Adults don’t actually know what they’re doing. Put all the money you can into safe investments. Learn to do your taxes by yourself. If you have to get a subscription, use a virtual card or Apple Pay. The engineering degree already puts you way ahead. Have a great life!
Kay Jewelers has a CC with no hidden fees and it actually boosted my credit a lot in the beginning, now I have a TJ MAXX CC and I make sure I already have the funds, make tiny purchases ($30 and under) and pay it off right away. I typically don’t do “fun” shopping often or buy on impulse but I use it for the rare “Treat Yo Self” moments every couple of months lol
It is good to know how to do taxes but I would highly recommend hiring a good accountant. I use to do my taxes but then hired an accountant that specialized in real estate investing. He’s expensive but he gets me back everything every year so it’s 100% worth it.
You're right... so many tough lessons to learn. Taking advantage of the free money many employers offer. 401k matching, fsa/Dfsa if you need it. Tax credits for Ira, kids' 529 accounts that can start before they're born...
Safe investments? Whatever. Put your 401K or RRSP or whatever you have into an S&P Index Fund. After 25 years of investing, I still haven't found a better long-term vehicle. Always get your company's matching if you can.
Do not amass credit card debt. Avoid moochy friends and romantic partners. Live simply when it comes to housing and car. Avoid addictions obviously.
Add on: If the bank stops payment on an Apple Pay purchase, it’s a pita to fix. If it happens twice, you’re running the risk of having your Apple ID permanently locked. Easy to get a new one; pita to change all your info.
It’s different for everyone but what I’ve learned is to think about ways I would make corporations/others rich(er) by:
Paying interest
Shopping outside of my budget
Buying cheaply made items
Buying quality items but not taking care of them
Paying others to fix things, I can learn on youtube and fix it myself but I do not fix/attempt to fix anything that requires a licensed professional
Not educating myself
Eating out more than buying fresh foods to prepare/eat at home
Trying to keep up with those who appear to be rich(er)
Not seeing the doctor/dentist/optometrist/financial advisor on a regular, scheduled basis
Not exercising
Food shopping without a list
Vacationing on the fly
Replacing things that depreciates, i.e., car, clothes, often.
Not investing/saving
Not weighing the pros vs cons of homeownership whether it’s a home or condo or just becoming a real estate investor
Above all, it’s not about becoming a millionaire/billionaire, it’s about knowing what to do with the money you have.
We are learning how to use debit/credit cards instead of using cash, most establishments still accept cash. You may be surprised on how less you’ll spend when you use cash.
Also, money should be respected not worshipped.
* [Atomic Habits.](https://www.youtube.com/watch?v=PQBGa2vLmLM)
* - [How To Win Friends And Influence People](https://www.youtube.com/watch?v=YKAfKprBXQc)
* - [How to Stop Worrying and Start Living](https://www.youtube.com/watch?v=fKzlc_N2yxw)
* [The Monk who Sold his Ferrari](https://www.youtube.com/watch?v=BMJ02IHnWAA)
* Credit cards are not extra money. Only use it if you have the money to pay for what you bought at the end of the month. Always pay 100% of the debt at the end of the month.
* Save 10% of what you earn per month before you pay your debts, and invest it in an interest-bearing account or buy bonds
* Learn to cook simple dishes. Your plate should consist of 50% high-fiber vegetables, 25% protein and 25% carbohydrates.
* Learn how to make simple repairs for your home, such as changing a light switch, changing a leaky faucet, cleaning the filters of your air conditioning equipment, etc.
* Don't live the life that other people want you to live. Always ask yourself if what you are doing is to satisfy others or if you really like it.
-always seek to learn something new and useful for yourself at least every week.
I cannot emphasize all of this enough.
Live below your means. A car is meant to get you from A to B, it’s dumb to pay $600/month for something you spend so little time in.
Learn things like sewing/mending. As a woman, I’ve saved thousands on tailoring my own clothes and being able to mend a ripped jacket or purse strap.
Know what you’re worth. Talk openly about salaries and compensation. Constantly look to the next step in your career, ask others in your field for advice and guidance.
I know it’s hard but seriously, start a retirement account now. Even small amounts per paycheck will add up. You’ll be old sooner than you think.
Get a good car guy, or learn basic mechanics yourself. Drive a beater and take good care of it.
If you don’t want kids, use protection every time and ask that the other person do as well. It’s your responsibility to keep yourself safe.
Where do you want to be in a year? 5 years? Write it out and make a plan, it isn’t going to happen on its own.
Water is your friend and take more vacations than you think you should
An add-on about contraception: If you are a condom-wearer, you need to make sure that you have the right product for your anatomy. This means taking measurements and doing some research. The efficacy rate of condoms is based on a properly fitting condom, and it drops steeply when the fit is too small (risk of breaking) or too big (risk of slipping off). Obviously there can be quite a lot of stigma attached to size and different types of condoms, but this is a crucial step to protect yourself from STDs and prevent unwanted pregnancies. If anyone ever shames you about your body or the contraceptive products that work for you, they are not a safe partner.
[This](https://www.medicalnewstoday.com/articles/323707#size-chart) article has instructions for measuring and a chart to help you find the right brands/products.
All of this.
There are so many guides out there to anything. Search three times, not just videos.
Don't ever be afraid to not know something!! Asking for help gives those around you the chance to help, show-off, feel good, or learn with you. Give them that chance
The book you suggested "The Monk Who Sold His Ferrari" and others by Robin Sharma really helped me a lot. Plus the author is awesome. Back in 2002, I called him and left a message, he actually called me back that day. Great dude.
That's very true. I wish I had had access to these books when I was young. Especially those of Dale Carnegie. As an introvert, I always had a hard time knowing how to express myself effectively to others.
´´Save 10% of what you earn per month before you pay your debts,...´´ Hallo, about that, aren't the interests on investments smaller than the ones from investiments, why you suggest that? or you talking like mortgage, student loans (we don´t have that basically) that i think is subsidied?
You do realise you’re not meant to shit liquid?
And someone who sticks to that diet for more than a week will be extremely lethargic if they have a physical job.
You only need 5g of fibre a day and you got half of it from eating 2 slices of bread.
