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Financial Advice

KatieC

New member
What is the best financial advice you have ever heard? Or what is the best advice you would give a young person?
 

Nicole_D

New member
I seriously wish I could go back and kick my younger butt into shape when it came to finances! Saving money should be a key focus when you’re younger and just getting used to having a salary. Have the money automatically put into a separate savings, so you don’t even notice it. Whenever you get a raise, increase your savings percentage. Once you get a job where you fill out a W-9, start a IRA account. Students have special rules to help them save for future education and retirement. Also, take a look at credit union CD offerings- there is an opportunity for more interest with these types of accounts.

Once you get a job that offers a 401k, particularly one that matches, put in the full amount that gets matched! 1-6% really doesn’t make THAT much of a difference in your paycheck, and the money adds up quickly! Then every year when you get a raise, put a portion of it into your 401k. Since it’s a raise, you’ll never miss the money that way. For example, my company typically gives a 3% raise every year. My 401k is set to automatically increase 1% the second paycheck in January, so I don’t have to even think about it. Then I get the other 2%. It’s worked well for me.
 

rejuvenate

New member
What I would tell a young person right now living in Canada is to open a tradings account in your TFSA - Tax Free Savings Account. The Canadian govenrment allows us to put up to $5500 in the account each year. Purchase stocks that are safe that gives you dividends, like a bank stock. Monitor it. You can choose to buy more when it is low or sell it when it is high. Or perhaps diversify your portfolio and start off buying Government issue Certificates or Bonds. The thing is the money you gain from the account, is Tax Free. You don't have to report it to the government. This means you are making money work for you.
 

KatieC

New member
I seriously wish I could go back and kick my younger butt into shape when it came to finances! Saving money should be a key focus when you’re younger and just getting used to having a salary. Have the money automatically put into a separate savings, so you don’t even notice it. Whenever you get a raise, increase your savings percentage. Once you get a job where you fill out a W-9, start a IRA account. Students have special rules to help them save for future education and retirement. Also, take a look at credit union CD offerings- there is an opportunity for more interest with these types of accounts.

Once you get a job that offers a 401k, particularly one that matches, put in the full amount that gets matched! 1-6% really doesn’t make THAT much of a difference in your paycheck, and the money adds up quickly! Then every year when you get a raise, put a portion of it into your 401k. Since it’s a raise, you’ll never miss the money that way. For example, my company typically gives a 3% raise every year. My 401k is set to automatically increase 1% the second paycheck in January, so I don’t have to even think about it. Then I get the other 2%. It’s worked well for me.
Thank you so much for the advice!
 

krt2018

New member
Don't spend more on credit than what you already have in your bank account. Credit cards are not scary or bad! But they are not free money. You have to pay the bill. Just don't spend more than you have and you'll never get into trouble with credit cards.
 

JESSICAX34567

New member
My advice, credit cards are a scam. Do not fall into their tricks. I'm only 21, I really wish adults would have made me understood how dangerous credit cards are. I'm currently a senior in college and I am doing everything possible to finish paying off my credit card debt before graduating. It's just best not to have any credit cards until you have steady income. And if you must have a credit card maybe to build credit, make sure you pay back your debt by the end of the month to avoid interest charges. Interest charges are how credit card companies get you.
 

nhenrick

New member
Best advice? Go against conventional wisdom.

Realize that a lack of money is not a savings problem, but rather an income problem. Strive to make more money rather than spending less. This way, you're not giving up the activities and things you love because you're not concerned with penny-pinching. I heard someone once counteract the saying "a penny saved is a penny earned", by instead saying, "a penny saved is still just a penny". The point is if your money is not invested or actively making you more than there is a serious problem. Your money should be making you more money. Now, this is, of course, easier said than done, but that's where hard work and self-motivation are key. Invest in yourself first, gather your skills needed to make more money, and have your money work for you.
 
What is the best financial advice you have ever heard? Or what is the best advice you would give a young person?
I go by the age old motto "save some for a rainy day". In fact i have few guiding principals when it comes to handling my finance. Whenever i need to make a purchase no matter what the item is i always categorize it into "necessity Vs luxury" if the item falls in the latter category i am more likely to not purchase it. Lastly, my dad always emphasized on the importance of having a second source of income and saving at least 40% of my total earnings. To this day i am a staunch supporter of what he taught and follow it religiously
 
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khop83

New member
Put money away when you're young and it will grow because it has time to multiply. I could go back and kick my 23 year old self for not dumping every available penny into my 4010k. Now in my 30s, I'm scrambling to make up for it. And yes, it was hard to put money away when I was working three jobs right out of school, but it doesn't get easier the older you get. Now I don't have three jobs, but I do have a mortgage and a child. Daycare and insurance are insane costs right now, so it never gets easier to put the money away for later.
 

Cdixon1225

New member
Dont ever buy anything you cant afford at least half of at that moment. This has helped me very much on bigger purchases like vehicles and such. If i'm going to take out a loan for, lets say 20k, I want to make sure I have at least 10 in my savings. I still only put the 10% for the loan but having that back up half is very nice when life takes a rough turn. Buying a home is a little different, but I personally would make sure I have at least 30% of the total price.
 

Ecoleman24

Member
For a young person I would tell them to keep in mind the difference between wants and needs. It is hard for a young mind at times to truly separate these two things. They think they NEED the latest phone or MUST HAVE a new outfit to wear for the weekend and mindsets like this can really hurt a burgeoning budget. It can also lead to having way too much debt.
 

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