In June I ran a silver coin giveaway to new ESI Money email subscribers.
You can see the details of that giveaway here as well as get the specifics that led me to buy the coins in the first place.
If you’re a long-time reader, you probably didn’t even know this was going on as it was directed at new subscribers.
Now that the giveaway is over, I wanted to do the same thing for all readers.
Here are the details of the latest giveaway:
- I’ll be giving away 10 American Eagle silver coins to ten winners (one coin per winner) just like I did with the last giveaway.
- To enter, all you need to do is leave a comment below with your best piece of personal finance advice (no length or topic required other than that).
- Be sure to include your email address when you leave the comment so I will know how to reach you if you win (the email address will not be visible to anyone other than me).
- The winners will be drawn at random from the commenters.
- The drawing of winners will be held on Friday, July 14, 2017 and winners notified by email soon thereafter.
- As with most giveaways, there are rules. Here they are.
Good luck!!!!
BTW, if you’re looking for a great place to buy silver or gold, I highly recommend SD Bullion. I couldn’t find better prices anywhere and their service has been outstanding!
Automate payments into investments so you aren’t tempted to spend more than your budget.
I agree best way is put on auto and constantly increase the percentage.
Some call retirement financial independence but it’s really buying your freedom. Save, save and save!
My best advice to anyone who wants to be in a better financial position is to set a personal goal, one that is obtainable. Review your Goal periodically, do not be reluctant to change your goal, and save money to meet your goal. Start early in life and readjust yearly. When you meet your goal, increase it to a higher level. Never stop saving.
Always pay yourself first! I do this through work TSP retirement savings. Then with my paycheck, it is all automated. I’ve got my budget plan on Mvelopes so money is divided out into many multiple envelopes for any possible future costs in less than a minute. All my net income is automated with bill paying and with savings. Everything is automatic and the only time I adjust it is either when a bill amount changes such as mortgage payment when property taxes or homeowners insurance changes or I get a pay increase then the automated savings is increased. Smooth sailing for paying mortgage, credit cards and investing in Vanguard Index fund along with adding to my Emergency Fund in high yield savings account on a biweekly basis. As David Bach said “Automatic Millionaire”!
Go to the cheapest school possible. Ivy’s aren’t worth the 50k/ yr price tags
I went to state school (3.8 gpa) and my sister went to Duke (3.4 gpa). Her access to connections, networks and opportunities is invaluable. In my job network, Ivy’s are promoted faster. Over time top performance will out weigh college of attendance, but when you have access to a different start via networks, the playing field is already different. My first job out of college – 36k. Hers 60k. I’m already playing catch up out the gate.
She’s getting her MBA from Harvard Business School. You think the kid out of a state college with a MBA is making an equivalent starting salary?
I agree school does matter, especially early in your career.
I think the same kid would do equally well wherever he went without the high price tag.
I’ve always tried to pay the least amount of taxes possible. Strive to break even at the end of the year. Big tax returns only mean that you gave the government an intrest free loan.
Live within your means. That means to pay off debt ASAP, choose your housing based on your budget not your desires, and drive a car until it won’t run.
The best advice I was given is to start saving and investing as young as possible. As you get a pay increase increase your contribution, you have already been surviving on less so invest more you will not miss it but your investment and savings will start growing even quicker. Being newer to investing this has given me a chance to have money to invest.
Money isn’t your most valuable resource, time is. You have an unknown but most certainly limited amount and money is merely a representation of time. When you earn money, you’re turning your time into money through labor. When you spend money, you’re turning someone else’s time into money. Saving money isn’t about getting a bigger number on a bank balance, it’s about gaining more and more of your future time back.
Time is more valuable to me than money. I can always earn more but I can’t earn more time, though a healthy lifestyle increases the quality of the time.
Learn about the magic of compounding interest and then act on that knowledge, investing as early as often to reap the greatest benefit.
Make saving automatic. Have 401k, IRA, and emergency savings come straight out of your paycheck. The less you need to do to make this happen every month, the more likely that it will happen.
Live modestly. Amassing wealth is not just about making a high income, more importantly it is about how much of that income you get to keep. Setting up automated contributions to retirement and brokerage accounts is the easiest way to do this.
Monitor your monthly budget and see if there are any expenses you can cut, while it can be difficult to reduce your transportation/commuting cost never doubt the power of the brown paper bag.
Never giving the impression that you’ve amassed wealth by buying status artifacts
The best investment is investing in your career – especially at a young age.
Don’t keep a balance on your credit cards. Only charge what you can afford to pay off at the end of the month. Get out of all debt as quickly as possible. Save Save Save!
Live below your means and avoid lifestyle creep as your career grows. This allows for an increasing savings percentage and sets you up for those unexpected turns in your life. It is much easier to fund $30-50K of spending than $100K+ when you experience a job loss, unexpected illness, etc. Don’t live on the edge of your ability to fund your lifestyle – it adds enormous stress and any disruption can have disastrous consequences.
Invest early, often, and consistently; hopefully in low cost funds.
Always take advantage of the company match in your 401K – don’t leave $ on the table.
Best piece of financial advice – Always remember that time can work for you or against you.
