If you had to give a young adult one piece of financial advice, what would it be?

Personal Finance, Starting Out
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April 2017
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1) Start saving NOW! Utilize your company's 401(k) if applicable; if not, contribute to an IRA. Time is your friend, and the time value of money shows that the earlier you start, the better. Save at least 10% of your income, give away 10%, and live off of the rest. Invest in a diversified portfolio of domestic and international equities.

2) As part of the above, don't forget to also build up a stockpile of emergency money, this amount doesn't necessarily need to be some % of your income, but an amount that helps you sleep well at night, whatever that means to you. But it should at least be enough to cover the cost of new tires or some other potential unexpected expense.

3) Stay out of debt. Regarding home ownership, there can be benefits from buying a house, but there are a lot of expenses as well. And mortgage interest isn't necessarily deductible depending on your itemized expenses. You are given a standard deduction of $6,350 (double that if you are married), so don't buy into the "get a mortgage; it's deductible" hype that lenders (and real estate agents) like to say. Once you are a little older and more settled, then consider a house. Regarding other debt, looking rich by buying expensive cars and technology doesn't make you rich. It's not what you spend, but what you DON'T spend that makes you wealthy.

April 2017
April 2017
April 2017
April 2017