Home Forums Hunting & Shooting Hunter's Campfire Advice for a young man? I'm laying it all out

I will try to be as brief as possible in describing my situation, and hopefully you can prescribe some meaningful counsel.

Personal situation:
I�m 22 and in good shape
Regrettably I live with my folks, fortunately at little measurable expense other than my pride.
Work in the IT industry (Security Admin) mainly with active directory, have a bachelor�s degree in graphic design


Financial situation:
Income: I make a little more than 40k

Side income: I flip antiques and collectibles. I have averaged $750 profit or 18% return over the last 30 days. I enjoy this, but I am considering starting another side business; either a handyman service, computer repair, or graphic design service. Whichever is the most profitable, as I enjoy all three. Thinking about $35/hour 2 hour minimum, using word of mouth and church as advertising.


Debt: The only debt I have is 17k in student loans at 4%
Expenses: Pretty limited to just car insurance, groceries, gym fee, gas. I am working to make my own reductions here.

Savings: I have about $6000 saved up in cash or soon to be sold flips.


Retirement: I have about $600 to rollover into a retirement account. My employer does not match percentage, but gives profit sharing once per year. 5 years to be 100% vested in what they give you, but I don�t want to live here that long.


Here is where I get confused on how to proceed, as this is my five year plan:
1. Buy a house to fix up, both because I want to move out on my own and to build equity/income from roommate and housing market up-tick. (Low interest rates!) I�m prequalified for 100k for a house

2. Though I�ve only worked my current job for 3 months, I am planning on moving to Colorado or the Midwest. The rub, I need to stay long enough for my job experience to carry me to the next rung on the job ladder.


Overall � What should I be doing to save money fast, and where should I be putting it? If I want to retire at 40 why should my money go to a Roth or 401k � I know it shields the money from taxes, but what�s the point if you can�t withdraw it easily (without cost) before you are of conventional retirement age?




Buy a house, or tough it out?

Invest money or use it towards my side business/flips?

Why should I work to pay off 17k at 4%, when I could use the money to get 10% + either through Vanguard Total Stock Market Index Fund Admiral Shares (.05 expense ratio), or use the money towards my flips? Flips are more volatile, but tax free

Stay away from women and you should have no problem with your plan.

At 22 I wouldn't buy a house. You've got too much living to do to even have half a clue about where you'll want to settle down. Concentrate on paying off any and all debts and putting money away for when you do know where and when you'll settle.

If you meet a gal and really hit it off, make darned sure you're on the same page financially or you'll end up like 85% of the husbands out there - trapped by your finances. I'd give up a lot of our "stuff" to have a few more dollars in my pocket every week, because to me, those extra bucks mean freedom. Freedom to take a drive, maintain my hobbies, buy bait and gas to take the kids fishing, to be able to treat co-workers or buddies to donuts or a round of beers once in a while. In short, don't get yourself in a situation where you're constantly worried about money. Live well within your means and control your money rather than letting it control you.

I'm hardly a worldly guy. Quite the opposite. But I've learned enough to know what I'd keep the same and what I'd change if I had the chance to do it over.

You peck all that out on company time?

I would say hold off on buying a house.

Stay at your current job to build enough experience to make your move out west in a couple years a little easier.

Continue to flip antiques and use that money to try and get your student loan paid down as much as possible before you move.

Pay off the debt asap first!!

I have a 22 yo son[living at home] that just entered the real world himself. $11k in student debt.
Started his permanent job just over a month ago at $100K in welding/fabricating.
September 1 we will start charging rent. He is fighting the fact that he lives in a high rent district that includes hunting privileges .

did I mention-pay off your debt ASAP????

One question on Expenses? No ammo expense?

I'd hold off a while on a house. July showed 28 states had declines in employment. It seems the economy is declining. I'd see what happens with the economy until after the ACA is fully implemented. I'm figuring the future will see many more young move back home with mom and pop.