I remember a time when I could not imagine hitting a specific number in my retirement accounts. I won’t say what that number was, but it had a lot more zeroes at the end than I could ever see myself accumulating. I started out at roughly half that number, 12 years ago, and I recently hit it. This includes a large loss from the financial crisis, a layoff and 9 months of being unemployed, and several significant health related expenditures that were unplanned. The secret to my success? Set it and forget it. While I was tempted to pull money out to cover some emergencies, I managed to leave it untouched. The thrill of hitting that number has inspired me to pick another goal number!! In this case, Time (and patience) truly was an ally.
Pay your tithe, pay yourself and then spend as wisely as you can on what is left.
“A journey of a thousand miles begins with one step” Chinese proverb
A financial journey begins with that first step and multiple little steps afterward.
Step forward in Earning
Step forward to Saving.
Step forward to Investing.
Step forward in Education.
Step forward on a path toward a goal.
Step up to retirement savings.
Step up to responsibility
If you are stepping backward, correct yourself and move forward.
TRACK YOUR NET WORTH!!!!!!!!
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(also, become a coin collector so our hobby doesn’t die out, kthxbye!)
Tithe 10%, save/invest as least 10% and then life off the rest. Live within your means.
Pay yourself first. Make investing and saving an automatic withdrawal from your paycheck so you aren’t tempted to use it someplace else. It will become a habit just like paying the grocery bill.
Tom @ HIP
Never use your pay raise to buy more stuff, put it away and continue to live at current income level.
Pay yourself first and let compound interest do its thing. “There are no shortcuts to any place worth going”
Earn high, spend low and aggressively invest the rest in yourself, your experiences and your investments.
Pay yourself first, preferably to a 401k. The money is directly deposited into the fund so if you don’t see it you won’t spend it. The tax break is helpful and even better if your employer matches a percentage of your contribution.
Live below your means – you don’t need it or have to do it just because your neighbors/friends/coworkers do.
Dividend stocks provide current cash flow in addition to potential appreciation in value.
Pay yourself first by investing a high % of your income from day #1 and put raises towards investment not lifestyle inflation to get to a 50%+ savings rate.
And, watch silly/unnecessary purchases when young:
Me: dad, why did you not discourage me from buying a $30k new car on a starting $42k salary
Dad: everyone messes up on their first car purchase.
At a minimum, save 10% of your income. give away 10%, live on 80%.
Be sure to have multiple steady streams of income. This way will secure you’re future and prevent having to seek for loans if one of them fails.
Set up and put at least $1000 ($2000 is probably better) in an “emergency fund” savings account. You never know when there will be an unexpected medical bill, car repair, home repair, etc., and funding this reserve will prevent you from having to use credit card debt to pay for it. And then make sure to define what an emergency really is, so that you won’t be tempted to use it for other things.
When I first got out of grad school and started to pay back my student loans, I found it very simple to open a second account, pull money from each pay check from students loans and put it in that account. This way, I never saw the money going to student loans and it made it feel like it wasn’t more than it actually was. I’m about three years into this method and I have slowly increased how much I contribute to that account so that I can pay off my student loans sooner.
Understand the difference between short term risk and long term risk. Do not confuse the two. For example:
1) Cash is an extremely risky long term investment that will likely leave you well short of your retirement savings goals and way behind inflation.
2) Equities are an extremely risky short term investment that may rapidly deplete that house down payment that you parked in the S&P 500 for 18 months.
save, Save, SAVE!
Have a backup plan in case of a gap in earnings. First a rainy day fund. Next a home equity line of credit. Last option is a balance transfer to a credit card.
Get a financial education! It should be required in schools, but it not. It can be anything, blogs, books, etc. This education will set you apart from 99% of people. Better yet, teach your kids about money.
Do not follow the ways of the world —- STAY OUT OF DEBT!
Have a good accountant you can trust and have review your taxes every three years or so but Turbotax is a much cheaper solution and so easy if you haven’t used it you’ll be surprised. I’m not endorsing Turbotax so much as any online software I am sure H&R Block’s is good too, I’ve just always use Turbotax.
My parents taught me by their actions to live below my means. I’ve always viewed it as one of the most valuable live skills I have.
Live below your means, don’t worry about what the Jones are doing. They’re in a never ending rat race.
Save as much as you can as soon as you can. Get into the habit of spending less than you earn and you’ll quickly realize you don’t miss the excess.Start this on day one of your job and never look back. 20 years later you’ll have hundreds of thousands of dollars in the bank.
Pay off your debts, it took be 18 months to realize if i applied large amounts to my credit card balances, I closed them, I only keep one card. It’s a wonderful feeling to only have to pay mortgage and utilities each month. Also work hard to re-negotiate/reduce your utility bills.
Don’t expect lotteries, random giveaways, or kissing butt to pay off; rather earn, save, and invest.
Have a budget, any excess cash invest or save. Determine what you need from your paycheck each month, all others should be sent to 401K or direct deposited to a money market or savings account. For me, if it’s not in my checking account, I don’t touch it.
Track your net worth regularly. (I pull my balances at the end of each month and track 2 numbers – net worth including and net worth excluding my condo.) There will be some fluctuation along the way, but it’s very motivating seeing the numbers go up over time!
