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Best Personal Finance Advice for Millennials/Young People

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8:22 am
June 29, 2013


ayoungpro

Lehi, UT

Member

posts 184

Hello all,

 

I am trying to put together a post of the best personal finance advice for young people. I want to have some advice from the best PF voices on the interwebs (you people). If you have some great advice, list it here or send me an email (ayoungproblog@gmail) and I'll link to you in the article.

 

Thanks!

9:52 am
July 2, 2013


ayoungpro

Lehi, UT

Member

posts 184

Anyone else have any financial advise to share with young people?

6:52 pm
July 2, 2013


evolvingPF

Durham, NC

Member

posts 50

Are you interested in advice in a few lines or links to full posts on an advice topic?

7:11 pm
July 2, 2013


ayoungpro

Lehi, UT

Member

posts 184

Probably just in a few lines, but if you have a specific article you want me to link to with your quote I would be happy to links there.

11:29 am
July 8, 2013


Cubicle Sherpa

Member

posts 26

My biggest piece of personal finance advice is to stop and think before making any big decisions. I made the mistake of buying a boat instead of paying off a large chunk of my student loans and I really wish I hadn't done that. Here's an article I wrote on the subject.

 

I also highly recommend that young professionals learn to read contracts before signing them. It's amazing to me that most of my friends will sign an apartment lease without knowing what's in it. I'm about halfway done writing an article about this too – If you'd be interested in me writing a guest post shoot me an email (bob@cubiclesherpa.com)

 

-Bob

10:13 pm
October 9, 2013


bryce

Member

posts 40

My advice would be pretty basic.

Live below your means

Avoid debt (Debt for a house is OK, but save 20% of the cost before purchase)

Save an emergency fund of 3-6 months worth of expenses

Live like a college student even after you get your first job and save.

Save up to the company match in your 401(k).

Invest in a Roth IRA up to the max.

Fill your 401(k) to the max.

Continue current lifestyle, even if you get a raise or two. Put money from raises into retirement savings.

Never try to time the Market. It is a fool's game, and you will eventually lose.

Investing means buy the appropriate mix of stocks and bonds for your age and need to take risk. You can afford more risk at a younger age. This is called setting your asset allocation. A good rule of thumb is to use your age as the percentage of bonds to own. The rest would be stock.

Treat your portfolio as one large pot across all accounts.

Automate savings as much as possible by having money taken from your paycheck and put into appropriate accounts before you can spend it.

Investment costs matter. You've heard of compound interest? Well investment costs are reverse compounding, they will take more and more money over time. So invest in very low-cost passive index funds.

Good index funds are Vanguard Total Stock Market, Vanguard Total International Market (ex-US), and Vanguard Total Bond Market. I like Vanguard because of their low investment costs. Make a 3-fund portfolio using these 3 funds and keep putting money into them, month after month, year after year. You will be very happy with the results 30 years from now.

Diversify your holdings. The 3 index funds mentioned will give maximum diversification.

Again, don't time the market. Stay the course and mostly leave your portfolio alone. Once a year you might look at it to check that the asset allocation has not gotten too far from the asset allocation that you want. Your portfolio's asset allocation may shift as stocks and bonds go up and down in value.

Hold tax inefficient investments, such as bonds, in tax sheltered accounts. Hold tax efficient investments, such as Total Stock Market, in either taxable or tax sheltered accounts.

Join the Bogleheads at bogleheads.org Smile

6:13 am
November 14, 2013


Jasaglimbeni

Member

posts 28

The number one mistake young people make is that they do not read material on investing, they may think it is boring or a waste of time, but as we know–they would be wrong. I began reading books form some of the best investment minds ever when I was just sarting college…without doing this I would not be the investor I am today. I have attached a link to all the books that I have read as well as resource that will help the beginning investor on my site: http://www.accessnotdenied.com…..sites.html

Just scroll down and the books will magically come up…lol. Enjoy.

 

Regards,

JoeSmile

2:39 pm
November 18, 2013


kmaroni

Member

posts 20

We wrote a post recently about Millennials, mostly from the perspective of a generational study I reviewed in my current graduate program. The link is here: http://2-copper-coins.com/2013/08/07/financial-strengths-of-the-millennial-generation/

 

and while it isn't exactly financial advice, it does give a picture of what you're looking at when you say 'milennial' as well as some optimistic perspectives on a generation that has been negatively named 'the me me me' generation. 

 

Hope that's helpful!

Krista and Jon Maroni – 2 Copper Coins

2-copper-coins.com

facebook.com/2CopperCoins

Twitter @2CopperCoins

2:40 pm
November 18, 2013


kmaroni

Member

posts 20

Sorry I just realized how old the post was! I saw the last comment but didn't look at the date of the original… well maybe a reflective look at Milennials… Smile

Krista and Jon Maroni – 2 Copper Coins

2-copper-coins.com

facebook.com/2CopperCoins

Twitter @2CopperCoins

1:18 pm
April 21, 2014


jwmann2

Member

posts 7

Move back home with mom and dad (not that bad). You can't build wealth until your debts are gone. Pay off that car, pay off your student loans, credit cards, etc. I paid off my student loans and the weight that was lifted off of my shoulders was absolutely amazing. My credit also jumped a good 60 points too which sets you up in a better position for another financial matters. If you haven't started a family yet, save up for a nice but affordable condo or townhome. Refinance 3 or 4 years in if the interest rates are good, start saving and investing afterward. This can all be done within four years for most people, I would imagine. 

Also, for any debt, set up bi-montly payments for every two weeks. It will cut out a lot of the interest. (Of course, lenders aren't going to tell you that).

FromThisSeat.com

Learn About Your Seats, Before You Buy Your Tickets.

9:16 pm
July 11, 2014


James Martin

townsville,qld

Member

posts 38

Anyone else have any financial advise to share with young people?

Advice For Young People :

If you're having trouble figuring out what you want to do with your life, look within. You were born with certain talents and natural abilities. You know which subjects you excel in and which ones you struggle with. Choose a career that enables you to maximize your gifts in a way that fulfills you or helps others. As you grow, your career may change along with your desires. But for now, gravitate toward a field that feels like home.

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