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Post by valeriana on Mar 28, 2011 11:42:57 GMT -5
Would love to hear the best advice that you have if you are 30+... the things you would not have done or things that you did do that were beneficial to you. Thanks.
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thyme4change
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Post by thyme4change on Mar 28, 2011 11:48:47 GMT -5
Don't carry consumer / credit card debt for stupid stuff.
Put away 10% of every dollar you earn - more if you can.
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hsclassic
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Post by hsclassic on Mar 28, 2011 11:49:53 GMT -5
Pay yourself first. Best advice I followed and it has worked for DH and I.
Nothing more than the good advice given on these boards: participate in your 401(k) early and to the max; max Roth IRA contributions; carry no non-mortgage debt (unless it is sensible, low-cost debt); fully fund the EF; have other taxable savings; and use some of your income to have fun and live life.
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thyme4change
Community Leader
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Post by thyme4change on Mar 28, 2011 11:51:22 GMT -5
Nothing I have ever bought was treated me better than having no-debt and money in the bank.
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Deleted
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Post by Deleted on Mar 28, 2011 11:55:24 GMT -5
Save 20% in your Roth or 401k before anything else.
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cronewitch
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Post by cronewitch on Mar 28, 2011 12:00:56 GMT -5
Divorce the train wreck if you married one. Avoid marriage to anyone who is going to be a train wreck financially.
I didn't divorce until 34 but shouldn't have married a man who was over 30 and could carry everything he owned when I like to gather things and money. He was a merchant seaman, living out of a duffle bag so it wasn't like he didn't work, he didn't save. Think drunken sailor spending all the money before shipping out again.
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Tiny
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Post by Tiny on Mar 28, 2011 12:03:59 GMT -5
Best Advice for a 28 year old (or anyone at all)? Don't 'float' or be 'pushed' thru life. Stop letting other people determine your future. Don't confuse 'excuses' with 'choices'. Review your life (your values, your goals). Take an active hand in determining YOUR future.
The best thing I ever did was to pull my head out of the sand and do the introspection necessary to determine what I valued in life (and WHY!) Doing that gave me direction which in turn helps in making decisions.
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phil5185
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Post by phil5185 on Mar 28, 2011 12:12:52 GMT -5
Put $15,000/yr into products have a 10%/yr to 12%/yr return. Don't try for >12%, too much risk and don't use <10%, not enough risk. Doesn't matter if you keep the money in Roth, 401k, or taxable accounts. Have it invested automatically so that you must 'live on the remainder' - that is the opposite of "saving the remainder each month after the bills are paid". If you do that for 30 yrs, it should be about $3.3M. And with the knowledge that you are on-track to have $3.3M, you are free to enjoy spending everything else anyway you want - starbucks?
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runewell
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Post by runewell on Mar 28, 2011 12:19:30 GMT -5
Expect that the return during the 2000's was closer to 0.
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Deleted
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Post by Deleted on Mar 28, 2011 12:46:11 GMT -5
Expect that the return during the 2000's was closer to 0. You're missing the point. Phil is talking about a 30 yr time horizon. I think there was another thread around here somewhere, that over any given 30 year period of the stock market history, average returns have never been less than 9-10%. We can all cherry pick selective endpoints where the stock market has performed poorly over a multi-year period, but in the long-term stocks have produced 10% annual gains.
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thyme4change
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Post by thyme4change on Mar 28, 2011 12:53:09 GMT -5
Don't say stupid stuff like "You've got to spend money to make money." And then buy an ipod or something that has nothing to do with actually earning money.
In the same vein, don't say something like "You've got to leverage to be wealthy" and then go into debt to buy an ipod, or something that doesn't appreciate in value.
Also, never fall for the baloney that "Everyone has debt" or "You will always have a car payment."
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HappyLady
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Post by HappyLady on Mar 28, 2011 12:57:56 GMT -5
Educate yourself as much as possible. Read books, magazines and articles about all the various aspects of money and business and learn from them.
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azphx1972
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Post by azphx1972 on Mar 28, 2011 13:14:18 GMT -5
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RoadToRiches
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Formerly "indebt"
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Post by RoadToRiches on Mar 28, 2011 13:15:52 GMT -5
Don't spend more than you earn. Don't feel pressured by your friends if they have this or that. Save your money Invest for retirement.
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sheilaincali
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Post by sheilaincali on Mar 28, 2011 13:16:29 GMT -5
I agree with HappyLady. Knowledge is power. Don't take what people tell you at face value. Always do your own independent research. Read, read, read. Trade magazines, books, the paper (or on line newspaper). Otherwise down the road they will consider you a dinosaur and life/work will pass you right by.
And something I tell my 13 year old son: Never say anything about someone that you aren't willing to say to their face. Because it will get back to that person and it will tarnish your reputation with them. People will try to trick you into agreeing with their assessment of someone and by the time it gets to them it will sound like you called them the name, or disparaged their work ethic or whatever. Trust me - that one piece of advice will save you a lot of headache.
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Regis
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Post by Regis on Mar 28, 2011 13:35:05 GMT -5
Read every single one of Phil's posts.