Take responsibility for your finances. I am in my mid-20’s and am surrounded by people in massive debt, which in many cases can be OK, but to think you are not in charge of that or someone wronged you with that is unhealthy, wrong, and debilitating. Educate yourself to find that balance between no debt and good debt, and make a plan to get off of debt as soon as you can.
I like the 20/80 rule. Tithe 10% and save 10%, then learn to live of 80%. Also make your saving an automatic deduction from your check.
I prefer to save 80% and live on the remaining 20%.
Each month or pay period have $ diverted automatically into investment/vacation/emergency/savings account. Then live within what you have left. Food is a major expense, don’t eat out as much, cook at home, more nutritious, more cost effective. Don’t buy cars with all the big expensive items and bells and whistles. That saves substantially in gas also. So often I see 1 person driving a huge SUV–lots of wasted $ for space you don’t use, and gas. Start this
early as soon as you have income. So many people wait and time flies. Read many finance blogs. Each one has a little different information and will nudge you into focusing on money, savings, investments etc.
Start saving for retirement as soon as possible and with any amount, and keep it up for your entire working life.
The best reason to save money, is to use that money to work for you. You spend your early years working for money, when you have a enough of it together, you can then have your money work for you.
Invest young and invest regularly, don’t wait!
Align your investing risk to your timeline for needing the money. Trying for home runs every time leads to many strike outs. Let compounding increase your savings by not taking unrewarded risk.
Don’t fall in love with a hooker.
1. Build skills to earn more
2. Save/invest 80% of raises and 100% of bonus or extra income
3. Max out 401k or other retirement plans, set an allocation and forget it. $ cost average
4. Minimize fixed expenses. Get to zero debt as soon as possible
5. Track expenses and take action. Save 20% in addition to retirement plans.
The younger you are when you start to pay attention, the better off you will be. Which means if you are not paying attention, start now. Because you will always be older tomorrow.
The best investment in the universe is to invest on yourself. Yes… it can beat all stocks, mutual fund, real estate rate of return hands down. Invest on yourself by learning new stuff on managing finance and career.
Always remember tiny consistent efforts = huge results over time.
Stop dreaming , take action NOW and figure it out on the way.
Start with building an emergency fund then move into automated investing. Invest in low cost ETF’s while diversifying for the long term. Start as soon as possible. Finally, don’t watch the market! Dollar Cost Averaging is going to be your best bet to build long term wealth.
Start saving early, make it automatic, and don’t touch it once it’s invested. Make the magic of compounding earn for you.
Never carry a credit card balance unless it is a strategic 0% offer and have an emergency fund. The piece of mind that the emergency fund gives it priceless to me.
I was told to buy well known dividend stocks like GE and General Mills. I was told hold them and buy more with the dividends. Do not sell them until you need the money or for retirement.
Or you could buy index funds to a cross sction of F500 and not take a major hit when GE sells off businesses or something bad happens in those single stocks.
Track every dollar of your expenses, income, financial assets, and debt. How can you be financially successful without knowing where you and which direction you are headed?
Divorce is expensive…pick your spouse with care.
(Married for over 30 years, but have a father and numerous friends who have proven this caveat, some more than once)
Best advice I received when I started my career: save 10- 20% in an investment account, maximize your companies contributions, every year when you get a raise put half of it in your investment account and enjoy the other half. Live within your means and save for a rainy day or emergency. I didn’t always abide by it all but we have a comfortable life as I enter the twilight of my career.
Live below your means. Begin early saving in a Roth IRA for retirement.
Spend less than you make…even if you earn one million dollars, spending two million puts you into a debt hole!
Pay your credit card in full each month, this way you are using credit to your benefit (collect points, cash back) instead of the credit card company using your interest payments for profit.
Don’t let “things” OWN YOU by overspending, this only adds more stress to your life.
When you need more money, there are two ways to look at it…you can earn more, or spend less = more money.
ALWAYS save some money monthly with automatic debit to a separate account, even little bits add up.
Choose the right spouse, someone who shares your values. Also, learn to ignore the “jones”, they are usually broke. Focus your money/time/energy on things you value and don’t just buy things to fit in. Think long term, not short term.
Teach your kids about money, investing, and saving at a young age. Teach them the power of compounding and the folly of wasting too much money on buying the latest gadgets. It is incredible how ridiculously spoiled the kids are in our schools – a great lesson for your own kids to understand why such waste robs them of their future earnings potential. Work with your school district to implement a finance for kids program.
Marry someone with your same values and goals. Live by theses values and goals, and teach these to your children.
Kat
Save save save
Any time you get a raise in salary, bump up your 401k /savings contribution – you won’t miss the added money as you’re already living on your current salary!
Live by your budget, including paying yourself first to 401k, ira and savings. Check it regularly and update annually. 5 years before retirement, like I am, live on your forecasted, realistic retirement budget to adjust early.
Set a series of goals, small ones at first, once you reach them,move on to the next one
Pay yourself first.
Stay away from actively managed funds and focus on low fee index funds.