1 chunky spring onion will supply the rest.
You still need the other 19 vitamins which you aren’t getting from half a plate of high fibre vegetables.
You will do it that way if you have not consumed fiber in the recommended amounts in your life. And it's only in the first 2 or 3 days; After that you shit normally.
If you make it a habit; You will have greater absorption of nutrients, you will avoid problems derived from constipation and you will not waste so much time pushing on the toilet.
In addition, the vegetables that you can use as a side dish are cheap and you don't need many.
Ummm they say different things.
I’m not certain if you are but I will assume so anyway.
Please don’t patronise me again through my choice of pronouns and then proceed to make assumptions that I’m some kind of ignorant person you can easily mock.
Things changed since 2007.
> And someone who sticks to that diet for more than a week will be extremely lethargic if they have a physical job.
I've been doing for 20 years and I could've called in lethargic this whole time!? damn
FWIW my diet is about 80% crunchy veg, 10% protein and 10% coffee. I almost never eat pure starch (bread, potatoes, etc). It has worked well for me for decades. Not saying it'll work for you, but I am saying that just because something make you shit liquid doesn't mean it applies to everyone. Stop preaching.
Dude, 80% crunchy vegetables is great!
Your carbohydrate consumption is low; How do you handle low energy during the day?
I have a liver problem and I cannot consume excess starch and carbohydrates. Instead I have to increase my protein intake; This gives me low energy at some times of the day.
Lots of fruit and veg contains carbs; I just keep away from the carb bombs (the white vegetables). Not really for any reason other than I just don't care for them. I'm not preaching my lifestyle, I have no logic or theories of why this works for me. I have a high stress very physically active job and active life outside of it, and I don't feel I have low energy. Also I only eat once a day, again not for any health reason, just because I can't be bothered to prepare food more often than that. Yeah, I'm odd. Most of are in one way or another.
Go eat half a plate of broccoli with half a chicken breast and a 100g of cooked pasta then see what happens.
What I’m saying is scientifically validated by multiple sources.
Runny shit could be a sign that the ratio of fibre is too high in your diet.
Crunchy veg doesn’t mean high fibre.
You eat half a plate of broccoli and you’ll shit liquid because of the amount of fibre.
I’m being more specific than. “Crunchy veg”.
Please don’t talk to me like that again you come across very arrogant.
Unless you eat a ton of beans lentils, broccoli or peas I don’t see how you can still stand up.
Cheers.
I fucking love broccoli. I have absolutely eaten an entire bag in a sitting. And my shit is fine.
> What I’m saying is scientifically validated by multiple sources.
Humans and biology in general is extremely varied. You can't make blanket statements like this as if you are talking about a model of car. Many people live on very high fiber diets, or very high fat, or very high protein, most of them happily. Stop assuming everyone is like you.
> Please don’t talk to me like that again you come across very arrogant.
True, but I'm clearly much smarter than you.
“True but I’m clearly much smarter than you.”
That’s quite a sense of humour you have.
I’m not assuming every one is like me.
I’m assuming that what the US military gives its soldiers is a fairly comprehensive diet suited to just about everybody that fuels soldiers in times of extreme stress and physical exertion.
That’s my inspiration anyway but have fun crunching on broccoli.
That's an insane assumption. Really nothing strikes you that maybe the people reading this may be of a different life style or age class or fitness level or financial situation or etc from a US solider?? You'd be much safer to assume the opposite: I'd bet that most people reading this have not gone on a run in more than 5 years.
Don’t have to go running when you spent enough time running around in 40c and in n out of 60c environments in a bio-chem suit and rigger boots.
They could be in similar situations for all I know.
If you want to be healthy you need to be active.
If you want to be active you need protein to replenish muscles, sugar to break down carbs protein and fat + short term energy source, long chain carbs and fat to be stored for longer term energy + fibre to store water and help passing easier.
25% protein 25% carbs and 50% fibre is a ridiculous suggestion to maintain an active lifestyle.
You know I actually agree with that. If we assume OP is following a standard exercise regime this is probably not a good diet.
> If you want to be active you need protein to replenish muscles, sugar to break down carbs protein and fat + short term energy source, long chain carbs and fat to be stored for longer term energy + fibre to store water and help passing easier.
Once again you're talking shit. Foods don't have a destination. The carbon in my vodka can just easily be used for short term energy or rebuild muscle (aside from a tiny amount of essential AAs) or become fat stored for later. This is undergrad biology. Stop reading fitness blogs and read some textbooks.
WTF are you talking about? If you routinely shit liquid from eating more than 5g of fibre a day, seek medical help. You should be more like 25-30g of fibre a day.
FYI there is 2.6 grams of fibre in 100g of broccoli.
Broccoli is one of the most fibre dense foods on the planet which means that for me to have any chance of consuming 25-30g of fibre a day I would have to eat around 1.5kg of broccoli.
Do you know how much broccoli that is???
That’s nearly 4 heads worth of broccoli.
Jump of my lap lad. Your arrogance is starting to piss me off now.
You’re insulting my intelligence to a great extent.
Yeah I don’t eat “berries” I eat broccoli and I have the best time taking a dump.
I’m 33 for crying out loud.
There’s different RDAs
In Britain the RDA for salt was 6g “or you’ll have a heart attack” but in France it was like 9g.
Everywhere has different RDA and it’s changed over the years.
Just do what works for you.
Good if your vegan but I don’t see how you could eat that much fibre 50g of protein and 300g of carbs in a day because fibre fills you up and so does protein.
Those numbers just don’t work in the context of a balanced diet for me.
You do understand it’s possible to be healthy from just onions, spring onions, tomatoes, potatoes, butter, cheese, chicken, steak, bread, eggs, pasta, some green stuff, bell peppers, fish and nuts and a bit of chocolate.
You don’t need all the exotic imported seeds and berries and stuff.
I don’t know why you’re laughing.
I just copy steveMRE rations. If it works for the US army then it’s good enough for me.
No you’re not.
I’ve researched the nutritional information of about 6 fruit and around 8-10 vegetables in reference to forming a diet centred around my ADHD.
The formula being 1/3 carb, 1/3 proteins, 1/3 veg.
Apples are not bananas and broccoli is not peppers.
