What financial advice would you give to your 20 year old self?

SPC(P) Private RallyPoint Member — Tue, 16 Aug 2016 22:37:37 -0400

Pretty straight forward question... Youngins (including myself) take notes.

Response by Capt Private RallyPoint Member made Aug 16 at 2016 10:39 PM

Capt Private RallyPoint Member — Tue, 16 Aug 2016 22:39:05 -0400

To build credit early, use your credit card like a debit card and pay it off at the end of every month. Do not use it unless you're absolutely sure that you have the money.

Response by Sgt Private RallyPoint Member made Aug 16 at 2016 10:53 PM

Sgt Private RallyPoint Member — Tue, 16 Aug 2016 22:53:08 -0400

SPC(P) Private RallyPoint Member Save as much money as you can, and use you money wisely. Utilize Roth IRAs, 402K, TSP, etc. Learn about investing. Vanguard is a good website to start your financial education.

http://www.vanguard.com

Mutual funds, IRAs, ETFs, 401(k) plans, and more | Vanguard

Vanguard is one of the world's largest investment companies, with more than $3 trillion in global assets.

Response by SPC(P) Private RallyPoint Member made Aug 16 at 2016 11:05 PM

SPC(P) Private RallyPoint Member — Tue, 16 Aug 2016 23:05:27 -0400

Some advice I've also received... Don't save ALL of your money, don't be too frugal to the point you're not doing anything.... Go on vacations, explore.... Do active things while you can. That is something I've neglected to do, and luckily I'm 21 years old

Response by CAPT Kevin B. made Aug 16 at 2016 11:23 PM

CAPT Kevin B. — Tue, 16 Aug 2016 23:23:19 -0400

I followed my own advice and started retirement stuff when I was young. Guess I got that from my depression era grandparents who were comfortable enough but didn't have to keep working. A couple annuities, TSP/401, etc. and I had to quit working to get a pay raise. Now with the stuff doing well, it's more managing to run under the steep tax increases. Sure beats the alternatives. At some point we don't want to or can't work anymore. It will happen. So doing small things early helps keep you from having to eat it big time later.

Response by PO1 Kevin Dougherty made Aug 17 at 2016 12:14 AM

PO1 Kevin Dougherty — Wed, 17 Aug 2016 00:14:42 -0400

Put aside 10% in retirement savings, 10% to God (Charity) and 10% for yourself. Live on what's left. You'll be a multimillionaire when you retire.

Response by ENS Private RallyPoint Member made Aug 17 at 2016 12:35 AM

ENS Private RallyPoint Member — Wed, 17 Aug 2016 00:35:09 -0400

SPC(P) Private RallyPoint Member as a "20" something year old who is putting 45% of his pay into Roth TSP and has a savings account, I think I would say, "keep doing what you're doing". Now - if only my future self could tell me what the stock market is going to do or the next winning lottery numbers. ;)

Response by SSgt Private RallyPoint Member made Aug 17 at 2016 12:48 AM

SSgt Private RallyPoint Member — Wed, 17 Aug 2016 00:48:33 -0400

* Learn to budget and learn to stick to the budget.
* Include in your budget a way to get out of debt. Debt is a soul sucker.
* Maintain good credit but do not depend on credit. Credit is still something fairly new and we've already been taught to put more emphasis on credit and to carry a debt load to be "successful".
* Recognize that owning a house that you live in is NOT an asset. Assets are something that generate income without the need for continual work being put into it. Rental houses can be an asset.
* We are taught to build a Net Worth that will produce income later on. What you should do is learn how to build assets that generate monthly income and use that to build Net Worth. Net Worth only has value as long as someone is willing to pay for what you have. We've all seen the stock market crash. We've all seen the value of stock portfolios lose a Billion dollars over night. Where did that money go? Tip: It was never there *until* someone paid for that stock.

There are more tips buried in my brain housing group but I am tired. I will leave you with this:

Success is not *just* financial. To truly be successful I believe you need to define what success is, for you, in this areas at a minimum: Spiritual life, spouse (you will be married someday, right?), relationships (which includes your kids), health and finally finances. I have listed them in the order I think is most important to least important. But isn't it funny that we spend the most time on the least important telling ourselves that it is to be able to put time into those other areas. Yet we end up giving our left overs to those other areas and putting the most emphasis on "earning money".

Response by MAJ Private RallyPoint Member made Aug 17 at 2016 2:27 AM

MAJ Private RallyPoint Member — Wed, 17 Aug 2016 02:27:00 -0400

To only use cash. Do not use credit cards or loans unless you absolutely have to for emergencies. If you can't afford it, don't buy it until you can pay cash for it.

Response by TSgt Melissa Post made Aug 17 at 2016 4:01 AM

TSgt Melissa Post — Wed, 17 Aug 2016 04:01:29 -0400

Well considering that was only 7 years ago for me, I have learned a lot since then. I learned that my parent's way of keeping track of money didn't really work well for me. Find the system that works best for you. For example, I couldn't keep my "savings" money separated in my checking account-one for car stuff, one for my future dreams, and one for general savings like how I pay for my ticket home at Christmas time. I had to create 3 separate savings accounts or else I would spend my savings.

Don't forget to save for car needs. The first time I needed tires on my car was a huge wake up call. After that happened, all my step-dad's advice came flooding back. he is an accountant too lol. I was fortunate that I had the money but still it hit me hard like being punched in the gut.

Once you pay off something like your car, keep putting that same amount of payment into the savings account for your next vehicle.

If you use USAA for your loans, they have this awesome feature online that you can just put money toward the principle amount. so if you pay more than the minimum, opt for the principle only so you are not paying just interest.

As a Christian, I tithe my 10% to God. I find when I do this before spending anything I always have more than enough to get through the rest of my paycheck. When I buy something before I do my tithe, I just barely make it. Coincidence? I'll leave that to the readers. But I don't think so.

Make a budget, know your limits, don't forget the simple things like clothing or entertainment, or household needs. If you get a pet, they come with financial needs too. Something I didn't remember or realize when I got my first pet. And always look for ways to save money. Check rental rates around your area, if your paying more than the going rate-have a talk with your landlord. Use coupons, there is no shame in that or asking for military discounts. that 10-15% really helps especially for us lower enlisted.

Response by SPC Private RallyPoint Member made Aug 18 at 2016 4:37 AM

SPC Private RallyPoint Member — Thu, 18 Aug 2016 04:37:08 -0400

Throw $100+ per check in savings, kick my own ass, and then make me join up at 20 instead of 25.

Response by MAJ Raúl Rovira made Aug 19 at 2016 1:42 AM

MAJ Raúl Rovira — Fri, 19 Aug 2016 01:42:02 -0400

This is not financial advice but my thoughts. To hire a trustworthy financial planner at the beginning of my career versus at the very end.

Response by SFC Joseph Weber made Aug 19 at 2016 5:37 AM

SFC Joseph Weber — Fri, 19 Aug 2016 05:37:22 -0400

Save every penny you ever made and buy Microsoft at nineteen cents a share.

Response by SSG Private RallyPoint Member made Aug 19 at 2016 8:33 AM

SSG Private RallyPoint Member — Fri, 19 Aug 2016 08:33:27 -0400

Divorce her then. Hahahaha