+1 for this great advice. Just checked my small cap vanguard index fund this morning and it’s up 19% this year.
Don’t fall in love with your company stock. You tend to lose your objectivity when it comes to investing where you work. Never put more than 10% of your money in it and evaluate that investment, and how long you hold it, just like you would any other investment. When it stops making sense because the criteria you used to rationalize why you bought it in the first place has changed, get out! Don’t listen to all the water cooler gossip and rumors from internal folks who are supposedly “in the know.” Solid investing fundamentals shouldn’t change simply because it happens to be the company you work for.
Save often and save early….nuf said.
Track what you spend. Awareness is the beginning of change. There are many great tools, Excel, YNAB, Personal Capital, Mint, a paper notebook. Find one that works for you. This works for things other than money such as food, relationships, really any behavior where you wish to bring awareness and change will benefit from seeing what is actually happening day by day, decision by decision.
“Love not sleep, lest thou come to poverty; open thine eyes, and thou shalt be satisfied with bread.”
Proverbs 20:13 KJV
Live below your means and invest the difference and read ‘Richest Man in Babylon’
My best advice after 40 yrs of investing:
Reduce risk by owning the stock market through index funds.
Small investors should stick with low-cost index funds. Fees will otherwise rob you of investment return.
It’s impossible to compete with the professionals who have more access than the non-professional. Besides, few professionals have a record of beating the market return over the long-term. You’re in it for the long-term, right?
Don’t try to pick winners. The goal should be to own the market which always does well over the long-term.
Also, periodically investing in index funds achieves the lower risk approach of dollar cost averaging
Pay your future self first and start early
Make your money work for you. Invest early and often because time is on your side.
Pay Yourself First…At Least 10% Of Your Paycheck…Invest It In A Low-Cost Index Fund With Vanguard And Use The Magic Of Time To Watch It Grow 🙂
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” — Aristotle
As is investing. Set it and forget it. Automatically fund your retirement and treat the money saved as money that was never yours to spend in the first place. (Until you can kick back and truly enjoy it in your retirement).
Find a great mechanic. Pay cash for a car. Hold onto to it for 17-20 years. Maintain liability insurance, but eliminate collision & comprehension once the value of the car declines. Stash the savings through the years. Then pay cash for the next car and hold it for another 17-20 years.
Agree with all the above comments here is something a little different…Consider a side hustle…sell on Ebay, rent out a spare room on AirBnb, house hack, consider real estate investing, listen to Bigger Pockets and Bonafide Hustler for inspiration and ideas.
Live on less than you make and invest the difference. Compound interest is the 8th wonder of the world, so don’t miss out on it! Also, stay out of debt, and automate savings.
Automate saving and investing as much as possible.
Look around at what the majority of people are doing… and then do the opposite!
My raises go into the 401k. I definitely automate everything I can. It’s better if I don’t even see it. Never get a car loan. Pay cash. Set aside money every month for the next car.
Live within your means. It may be tough now, but the financial freedom you will achieve in the future will be well worth it!
Live well below your means and save the rest. Start early and save often.
Never pay full price and always check online before buying bigger ticket items.
If I look back on where I have fallen short, my number 1 piece of financial advice would be to start saving for retirement as early as possible. Max out your 401k if you have one, and if you are seeking a job, make sure that you work for a company that has one with a good match. Most of all (and here is where I went wrong more than once) NEVER, EVER touch that money in your 401k / retirement. If you have an emergency, get a 2nd job, or borrow from someone or somewhere else. There is POWER in compounded interest, such that most people never recover from robbing themselves of their retirement money. If you try to recover & rebuild a retirement nest egg in your 40’s or 50’s, time is NOT on your side and you will miss so much opportunity for growth which could have come via compound interest.
Live within your means
pay yourself first
allocate 50% of salary increases to investments
be ready for opportunities; i have experienced opportunities are always there, you just need to be ready to take advantage of them.
teach your children the value of $1 and compounding
Spend less than you earn!
Share your financial knowledge, talk about money with your spouse, family, friends, neighbors, the clerk at the grocery store, etc.. Spread the word to anyone and everyone who will listen. We have come so far with technology but have barely moved out of the dark ages when it comes it talking about money. It is not taboo, it is life altering. We can change the world, one financial tip at a time! Thank you so much ESI for changing my life!
Consider risk/reward, both short term and long term.
Consider path of “least regret” – how will I feel about this (each) decision in the future?
I think you need many pieces on your retirement chess board. 401K, Roth IRA, DRIP stocks, real estate, metals, and other income producing items. You never know what be down and the others will cover for it.
Make a budget and track it monthly!!!
My best advice is to institute a waiting period before making any discretionary purchase. Often I will completely forget about something I saw while shopping within an hour or two of leaving the store. Perhaps make a list and look at it a day or two later to see if the prospective purchase is still important to you.
Save until it hurts and then save a little more.
Don’t try to keep up with the Joneses . . . they are broke! Instead, save and invest as much as possible, as early as possible. Also, invest in your own financial education because no one cares more about your money than you.