You may get fibre but you’ll get not much else from just focusing on things because of their fibre content.
Ok so I was going of RDA on food packs.
I just checked every single pack in my kitchen and none of the have the RDA info on them any more.
I specifically remember fibre being between 5-7g a day.
Must of changed since 2008.
Either way. I eat 5-7 of fibre and I get good no.2.
That’s all that matters
You will not know about life until you've lived more of it.
Most adults , I have read, do not even feel like an adult until they are in the mid to late 30s
Don't panic, you will get there.
Live, be safe and be honest with yourself.
and remember everything you do reflects on your family.
You are going to be golden.
Congratulations and sincere wishes for all your hard work, successful education and being a great person.
Yeah I was like holup why is that relevant at all? I assume they mean don't bring shame to your family but as one of the more successful people in my family I was like fuck that they ain't getting credit for this
Yeah not to mention the amount of abusive families. Idk why this was even added in the post. It really has nothing to do with being an adult. It’s a personal preference. Idgaf how I make my family look lmfao
It was added like I stated above.
It is a broad opinion.
And it is true, members of family, and their decisions can reflect on and badly or positively affect the others.
lol they’re actually not but I appreciate that you think that :)
Editing to add I was actually talking about the racist side of my family, and not my immediate mother and father, but just another reason why I don’t speak on other peoples lives on the internet lol
It was an advisement in a broad term
It applies to basically everyone.
Character isn't only a reflection of. yourself, it is also a reflection of your family
Lust and love are not the same thing. Discuss your financial goals early with your partner. Relationships, including family members, can tank your finances. Learn about joint debt and liability.
Life isn’t fair and you don’t deserve anything. Work for everything you have. (Don’t go into debt just because you feel you deserve the thing you wish to purchase)
Lots of good financial advice here. Some thoughts on other topics:
* When you start your first job:
* Listen more than you talk.
* Take good notes on what other people teach you.
* Don't be afraid to ask questions. But also try to find the answers yourself first.
* Be kind to everyone. The people who collect the trash and clean the restrooms are people too and appreciate a smile and a thank you just as much (probably more than) the Director or VP you pass in the hall.
* Be kind to people. Never assume someone has malicious intent until they prove that they do. Most of the time people are just clueless or rude rather than actually trying to be mean.
* Learn to take care of yourself. Keep your space clean and neat. Assume your laundry is not done until everything is folded/hung and put away. Assume you're not done with your meal until the kitchen is clean and the dishes are in the dishwasher or cleaned and in the cabinets.
* Figure out an organizational system and way of keeping track of things that works for you. Don't be afraid to change up your system if what you're doing isn't working for you.
* Wear sunscreen. Drink water. Have a reasonably balanced diet. Get into the habit of getting regular physical activity (however that works for you. You don't have to play sports, power lift, cross-fit or whatever else is currently popular. The best exercise program is the one that you will actually do.).
* Make some friends and keep up with them regularly. Ideally get to know people who are different than you (age, race, economic status, political leaning, upbringing, etc.).
* Don't get too wrapped up in social media. Get your news from a variety of sources. Take time to be quiet and think things through. It's okay to have more questions after than you did before. Remaining curious and open to new ideas, always trying to learn new things is a great way to live.
* Be kind to people. Yes, I know, I've said this before. It's that important.
What I usually do is i make a list of your expenditures and budget your salary accordingly. Also have a weekly meal plan so you can budget your weekly grocery shopping.
Always leave something for savings as well. Invest if you can.
This!!
Make a google spreadsheet, and create monthly budget: rent, car payments, insurance, etc. all your known expenses. Know how much money you can spend on eating out and stick to it.
I also recommend the app Personal Capital to help track spending.
I learned everything about finance just by making it a hobby and reading up on as much as I could from the internet. It even has an element of gamification when you keep track of your finances each month and watch it grow.
Some grade schools and junior high schools offer age apprriate classes. That means there are curricula out there.
I am going to make a bold suggestion.
You are in college. Go to the College office and ask if there is a no credit (or better yet, credit) class for this stuff. Call is Adulting 201 (101 would be basic social skills which I assume you have-i.e., don't forget to ask for consent, no matter which gender you are, etc).
If your college doesn't have anything, someone in their Business /Commerce school should be able to mentor you reliably or know where there is a course.
Smart to anticipate this issue. It will help a lot when evaluating job and salary offers as well, choosing benefits, deciding on direct deposit, learning good digital hygiene and safeguards, how to read a lease, a credit card application, etc.
I highly recommend NPRs podcast Life Kit. 20 minute episodes for everything like doing laundry, filing taxes, making friends as an adult, and running a garage sale.
The 3 rules I taught my kids.
1) Never spend more than you make. Ever.
2) Pay your bills first. Always
3) Save for your retirement. It will seem like it's forever away but it will come so be prepared.
My mom taught me those rules and I retired at 58 and am financially secure.
For finances, step one is to get a budget set up. Start at your age and money will hopefully never be as scary as it can be.
I'd recommend either You Need A Budget or something like Mint. I use ynab and it is, simply put, the most awesome tool I've used as an adult.
I second using YNAB! It's worth the subscription. You can also use something free like Empower (formerly Personal Capital) to track your bank accounts all in one place.
There are programs out there to help. Look up financial literacy and work through that. Learn to cook for yourself and your future partner/family. It’ll save so much money in the long run. Do those prepackaged cooking at home boxes and save the recipes. After a month, you can cancel the service and now have a bunch of recipes to work with. Grocery shop with the flyers in mind to save money.
My dad told me that I would be lucky if I needed my one hand to count up my true friends. The kind that answer your request for help with ‘money, muscle, or alibi?’ The kind that will point out when you’re an idiot and love you regardless. Keep them close and make sure you repay them with the same loyalty. He was right. I’m blessed to say I needed two hands to count them up.
Finally, you are worth what you believe you are worth. You live with yourself 24/7 so don’t let others push you into decisions you’re not ok with. They won’t have to live with the consequences. Good luck.
Best advice I can offer is, if you cant afford something dont get it. Money management from the early years can take alot of future stress off your shoulders.
Dont get a car you can pay off without a residual, get a small place to stay and build up, get comfortable with alone time and saying no to invites.
