The best financial advice you ever had
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MooreBonds
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Now that I think of it, my only real 'advice' from family (parents and grandparents) was to simply spend less than you make and save 'something'. They never really talked/preached to us about what investments to go to, or how much to save. They were of the mindset of "just save it", without really knowing what they were saving for 
. Luckily, they came out smelling like roses, but I can't help but cringe at the thought of working all those years to age 60-65 and hoping that you'll live another 20 years to enjoy it. I suppose they assumed that we would naturally follow their mindset (or perhaps they simply assumed that everyone else in the world didn't carry credit card balances, didn't live paycheck to paycheck, etc.). Unfortunately, out of 4 children, one son (me) is just like them. One daughter is fairly close now (was a little financially loose earlier in life). The other son is a somewhat distant 3rd (saves perhaps 5%-10%, and ultimately LBHM...but the amount "below his means" isn't that much), while the other daughter is a recovering financial mess.
The best financial advice has been gleaned here and there off the net. A hell of a lot of it from this forum of people that truly want what's best for a complete stranger, rather than some sleek salesperson who is just trying to earn a fat commission and will actually leave out critical info you should know. Some was from the MSN Your Money (which eventually led me to this board). Some was random articles from Yahoo! Finance and other finance websites, WSJ, and (admittedly)....some financial porn mags (Hey, I just read it for the articles ).
. Luckily, they came out smelling like roses, but I can't help but cringe at the thought of working all those years to age 60-65 and hoping that you'll live another 20 years to enjoy it. I suppose they assumed that we would naturally follow their mindset (or perhaps they simply assumed that everyone else in the world didn't carry credit card balances, didn't live paycheck to paycheck, etc.). Unfortunately, out of 4 children, one son (me) is just like them. One daughter is fairly close now (was a little financially loose earlier in life). The other son is a somewhat distant 3rd (saves perhaps 5%-10%, and ultimately LBHM...but the amount "below his means" isn't that much), while the other daughter is a recovering financial mess.The best financial advice has been gleaned here and there off the net. A hell of a lot of it from this forum of people that truly want what's best for a complete stranger, rather than some sleek salesperson who is just trying to earn a fat commission and will actually leave out critical info you should know. Some was from the MSN Your Money (which eventually led me to this board). Some was random articles from Yahoo! Finance and other finance websites, WSJ, and (admittedly)....some financial porn mags (Hey, I just read it for the articles
).
bssc
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It would be a tossup between my parents' advice to LBYM or invest in the stock market.
frayne
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My grandfather who went through the depression told me that a man should never go into debt to buy anything but a house. Still good advice in these days.
unclemick
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The sound of silence.
1958 - an Aunt aka the Swedish maid died in NYC and left my Father enough money in stock mutual funds to buy a house in the city on a paved street with sidewalks.
Dad = log train mechanic vs Aunt = maid. Yet she left the money.
Went to the library to find out what a stock mutual fund was. BTY - due to the Depression mentality - stocks were evil and to be got rid of at all costs.
heh heh heh
1958 - an Aunt aka the Swedish maid died in NYC and left my Father enough money in stock mutual funds to buy a house in the city on a paved street with sidewalks.
Dad = log train mechanic vs Aunt = maid. Yet she left the money.
Went to the library to find out what a stock mutual fund was. BTY - due to the Depression mentality - stocks were evil and to be got rid of at all costs.
heh heh heh
mickeyd
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"Read as many investment-related books as possible. After that, read them all again."
Khan
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Pay your bills before you party.
(I had an uncle who did it the other way around.)
(I had an uncle who did it the other way around.)
dex
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"Leave the gun; take the cannoli."
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"Your Money or Your Life" book. Helped me take a hard look at my values, how I defined myself (i.e. I am more than my work), and the importance of time vs. money and "things". Helped both DH and I realize we didn't have to stay on the hamster wheel forever...we could redefine what we really needed vs. wanted...and didn't need to self-impose the pressure to "keep up with the Jones."
After all that value-changing metamorphosis, I was inspired to learn about finances and get us off the hamster wheel as soon as possible...since you never really know how much time you have left. So I started reading book after book on investing and actually sat down and figured out what assets we had, our allocation, net worth, etc. We were so busy before that we just didn't have time to take stock of what we had and plan for the future.