I’ve tracked, on a daily basis, our total portfolio value and net worth for well over 25 years (fortunately our investment buckets are few so gathering the daily summary information was easy — a few minutes a day — not granular information but summary). I did / do this in Excel. Why? 1) See our wealth grow visually over an extended period of time, 2) see how the markets are impacting our investments, 3) know that our buy and hold strategy works well (almost all the time), 4) use the information to make informed proactive wealth building decisions (asset allocation, investing decisions, etc.) as opposed to ill-informed reactive wealth destroying decisions (been there, done that), 5) know that we are doing a fine job taking care of our financial futures (better than virtually all advisors IMHO :)), and 6) retired on my terms when I wanted to… without fear.
Best advice I ever received was to keep a budget and track all cash flow, coming in and going out. The advice I wish I would have known earlier is save earlier to take advantage of compounding interest.
Always enter free giveaways because money matter but don’t bet on winning lottery to be your 401K 😉 (nor the house…)
Educate yourself about money. You can’t do what you don’t know. Then, when things are working for you, teach you kids. It is the best gift you can give them.
Remember that you will die one day and that money will not come with you! That day might be tomorrow or 50 years from now. Learn to enjoy the day and not over-agonize over the future. Prepare for it, yes (automatic savings, investing, live within your means… lots of good advice there), but do not deny your life for a hypothetic future that might or might not exist.
Spend less than you make. Invest and save the rest for decades.
“Whatever your income, always live below your means.”
-Millionaire next door.
Spend less than you earned.
For a new starter, build your financial source stable (emergency fund, cash flow etc) first then invest (401k, stock, real estate etc)
Learn to be content. That makes all of the other good advice easier to take, such as living within your means and regularly saving and investing. Also avoid materialism — much easier to be content with what you have if you aren’t always eyeing the latest and greatest product, gadget, status symbol, etc.
Practice gratitude each day – keeps me present and mindful of all the blessings I do have in my life both big and small….I am nearing retirement and have been successful in creating a significant nest egg…..here’s what I have learned and what has worked for me over the years:
Establish what your goals are for living the life you envision presently and into the future (review your goals/needs regularly for any of life’s changes, adjust when necessary)
Don’t live above your means (I drove a Honda for 12 years before replacing it)
Plan a budget and stick to it (allowing for enjoyment of your money without going into debt)
Start early, pay yourself first, ALWAYS, no matter what the amount and do it consistently, diversify investments, make it automatic (pay raises went directly into savings), let your money work for you (company match-free money)
Invest in yourself – learn about money…investing, saving etc. and teach your children
Last but not least….SALES SALES SALES, I rarely bought anything full price unless it was needed (think thrift/consignment shops) saved me lots of money over the years!
Never pass up a chance for free money.
Not all players are given the same set of variables in life but at the end of the day, you make up the biggest determining factor in your own financial position in this game. You may dream of wealth, disregard the options it provides, play ignorant to its rules, or make it a reality. Once you realize this truth, and decide what you want, you can make decisions that are in agreement with your values.
Marry wisely. Make sure that you and your spouse/partner are on the same page with regards to financial goals in life. Divorce is a weapon of financial destruction.
Stay up to date with tax laws so that you can take advantage of every possible tax break or incentive.
Definitely set a budget which includes expenses and other outflows. Also include an area for cash inflows to arrive at net cash to provide a view of what you can invest, spend, save. Then track against this monthly.
Marry well; choose a like minded spouse, develop and adhere to the same goals, stay married, or marry a rich woman!
+1 on pretty much all of the above. Also, when looking at wants vs. needs, consider the opportunity cost of that “want” you think you “need”.
As J. Money and others have said…track your net worth! I saw my path to FI as a big project, and every big project at work has a project plan. If you don’t track your net worth over time, how do you know how you are progressing? Ask yourself one simple question. What was your net worth at the end of June 2017 compared to June 2016? If you don’t know, then you don’t know if you are saving and investing enough. Also, you don’t know how much you have progressed towards your goal. Tracking has a couple other benefits. One, it gets you excited and motivated to see that number grow, so you’ll automatically have better FI behaviors. And two, you’ll be less impacted when the market pulls back. The news will scream at you…the market is 10-20% down from the high. But you’ll see your net worth isn’t down that much because not every dollar you have is in US equities. And by comparing year over year net worth, you’ll realize you are still moving in the right direction.
My best piece of advise is to make as much money as you can while also saving as much as you can. It’s not for the love of money, but for the freedom that it can buy.
Plan for your retirement on your first day of work – that provides the longest time to reap the benefits of compounding, dollar cost averaging for your 401k contributions, and working your investment plan. I started my 401k at the minimum to obtain full company match (6% for 100% match) which immediately doubled my contribution. Increase by 1% or more each year or each raise until you max out. In parallel, start monthly investments into index or no load funds. This can be a future source of money if needed and reduces the temptation of borrowing against or withdrawing 401k funds. Once the 401k is maxed, increase your index fund investments annually. Of course, you also need an emergency fund outside of your investments.
