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.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't buy a house that won't meet your needs for the next 10 years. If the house won't meet your needs or you don't know what your needs will be - don't buy.

Does anyone know what their housing needs will be for the next 10 years? Maybe the baby never comes, maybe quintuplets come, maybe you get a chance to open a office for your company in Paris, maybe MIL needs to move in with you, maybe DH walks out or any other gazillion things that could be different from what you expect you needs will be.

Of course. I think the PP was saying that you shouldn't buy something that cannot realistically meet your needs for the next decade. You have no idea whether or not you'll be in a position to sell it so it better make sense in the long run. Besides, why buy a house when you don't plan to be in it for 10 years? The transaction costs rarely make any sense.

It could go either way. I read it to mean: don't buy the DC condo when you're young and single, instead, go directly to Vienna to buy a 4BR/2.5BA (you know, nice neighborhood, good schools, closely metro, shopping, etc).

Buy a mid priced new car and keep it until it dies. Used cars sell for exactly what the depreciation is -- so there is no savings. On the other hand a reliable car will help keep your finances stable. Todays top new cars do not break down and are good for 10+ years.

Anonymous wrote:

Anonymous wrote:One tip each?

No credit card debt.

Yep, pay your card off each month.

Totally agree!!!

Then buy a basket of dividend yielding stocks and automatically reinvest your dividends to purchase more shares. The power of compounding is exponential. You'll retire a very wealthy person without making great sacrifices beyond living prudently.

Anonymous wrote:

Anonymous wrote:Don't buy a house that won't meet your needs for the next 10 years. If the house won't meet your needs or you don't know what your needs will be - don't buy.

Does anyone know what their housing needs will be for the next 10 years? Maybe the baby never comes, maybe quintuplets come, maybe you get a chance to open a office for your company in Paris, maybe MIL needs to move in with you, maybe DH walks out or any other gazillion things that could be different from what you expect you needs will be.

Of course. I think the PP was saying that you shouldn't buy something that cannot realistically meet your needs for the next decade. You have no idea whether or not you'll be in a position to sell it so it better make sense in the long run. Besides, why buy a house when you don't plan to be in it for 10 years? The transaction costs rarely make any sense.

Anonymous wrote:Don't buy a house that won't meet your needs for the next 10 years. If the house won't meet your needs or you don't know what your needs will be - don't buy.

Does anyone know what their housing needs will be for the next 10 years? Maybe the baby never comes, maybe quintuplets come, maybe you get a chance to open a office for your company in Paris, maybe MIL needs to move in with you, maybe DH walks out or any other gazillion things that could be different from what you expect you needs will be.

Here's the best piece of money advice I've ever gotten:

As soon as it is possible, save $1 for every dollar you spend.

Simply put: Keep all of your expenses to 50% of what you make. You'll feel rich almost immediately.

Don't let your income define your self worth. I make a lot by most standards but am unhappy because my friends make more. Don't become me

Pay off credit cards and don't carry any debt other than a 15 yr mortgage
Cut out cable - go out and find free/cheap things to do in DC!
Join the library
Max out 401k should be your ultimate goal, but start with 10-15% of your income and take full advantage of the employer match
Use online billpay - saves you time and sends reminders so you never miss a payment
Build your credit responsibly so you can qualify for mortgage at a good rate

I wish I would have been buying a Roth IRA earlier. Max out the Roth while you can -- our income is too high now and we have to do the backdoor way.

Don't buy a house that won't meet your needs for the next 10 years. If the house won't meet your needs or you don't know what your needs will be - don't buy.

Get an understanding of what you make, your taxable income, and what that means for your income tax rates (marginal and effective). Use the tax code to your advantage when you look at 401 and IRA choices.

If you don't have the money to fully fund a 401k, an IRA, and an emergency account - put your emergency savings in a Roth IRA (conservative - like cd or savings rate, not necessarily invested). If you need it, you can take out the contributions any time without tax. If you dont need it or you save more later the money is already in the Roth for your retirement and you won't EVER have to pay tax on it or the earnings.

PP again - once you're done all that, come back on here and we'll happily give you further advice!

Anonymous wrote:Max out your 401K and talk with a financial advisor who can put together a plan specific to your goals. Avoid credit card debt and keep an eye on your credit score.

No, no, no to the financial advisor.

I'm betting you're a smart lady OP - you can manage your own d%mn finances.

- Set aside a little money every month for an emergency fund
- Pay off any credit card or other high interest debt
- Invest in your 401K
- Invest in an IRA - pick a no load, low cost index mutual fund (I vote for one from Vanguard).

How to get rich

Step 1: Be rich
Step 2: Read Step 1