After all that value-changing metamorphosis, I was inspired to learn about finances and get us off the hamster wheel as soon as possible...since you never really know how much time you have left. So I started reading book after book on investing and actually sat down and figured out what assets we had, our allocation, net worth, etc. We were so busy before that we just didn't have time to take stock of what we had and plan for the future.
That is definitely true. I do have a friend that went through three relationships and ended up going through one of the worst situations (DIVORCE). During one of the relationships, the woman managed to keep an investment property that it was worth $500k over 10 years ago. The guy was taken to the cleaners all three times, but today he is back on his feet and 2-3 years from retirement.
TAKE THE TIME TO KNOW THAT INDIVUAL AND MAKE SURE YOU CHOOSE THE RIGHT PERSON!
TAKE THE TIME TO KNOW THAT INDIVUAL AND MAKE SURE YOU CHOOSE THE RIGHT PERSON!
SingleMomDreamer
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David Bach's "Smart Women Finish Rich" inspired me to set specific goals and write down the meaning of money for me. He also inspired me to create a "dream basket" which has since financed a business on the side and will be used to finance an early retirement.
glock35ipsc
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If you fail to plan, you plan to fail. (My favorite)
To become wealthy, make, save, and invest your money in assets. To be poor, spend your money.
Don't climb the corporate ladder, own the ladder!
Too many people are spending money they haven't earned, on things they don't need, to impress people they don't like.
To become wealthy, make, save, and invest your money in assets. To be poor, spend your money.
Don't climb the corporate ladder, own the ladder!
Too many people are spending money they haven't earned, on things they don't need, to impress people they don't like.
Peaceful_Warrior
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My best financial advise came from my Dad when I turned 18. He said,
"Son, when you go to college get a checking account, and get a credit card. Use it every month at least once, and always always ALWAYS pay it off in full every month."
I took that advice, and now have good enough credit to buy cars and homes with 0 down and still get the best rates. It also helped paved the way for never spending more than I make so the only debt I've ever carried was for my car (now paid off) and my mortgage.
"Son, when you go to college get a checking account, and get a credit card. Use it every month at least once, and always always ALWAYS pay it off in full every month."
I took that advice, and now have good enough credit to buy cars and homes with 0 down and still get the best rates. It also helped paved the way for never spending more than I make so the only debt I've ever carried was for my car (now paid off) and my mortgage.
d0ug
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It’s all sound advice just one thing to add when it comes to retirement. Find a location that will give you the life stile you want with the money you have. Most people want to live better life stile in their retirement that they did when they where working.
savedapile
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best financial advice was my tale of two families.
My family: Four kids, lots of clothes, expensive food, eating out, expensive new cars every couple of years. Died just about penniless and my dad was an engineer via the WWII GI bill. High wage but lots of money on alcohol and both of them a three pack a day cigarette habit. Tons of toys under the Christmas tree, lots of new shoes, hairdressers etc. Died penniless except for some home equity.
DH family: His Mom and dad High school educated and straight to work and worked lower paying jobs. Modest auto- one car and they frequently walked to work. Gardened, never ate out and food from scratch. Rare to have new clothes-lots of hand me downs and only two kids. No alcohol, no cigarettes, much more modest Christmas.
They both did the best they could but DH family had a high net worth when they died due to better habits. Instead of advice they showed by the best teachers, example.
By the way, with the four of us two will never have a pot to P in unless there is a mortgage on it, the other two are modest. Of DH and his sib, they both do OK but she married a spender. It has been interesting to watch the development as we all reach our 50's and 60's.
My family: Four kids, lots of clothes, expensive food, eating out, expensive new cars every couple of years. Died just about penniless and my dad was an engineer via the WWII GI bill. High wage but lots of money on alcohol and both of them a three pack a day cigarette habit. Tons of toys under the Christmas tree, lots of new shoes, hairdressers etc. Died penniless except for some home equity.
DH family: His Mom and dad High school educated and straight to work and worked lower paying jobs. Modest auto- one car and they frequently walked to work. Gardened, never ate out and food from scratch. Rare to have new clothes-lots of hand me downs and only two kids. No alcohol, no cigarettes, much more modest Christmas.