On the spending side – don’t spend more than you earn, don’t use credit cards unless you can pay off the balance every month. That is especially true for using a credit card for a vacation. Never use a credit card for disposable items – meals, gas, hotels, etc. unless you have the funds to pay them off at the next payment. You will have a difficult time reaching your financial goals paying double digit interest on bank card balances for items that you no longer have by the time the bill comes next month. When you pay off your car or your house, continue making payments to yourself. Use the car payment continuation balance to pay cash for your next car or significantly reduce the loan amount. The house payment continuation is a fantastic monthly investment to build your portfolio.
Cliff notes version:
Start as early as possible, make a plan and stick with it.
Get out of debt and stay out of debt.
Don’t increase your standard of living as debts get paid off – use those payments to prevent future debt by continuing to pay them to yourself.
It worked for me as I just retired at 58 last August and am enjoying life, grandkids, travel, and tinkering around the house.
Max out your 401k as soon as possible – if you can do it in your first job out of college (I know it is difficult) – your ‘living’ salary baseline will be much lower, however, each year when you get a raise or promotion, you will see a salary increase and you can decrease your contribution % – which translates to 2 raises per year.
Eat ramen and save save save! ha ha j/k
Early retires and others: Take advantage of the 0% capital gains rate is available only to individuals whose earnings place them in the bottom two tiers of the IRS’s tax bracket. That means your taxable income must be below $75,900 for married couples or $37,950 for individuals for 2017, and you pay no capital gains on investments or sales of appreciated assets. If you do not need the money, reinvest it and get a higher tax basis.
Live like a resident the first few years out of training (for the medical community) or live well below your means. These first couple of years out of training can make or break a financial future. Paraphrased from WCI
Best piece of advice I learned was to pay myself first with automation in order to tuck away money before I even see it.
0. your college major, choice of career matter pick wisely.
1. save early and start w stocks, mutual funds, lending
2. first major purchase should be rental real estate and keep adding to it
3. avoid debt or pay it off early
4. try different financial newsletters/meetups/blogs and esp international ones that you can learn from. i get better returns/opportunities to invest outside USA
The best advice I’ve received is to just spend less than you make. That will solve ~90% of the problems people run into financially speaking.
Start saving early so you get into the habit of living on less.
Spend less than you earn.
Always live under your means. Fight that temptation to keep up with the Jones’s.
Slow and steady wins the race – earn, save, invest!
Always strive to improve yourself: education, job skills, financial knowledge, dance moves…. I am baffled why people don’t take advantage of educational assistance when it’s available from employers. My employers paid for Master’s engineering degree and an MBA, both at top universities, and professional certificates. The additional skills produce additional income through promotions and access to better jobs. This income tends to compounds just like savings do and it’s easier to save a bidder percentage.
So find out what educational resources and assistance are available at your employer and take advantage of them. In my opinion spending nights and weekends on education and self-improvement will pay higher dividends over a lifetime than driving for Uber or other low paid hustles.
Spend less than you make. Get out of debt and stay out of debt.
How much you invest and how long you leave it invested for are more important than what fund you invest in.
Always be better than yesterday.
Work hard to build up your career, it is your biggest asset. Save as much as you can. Learn to invest intelligently in things that produce positive cash flow (stocks, bonds, rental income, royalty income). Repeat the process for many years until your passive income is greater than your normal living expenses. Live well and do right by treating others well and give back.
-Mike
Save early and often!
Marry a frugal spouse!
Always pay yourself first. Make sure to save and then invest your money right when you get paid, use the remainder for living expenses.
I would say to have the philosophy to have your money work for you! Start basic with low lying fruit. Open a second checking or savings account. Several banks will give you $150 or more to open an account. Just don’t forget about credit unions! I have an account earning 1.25% interest. As long as I deposit at least $25 a month for 1 year, the APR doubles to 2.5%! It’s a rainy day account that you can only withdraw twice a year. This teaches patience. You open the account with very little money.
Have a “rainy day” fund in a separate account that covers at least 2 month’s expenses. Ours should capably cover 4 months. It always gives me comfort!
“There is no dignity quite so impressive, an no independence quite so important, as living within your means.” – Calvin Coolidge
Don’t buy stuff you don’t need.
Spend less than you earn.
Discipline + Time = Success.
Spending 15 minutes a day learning about investing will get better results than winning the lottery.
Because you will know what to do when you win, once you win, after not quitting.
A bill is like a crying baby. Tend to it sooner rather than later.
God owns it all, so be a good steward.
Matthew 6:24
“No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.”
Give first, save second, live on the rest. A very biblical view, which always tends to be wise.
Money is inherently neutral but we add a lot of emotion to it. I think one of the most important things to do is to first understand our Relationship to money. This is learned as a kid as we watch our parents spend or save, worry or relax about money. Once we understand our own relationship to money we will understand that it is just one more tool available to us to care for ourselves. The psychological and emotional piece is often what impedes our ability to save the way we know we should.
1. Always have a plan with clearly defined goals. Execute it – review often – automate saving.
2. Invest in yourself and always honor yourself by paying yourself first.
3. Finding the right spouse is better than winning the lottery:)
Remember that fear is a poor decision maker.
Persistence and automation are your best allies.
