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 Replies: 68 / Views: 6,275 |
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New Member
United States
15 Posts |
Here's my advice:
Check out Dave Ramsey's best seller book "The Total Money Makeover." He discusses many money and debt myths, shares shocking statistics (90% of people in our culture buy things they can't afford), but most importantly gives a set of steps to accomplish, in order, to get out of debt, build up an emergency fund and then a cash cushion, and then build wealth. He details how to do it, and gives guidelines on amount figures for goal-setting.
I think it's awesome that you have been saving already at your age.....whether cash or PMs! With the low cost of silver buillion right now, I think it's a great time to buy, as long as you have some emergency cash set aside.
Cull information from everywhere, learn from history, and be aware of what's happening financially around the world and in our own nation....you don't have to be a survivalist or prepper to see a lot of alarming financial situations occurring now.
Oh, and don't forget to keep showing your appreciation for the rent-free place to live! It really makes our day when we parents feel we are really doing something to help our kids to succeed---and they are so appreciative!
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Valued Member
United States
410 Posts |
I'm another vote for Dave Ramsey. We used his plan when we were getting serious about paying down debt. I don't agree with everything he says, like his fear of credit cards but it is a good basic plan. As a note, he has a bunch of books but they are all pretty much the same. Financial Peace, Financial Peace Revisited, The Total Money Makeover, and his newest Complete Guide to Money are the same information repackaged.
My wife and I have done a "modified" Dave Ramsey Plan:
0. Track expenses a make a budget
1. $1000 emergency fund
2. Pay off all consumer debt
3. 6 months of expenses in an emergency fund
4. Max out 401K and IRA for both of us
5. Make extra payments on mortgage
The difference is that I never stopped contributing to my 401K, I only cut it back to 10% while concentration on paying off consumer debt. (There was no way I was giving up my company match)
I didn't sell my wife's reliable car to buy a $1000 beater though he told me in person to do that. (My wife was driving 100 miles a day to the university and the gas savings from getting 50 mpg went a long way towards covering the payment not to mention she needed a reliable car)
We maxed out our tax advantaged retirement options before starting to pay off the mortgage early.
I don't think credit cards are inherently evil.
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Bedrock of the Community
13014 Posts |
Quote:
I don't agree with everything he says, like his fear of credit cards but it is a good basic plan. Agreed, theres no reason to fear them unless you dont trust yourself with them. Personally I use them for everything because of the cash back its like getting a discount, but I also pay it off every month and wont put more than a certain amount on it unless the car broke down or something like that |
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Pillar of the Community
United States
3670 Posts |
"I didn't sell my wife's reliable car to buy a $1000 beater though he told me in person to do that"
Man for as smart as this guy is, he does have a couple of crazy ideas eh....
Guess he never owned a Toyota Tocamo eh, as I have changed a battery twice and brake pads in like 10 years lol....
Edited by Silverhawk74
08/05/2013 2:48 pm
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Pillar of the Community
United States
3670 Posts |
Too add to that, my old man DRILLED into my head....
"Kid you can lose your home whatever, but without your IRON HORSE you are nothing, as you can sleep in your car and without it you have access to nothing, via supplies or money or work, just that simple....."
I have worked with serves who hired drivers to take them around via too many DUIz and they could no longer drive. Sure that was extra expense, but they had no car repairs to worry about etc. and still got around just find the person in mind anyhow, so some find a way to make do....
I live in long spaced out town as well, peoples situation varies greatly, like people who live in city on top of everything their only need is the city transit systems they use to move around verses cars....
Edited by Silverhawk74
08/05/2013 2:47 pm
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Pillar of the Community
United States
3789 Posts |
IF people don't invest in the stock market, they are missing out on one of the best places to get returns for their money. Now, I can see the anti-stocks people just reading this and going ballistic and poo pooing the stock market. And thats good because those are the people you exactly want to tune out. Those are the people who have missed each and every single run up in the market, so of course they are gonna say the stock market is horrible. The negative folks who only believe in PMs and there are many here, will fail on PURPOSE to admit that people who had good quality names have been made whole since the slide in 08 as stocks now sit at all time highs. OH BUT WAIT,, I can hear the feverish gold and silver bugs on this board jumping up and down and pitch forks in their hands now, ready to lynch me, saying "no matter what, the stock market right now is too "overvalued and its going to implode and its going to end ugly".  And to that I say..... ignore these people because they know nothing, their negativity made them miss the several hundred point run in the S & P. FYI, there is NO SUCH THING as overvalued nor oversold. Why? Because the market dictates that and no one is big enough or smart enough to outwit the markets. So, make sure you put steady money into the stock market and you will see it grow. If you are scared of the market then stick to just buying index funds and dividend paying funds and over time you WILL see the money grow. |
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Bedrock of the Community
13014 Posts |
I'd actually agree the stock market as a whole is overvalued, but to me that has less of an impact on investing than one might think. While it may be overvalued as a whole theyres still really strong companies within the market that can stand on their own regardless of everything else. Some of those are still undervalued compared to where they used to be even though their financials are similar. There's a couple stocks I currently have I would love to see bleed off some price so I can get more cheaper.
If I'm so worried about a company that the first dip I want to run from it that's generally a good sign to me I need to just take the profit or cut my losses and get out of it. But if an exxon wants to shed 20 bucks or so I'm buying as much as I can.
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Pillar of the Community
United States
3789 Posts |
Well,, thing is tho, there is no such thing as overvalued or oversold. IF that is the case, then by whos metrics? By whos definitions? ... and thats just it, stocks run in whatever direction as dictated by the market.
That is why in any asset, the only thing that is truth, true and can be followed is price. I remember trading AAPL in the past as an example. As it climbed higher and higher, I kept buying and buying it. All the financial media said was "is aapl overbought now?" Well all the talking heads said aapl was too expensive blah blah blah... but yet I kept buying at yearly highs and kept cashing in. Eventually aapl peaked and rolled over. But before that, despite everyone saying "its overbought", I cashed in many times trading that stock.
So the same holds to something being "overvalued or overbought." There really is no such thing. The bottom line is any asset runs in any direction, the market decides how much and how far and always it goes farther than anyone thought. That is why there is no such thing as overvalued or oversold. We see the same in reverse with gold. Everyone and his brother is saying gold has been sold too much and therefore it cant go any lower. Well guess what. Thats wrong. Gold will continue to keep selling down until the market says so.
I have made excellent trades over the years especially where there is a perception of an asset being oversold or overvalued.
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Posted 08/05/2013 10:12 am
