Staying mobile,and not tied to a house can make you more money. To me, buying a house would be a no, but if you want some place of your own, find a apartment.
If you stumble into a GOOD woman snag her up, regardless of how old you are. A GOOD woman at 22 will cost you far less than chasing bad women for 10 years and settling for an OK woman at 32. In fact, a good one will sve you quite a bit of money.
I can't quibble with this take on a good woman vs. a bad one. I do, however, take issue with a 22 year old male being able to discern the difference.
Since I frequently repeat this mantra to my own 5 boys, I'll pass it along to the OP:
Also, if you collect all of our $.02, you'll be well on your way to retirement! Here's mine:
1) Pay off the loan. It may be cheap money, but you've already experienced a job loss once. Get the monkey off your back, & move on.
2) Cars, women, & alcohol will absorb all of your $. Watch the hell out.
3) Budget something for charity. Giving a little a way will keep you humble. It'll also keep you hungry, & open to finding creative ways to come up with more $. Dave Ramsey advocates 10-10-80 on $, & I can't find much to disagree with.
4) Get off this forum, now & forever. You'll end up with more guns, gear, & optics than anyone would ever need.
FC
"Every day is a holiday, and every meal is a banquet."
Why should I work to pay off 17k at 4%, when I could use the money to get 10%
Because you gave your word that you would repay the loan. If your word is no good there's little else to be said.
Mr. Coleman, I think you misunderstand. Why should my priority be aggressively paying down student loans at 4% interest, when I could invest the money instead at a 10% return.
I will make the scheduled payments regardless of the above. It's not like I'm some deadbeat.
having stated you only have $600 in a retirement account to "roll over", I can see why you may think this way.
is that $600 the only skin you've got in the investment game ?
did you pay any attention at all to what happened to people's investment accounts over the past 5 year ?
this year hasn't been to bad, but losses of 30% were then norm there for awhile....
Utah Lefty - They were only 'losses' if you pulled out. *snicker*
There are always ups and downs, but historically the markets gains. People that stop and start, put in, pull out typically go worse than those that let it ride.
Let time iron out the wrinkles
The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment. � WARREN G. BENNIS
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
Do you have a strict budget you follow? If not, make a budget.
Don't buy a house. You're already talking about moving. A house is an anchor and cost you don't need. If you're going to stay where you are then buy all the house you want.
Pay the student loan off. Set your budget up so you put all the extra $ each month going to pay off principal on your student loan.
Attempting is a far cry superior to speculating. Boy if I was smart, I would have maxed out student loans and invested it all in 2008 when I started school. Hindsight
Retirement investments are not the only path to mecca. However improbable you see my goal as, I have ten times the determination on making it a reality.
The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment. � WARREN G. BENNIS
I was your age once, and I'm at your target retirement age now.
the knowledge gap between 22 YO me and 42 YO me is really more of a chasm than a gap and I find it curious you're showing no interest learning how those 20 years went.
1) Don't buy a house. Nothing's worse than finding the perfect job somewhere else and having the boat anchor of an unsold house around your neck. Sure, you could make a few bucks on a fixer-upper, but odds are it won't be THAT much and there's something to be said for the freedom of a rental. If you see yourself in that town for 5 years+, think about buying, otherwise, do yourself a favor and find a rental in a safe part of town.
2) Are you paying rent/mowing the yard/paying utilities/paying groceries at your parents'?? Frankly, you ought to move out in the next twelve months. If not that, than at least do this for your parents. It's the right thing to do.
3) For the love of God, don't go out and blow $30k+ on a new car/truck. Nothing loses value like a new auto. NOTHING(well, maybe a boat or a Simmons scope). I'm not telling you to drive a junker, but you don't need a new car, esp. when living on your parents' dime. Do the math on what $30K in an investment would do in 20 years vs. what a 20 year old pickup is worth.
