really appreciate it. Thanks RayinPenn[/QUOT

1. Weigh what others tell you carefukky.
2. In the end if you give financial advice and it works out the person you've advised will tell the world how smart they are. If, it fails they will tell the world how dumb you are.
3. Trust but verify.
4. Do not lend money. It always end badly. Been there done that. If, soemone comes to you for a loan, ask yourself why they cannot get a bank loan.
5. The magic of compounding and the magic of time.
At 8% claimed long term stock market return, your money doubles every aprox 9 years rule of 72.
6. Do not forget that losses also compound. I think most of us need to stop to think if asked-you have $100 and make 10% the first year. The next year you loose 10%
You do not have $100 you have 100+10%=110. 110=10%=$99. To get back to the $100 you had you need to add 1%. To get back to the 110 you had you need to make 99 aprox 11.5%.
7. Beware of the PARASITES-inflation and taxes. The FED tells us they have a 2% inflation target. As said above trust but verify. Regan controlled inflation by removing housing and fuel from the calculation. At the time they were the two highest sources of increases for Americans.
Today, our government could, same as Regan reduce inflation by removing Medical costs and school expense..

I so agree. I SO agree.

If it sounds too good to be true,it usually is!

Tinker has an excellent list. The only thing I will add it that there are no shortcuts and no magic. Start early and NEVER let up. I started when I was 8, mowing lawns and shoveling snow. Since then, I have always had a savings account ( they became 401Ks and such... but still saving more than spending).

Also, find a wise, wonderful beautiful sponse who thinks the same of you and who shares your long-tem vision.... after that, life is happiness 24/7/365

Tinker has an excellent list EXCEPT number 6. Almost all financial advisers do not have your best interest in mind. They will put you in investments like front end loaded funds, anninities, things where they make the most profit.

So IMHO number 6 should be: Learn how to manage your own money. Use low expense index funds only. Build a simple diversified portfolio using 4 funds. Total stock market, total bond market, total international stock market and total international bond market.

All other investment will cause the average investor to lose money.
Learn how to do that well with the proper asset allocation for your age before you invest in anything else.

Plus one!

Not sure why I’d want to put Starbucks out of business as long as I stick to just coffee and not their fruity creamy drinks. Re: Starbucks I won’t post the link from the late “Kid From Brooklyn” on Starbucks because it is very vulgar and I don’t think it would be appropriate to post here out of respect. To the OP this “Kid from Brooklyn” really despised Starbucks.

Good points but I would rewrite #4. If you can afford the loan make it a gift or consider it a loan that may not be paid back and if it is not it will not hurt your relationship. You might also want to consider the purpose of the loan - vacation or needed medical.

Live within your means. Buy the Toyota not the beemer
Never take a loan you can not pay back. This goes for homes, cars, education.
Max out your 401K, then add more.
Walmart sells great clothes, don't need Prada.
Never take possession of anything that eats.
Marry the person who thinks the same.
Move to the Villages and live happily ever after.

Work hard and earn the money you need and want.

Save and invest for your future.

Don’t be so frugal that you deny yourself anything, within reason, because it’s a few bucks more than you wanted to spend.

Remember, saving money won’t buy you another day of life.

Try to spend your money in retirement and don’t leave a cent to your adult children.

What if you like them? ;)

Well, I would start out advising one at an earlier age, perhaps about age 15.

The first thing I would suggest is invest in the best education possible in accordance with one's abilities and interests. One's education is something one can never lose in a divorce, bankruptcy or catastrophe. In most cases it also determines one's future socioeconomic demographic - income level and lifestyle.

Then I would encourage one to always live well below one's spendable income, save a reserve and then invest. The earlier one starts and the more one saves and wisely invests the sooner one can become financially independent. As stated above by I2ridehd low cost diversified mutual funds are the safest and surest way to invest over the long term for almost everyone.

From my teens on I have invested in real estate but it is not for everyone.

Make Goodwill, garage sales and estate sales your friend. Buy only what you need. Upcycle and recycle as much as possible... good for the wallet and good for the environment.Sent from my SM-N920R4 using Tapatalk

(1) Invest in a diversified set of low fee mutual funds that include large, mid, and small caps along with internationals and bonds, and then leave them alone.

(2) Do not, I repeat, do not try to time the market.

(3) Do not pay fees to anyone who tries to convince you that they know what the stock market is going to do, because they don't.

Don't charge food, you pay interest on the stool sample! :faint:
Cut up the credit cards
If you can't pay cash you don't need it.
Don't need 60k plus SUV or car, 25k will get you there just as fast and will be worth more in few years, and just as reliable.