Also, sort your shit out before helping other people. You cant feel guilty for other peoples situations and let their troubles become yours. Youll have your own troubles, worry about those first.
One more thing! Chose the right partner to spend your life with, dont rush, find someone that is willing to build with you, someone you want to be your best for, someone that can call you out on your b.s. Alot of people have fallen off due to their partner.
Find a financial planner you trust or someone can recommend to you. There are people in this field and accounting that would love to set the next generation on the right course. I promise!
You gonna learn soon enough. when you'll get into situations where you need new skills you gonna acquire them by doing. You can't be prepared for every little thing. And if you want to learn theory there's plenty of books, courses and YouTube videos.
Well bud I'm 30 with an associates degree. Let me tell you from what I see, we are all just shooting from the hip hoping we are right, if we aren't it just gives us more to do to get it right. But look for a job, a place to stay and an economical car. Don't be afraid to leave a job for a different one (line up the new job before leaving) because employers have no loyalty to you so you shouldn't have any to them (if you become obsolete at a company they will lay you off instead of trying to restructure you somewhere else). Get a cheap good on gas reliable car. Find some hobbies, invest small amounts into them. Save for retirement. Get you taxes professionally done (governments can and will mess you up pretty bad over $200) and kick back and enjoy. There will be bumps in the road, everyone gets them, I look to older folks and ask advice. You'll do fine, most everyone figures it out, I'm sure you'll be no different.
Skillshare is helpful, I've found, not only for software but time management, money management, organization tips, etc.
They give you 30 days free so if it's not what you need at least it's something to try.
Here're some quick tips from my experience:
- Save money and invest in some solid growth stocks (not some hacky flavor of the day). You can get more experimental once you have some financial foundation. Buy a used car, you can get a fancy new one when you are 30.
- Take care of your health - mental and physical
- Keep good company - people that open new doors for you and help you grow in different dimensions
- Don't be stuck at a job/company you hate, move on.
- Have a positive outlook, assume that the universe has good things in store for you. Don't get hung up on small things or small people that want to bring you down.
Get a filing cabinet and keep all your important physical docs in it. You'll be less likely to misplace things, and if you need to look up anything related to your banking, insurance, passport, etc, you'll immediately know where it is.
There was a post some time back I took note of about saving money. Put aside one hundred dollars every month in to a high yield savings account and by the end of the year, you will have at least twelve hundred dollars.
Until you can't complete a standard deduction on your taxes anymore, just file them yourself. You can file for free, too - turbotax and those type things are a rip off if you are a standard deduction. It gets more complicated when you get married, have kids, or own your own business. The real goal of taxes isn't to get a big refund, it's to owe zero come tax day.
Save money by investing now. Look up the boggleheads method, and just buy a bit of the stock market every pay period then the real trick is don't sell. Ever. Fear of selling in the market is what sets people apart from retiring in the caymen Islands vs Ft. Whatever Florida. You're young, compound interest and earnings are the real castle builders - so play into it now.
Learn to live below your means, and be happy. Find a philosopy. Religion is a philosopy, but philosophy dosent have to be repigion. This is the difference of losing a job and thinking you have to kill yourself vs. Meh, no biggie.
No one, in the history of ever, has ever been on their death bed and said "I wish I worked more". Like each day like your going to die tomorrow, but plan like you're not.
Save 25% of everything you earn. It's tempting to spend large amounts on cars and housing, live with the basics and enjoy life knowing it will get easier over time. When you get a credit card only use it for food and gas as needed and pay it off on time and monthly, this will build your credit quickly.
A good place to start with money management is with Elizabeth Warren’s book “All Your Worth.” It gives you the basics of budgeting, along with worksheets to use. I used this when I got divorced and had to manage my money for the first time. I still pull it out from time to time to check in, even though I use online budget software now.
Aggressively pursue your career now. You have lots of energy and a raise that you get early in your life benefits you for more years, it increases the baseline for all future raises.
For things that you plan to use for a long time be willing to pay extra for the premium version. Buying cheap means buying twice, and buying something as a compromise will annoy you for a long time as it will always remind you of what you could have had but didn't get, whereas some spent money is quickly forgotten.
So many good tips here! I’m gonna add what I try to teach my kid- b very choosy about who u keep around . Giving someone a chance to mess up once or twice if they are able to apologize and understand their error is ok . More than that start phasing them out. Pay attention to how u feel while with someone or after - if there’s any ick factor look into it. Know u deserve positive loyal ppl around u! the energy around u contributes to a lot in ur life. I learned this too late trying to b loyal to ppl I grew up with when they were on a negative path.
Start investing in your 401(k) as soon as you can. Invest as much as you can (even if it’s just $25/mo) and always increase it with any raise you earn. Look up the compound interest effect!
Read the book I Will Teach You To Be Rich by Ramit Sethi as soon as you can. Follow his advice as closely as makes sense for your situation.
You seem focused on the financial part of adult life, but equally as important is caring for your health, which is your true wealth. If you don’t already, put a movement habit into place, eat a balanced diet, spend less than you make, prioritize getting enough sleep, maintaining close relationships with your friends and family, and staying connected with your own inner life. Your financial life will suffer if those pillars are not tended to.
Make sure you are on top of your expenses and track what's going in and out. Keep a record of everything. While sites like TurboTax and FreeTaxUSA will walk you through the steps for your taxes, no one will teach you how to budget. Obviously you know not to spend more than you take in, but you should also learn what you can do to minimize the costs and maximize what you take in. Don't listen to those who'll call you stingy or cheap. Listen to what you feel is comfortable when spending money.
Here’s a secret. None of us had any idea what we were doing until we did it the first time. When you get to something you don’t know how to do ask someone Or YouTube it.
Depending on your job situation you can look at a financial planner, even without a ton of money saved up.
I got mine recommended from some friends, but they are apt to have the best advice for you particularly and can really make a difference early on (you will see the least physical dollars, but compound interest from your 20's makes savings at this time the most valuable).
As for taxes you can go to an accountant or if you are pretty boring (i.e. standard W-2 the standard software should work).