It's the way they go in Mexico and the Dimocrap projects, and seems to be the long term trend. Lord knows they are smarter than we. If it continues, housing prices will surely fall.

That is some sage advice right there. Heed it.

Lunch is a wonderful thing


Of folks I have talked with, holding off on buying a house is a consistent theme. Hell, I can even agree with it.

Suppose putting 10k or so into a retirement account, and any profits from flips towards student loans make sense. ?

Your fundamental problem is that you have a lot of good choices. That's a high quality problem to have.

I'm a little nervous about the long term housing market. Demographic trends indicate that we may not see rising house prices forever. Carefully research the trends in the area you're thinking of buying in.

401Ks are a retirement vehicle. The theory is that you put money in tax free, and then pay taxes on it when you take it out at a point in your life that you're in a lower tax bracket.

Listen to Dave Ramsey. Stay the heck out of debt, except maybe a home mortgage. Debt is selling yourself into slavery.

You'll probably start a family, and that will take all the cash you can generate. With a good woman, it will also be the greatest source of joy in your life. If you can get key assets pre-positioned for that, you'll have a better time of it.

I'd stay with my folks if I were you, until I moved. Some of the best financial advice I can give you is to learn to cook...for real. It is scary what many spend on schitty fast food.

Antiques eh?

I have to ask Mr Wolf; are you an oak man?

There is wisdom in paying off the debt, and I see it too. But why pay it off at 4% when the money can make 10% instead?
Plus steady payments looks good towards credit


Not trying to have anyone affirm my opinion so I feel good, or can internally justify. This is just the lens I view student loans with.

you'll get a ton of advice - so much so your head will spin.

At 22, if you saved $2200 a year until retirement at a rate of about 6% return, you'd be looking at being a millionaire in your late 50's ( by taking advantage of a healthy 401K )

At 22, you could join the military, go in as an officer and retire at 42, with more than enough time to have another career ahead of you - with full benefits from Uncle Sam

At 22 and single, you could buy a fixer upper home, depending on how comfortable you are with a hammer (or your old man is) for like $20 - $40K, pay it off in 3 or 6 years and never have a house payment or rent in your life again by the age of 28.

The point is - you have a ton of options right now - but every major decision regarding women, job and debt (as most have already told you) will limit those options as you get older.

When I was 22, the idea of buying a fixer upper home scared the hell out of me. Now I wish I'd had the balls to do it. I have friends that are retired military and making as much money in their second job as I do now, and I have friends that sacrificed buying that new high dollar car to put money into a 401K that are going to retire years before I do because they planned long term.

You asking the question shows you are already thinking that way.
Just always ask yourself before you do something major - "am I limiting my ability to achieve my goals if I do this?"

Also your kid makes $50/hour in welding?

WTF am I doing

1. Stay at your job for at least 2-3 years, both to build your experience and to establish a stable work history. I personally have no interest in hiring people who change jobs frequently, as they probably won't stick around long enough to justify the training investment.

2. Houses can be a curse as well as a blessing. I've bought 5 - 3 were good decisions, two were bad decisions. YMMV. Do not buy yet.

3. Realize what you want out of life now, will probably change in 5 years, or 10 years, but the decisions you make now can darn sure limit your options. Keep your career and personal life in good order, to keep your options open.

Oak's nice

Going rate is $80 bucks per hour down here...

Pay off your debt first. Put everything you have at it. With your salary, have it paid off in 6 months and never pay on it again. Once you get it paid off, then follow the money. Don't follow the money until you get all debts paid off.

Don't buy a house right now. If you aren't planning on staying long term, don't even think about buying. A fixeruper can be a huge money hole... money you don't have. Interest rates are going up, and will continue to go up. You missed the super low rates.

Once you get things paid off, then you can consider stocks. Get things paid off first, and don't get back into debt.

Flipping is nice, but it won't pay the bills.

That's the difference between someone who wants to work and someone who wants to sit at a computer.

You'd be surprised at how much some of us grunt workers make.