Recycles dryer sheets
Join Date: May 2005
Steps for Young Dreamers to ER (Part 2)
Here are the last 5 quotes, ENJOY!!!
6 - mbhunter at Mighty Bargain Hunter
"The best advice I can give deals with purchasing habits. For most purchases, especially big ones, it almost always pays nicely to consider buying quality used over buying brand new. The reason: Consumer items depreciate the fastest right after they're bought new. New cars, for example, depreciate thousands of dollars the moment they're driven off the lot -- poof! Gone! So why not have someone else -- the original owner -- pay the premium price, and buy it used from them? No reason, really, just as long as you've researched your purchase to make sure you're buying quality and as long as you've factored in any extra maintenance costs. This advice, if applied consistently for both big and small purchases, can keep thousands of dollars, or more, in your pocket every year."
7 - Ramit Sethi, entrepreneur and author of IWillTeachYouToBeRich.com:
"When you invest, there's a difference between being sexy and being rich. When I hear people talking about the stocks they bought/sold/shorted last week, I realize that my investment style sounds pretty boring: 'Well, I bought a few good stocks 5 years ago and I haven't done anything. All I did was buy more when the price went down.' But investment isn't about being sexy--it's about making money, and when you look at the investment literature, buy-and-hold investing wins over the long term, every time. Forget what CNBC or the magazines say about the stock-of-the-month. Do a rigorous analysis, make the right decisions up front, and then re-evaluate your investment every 6 months or so. It's not as cool as those guys in red coats shouting and waving their hands on CNBC, but as an individual investor, you'll get far greater returns."
8 - Jason at The Alpha Guy:
"The best advice I can give is this: never stop learning. This may seem easy, but so many people work 9 to 5 jobs, watch tv for a few hours, and then sleep. Repeat cycle. I firmly believe that if you have the dedication and focus to improve your knowledge, you will be greatly better off.
Acquiring financial knowledge may seem like a huge task (and it can be) that takes patience and time, but think of this knowledge as another asset. We're all trying to increase our assets and decrease our liabilities, and our financial knowledge is one of the most important assets we have.
My suggestion is to take it slow. Concentrate on a financial area that concerns you the most. For those saving and investing in mutual funds, learn more about mutual fund fees and the case for index investing. For those who want to select stocks themselves start with the basics: learn more about fundamental analysis and what drives the price of the stock. At times it will be frustrating because of the vast amount of information, but every journey is completed by taking steps. So be patient and focus and take those first few steps towards increasing your knowledge asset. Then, keep on walking."
9 - Joshua Kersey at Wealth Today. Here's the introduction to Joshua's advice:
"The worst advice my real father gave me was no advice at all on money. Fortunately, the best advice I got was given to me by my step-father. When I was 12, he said, 'The first chance you get, begin investing.' At the time, my math skills were poor and I did not understand why I should, and I did not follow his advice. Now that I'm almost 30, and it makes a lot more sense to me. Hopefully I can show why it's important to start investing now, without going into the math details."
10 - JLP at All Things Financial:
"My best advice is to start saving 10% of your income now. Just do it! If you are starting with nothing then take that 10% and open a savings account. Faithfully deposit 10% of your income with every single paycheck.
Watch it grow.
Keep saving until you have at least 3 months of living expenses in your savings account. Once you have reached that threshold, start saving towards your retirement. Open a Roth IRA and contribute to your 401(k). If your company matches, contribute up to your 401(k) first (up to the match) and put the rest in a Roth IRA. If your company does match, don't count the match as part of your 10% savings goal. Instead, make it extra. With each raise, adjust your savings to make sure it stays at 10%.
Make sure you invest in the stock market. There is no better way to build long-term wealth than through a prudent investment strategy using stocks and stock mutual funds.
It sounds simple. That's because it is simple. Don't make it harder than it has to be. Now start saving!"
All of the quotes given are pretty simple and commen sense, however, many Americans don't follow many of these steps. If they did, and started at a young age, they would be able to ER and get out of the so called 'rat race'.
Hope ya'll enjoyed the post. 8)