Advice you'd give your 25 year old self

[Redbugdave]

I see your point ERD. It's just easier to go into a job you enjoy rather than dislike. Then there is the balance of money vs the job. If you know you can make a lot then bail, then that is worthwhile, too. Yes, I know we all don't get to be astronauts.

[Jay_Gatsby]

I'd actually advise my younger self completely opposite as many folks have posted here. If anything, a 25-year old should take life MORE seriously. At that age, you're establishing a foundation for the next 30+ years of life. This isn't to say you should avoid having fun, but everything in moderation.

[Finance Dave]

Quote:

Originally Posted by Helen My first car was a '69 Camaro (in '78). I Loved that car. It was a bit light ended though and I had some heart thumping moments driving it in the Michigan winters. For my 25 year old self, I would say to start saving with the first paycheck, even a few bucks. And, stay away from penny stocks. But alas, I did well but it was mostly due to good fortune.

I bought a '69 Camaro in about 1982, and still own it today. It's a Z28 and is valued at $80k. I bought several other musclecars and sold them all over time. IMO such cars are not truly investments, or at least not good ones. Sure, you always hear the story about the 1970 Barracuda convertible with the 426 Hemi of which they only made about 8 of them in a certain color and are now worth $1M, but those stories are rare.

People often fail to think about the maintenance and storage costs. $50/month for a garage space, $50/year to change the oil, licensing fees, insurance costs, the fact that things wear out even if a car just sits (20 year-old tires may not be safe to drive on and rubber weatherstripping gets dry and rots), gasoline gums up, brake fluid is hydrophilic (attracts moisture), and the list goes on ad infinitum.

Invest in stocks instead.

[eridanus]

I was in my 20s during the dot com era.

1) You're not a genius day trader. It may work for a little while but you'll soon lose it on a margin call. Index funds, index funds, index funds.

2) That backpacking trip to Europe with friends? Completely worth it.

3) If the market is right (like right now), buy a house and then get roommates to fill it. Get a 15 year note and you'll own the thing by the time you're 40.

4) As long as, like someone above mentioned, you understand the delay it'll cause in your FIRE plans, buy the sports car. But wait until your 401k is stuffed full of cash and you have a emergency fund. Yeah, I could've bought a Civic but tight corners at speed still make it worth it.

[Frugalityisthenewblack]

Advice I would give my younger self.... don't fall for academic snobbery and limit yourself to a university education--- get a trade....oh wait...I did that and dropped out of university ending up in a blue-collar job at age 23!!...it was a good decision---even though I got zero support for it at the time from most friends and family.
I guess the advice I would give my 18 year old self..is ..go straight to trades school out of high school.

[haha]

What advice I would give is-aim high.

Ha

[chris2008]

Travel more!
But my 25 year old self was a "know it all". I am not sure that I would follow my advice. Fortunately I was not so wrong.

[Seeking Hobbes]

Take a chance... kiss the girl that you know (in your heart) is the ONE for you...
Win her over... Hold on to her... Grow old(er) with her... Never let her go...

Sigh... youth is wasted on the young (or IOW my collegiate self).

[tryan]

Read the Richest Man In Babylon.

Date many, marry the right one.

[eytonxav]

Quote:

Originally Posted by haha What advice I would give is-aim high. Ha

+1, I think most people have too low an aspiration level for themselves. I know I did.

[bo_knows]

Being what seems like one of the few people on these boards at or around 30, I love to see threads like this.

Since I'm only 5 years past my 25th birthday, it may seem a little moot, but I'll play with the idea of the thread anyways:

- I was about to get married 5 years ago. I'd tell myself that I was marrying an amazing woman (that much I already knew), and that in a few years I'd have a sweet child to care for.
- I'd tell myself to max out my IRA by contributing to it monthly (for a long time we only funded our IRA's based off my wifes end of year bonus, and often times we wouldn't fully fund it for one reason or another).
- I'd tell myself to buy a house that maybe needed a little work, rather than a move-in ready one. A lot more room for savings there.

[TromboneAl]

Quote:

Originally Posted by bo_knows Being what seems like one of the few people on these boards at or around 30, I love to see threads like this. Since I'm only 5 years past my 25th birthday,

Do you think you will follow any of the advice we've mentioned here?

[EvrClrx311]

Quote:

Originally Posted by TromboneAl Do you think you will follow any of the advice we've mentioned here?

The answer to that is a definite yes... for me. I've already read this thread front to back a half dozen times. This is more valuable than a library of financial books as far as I'm concerned.

[james7]

Quote:

Originally Posted by haha What advice I would give is-aim high. Ha

+2
Great thread with a lot of good advice. I just wish my parents had given me a small fraction of this advice when I was young. No doubt I wouldn't have listened.

[bo_knows]

Quote:

Originally Posted by TromboneAl Do you think you will follow any of the advice we've mentioned here?

So far, as far as investments go, I do. I live in a high cost of living area, so much of my "extra" savings is going toward paying down a mortgage (so I'm not over 50%+ savings rate like many people are/were). But I am currently reading a few books listed in this thread, and hope to really push for FI/RE to enjoy it as early as possible (maybe 45?).

[cwebjohn]

Thanks for all the good advice. I just turned 26 on Memorial Day and there is a lot of great ideas here.

I think the hardest thing is getting the capital to make those wise choices at this point. I would love to put thousands down on a new house but to save takes time. If anything, what I have learned is that saving money over time beats the alternative.

[marko]

Get a job with the city DPW. Retire at 43 with full bennies for life.

Then, if you want, get another city job...with another pension.

(and if you get even a minor, non life threatening cancer within the first five years of retirement, the city picks up your fed income tax)

[james7]

Quote:

Originally Posted by marko Get a job with the city DPW. Retire at 43 with full bennies for life. Then, if you want, get another city job...with another pension. (and if you get even a minor, non life threatening cancer within the first five years of retirement, the city picks up your fed income tax)

That is quite a city!! No wonder this country is bankrupt. I don't think the benefits are that generous in Greece.

[marko]

Quote:

Originally Posted by james7 That is quite a city!! No wonder this country is bankrupt. I don't think the benefits are that generous in Greece.

better than Greece: Massachusetts! You can also vote as many times as you want <grin>

[dtbach]

Lots of great advice here. I'd like to just amplify some:

1) you are only 25 once. You are in the best health, best frame of mind, best everything you will ever be. Enjoy the hell out of what you are at that point! Sex, drugs (not too much) and Rock and Roll. If you don't, you will regret it forever when you are old and mature.

2) Don't invest with a brokerage. Just put $ into index market and bond fund(s). OK, maybe just 80% and play with the other 20%. At least only 20% of your $ will do poorly. Live beneath your means (but don't be miserly, you have to live too)

3) Buy a (used) sports car and zoom around in it for 5 years. Then be mature and get a (used) sedan.

4) Be absolutely sure that you are IN LOVE when you marry. Divorce and the pain it causes are expensive.

5) If you do all of these, you will have a better than 50% chance of having a great life.