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Old 11-04-2014, 04:54 AM   #21
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What was the best financial advice you ever received and followed? Yes, I know, buy low and sell high.
But that is only half of the formula. The rest is "Collect early, pay late." (or put another way -- "A dollar today is worth more than a dollar tomorrow.")

Therefore the best financial advice I ever received was indeed; "Buy low, sell high, collect early, pay late."
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Old 11-04-2014, 06:03 AM   #22
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My former father-in-law taught me it's better to be paid rent than it is to pay it, and the benefits of claiming depreciation. Too bad his daughter had no financial sense.


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Old 11-04-2014, 06:11 AM   #23
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On the other side of this coin, the advice that I seem to end up giving the most often is:

"It's not how much you earn that's important, it's how much you spend."
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"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
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Old 11-04-2014, 07:00 AM   #24
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I was taken to a finance class by my parents at the age of 10. Factored in with my love for making excel sheets and it was quick to see that saving tons of money early in life could grow into an exponentially larger amount later on. After getting established after college I've come out swinging and hope to hit the 6 digits within 3.5 years of the real world.
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Old 11-04-2014, 07:16 AM   #25
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Parents were mostly a very good example of LBYM. Dad started investing in individual stocks in his 30s, so I got interested early. Best piece of specific advice: "A car is the worst investment you'll ever make." We've both bought stocks that have done worse, but anyway... I've always placed a fairly low priority on cars. Buy something average and dependable, take good care of it, drive it till it's no longer dependable. Rinse and repeat. I've avoided a ton of expenses by not buying (or, heaven forbid, leasing) a new car every few years.

I'm also grateful that I took an actuarial exam that required me to learn compound interest inside and out.
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Old 11-04-2014, 07:32 AM   #26
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My parents were both very debt-averse and were assiduous savers. Education was a priority for both my sister and I (both were college educated first generation Americans at a time when this was unusual...the 1920's and 1930's). I did not really start to think seriously about investing and expenses until after my husband died suddenly. Fortunately I had a few significant underpinnings to see me through to retirement at age 60: large nest egg left by husband, small invested inheritance from father, a good government job with a pension and guidance from a financially savvy aunt who also left me a chunk of money in 2011.
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Old 11-04-2014, 08:20 AM   #27
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But that is only half of the formula. The rest is "Collect early, pay late." (or put another way -- "A dollar today is worth more than a dollar tomorrow.")

Therefore the best financial advice I ever received was indeed; "Buy low, sell high, collect early, pay late."
If you take the pay late statement literally better be careful or your credit could get dinged, and that would not be good. Also, may not work very well in a deflationary environment.
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Old 11-04-2014, 08:29 AM   #28
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"Save for a rainy day, and never buy anything on hire purchase"

Mom, 1960-ish

Hire purchase = financing
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Old 11-04-2014, 09:00 AM   #29
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If you take the pay late statement literally better be careful or your credit could get dinged, and that would not be good. Also, may not work very well in a deflationary environment.
Why does everyone jump to the conclusion that "Pay late" means "Past Due"? "Collect early" means you want to be paid as soon as the amount is owed -- don't extend credit (except with enough interest to protect against default, of course). "Pay late" means you want to pay the amount at the last possible moment (without penalty is assumed).

Don't pay next month's bills this month is all it means.

Additional thought: "Buy low" doesn't mean "Insider trading." Nor does "Sell high" require (or even suggest) fraud.
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Old 11-04-2014, 09:02 AM   #30
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"Pay yourself first" and "You'll never get your financial life in order if you don't have your tax life in order", or words to that effect.

From none other than CJG himself, in the late 80s. As much as that man was maligned, he did make me pay close attention to my taxes, and thus to my finances. Which forced me to not only educate myself about investments but to DO something about them. That single step led me to FI and hopefully to ER in the next year or two.
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Old 11-04-2014, 09:04 AM   #31
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The most important advice we ever got wasn't strictly financial. We always lived within our means, and it wasn't the mechanics of reaching FI that really did it for us, we've known that from the start.

Only when we fully grasped 'the most important things in life aren't things' did our progress toward FI really accelerate. When we were younger we aspired to nicer things, but fortunately we resisted mostly. Now we're amazed at how little we need (material possessions) to be happy. Sure we give in to little splurges from time to time, but living well below our means is the greatest reward.
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Old 11-04-2014, 09:10 AM   #32
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Why does everyone jump to the conclusion that "Pay late" means "Past Due"? "Collect early" means you want to be paid as soon as the amount is owed -- don't extend credit (except with enough interest to protect against default, of course). "Pay late" means you want to pay the amount at the last possible moment (without penalty is assumed).

Don't pay next month's bills this month is all it means.

Additional thought: "Buy low" doesn't mean "Insider trading." Nor does "Sell high" require (or even suggest) fraud.
No worries, I just said to be careful with that, especially if you rely on USPS for paying your bills.
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Old 11-04-2014, 09:12 AM   #33
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No worries, I just said to be careful with that, especially if you rely on USPS for paying your bills.
People still rely on the USPS... for anything?
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Old 11-04-2014, 09:15 AM   #34
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People still rely on the USPS... for anything?
NetFlix's DVD's
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Old 11-04-2014, 09:17 AM   #35
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My grandfather only stayed in school until 8th grade (he was born in 1918), then worked his butt off his entire life. However, he understood the effect of compound interest, and always talked about the great attributes of the EE savings bonds he purchased, which give you "interest on top of interest".

The concept of compound interest seemed obvious to me (and him), but apparently it's something that eludes most people...
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Old 11-04-2014, 09:28 AM   #36
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People still rely on the USPS... for anything?
<raise hand> We send and receive lots of mail.
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Old 11-04-2014, 09:31 AM   #37
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NetFlix's DVD's
DVDs? They still make those?
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"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
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Old 11-04-2014, 09:36 AM   #38
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Pay yourself first, which was accomplished by participating in the company 401k/403b plans; save the amount to at least max out the matching contribution, and then maxing out to tax limits once able to. Also LBYM, don't carry bad debt. House mortgage is OK debt, a car payment if you need to.

Invest in stock market and let it ride over time. Don't panic and sell when a correction or drop occurs. The whole point is buy low and sell high, which has always happened over a longer time horizon.
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Old 11-04-2014, 09:42 AM   #39
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... receive lots of mail.
I don't doubt that at all.

I have stopped all mail that I could (it is impossible to stop government stuff -- license plate notification, real estate tax, IRS stuff, etc.). All Statements come to me electronically -- utilities, financial, etc. We travel a lot and USPS is not set up for that -- yes. there is "Hold Mail" but that 30 day expiration thing is a real pain.

Anyway, we were gone for 28 days a couple months ago. When I picked up our mail it consisted of 54 pieces. Only five of those 54 were of semi-importance. You can guess what the rest was. (This was, BTW, prior to the onslaught of political stuff of the past several months.)

Furthermore, I have instructed Amazon, for instance, to never use USPS for my shipments and UPS and FedEx have been instructed to not "hand-off" any packages. Yes, I pay a couple bucks more but I get a Tracking Number and delivery within a week.
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"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
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Old 11-04-2014, 09:52 AM   #40
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USPS for paying your bills.
Using USPS would violate the "Pay late" mandate. Electronic transfer would be "later." (Not to mention more certain of arriving on-time.)
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