Educate yourself along the way. Off the top of my head some wonderful books that have withstood the test of time include:

The Wealthy Barber
The Millionaire Next Door
The Richest Man in Babylon
A Random Walk Down Wall Street
One Up on Wall Street
Reminiscences of a Stock Operator
The Little Book of Behavioral Investing
The Way to Wealth
Common Sense on Mutual Funds

I would add Thomas J. Stanley's sequel to "The Millionaire Next Door" "The Millionaire Mind" which I found even more revealing and informative.

For those really into investing in publicly traded securities the original 1934 edition (reprinted) of "Security Analysis" by Graham and Dodd is a bit of a tome but worth studying.

Although my father had rental houses and I was the maintenance slave what got me really interested in real estate investing was "How I turned $1,000 into a Million in Real Estate in my Spare Time" by William Nickerson. He updated it to $1,000 to $5,000,000 a few years later but I picked up the original at a Brentano's in Washington, D.C on my lunch hour in 1966 and shortly thereafter bought my first real estate investment, a four unit building on Capitol Hill.

Make sure you spend your kids inheritance :)

1. Save enough money for at least a 3 month emergency fund.
2. After accomplishing no. 1, save enough money for a 20% down payment on your first time house.
3. After accomplishing no. 1 and no. 2, budget a monthly sum directly from your payroll into a no load of 5 or 6 mutual funds.
4. Always pay off your credit card at the end of the month.
5. If married, establish a regular date night to keep the “Home Fire” burning brightly.
6. Don’t forget to budget a yearly vacation for rest and renewal.
7. Treat your physical and spiritual health appropriately as we only have this one life to live.

Great advice! We have just furnished our seasonal home with resale items from a consignment shop and estate sales. At least to me it’s a bit of a surprise that we were able to purchase the hardly used furniture and items for the rock bottom prices we paid.

Learn about diversification and low cost no-load index funds and exchange traded funds (ETF). Invest accordingly. Let your diversified portfolio protect you in bad times and reward you in good times; don't ever try to predict the market by selling - you will be wrong and it will cost you money.

Best financial advice I ever received was, Pay your bills first, always save 10% of your paycheck, the rest is your screwing around money.

If one's children start at the beginning of their working careers to invest into an IRA and make it a point never to take those funds for any reason, they will have enough money in retirement. One must live within their means.

Pay for your credit cards fully at the end of each month so you don't pay 22% in interest. Paying that kind of interest, is highway robbery.

How one views money is very important. IMHO

The old saying goes that your level of spending will always rise to your level of income. The best way to beat that is to max your pre tax 401k or equivalent and take advantage of any after tax payroll offerings.

Sent from my SM-N910V using Tapatalk

If you develop a frugal mindset, your income will have very little effect on your spending level.

As mentioned your spending can keep up with your earnings. Therefore you should think in terms of saving a big part of any wage increase you get along the way.
You do not have to reduce your standard of living because you just got the income. Then invest in equities if your needs are a long way off.

Eliminate all credit card debt. Start with the card that has the highest percentage rate. When that’s gone, put that much money , and more, to the next one, rinse , lather, repeat.

The monthly finance fees are RIDICULOUS. I call it usury.

Most are over 20% or even up to 29.7% per year. If you pay this, you’re really throwing away money.


Start saving for a house, if that’s what you want. Many transactions require 20% down, in cash. Good luck!

Excellent advice.

+1
No one cares about your money like you. Educate yourself. Read. Live below your means. Visit bogleheads dot org. Learn Jack Bogle’s index fund philosophy.

Strike a proper balance. Saving for the future is important and should be done. But, don't forget to allow for a good life all along the way.

Wisdom from the islands
 

You work all the time for the things you want.
But, you should only want the things you need.
You can work three days a month for the things you need.
Then you have time to do whatever you want.

Yep. :thumbup:

I personally can't fathom paying someone else...to manage/invest MY money.

At the same time, budgeting to take those occasional vacations or doing those things that are really important to you, while you're still young and able enough to fully enjoy...should not be ignored.

A long life is not guaranteed any of us and seeing/reading of those people who die shortly before or after retirement, while scrimping and denying themselves all of their lives...is sadly all too common.

While I am one of the lucky ones that dosesn't have to worry about my old age finances, if I could no longer post here because I fell over dead tomorrow (don't get your hopes up...and you know who you are :D)...I wouldn't have a single regret. :ho:

Would you pay someone to roll the dice for you ? Thats what you do when you hire a financial planner.

I recently heard Steve Harvey speak to a group of young Millennials and he said you only have two choices:

1. You can work to live

or

2. You live to work


in the end what you put in is what you get out.