Keep your eye on the prize – financial independence:)
“Son, from the first job you have if you can save 15%, give 15%, I know God only asks for 10, but be an over achiever on this one, and live on the rest you will never be poor a day in your life. – My Dad
He told me that when he dropped me off to my first job at 16. I’ve been able to do it pretty much since. Whaddaya know Pops was right!
Read.
And then read some more.
If you want to ESI successfully, you need to educate yourself. If you educate yourself you will earn more, save at a higher, more effective rate, and invest in the right products for your different stages of life.
And don’t be afraid to take a risk. Find a partner, buy a home, take trips. Financial security is a tool, like any other. Enjoy creating that tool, then don’t be afraid to enjoy it.
There’s a big difference between living with the security of having money, and letting money be the goal, in and of itself.
Enjoy life!
Minimize your house and car expenses, and save like crazy. Let compounding interest do the rest!
Learn how to live on 70-75% of your pay regardless of how much your salary goes up. Use the 25-30% remaining to pay yourself first (retirement, emergency, ‘fu’ savings).
Also, don’t buy new cars!
We have always saved a lot, but it was a huge breakthrough when we learned about FI. Specifically that if we spend much less, we don’t need as much to retire early.
Never panic sell during a market downturn. Instead use this as an opportunity to add to your position. Patience is key.
An oldie but a goodie – pay yourself first. It makes all the difference in the world!
Pay yourself first. Even if its just a little bit it will help build the habit and ensure you at least have something saved.
Practice frugality early in life to become a millionaire soon.
My golden rule – become a shareholder.
There are 3 main ways to achieve this:
1. Start/own your own business and have a significant equity stake
2. If you are an employee of a large organisation, amass as many shares as possible in that business through stock options, incentive schemes, bonuses etc.
3. Buy shares in larger listed companies either individually, or collectively through managed or tracker funds
“Spend” most of your money buying “things” that will in turn buy “your things!”
What? I don’t get it…
spend on investments so your investments will pay you
Use will power to control your big ticket item costs (housing, transportation, job) and enjoy all the small stuff (organic groceries, lattes, beers out with friends), the rest will take care of itself.
Live below your means, start early with a plan, create a habit of saving, be consistent, invest in yourself for your career, read & educate yourself on different investment options. Develop an asset allocation that you are comfortable with & don’t put everything in the stock market. When the stock market pulls back (and it definitely will) use it as an opportunity to buy quality dividend paying stocks. We paid extra on our mortgage, which saved us thousands. House was paid off at 35, then we started maxing out our 401k’s & doing Roth IRA’s. This has allowed us to put 2 kids thru college (masters degrees) with no loans, pay cash for cars & give us peace of mind that we will be OK, if something happens at work (priceless).
Spend less than you make!!
Shop around, use coupons and store rewards. Give up nasty habits like soda, cigarettes, booze, drugs. Pay off your mortgage and invest in your future!
Btw- I ended up here through Life and my finances blog ?
Money makes money… so when you have some money, even a little, start to put it to work, compounding is powerful.
Make a list of your actual priorities. Then track your spending for a month or two and cut out anything that doesn’t help you concentrate on those priorities and future. And remember to budget in time for fun along the way.
A true story:
The father of 10 children was imprisoned
and tortured to death by communists who took power.
His family riches, lands and houses of 25 generations were seized.
The mother scrapped enough to get the eldest son flee the country
by boat to a far away land.
The eldest son was 17 when arrived in the far away land.
He toiled at small odd jobs for years.
He taught himself english, french and 2 local dialects.
He started a small retail shop.
He married at 31.
His small business flourished.
He was happy in his new country.
He bought land and had a house constructed.
He sent money regularly to his family in his homecountry
where retaliation and famine were widespread.
One day he discovered his pretty wife had an extramarital affair.
He was heartbroken, wanted to leave wife and country.
But he stayed due to the wife’s family pressure,
and especially due to his 2 little girls of 6 & 5.
Things patched up and some years later a son was born.
The pretty wife was still pretty but still unfaithful.
The small business dropped and went bankrupt.
Our sad hero had to sell his house to pay his debts.
He had just enough left for the downpayment
to buy the old retail shop that he was renting all these years.
The pretty wife was still pretty and had other affairs.
Our sad hero had a breakdown and 2 strokes over the years.
One day when better, he took suitcase and a flight ticket to the airport.
But the children saw him back in the old small shop cum family house.
He had a 3rd fatal stroke at 58 yrs.
His little girl of 6 was 25 then, had him buried according to the local customs.
The pretty wife was still pretty and led her life as usual.
Housekeeping, cooking, looking after her children
were not her interests.
The little girl of 6 took care of her siblings,
and the old small shop and house which always needed repair.
She sent younger brother to college and university,
Looked after younger sister after a bus accident
and helped her in her physical reeducation ;
later ensured younger sister get a stable pensionable job.
At
18 The little girl of 6 started to work in a factory.
20-23 paid off the small old shop cum family house.
30 got married to boyfriend met at 18.
30-36 paid off a condo joint with husband
33 had a baby after 2 years of fertility treatment.
40 – had the old family house renovated for younger brother’s wedding
41- gave to younger brother part land of family estate to build a studio.
41- 45 bought & paid off a house solo ; went to university on saturdays.