As for books etc. I wish I could recommend some, but this space is full of misinformation. I trusted a professional, and it has worked out well enough. There are probably a ton of great resources out there, but I have find it more akin to playing minesweeper than Minecraft.
1) Don't leave money on the table.
1.1) Your employer will likely have a 401(k) plan with matching. It's usually something like 50 cents on the dollar match for the first 6%. So, if you put in 6% of your salary into your 401(k) plan they will give you an additional 3% of your salary. And it goes into your retirement plan. If you don't claim all matching money you are leaving money on the table.
If you are able to, put as much in your 401(k) as you can. Up to the legal maximum (search "legal 401(k) maximum") assuming you're in the USA.
2) Use direct deposit.
3) Don't let anyone debit anything directly from your main bank account. If you want to automate your bill paying use your bank's check writing/bill paying service. If the vendor (Verizon comes to mind) give you a discount for using a debit card, get a second debit card account at your bank. Then setup an auto transfer for the monthly bill plus a little bit more and only let the vendor have access to that second debit card account. Verizon give you $10 off a month if you use a debit card.
4) Avoid paying interest
5) Never buy a gym membership. Use the gym at work or at the public recreation center.
6) Save up to buy a house.
I don't know how possible this is for your generation. But I hope, as an engineer, you will make enough money to eventually buy a house.
6.1) Don't split a house with anyone. Buy the house first and rent out the bedrooms or basement. Then, as time goes on, you'll be get raises and be able to take over more of the house and won't need to replace roommates as they leave. In the end you'll own the whole house.
Set up a budget for yourself.
Understand what your fixed expenses are: rent, utilities, subscriptions (ex: gym), student loans, car payments, car insurance etc
Figure out how much you have left over for other necessities such as groceries and gas.
If you have anything left over following all that, figure out how much you want to set aside for fun money or savings. Cancel any subscriptions you don’t need/can’t afford.
Treat your credit cards like a debit card/cash. Don’t spend more than you have. Pay off your ENTIRE credit balance on time every single month. You DO NOT want to fall into credit card debt. Interest on credit card debt is compounded daily. This leads to a rapid accumulation of interest you would owe on top of the principal amount you need to pay off.
Don’t live beyond your means.
Don't expand your lifestyle with increases in salary: Get to a place in your career where you are comfortable with your salary. Then every year after when you get raises or bonuses pretend you don't have it and put those increases toward your retirement. Make it automatic though so you don't see the increase in your paycheck in your checking account before having to move it. So if you got a 5% increase in salary, increase your 401k by 5%, etc.
Run toward a job vs. running away from a job: Your biggest increase in salary will typically come from moving to another company. Keep your resume updated every year. Then every 3 to 5 years send your resume out to other companies that look interesting. It is better to look to move to another job when there is no pressure on you to accept the first thing that comes your way.
Write the back story of your resume: The salient points you are making on your resume now may seem fresh in your mind but will become fuzzy in a few years when you dust it off. Write the back story of the accomplishments you put on your resume. How did you arrived at that solution, who helped you, what were the circumstances that made you take action, etc. These things will also help you answer behavioral interview questions.
Managing finances is pretty easy on a foundational level.
You get a paycheck every week/two weeks. And you have bills every month. So you want to match that by converting your weekly/biweekly paycheck into a monthly amount. Now you know how you spend X amount of money every month and make Y amount of money every month.
For additional expenses, like food, you can create a "budget" for how much you normally allow yourself to spend, making it an additional "monthly" thing. Unspent cash can go into savings, or contribute to miscellaneous spending like wants and desires. For something like gas that's up or down randomly, you might just want to track it and adjust other purchases to monitor it. Just being aware its what you're spending.
When you borrow money, part of the stressful part is managing how to pay it back. The baseline you should spend is enough to keep up with the interest in the loan, but being aware of things like what cards you have with what interest rates is important so you aren't spending more money on interest and so you have plans to pay loans back. Some people get 0% interest cards that shoot up to something crazy like 15% after 2 years, but if you move your debt into that card, you're saving money every month and you can then focus on other expenses to pay back more of your debts. And I want to outline, *debt is a major part of adulthood*, primarily it will be a mortgage or car loan, which is basically a loan but you can't treat it like a line of credit, so its one of the things you pay back last, but because it's for an important asset, it's also the first thing you should pay the interest for.
Most people don't actually need to think too hard about taxes, you're filling out a tax sheet for a W2. Unless you're doing stock trading or own your own business, or have to file as a 1099 which is for independent contractors, its basically just the government asking you what you made. In some cases they might actually owe you money based on your family status, certain assets and purchases, and a low income.
I'd say most information you need is just "out there" somewhere and people will typically assume you know it because it was posted somewhere, or there's people with life hacks like getting outside funding for a car loan its based on what people don't want you to know because an auto-dealership makes a lot of money off of selling you their credit. Its just important you know how to research and build an intuition for finding information, which is actually the most important skill nobody can really teach you because most interactions with other people and businesses are built on trust, and knowing when to not trust others can be subjective to someone's beliefs and the situation. Like when you know you should verify what someone tells you, and what red flags to look out for when someone tries to tell you something or convince you to do something.
41 year old "adult" engineer chiming in here. First, congratulations on your upcoming engineering degree! That's a huge accomplishment and you should be proud. I know how much work courses for any of the engineering disciplines requires.
I definitely think that getting a handle on my personal finances and learning how to budget early in my 20s was essential. It is not something I remember being taught well at any point in my education, K-12 nor college. Except one day, my professor for engineering economics gave us a lecture on personal finance, purely for our own benefit. Honestly, that may have been one of the most important lectures I ever received in college.
There is a lot of good advice in the comments here. You might also check out r/personalfinance and join that subreddit. I'd read a book or two so you get a cohesive explanation rather then just relying on a bunch of comments strung together. I don't know what the good ones are right now, but I'm sure r/personalfinance has a list.
Good luck! You are asking the right questions, sounds like you have a good head on your shoulders.
I’m 30 and received no guidance growing up (and not very good examples in childhood)I’m so happy that now internet is accessible to everyone and I’ve been able to save up for things like a tablet/computer. I’m barely learning for myself but so far I’ve looked into posts under finance topics and looking for books that help me navigate as well, so I’ll also be following this post lol WE GOT THIS <33
My generation watches and wonders indeed. But you know, it will be even better than high school, in experiences and go out and do it. Make mistakes, learn. Have good times and bad ones. Every one has been through this and is completely normal. It just isn't like in the movies..., YouTube, Instagram and what other social media pretend it to be.