They both did the best they could but DH family had a high net worth when they died due to better habits. Instead of advice they showed by the best teachers, example.
By the way, with the four of us two will never have a pot to P in unless there is a mortgage on it, the other two are modest. Of DH and his sib, they both do OK but she married a spender. It has been interesting to watch the development as we all reach our 50's and 60's.
lazygood4nothinbum
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don't recall ever getting any actual financial advice other than find something you enjoy doing that will make you some money. basically, the family financial lesson that seemed headed my way but never quite made it here was: w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk w*rk & then, while you're at it, do some more w*rk.
Cut-Throat
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Rich people save first and spend what's left over.
Poor People spend first and save what's left over.
Poor People spend first and save what's left over.
simple girl said:
I have to agree. That book more than any other really opened my eyes, even though I was saving and investing before I read it 4 years ago or so. And I certinaly don't follow the rules in the book to the letter. I don't invest every cent I have into Treasury bills. Money is just something to exchange. You can exchange it for things, or you can use it to free yourself from what eats up your time: work. Last year my money made more than I did. It was like a third income (Wife's, mine, and the money's) that was doing its part to let us not work ourselves to death and hopefully someday in the next 15 years, stop working for just more money.
chinaco
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- Save regularly.
- Invest for the long-term in a diversified portfolio of stocks and bonds. (grow rich slowly)
- LBYM
- Limit credit for large neccessity purchases like a house... possibly car. Everything else, pay as you go.
- Invest for the long-term in a diversified portfolio of stocks and bonds. (grow rich slowly)
- LBYM
- Limit credit for large neccessity purchases like a house... possibly car. Everything else, pay as you go.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
From my parents:
+ Save something from every paycheck, even if it's only $5.
+ Two kinds of people: those who pay interest, and those who earn interest. Which would you rather be?
+ In general, an understanding of and exposure to stocks, bonds, mutual funds at an early age so that owning them seemed normal.
+ Go to college and get a degree in anything...but engineering, law, business, and medicine are good choices.
2Cor521
+ Save something from every paycheck, even if it's only $5.
+ Two kinds of people: those who pay interest, and those who earn interest. Which would you rather be?
+ In general, an understanding of and exposure to stocks, bonds, mutual funds at an early age so that owning them seemed normal.
+ Go to college and get a degree in anything...but engineering, law, business, and medicine are good choices.
2Cor521
Budman
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streamjp said:
Learn and practice the words "Yes Dear" :
Budman
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The best investment is a college education. It will be the greatest return you will experience!
W2R
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My best financial advice was from my brother. It went like this.
Me: "I'll never be able to retire on this miserable salary. I am 51 and suddenly have nothing after my divorce and have to start over. I'll have to work until the day I die. I'll be working a 40 hour week when I'm 96 and feeble. So don't talk to me about retirement because it's not going to happen. This stinks."
My Brother: "Don't give me that baloney!! You might be able to get away with that with someone else, but I KNOW you and I KNOW how mathematical your mind is and I KNOW you can do it. Stop thinking so negatively and approach this like you would an engineering problem. Don't try to get me or an advisor to do it for you. Think it through, consider what is in your own best interest, and do it YOUR way."
Me: (sob!!)
OK, this wasn't specific advice, but it was a turning point in my life. My brother's "tough love" and his faith in my capabilities was just what I needed. He's a retired CFO/CPA so I knew he had an idea of what he was talking about.
Me: "I'll never be able to retire on this miserable salary. I am 51 and suddenly have nothing after my divorce and have to start over. I'll have to work until the day I die. I'll be working a 40 hour week when I'm 96 and feeble. So don't talk to me about retirement because it's not going to happen. This stinks."
My Brother: "Don't give me that baloney!! You might be able to get away with that with someone else, but I KNOW you and I KNOW how mathematical your mind is and I KNOW you can do it. Stop thinking so negatively and approach this like you would an engineering problem. Don't try to get me or an advisor to do it for you. Think it through, consider what is in your own best interest, and do it YOUR way."
Me: (sob!!)
OK, this wasn't specific advice, but it was a turning point in my life. My brother's "tough love" and his faith in my capabilities was just what I needed. He's a retired CFO/CPA so I knew he had an idea of what he was talking about.
