The secret for my strong start has been two-fold:
1) Talk to your boss about having your company pay for as many expenses as possible (cell phone, car/car allowance, car maintenance, gas, car insurance, health insurance, etc.). While it's not the easiest thing to do at large corporations, I work for a small family-run business (and when your family is the one that owns it, it's far easier
). But even at places where nepotism is non-existant, it is still possible to have your employer work out a deal better for both parties.
As long as you point out that every dollar of expenses that your employer pays not only saves the employee money (Federal/State/Local income tax plus 9.1% of Medicare/SS taxes), but also saves the employer the 9.1% of Medicare/SS taxes that they would owe, it's a win-win situation. Plus it helps employee morale.
2) I know many people have a 'problem' with it, but if your parents are semi-retired, have two homes and spend a good deal of time away, it's not too bothersome to stay at home for a few years out of college. It saves a bunch in utilities, rent/mortgage, and other costs, all for the inconvenience of having to be around them for 1-2 hours a day for 3-4 months a year. Sure, it may not be possible if your job isn't in the same city...but if you are the unlucky son that has to pick them up/take them to the airport each time they fly, has to pick up their mail every day, check the pool, look after their place, etc., it's far easier if you're living there at the same time.
While it may not sound like the above two would have a big impact, and you can make the argument that the longer you wait to buy a house, the more home values could rise and cost you more in the long-run, it provides a greater positive cash flow in the early years of your life, when every dollar saved has a much greater compounding effect. That, combined with a sensible frugal lifestyle (brown-bag lunches, not dining out too often to eat higher quality/healthier food at home) all add up to make the most of early compounding.
My parents were fairly frugal earlier, but their early 60s in semi-retirement have seen them loosen up quite a bit. They never really talked about money around my siblings and I. My frugality/awareness of money was purely one of those genetic things (out of 4 children, I was the only one that always thought about long-term savings, carrying cost of consumer debt, etc.), rather than an orchestrated effort by my parents to teach the benefits of sensible money management to their kids. Out of my 3 siblings, one sister turned out to be fairly sensible after she got married; the other sister is a financial disaster, and the brother is a cross between the two (likes to live it up with only very moderate savings, without thinking about the future).
As for my results? Well, they are as follows:
Age: 28
Net Liquid Assets (no home equity at the moment, excludes personal effects), less all estimated income taxes for retirement plans/savings bonds: $418k
"Disclaimer" (approximately 80k inheiritance in 2001, and parents paid for college...)
I invest very little in mutual funds (I opt for a few closed-end funds), as I have waaaay too much fun tinkering around with my portfolio. I might wakeup and see the light someday...However, I am the very conservative type that prefers less volatility/more certainty, with the following investment breakdowns:
23% Muni Closed-end funds
17% Bond funds/I-Bonds/CDs/Treasuries (Oh, why didn't I buy more of the 2000 10-year 4 1/4% inflation-indexed T-bond?
)
2.5% REITS
23% Preferred Stock
6.5% Various individual junk bonds
18% common stock with some covered calls/puts
4% 529 plan
6% cash awaiting redeployment in the next 2 weeks
All-told, my entire net worth has an average fixed yield of 6.32% pre-tax / 4.99% after-tax, plus any capital gains growth I can squeeze out of my 18% common stock/options positions.
