Give me your best monetary advice

[Anonymous]

When making purchases, I think of how long I worked to make that much money. It puts a $500 or $2000 in perspective.
It's fun to spurge once in a while, but are those shoes worth 3 days of your hard work? Is that vacation worth 3 weeks of working?

[Anonymous]

As your income goes up don't feel that your level of expenditure needs to increase correspondingly. It is a common element that occurs with most young people because your income will usually rise as you move ahead in your career.

[Anonymous]

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

Or 10% to charities if you can afford it. Whatever floats your boat.

[Anonymous]

Don't take part in a bidding war on a property. Look five years into the future and try and determine if it's possible for the property to continue appreciating at the rate that it has been. Don't buy property if you aren't going to stay there for a while. The realtor commissions will eat up most of your profit.

[Anonymous]

Be careful about spending on the small things like Starbucks and eating out because they can add up really fast.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

Or 10% to charities if you can afford it. Whatever floats your boat.

but if you do not tithe, then you are robbing God.
There is no IF. God will provide and you shall not want

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

Or 10% to charities if you can afford it. Whatever floats your boat.

but if you do not tithe, then you are robbing God.
There is no IF. God will provide and you shall not want

Is that in the Holy guidebook? Somehow I don't think so.

[Anonymous]

Do npt buy timeshare or holiday points or whatever

[Anonymous]

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

The only thing you'll be free of is a considerable amount of money. You certainly will be full of self-righteousness

[Anonymous]

Anonymous wrote:

Anonymous wrote:FYI, I find the CNN/money personal finance 101 series to be pretty helpful-- covers things like insurance, not just investing.

Also, don't try to beat the stock market and don't put money in the stock market you need in the next 5 years-- just look for a low cost index fund and leave the money there during ups and downs.

Surely, it is fine to purchase some diversified ETFs like VTI and VWO, however you will benefit from owning individual corporate equities. The best way to learn to play soccer, poker, or the stock market is to be in the game. Index Funds are sure and steady and perfect for individuals who don't have the time or the interest to closely follow the economy and the stock market. Index funds like VTI, own shares in 500 different corporations which creates stability. At any given moment in time the price of some of those corporations will be increasing and some will be decreasing. On average your wealth will increase by roughly 5% annually.

For the disengaged investor that's fine. You're not getting rich but your not losing money either. At retirement you'll be comfortable, but not rich.

The problem with this approach is that you're not really in the game. You're not learning how the investment game is played. If you are not investing whatsoever in individual companies you have no vested interest keeping track what companies are going up or down and why these changes are taking place. If you allow and even pay someone else to make you investment decisions for you, you are essentially putting on blinders to opportunities that regularly appear in the stock market.

If you are to busy or not interested in the stock market, then by all means you should buy nothing but index funds. However, if you are watching the world around you and you are conscious of macro economics and the consumer goods you and others are buying then you have the innate skills individuals need to generate vast wealth in the stock market over a period of several decades.

Start by buying shares in well established companies which have increased their dividends annunually for decades. Automatically reinvest your dividends to purchase more shares. During these future years as an engaged investor you will develop an innate sense about the successfulness of your equities and other that you do not own as well. It's like being a Nats fan, but also having a sense as to how the Braves are doing as well.

Now and then for unforeseen reasons there will be instances when good well established companies will miss their projected earning numbers and the price of their shares will be crushed. Sometimes these companies are doomed, but in other instances there are other explanations like weather, supply chain disruptions, or even the banking crisis.

"Contrarians" are able to spot rapid stock price declines cause by temporary business anomalies.

For those who are engaged in the market huge quantities of wealth can be gained by contrarians when they spot these temporary price disruptions. If you are so inclined you can accumulate generational wealth in the stock market, but for those who lack this potential, interest, or skill set required the learn they should buy index funds.

This is terrible advice. Its wrong on so many levels. I'm not going to criticize every crap idea here, but here's one that I can't let stand: Picking stocks isn't a skill. It is luck only, no different than playing roulette.

[Anonymous]

Read The Millionaire Next Door. It contains so much good wisdom that it is a top tip to read the book.

DO have children. That is part of being rich in Life, not just on the balance sheet.

Do give to church and charity, but pay attention to how it is spent. Some charities are me, myself and I operations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

The only thing you'll be free of is a considerable amount of money. You certainly will be full of self-righteousness

perhaps. Is that not religion is about?

[Anonymous]

Anonymous wrote:I am a younger professional (just starting to make somewhat decent money)

I am interested, since I assume the general dcum population is over 30, what are you best budget/money saving tips?

I am finally in the position to stop living pay check to pay check. So tell me... How do did you build up a savings? Pay off your car? Saved extra money in other ways?

Please share with me your infinite wisdom.

have not read past the first few replies- but here are mine:

1) don't increase your lifestyle after each raise. make pretend you never go that raise and save the increase.

2) max out 401K or Roth

3) buy less house than you can actually afford

4) marry someone who has a good credit score and credit history, and who has the same money philosophy as you - or better

5) don't buy luxury cars. Used lexus at most. drive them into the ground

6) buy in the right neighborhood the first time, and buy the smallest and ugliest house on the block. it will be priced accordingly and you can fix it up over time.

7) use other people's money whenever possible - via super low interest loans even if you have the cash. Better to keep your cash for emergencies - because they do and will happen.

8) high deductibles on car and health insurance

9) state schools for your kids. if they want private, they can get loans to make up the difference between the state school tuition and their tony private school.

10) if you're a woman - NEVER FULLY LEAVE THE WORKFORCE. If you ever have children, try to work at least part time if you can.

11) buy only ON SALE. When grocery shopping, buy store brand not label.

[Anonymous]

High deductibles on car and health insurance is bad advise
do not buy just to get in the neighborhood. If it is the ugliest dump you will not be happy paying it for the next 30 years

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tithe. 10% of your income to the church. God will provide and you will also be free of the trappings of materialism

The only thing you'll be free of is a considerable amount of money. You certainly will be full of self-righteousness

perhaps. Is that not religion is about?

No.