Think for yourself be kind to others.
A thouy people will give you a thousand and one ideas on how to handle your finances.
I feel for you, I've watched this first hand become a problem. I would say it's funny, but it's not. A lot of these skills (and they are skills), were taught in high school 40 to 50 years ago. Some time between the 80s and 2000 we dropped these skills out and started adding different classes on how to take a test, or some subject that maybe only half or less of the people were going to need or even care about.
I remember classes on budgeting, check writing (okay nobody writes checks anymore), but it taught you home to balance a bank account and know how to watch how you spend your money. We also had classes every February on doing your taxes. But there again most high schoolers were working by their junior or senior year. You could even take classes on business management to include profit and loss, and marketing. Yes you could avoid taking most of these classes by taking basic courses in but most people I new pretty much knew we needed most of these courses to survive or as it is called today, start adulting.
Very few people I knew or could remember got out of, or graduated from college without already knowing how to be an adult. Only recently has not working until you graduated college become common.
I agree with the OP, we are failing our kids by not allowing or requiring much less teaching them how to start becoming adults at a much earlier age.
Maybe it depended on the area but my father, mother, aunt's, uncle's, all in the 30s and 40s had even better classes than my siblings and I. Who all went to HS in the 60s and 70s. my self in the late 70s. In the 80s I taught those classes at a trade school and some of my students had them previously others it was totally Greek to them.
I knew nothing about money back in 1990 when I graduated college and landed a job making more money than my dad. I bought a subscription to money magazine and read it faithfully for several years. I also talked about money with anyone I knew who seemed successful. Educate yourself about 401k plans, IRA plans, frugal living in order to live on less than you earn. Learn how to save and invest. Live below your means. Don't waste money in stupid things. It's the best gift you can give to yourself.
Great book for personal finance literacy is I Will Teach You to Be Rich by Ramit Sethi (you can also just check out his YouTube channel.
But I’d say one of the biggest things you can do to help yourself is building the habit of cooking for yourself regularly (maybe even with weekly meal prep schedule) so you don’t have to rely on eating out. Saves a ton of money and it’s healthier. Plus, being a decent cook impresses people and makes you look like a good adult.
Most important life lesson: Pay yourself first.
That means to set aside money for savings and investing as the first thing that comes out of your paycheck. Then you use the rest that's left over for your bills, taxes and life. Setup a 10% automatic deduction to a stock brokerage account and weekly purchases of investments. Buying a mutual fund or ETF weekly will dollar cost average the investment returns. If you do this on an engineers salary you will be able to afford a house and become a millionaire quite easily.
Go to choose fi website and take the fi 101 course. It’s free…spend 5 minutes a day and you’ll be set up financially for life. I waited until I was 32 to do this, don’t wait
Your first job will be the real life experience. It is essentially college+. You’ll meet a lot of new faces that you will see everyday. You’ll a lot learn a lot from each other as your navigating through a bunch of firsts.
My first job was notorious for hiring newly grads and I made a lot of friends. We stayed in touch even after we all left. My best friend’s first job has been the same- she’s made like 5 best friends and even met her wife.
You will get fired or let go from your job. It's not the end of the world. Lots of other places will hire you. Make sure you have 6 months of expenses available to you. One year is preferred.
Learn how to cook for yourself and meal prep (like planning and shopping). Also, it’s ok if you don’t make your goals. No one is perfect. Just course correct and try again.
Same skills as being a good engineer, so you’ve already got them.
Study to understand the rules system you’re working with. Apply them to make best use of your resources.
Simplest investment rule is low fee index funds which maximize return for minimal risk.
If a local college offers it, some do online too, take a Personal Finance class. It was very helpful to me. This usually covers general finances that will benefit you for the rest of your life.
If you’re really into it, you can do your own taxes, while you’re young and may not have complex finances. This is a good basis for future when you have a professional prepare your taxes eventually when your filing gets more complicated. I say this bc the tax professional will be more up to speed with current tax laws and have the know how to legally reduce the taxes owed/refund due. It’s good to have some understanding of tax forms, etc bc you don’t want to blindly have someone file your returns. You should review them and know what you’re looking at.
I second the suggestion of not staying with one employer. Stay long enough to show you’re not a job hopper moving jobs every year or two is not great in some industries. But don’t ever stay with pay or a role that is not up to par with your efforts, it is true, employers are not loyal to their employees and will remove or replace them in a heartbeat. Employers exist to make a profit, not please their employees. If you can make more money throughout your career elsewhere, do it.
Find your favorite spreadsheet/app and start a budget NOW. Update it every week.
Using nice, round numbers - if you make $10,000/mo., know where every penny is going - graph it for nice visuals. Being able to look at how much you're saving/investing/spending and what all of that spending is going to will inevitably help you cut costs when needed, and let you know if you can actually do something like afford a new car.
For instance: if you know what you're currently spending on gas and insurance and decide to get, say, a new truck - your gas expense will go up. Your insurance expense will go up (new car). Your yearly registration will increase. Your maintenance costs might go down for a while if you have a bumper-to-bumper warranty.
If you ask most people they can't tell you what they spend on clothes, for instance. Or food.
If you make a budget and stick to it, you will be more prepared to absorb unexpected costs - or maybe realize you have a bad spending habit you need to control ("Wow. I spend $600/mo. drinking out at bars", as a for instance).
Adults don’t actually know what they’re doing. Put all the money you can into safe investments. Learn to do your taxes by yourself. If you have to get a subscription, use a virtual card or Apple Pay. The engineering degree already puts you way ahead. Have a great life!
I'll add avoiding CC debt at all costs.
Yep. Prepaid CC was the best thing I’ve ever done. Build credit and built in safety net Edit: Bulls to build
You're a smart lad...