45-today pays medical, care, household expenses of bedded mother
paralysed after a stroke
51 partitioned the family estate for younger sister.
18-50 worked up the ladder till senior management as head of 2 departments
of 60 white collar employees; travelled to Europe and Asia for work
51 left corporate world to try reconnect with self, son and hubby.
52 (2017) works part time from home, builds passive income.
53-55 (2018-20) financing son’s university studies.
56 (2019) FI . Projects to bring Sad Hero soul back to his birthplace
as per ancestral customs .
It will be symbolical to add a Silver Medal in his memory at the altar.
Hard lessons learned & practised as per above story:
Acquire and Monetise Skills.
Avoid debt, Live below your means, Save and compound the difference.
Invest what you can afford to lose.
Live at Enough. Share. Get rid of grudge. Move on. Love. Gratitude.
Believe in Time and in the flow of Life.
Uphold Democracy.
Best,
The little girl of 6.
Best Finacial Advice:
1) Carefully and thoughtfully create a prioritized, chronological list of no less than five, and no more than seven, financial goals; ranging from those which must be accomplished really, really soon and are essential to you living a quality life (at least the first three should be like that) to pie-in-the-sky fantasy-type goals.
2) create a detailed budget inclusive of automated savings and/or investment contributions going toward at least the first three prioritized goals.
3) the next shiny object that catches your eye, tell yourself “it’s not part of the plan, Man!” and “You don’t need it.”
Mind your money, don’t let it mind you; tell it what to do and when to do it – save and invest first, early and often, and then spend what’s left consciously
“The most powerful force in the universe is compound interest” – Albert Einstein
A) always have a 3-month income “nest-egg” in case hard times comes knocking
B) buy low-sell high…..BUT NOT when everyone else is. That’s when you buy more……and then forget about it
I wrote earlier about my one piece of advice. I said to track your net worth over time. Over the weekend, my wife and I listened to the latest MadFientist podcast where Brandon interviewed Steve at Think Save Retire. Brandon asked Steve what’s his best piece of advice. I attached the quote below. I think the quote highlights maybe the most important piece of financial advice…you simply need to want it bad enough. All the FI people here would agree…FI doesn’t happen overnight. It doesn’t happen by accident. It takes years of discipline and patience. It must be a priority in your life. You’ll work hard, save, and invest. The only way you’ll accomplish FI is to be committed to it for years. You must want it more than any BSO (bright shiny object).
Steve: One piece of financial advice I would have is you need to want it bad enough. That’s it! Once you want it bad enough, all the other pieces just fit into place. You’re motivated to downgrade your cellphone or not upgrade your phone every year. You’re motivated maybe to cancel cable or satellite TV. Maybe you don’t need ESPN, maybe you don’t need the movie channels, things like that.
If you want it bad enough, the pieces often fall into place. If you don’t, then it’s probably going to be a little bit more of a struggle.
http://www.madfientist.com/think-save-retire-interview/
Buy and hold until you need the money….
Siad to often, but not heard often enough: Eliminate debt and never go back to it. Debt sucks your earnings away in exchange for the chance to own or experience something you should have paid for straight-up.
and even then, I may pay cash for something expensive, but the question is, do I really need it? We bought a couple pieces of art several years apart and they aren’t horribly expensive, but I would have an extra $3,300 dollars if I didn’t purchase them, but again, life isn’t worth being miserable if you can’t buy some fun things. But if you haven’t saved for retirement, those type of items can keep a person from saving enough. Once we retire, I will probably cut back on some things, but if are going for a 3.5%-4% spending of our portfolio and it is $200K a year we can spend, I can find a ton of things to blow money on. I bet our first few years we will still be in a $90K-$125K spending pattern and start to rachet up the travel spending going forward. If I have $6M, I won’t be concerned about spending $400 a night on a hotel vs $200 a night….
Spend less than you earn
The best advice I was given is use cash, stay away from credit cards. They will drain you dry.
Take (and make) the time to attend a class on personal investing. Best use of my time as a 25 year old (many years ago). Being an engineering grad, we were not taught in college about investing. My parents were of the mindset to only put their money in low interest CDs. They didn’t believe in the stock market. Taking the investment class opened my eyes. Now 26 years later I am a millionaire.
Stop caring about material possessions. Then you will inherently save so much of your income.
Any advice on what to do with elderly dad’s coin collection? He is 79 and wants to get rid of it. Has collected coins since in his 20’s. Has hundreds of coins, none likely too valuable, most are silver dollars and similar. Doesn’t need the money but hate to just sell the whole collection for minimum. Any advice is appreciated!
Contact J Money at Budgets are Sexy. He’s a coin collector and will probably have some thoughts for you.
a balance portfolio is more important than an Index stock fund.
Don’t get your investment advice from anonymous people online who tell you to trust only alternative news sources. (Yes, there is a story behind that.)
This giveaway has ended.
The winners are Paul, Kelly, Rob Tosti, Scott, Mark G, Ben E, Matt, Ben, TR, and Jeff B.
There may be more than one of these names who commented above, so you’ll know you’re the right one if you get an email from me. Be looking for it.
Congrats to the winners and stay tuned for more giveaways!