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Wisconsin Beth
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No, we don't walk away. But when we're holding on to something precious, we run.
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Post by Wisconsin Beth on Mar 28, 2011 13:41:27 GMT -5
Read every single one of Phil's posts. Truer words were never typed.
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thyme4change
Community Leader
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Post by thyme4change on Mar 28, 2011 13:48:53 GMT -5
Cars are a losing proposition.
And, no one is really impressed with any car you will likely buy.
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ohsuzanna
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Post by ohsuzanna on Mar 28, 2011 13:58:02 GMT -5
Never be independent of self-sufficient. It's a lot of work! Fine someone to financially support you or let your parents support you 4ever.
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Deleted
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Post by Deleted on Mar 28, 2011 14:18:42 GMT -5
Never be independent of self-sufficient. It's a lot of work! Fine someone to financially support you or let your parents support you 4ever. Nothing like depending on a man that is not your husband or your 3 kids father
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raeoflyte
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Post by raeoflyte on Mar 28, 2011 14:23:26 GMT -5
Never be independent of self-sufficient. It's a lot of work! Fine someone to financially support you or let your parents support you 4ever. This has got to be a troll, or one of the regulars playing a joke. ;D
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thyme4change
Community Leader
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Post by thyme4change on Mar 28, 2011 14:29:45 GMT -5
Isn't that the lady who is making her boyfriend get life insurance because if something happens her kids from another man will be homeless?
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whoisjohngalt
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Post by whoisjohngalt on Mar 28, 2011 14:38:57 GMT -5
Yep, and since she is studying to be a teacher, we might be wise to listen to her Lena
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txengineer
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Post by txengineer on Mar 28, 2011 21:48:40 GMT -5
Start thinking about life insurance, especially if you expect to have dependents some day. It's a lot cheaper now to lock in 20 or 30 year term life insurance than when you are older. Also, if you have substantial net worth, consider umbrella insurance. These are some of the things that didn't occur to me (I guess it's not natural for young people to think about) until about 2 years ago. I'm 26.
And, like almost everyone has mentioned - save as much as you can. You will quickly realize how good of a decision you've made. Try to max your 401k and IRA contributions if possible, and do taxable investing with leftover money if any.
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Apple
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Post by Apple on Mar 28, 2011 22:14:36 GMT -5
Know your financial priorities and keep them in mind when you decide where/when/on what to spend your money. I wanted the best education I could have for my son (at least to start out with--get the basics down and have a running start), have a house I want, I like to take vacations (big ones and want to retire early. So, I don't buy a new car, I don't eat out all the time, I don't buy useless crap (too often anyway), etc. I'm 32 and I've taken my son on a two week vacation to Ireland and the UK, a week vacation to Rome, put my him through private school pre-K to 6th grade (he's now in a public charter school), on track with my retirement and am currently building my dream home. All the sacrifices have been worth it, especially since the things I "sacrifice" on are not on my priority list (older cars, no cable, basic cell phone...) I've done it all even though I've been a single mom for 10 years (DS is 13) and without paying a single penny in cc interest. In fact, other than 12 months with a car loan about 11 years ago, the only interest I've ever paid has been on my mortgage.
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Post by robbase on Mar 28, 2011 22:29:20 GMT -5
neither a borrower nor a lender be
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998fbird
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Post by 998fbird on Mar 29, 2011 18:34:05 GMT -5
If your out go exceeds your income than your up keep will be your downfall. I like Suzy Orman's attitude toward money, if you respect your money it will return the favor. Debt is a tool, like a chain saw is a tool, something to be used with respect and care. Balance is the key, money is only important for the things it can provide, not as an end in itself. Learn to judge when enough is enough. If everything you need is provided for, buy the car/clothes/vacation you want and don't skimp. Figure out what it is you enjoy and spend your money on that and be frugal in the areas that don't matter to you. You like to eat out, do it, buy your clothes in the thrift store or from Penny's etc. Don't save every windfall that comes your way, enjoy some of them on things you want. Memories are more important than money. My first tax return after I separated was large enough to go to Disney World, my DS still talks about the trip 15+ years later. We are all going to die, so eat drink and be merry once in awhile. I used to freak about money, alot, even though I have a paid for house, paid for car, and investments. Now I remind myself that if all of the necessary bills are paid for just for today, today is the only day I have, and let tomorrow take care of itself.
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Post by robbase on Mar 29, 2011 19:23:09 GMT -5
a bird in the hand is worth 2 in the bush
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TheOtherMe
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Post by TheOtherMe on Mar 29, 2011 20:41:36 GMT -5
Live below your means.
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happyscooter
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Post by happyscooter on Mar 30, 2011 7:58:15 GMT -5
Reread post #13. Every day. Once in the morning and once at night. Read it when your friends call you to go out and you don't have any money. Read it when your friends comes over to show you their new (insert whatever here______________________. Car, ipod, cell phone, shoes, purse, golf clubs,etc...) Print it out and post it on your bathroom mirror, car dash board, inside your wallet, sticky note on your phone at work, everywhere.
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