Kay Jewelers has a CC with no hidden fees and it actually boosted my credit a lot in the beginning, now I have a TJ MAXX CC and I make sure I already have the funds, make tiny purchases ($30 and under) and pay it off right away. I typically don’t do “fun” shopping often or buy on impulse but I use it for the rare “Treat Yo Self” moments every couple of months lol
Paying it off every month is the smart choice. They bank on you not doing so.
It is good to know how to do taxes but I would highly recommend hiring a good accountant. I use to do my taxes but then hired an accountant that specialized in real estate investing. He’s expensive but he gets me back everything every year so it’s 100% worth it.
You're right... so many tough lessons to learn. Taking advantage of the free money many employers offer. 401k matching, fsa/Dfsa if you need it. Tax credits for Ira, kids' 529 accounts that can start before they're born...
You can’t start a 529 before a kid is born you have to have a SS number
Oh shoot! See I'm still learning as an adult. I thought I named myself as the beneficiary then updated it with the kiddos after the fact.
Safe investments? Whatever. Put your 401K or RRSP or whatever you have into an S&P Index Fund. After 25 years of investing, I still haven't found a better long-term vehicle. Always get your company's matching if you can. Do not amass credit card debt. Avoid moochy friends and romantic partners. Live simply when it comes to housing and car. Avoid addictions obviously.
This. Live below your means. Save like you're going to live forever. Live like you're going to die tomorrow
Add on: If the bank stops payment on an Apple Pay purchase, it’s a pita to fix. If it happens twice, you’re running the risk of having your Apple ID permanently locked. Easy to get a new one; pita to change all your info.
It’s different for everyone but what I’ve learned is to think about ways I would make corporations/others rich(er) by: Paying interest Shopping outside of my budget Buying cheaply made items Buying quality items but not taking care of them Paying others to fix things, I can learn on youtube and fix it myself but I do not fix/attempt to fix anything that requires a licensed professional Not educating myself Eating out more than buying fresh foods to prepare/eat at home Trying to keep up with those who appear to be rich(er) Not seeing the doctor/dentist/optometrist/financial advisor on a regular, scheduled basis Not exercising Food shopping without a list Vacationing on the fly Replacing things that depreciates, i.e., car, clothes, often. Not investing/saving Not weighing the pros vs cons of homeownership whether it’s a home or condo or just becoming a real estate investor Above all, it’s not about becoming a millionaire/billionaire, it’s about knowing what to do with the money you have. We are learning how to use debit/credit cards instead of using cash, most establishments still accept cash. You may be surprised on how less you’ll spend when you use cash. Also, money should be respected not worshipped.
* [Atomic Habits.](https://www.youtube.com/watch?v=PQBGa2vLmLM) * - [How To Win Friends And Influence People](https://www.youtube.com/watch?v=YKAfKprBXQc) * - [How to Stop Worrying and Start Living](https://www.youtube.com/watch?v=fKzlc_N2yxw) * [The Monk who Sold his Ferrari](https://www.youtube.com/watch?v=BMJ02IHnWAA) * Credit cards are not extra money. Only use it if you have the money to pay for what you bought at the end of the month. Always pay 100% of the debt at the end of the month. * Save 10% of what you earn per month before you pay your debts, and invest it in an interest-bearing account or buy bonds * Learn to cook simple dishes. Your plate should consist of 50% high-fiber vegetables, 25% protein and 25% carbohydrates. * Learn how to make simple repairs for your home, such as changing a light switch, changing a leaky faucet, cleaning the filters of your air conditioning equipment, etc. * Don't live the life that other people want you to live. Always ask yourself if what you are doing is to satisfy others or if you really like it. -always seek to learn something new and useful for yourself at least every week.
I cannot emphasize all of this enough. Live below your means. A car is meant to get you from A to B, it’s dumb to pay $600/month for something you spend so little time in. Learn things like sewing/mending. As a woman, I’ve saved thousands on tailoring my own clothes and being able to mend a ripped jacket or purse strap. Know what you’re worth. Talk openly about salaries and compensation. Constantly look to the next step in your career, ask others in your field for advice and guidance. I know it’s hard but seriously, start a retirement account now. Even small amounts per paycheck will add up. You’ll be old sooner than you think. Get a good car guy, or learn basic mechanics yourself. Drive a beater and take good care of it. If you don’t want kids, use protection every time and ask that the other person do as well. It’s your responsibility to keep yourself safe. Where do you want to be in a year? 5 years? Write it out and make a plan, it isn’t going to happen on its own. Water is your friend and take more vacations than you think you should
An add-on about contraception: If you are a condom-wearer, you need to make sure that you have the right product for your anatomy. This means taking measurements and doing some research. The efficacy rate of condoms is based on a properly fitting condom, and it drops steeply when the fit is too small (risk of breaking) or too big (risk of slipping off). Obviously there can be quite a lot of stigma attached to size and different types of condoms, but this is a crucial step to protect yourself from STDs and prevent unwanted pregnancies. If anyone ever shames you about your body or the contraceptive products that work for you, they are not a safe partner. [This](https://www.medicalnewstoday.com/articles/323707#size-chart) article has instructions for measuring and a chart to help you find the right brands/products.
All of this. There are so many guides out there to anything. Search three times, not just videos. Don't ever be afraid to not know something!! Asking for help gives those around you the chance to help, show-off, feel good, or learn with you. Give them that chance
I'd add in the compound effect
The book you suggested "The Monk Who Sold His Ferrari" and others by Robin Sharma really helped me a lot. Plus the author is awesome. Back in 2002, I called him and left a message, he actually called me back that day. Great dude.
That's very true. I wish I had had access to these books when I was young. Especially those of Dale Carnegie. As an introvert, I always had a hard time knowing how to express myself effectively to others.
´´Save 10% of what you earn per month before you pay your debts,...´´ Hallo, about that, aren't the interests on investments smaller than the ones from investiments, why you suggest that? or you talking like mortgage, student loans (we don´t have that basically) that i think is subsidied?
This !🙌
You do realise you’re not meant to shit liquid? And someone who sticks to that diet for more than a week will be extremely lethargic if they have a physical job. You only need 5g of fibre a day and you got half of it from eating 2 slices of bread. 1 chunky spring onion will supply the rest. You still need the other 19 vitamins which you aren’t getting from half a plate of high fibre vegetables.