4) Women-If you find the right one, great. Don't go out looking for marriage at your age, though. You've got time. A thief will take everything in your wallet. An ex-wife will take half of everything you've got (bank/retirement/home/etc.). Don't listen to everything your friends/parents tell you, but if you're getting way to many negative vibes on the girlfriend, they may be on to something.
best of luck to you friend. while im a little farther along in life( 28 in sept) i wish i had the hind sight to do things different. after half a decade i will be leaving my Marine Corps base behind the 9th of september.
the wife and i decided it not a good career with little ones running around for us. had good times/bad times/rich times/broke times while in and spent alot more than we should have trying to keep up with others. but we managed to save enough that we have a house bought back home in Iowa that is fully paid off. no other debts, a clean start.
what im trying to say is you can always make more money elsewhere, but you need to figure out where YOU want to be. at 22 i couldn't wait to leave home, and now im dying to get back. of course the hunting might play a little in to that.
best of luck and sometimes there is no right or wrong choice. you just gotta make up YOUR mind and go after it, even if it is a winding road.
3) For the love of God, don't go out and blow $30k+ on a new car/truck. Nothing loses value like a new auto. NOTHING(well, maybe a boat or a Simmons scope). I'm not telling you to drive a junker, but you don't need a new car, esp. when living on your parents' dime. Do the math on what $30K in an investment would do in 20 years vs. what a 20 year old pickup is worth.
'Oh man! I got a chuckle here. I'll never have a car payment, that's how the poor stay poor. No mental masturbation or gymnastics can justify a ball-and-chain of a car payment.
The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment. � WARREN G. BENNIS
Get rid of debt ASAP. Those already spent dollars are still costing one money. Never quit a job until one has another in hand. If a near term move is in the sights, do not invest in a home unless it's in a booming destination resort. If retirement at 40 is a goal, then look for other tax free investments. Do not do municipal bonds from Detroit, New York, or large California cities.
Absolutely right on the nut. Quit the BS line of thought on I'm only paying 4% but I could get 10 % invested. Damn school loans, got you educated now get them boat anchors out of your life.You pay it off RFN so you don't owe it ANYMORE that creates more possibilities in your life choices than dragging it around for 10 yrs. Keep flipping the antiques as long as people buy them. build cash, pay off debt, give your folks some rent so YOU don't feel like a freeloader. Poke all the girls at their place or in the car and absolutely never without the best latex possible. One eyed buddies are bad enuf at doing your thinking for you, but draw the line at letting the SOB make your lifes decisions for YOU. Magnum Man
Figure out what people really want. If it is difficult or off putting, so much the better. Do it, and learn how not to spend money.
If ya find a REAL winner of a gal along the way, marry her. She will be a major asset. Chances of knowing what you are looking at, at age 22 are slim - REALLY. Solicit and take good, proven advice.
Never take advice from those who stand to benefit from your expenditures.
If ya show up here in the Bakken, do so with marketable skills (electrician, welder etc.), so as to multiply your opportunity. Where ya gonna live? Save your bucks. Go fish and hunt with Lt Powell. ;-{>8
Sure nothing wrong with being conservative, having goals and wanting to achieve them. That being said, I got over the scheming and plotting on how to get rich...quick. Happiness in life will take you much further. I live in a near perfect location (for my interests) and have a low cost of living. This allows me to buy what I want to buy and go where I want to go. I work and the first person that gets paid every month is me. I'll never have 5 mil and I am fine with that. My feeling is working during the week makes me look forward to fishing, hunting or shooting on the weekend. I wonder alot if I could do any or all of those, everyday, would I lose my appreciation for them after a while. That leads to shuffleboard. My .02
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.
It isnt a matter of the interest rates so much, it is the risk in being indebted to someone. The debt can hand on you like a weight. Hurry and pay off the school loans then your money is free and you can invest more. What is the difference over a year, of a 4% loan or a 10% investment, on 10 grand? It is only $600 a year different, yet you carry the burden of loan. Pay it off and be a free man, and invest wisely. Risk is a factor that is often left out of the financial evaluations of the young. You have to go broke a time or two, or end up in a bad spot before you learn that one!
![[Linked Image from i.postimg.cc]](https://i.postimg.cc/nhqZTmxJ/Screen-Shot-2020-11-08-at-5-01-55-PM.png)
