your one, golden piece of advice you would share

**disneysteve** · 10-02-2009, 03:40 AM

I think the single most important advice is this: always live below your means.
If you get in the habit early of never spending all that you make, you will always have a reserve, savings to carry you through rough spots or to build up for wants like travel or buying a home or retiring down the road.

**kork13** · 10-02-2009, 04:00 AM

Originally posted by disneysteve View Post

I think the single most important advice is this: always live below your means.

Totally agree. I would also add: Don't spend your money just because you have it. I know alot of people that "live below their means", but then after covering all of their living expenses, they see they have extra money in their checking account, so they go out and blow it on something they've "always wanted".

**zetta** · 10-02-2009, 06:20 AM

Start saving and investing early. When asked to name the greatest invention in human history, Albert Einstein simply replied "compound interest."

**reallyprettyhappy** · 10-02-2009, 07:00 AM

I'm going to think about this one more today and maybe come back later with something more useful, but for now I thought I'd just add the first thing I thought of. I don't think I'd bother talking to them about retirement. I can just see their eyes glazing over and you've lost them...it is just something so far distant for them and so abstract. I'm only 26 now, and I do save a lot for my retirement already, but only because I'm in the position to do so comfortably. And also because I feel this weird sense of guilt and irresponsibility if I don't. I don't do it because I really want to, or because I think I'll be eating cat food in 40 years. I would maybe focus my energy on issues that are much more current for them...cars and college. There is a whole world of finance wrapped up in those two things. Cars, you can go into tons of advice about saving up and buying what you can afford. College, my biggest advice to any college kid is DON'T SIGN UP FOR A CREDIT CARD ON YOUR FIRST DAY JUST TO GET THE FREE T-SHIRT AND FRISBEE. (because that t-shirt and frisbee is not free. actually it will probably end up costing you hundreds or even thousands of dollars in the end.)

I had posted a thread about a month ago entitled 'If I had only known'...and got some really interesting responses from members. maybe see if you can find it and use anything in there.

I like that you are a magician. It is kind of like being an accountant.

**LivingAlmostLarge** · 10-02-2009, 07:02 AM

Hook up with a compatible financial partner.

You can't change a spender.

**EEinNJ** · 10-02-2009, 07:06 AM

Since you're a magician, you might be able to work in the idea that credit cards may seem like a magic way to get what you want with instant free money, but there's always a trick behind it.

**cschin4** · 10-02-2009, 08:05 AM

The Borrower is SERVANT to the Lender.

In other words, you will spend your life slaving away and working like a dog to pay for "stuff".

**swanson719** · 10-02-2009, 08:38 AM

I have to agree with EENJ and cshin. Never get a credit, period. And always remember that while you may earn interest on a bank account, you pay more interest on outstanding balances than you earn. The bank has to be able to pay interest to all it's clients off the interest it takes in on the few. So you want to be the one who's money the bank is using to loan to other people, not the one paying everyone else's interest.

**fruitbowlk** · 10-02-2009, 08:40 AM

1.Don't loan out money.
2.Save Save Save-for a house,retirement,car,etc. It's never too early.
3.Shop out of season for your clothes you will get them at a huge discount price.
3.User coupons
4.Read financial books and listen to financial cd/radio
5.pay attention to you money.
6.Don't keep up with the jones because you really never know how the jones are living.
7.Keep Personal Finance Software on your pc and use it.
8.Save your spare change.
9.Go to the financial classes your bank/credit union offer.
10.Don't buy book and mags. go to the library they are free to read and after a while they will become free to have.
11. Don't Date\marry a person who don't know how to manage their money.

**feh** · 10-02-2009, 08:42 AM

Other than a mortgage and student loans, don't take on any debt.

Other thoughts I had have already been covered by previous posters.

**disneysteve** · 10-02-2009, 08:51 AM

Originally posted by EEinNJ View Post

credit cards may seem like a magic way to get what you want with instant free money, but there's always a trick behind it.

Originally posted by cschin4 View Post

The Borrower is SERVANT to the Lender.

Originally posted by swanson719 View Post

I have to agree with EENJ and cshin. Never get a credit, period.

I disagree with never getting credit. The advice needs to be to use credit responsibly. There is nothing wrong with using a credit card to pay for purchases that you would be making anyway as long as you pay the bill in full and on time each and every month. People shouldn't be counseled not to use credit. They should be counseled to understand the terms and conditions and use credit to their advantage, not the credit card company's advantage.

So my advice would be: Never use a credit card to make a purchase unless you have the money to pay the bill in full when it comes.

**Ima saver** · 10-02-2009, 09:43 AM

I agree with Steve about the credit cards. I pay mine off each month and each month the credit card company sends me a check for at least $50 as part of it's reward plan. So, I pay no interest and receive back$600 each year from the credit card company.

My advice would be to save 10% of every dime you earn and start early. I started working at 12 and always saved 10% . When I would waitress, I would count my tips. Even tho I only made $20 for the night, I would save that $2 (plus any change) and add it to savings.

**cschin4** · 10-02-2009, 10:35 AM

Never get a credit, period.

Actually, I am not saying NOT to get a credit card. I have credit cards. I am saying don't borrow more money than you can pay back. I don't buy anything on CC that I cannot pay cash for. No cash to pay for it, then I don't buy.

**LuxLiving** · 10-02-2009, 10:37 AM

Spend less than you earn, save the rest. But Disneysteve basically already beat me to it.

The other is the G. Clason quote I have on my blog, and really good to remember as you start in life's financial journey.

"A part of all I earn is mine to KEEP!"

your one, golden piece of advice you would share