John:
You kindred soul, you! Looks like everytime either of us says something, the other has done it or is doing it.
I also married at age 20 but we didn't have any kids for 4 years. That gave us the time to get through school, get jobs, and start putting down some roots before laying in a stock of house-apes.
I can sympathize with Bongo2. It IS hard to save when you have a growing family. My wife and I always tried to live on one of our incomes and save/invest the other. This made saving a lot easier, even though there were times when we simply could not save. Thankfully, those times were few and far between.
If asked by a youngster for financial advice, I would offer this:
1. Work hard to ensure your job when hard times arrive.
2. Save religiously... even if it's only $5 per pay period, always
save at least something.
3. Watch your expenses closely... only buy what you need and
try to get it on sale... avoid bars and restaurants except on
special occasions... and Friday isn't!
4. Start an investment program ASAP. Time is on your side
when you are young, so make the most of it.
5. Start a Roth IRA for yourself and a spousal Roth IRA for your
wife. These make great savings accounts for college AND
retirement expenses... and they are not taxed.
6. Take full advantage of any retirement savings plan offered by
your employer, especially if there is any kind of a match.
This is FREE money and all you have to do is accept it.
7. Minimize taxes whereever possible as this expense can eat
up more of your income than shelter, food, clothing, and
medical expenses combined.
8. Forget about having the latest and greatest goodies, fancy
clothes, or expensive cars. Go for good quality, take care
of it, and make it last for a long time.
9. See a lawyer and make up a will. Once you have created
significant wealth, create a trust.
10. Make sure that you are adequately insured. Use term life
insurance and have at least 5x your annual salary worth of
it. Shop around and get the best rate as rates vary widely.
OK, that's enough from me. Anyone else care to add their thoughts on this?
Ed_B