Real World Personal Finance Advice For 21 Year Old

[yjeezle]

Summary: streamline your expenses.

I save about 30-35% a month. Spend where you can but don't scrimp on the little stuff.

By that I mean don't be a complete Scrooge. Offer to pick up the tab once in a while etc.

It pays off in the long run

 

[patrick_b]

All very good points above. Don't spend more than you earn is key. Credit card debt is the worst thing to get saddled with. Also, live in a city that you like and have the ability to stay employed in your chosen field. Then...BUY property young. We wasted so much money on exorbitant rent in the greater boston area in my 20's. I easily could have bought a condo and have built some equity for the same monthly outlay. In retrospect it was a wasted decade.

Granted it's harder today to get a mortgage than it was in 1995 when I was 25 but it's certainly doable. If I knew then what I know now...

 

[suited]

Test the waters with a few credit card companies, go for the one that will approve you for the highest limit. Max it out within 2 weeks. Maxing it out very quickly shows creditors that you're confident in your spending capabilities. From this point on, you'll want to go duck, hurdle and dodge a series of financial barriers (often referred to as "laws") designed to trip up the average consumer. If you haven't done at least 3 balance transfers on your credit card in the first 18 months, you are doing something wrong. Nothing is more useless than idle cash - so letting precious dollars collect dust in a checking or savings account is a classic mistake.

 

[otc]



I recommend Iwillteachyoutoberich.com. I have mixed feelings about the "earn more money" portion (it has good advice but it is also a sales pitch), but the personal finance stuff is all gold. One of the principles is to do exactly the opposite of what a previous poster said. Pay yourself first with automatic savings systems, then spend the money that's left on whatever makes you happy. Don't worry about saving money by using horrible toilet paper. This is styleforum after all. That brand of thrift doesn't mesh with $400 shoes.

He's got a book too: http://www.amazon.com/Will-Teach-You-Be-Rich/dp/0761147489

His current focus on the blog has moved towards earning more which is really all a sales pitch for his freelancing on the side instructional program. This content actually seems pretty good if you are interested, but the really good stuff is in the book and the blog archives.

His advice is all for 20-somethings and is focused on getting a system setup by which you no longer have to worry. He doesn't chastise you for spending money on things you like, even if others might think it a waste (so expensive shoes are acceptable purchases). I started reading his blog right before I finished college (probably just before my senior year started) and I think that it has done great things for me.

 

[stevent]

Save money. Save money. Save money.

For investing I'd recommend these books:



The Little Book that Still Beats the Market provides a good overview on a relatively easy / safe approach on investing.

and

The Little Book of Value Investing which is a much easier read than Graham's Intelligent Investor and a bit more up to date imo.

Also read through Investopedia and WSJ/FT for a bit more background on money.

 

[chas]

Most important advice I would give to a 21 year old is stay out of debt! You may have to live paycheck to paycheck for a few years...that is ok. Just don't spend money you don't have. That way, as your income increases you will be able to save and not have to dig out of a hole just to get back to even.

 

[bringusingoodale]

Get a job any job after college even if it isn't your dream job and save everything like some stereotypical miser. Buy rental properties, then enjoy.

You won't miss out on much; most twenty somethings just go out and binge drink and then eat late night at Denny's or some ****.

 

[oneeightyseven]



Get a job any job after college even if it isn't your dream job and save everything like some stereotypical miser. Buy rental properties, then enjoy.

You won't miss out on much; most twenty somethings just go out and binge drink and then eat late night at Denny's or some ****.

I tried getting on this train when I was 18. Tried getting my grandfather to purchase a house/houses for me. my initial plan was to attend a university far away from where I live (housing is much cheaper) and live in the house alone for the duration of my studies. while I was living there, I would work on converting the house into a rental house for students so that when I was out of school, I would have a steady stream of income. My grandfather didn't go for it.....

 

[Harold falcon]



I really appreciate your thoughts on personal financing. Whether you have an idea of studying higher? Then only you will achieve great height in your domain.

Infrastructure Development Company

Have you considered slitting your own throat?

 

[papa kot]

Stay out of debt and live a little. You're at this age when investing in experiences, as opposed to investing in things, will pay off dramatically in the future.

Oh, and don't forget to wrap it. Unplanned babies won't be good for either your account or your soul.