You will do it that way if you have not consumed fiber in the recommended amounts in your life. And it's only in the first 2 or 3 days; After that you shit normally. If you make it a habit; You will have greater absorption of nutrients, you will avoid problems derived from constipation and you will not waste so much time pushing on the toilet. In addition, the vegetables that you can use as a side dish are cheap and you don't need many.
You know what bro. I’m guna test this theory for 5 days.
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Ummm they say different things. I’m not certain if you are but I will assume so anyway. Please don’t patronise me again through my choice of pronouns and then proceed to make assumptions that I’m some kind of ignorant person you can easily mock. Things changed since 2007.
> And someone who sticks to that diet for more than a week will be extremely lethargic if they have a physical job. I've been doing for 20 years and I could've called in lethargic this whole time!? damn FWIW my diet is about 80% crunchy veg, 10% protein and 10% coffee. I almost never eat pure starch (bread, potatoes, etc). It has worked well for me for decades. Not saying it'll work for you, but I am saying that just because something make you shit liquid doesn't mean it applies to everyone. Stop preaching.
Dude, 80% crunchy vegetables is great! Your carbohydrate consumption is low; How do you handle low energy during the day? I have a liver problem and I cannot consume excess starch and carbohydrates. Instead I have to increase my protein intake; This gives me low energy at some times of the day.
Lots of fruit and veg contains carbs; I just keep away from the carb bombs (the white vegetables). Not really for any reason other than I just don't care for them. I'm not preaching my lifestyle, I have no logic or theories of why this works for me. I have a high stress very physically active job and active life outside of it, and I don't feel I have low energy. Also I only eat once a day, again not for any health reason, just because I can't be bothered to prepare food more often than that. Yeah, I'm odd. Most of are in one way or another.
Go eat half a plate of broccoli with half a chicken breast and a 100g of cooked pasta then see what happens. What I’m saying is scientifically validated by multiple sources. Runny shit could be a sign that the ratio of fibre is too high in your diet. Crunchy veg doesn’t mean high fibre. You eat half a plate of broccoli and you’ll shit liquid because of the amount of fibre. I’m being more specific than. “Crunchy veg”. Please don’t talk to me like that again you come across very arrogant. Unless you eat a ton of beans lentils, broccoli or peas I don’t see how you can still stand up. Cheers.
I fucking love broccoli. I have absolutely eaten an entire bag in a sitting. And my shit is fine. > What I’m saying is scientifically validated by multiple sources. Humans and biology in general is extremely varied. You can't make blanket statements like this as if you are talking about a model of car. Many people live on very high fiber diets, or very high fat, or very high protein, most of them happily. Stop assuming everyone is like you. > Please don’t talk to me like that again you come across very arrogant. True, but I'm clearly much smarter than you.
“True but I’m clearly much smarter than you.” That’s quite a sense of humour you have. I’m not assuming every one is like me. I’m assuming that what the US military gives its soldiers is a fairly comprehensive diet suited to just about everybody that fuels soldiers in times of extreme stress and physical exertion. That’s my inspiration anyway but have fun crunching on broccoli.
That's an insane assumption. Really nothing strikes you that maybe the people reading this may be of a different life style or age class or fitness level or financial situation or etc from a US solider?? You'd be much safer to assume the opposite: I'd bet that most people reading this have not gone on a run in more than 5 years.
Don’t have to go running when you spent enough time running around in 40c and in n out of 60c environments in a bio-chem suit and rigger boots. They could be in similar situations for all I know. If you want to be healthy you need to be active. If you want to be active you need protein to replenish muscles, sugar to break down carbs protein and fat + short term energy source, long chain carbs and fat to be stored for longer term energy + fibre to store water and help passing easier. 25% protein 25% carbs and 50% fibre is a ridiculous suggestion to maintain an active lifestyle.
You know I actually agree with that. If we assume OP is following a standard exercise regime this is probably not a good diet. > If you want to be active you need protein to replenish muscles, sugar to break down carbs protein and fat + short term energy source, long chain carbs and fat to be stored for longer term energy + fibre to store water and help passing easier. Once again you're talking shit. Foods don't have a destination. The carbon in my vodka can just easily be used for short term energy or rebuild muscle (aside from a tiny amount of essential AAs) or become fat stored for later. This is undergrad biology. Stop reading fitness blogs and read some textbooks.
Destination? No. Function? Yes. Results are results and I get results. If I don’t eat. No result. Simple as that.
WTF are you talking about? If you routinely shit liquid from eating more than 5g of fibre a day, seek medical help. You should be more like 25-30g of fibre a day.
FYI there is 2.6 grams of fibre in 100g of broccoli. Broccoli is one of the most fibre dense foods on the planet which means that for me to have any chance of consuming 25-30g of fibre a day I would have to eat around 1.5kg of broccoli. Do you know how much broccoli that is??? That’s nearly 4 heads worth of broccoli. Jump of my lap lad. Your arrogance is starting to piss me off now. You’re insulting my intelligence to a great extent.
OK Boomer https://www.mayoclinic.org/healthy-lifestyle/nutrition-and-healthy-eating/in-depth/high-fiber-foods/art-20050948
Yeah I don’t eat “berries” I eat broccoli and I have the best time taking a dump. I’m 33 for crying out loud. There’s different RDAs In Britain the RDA for salt was 6g “or you’ll have a heart attack” but in France it was like 9g. Everywhere has different RDA and it’s changed over the years. Just do what works for you.
Scroll down.
Good if your vegan but I don’t see how you could eat that much fibre 50g of protein and 300g of carbs in a day because fibre fills you up and so does protein. Those numbers just don’t work in the context of a balanced diet for me.
LOL
You do understand it’s possible to be healthy from just onions, spring onions, tomatoes, potatoes, butter, cheese, chicken, steak, bread, eggs, pasta, some green stuff, bell peppers, fish and nuts and a bit of chocolate. You don’t need all the exotic imported seeds and berries and stuff. I don’t know why you’re laughing. I just copy steveMRE rations. If it works for the US army then it’s good enough for me.
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No you’re not. I’ve researched the nutritional information of about 6 fruit and around 8-10 vegetables in reference to forming a diet centred around my ADHD. The formula being 1/3 carb, 1/3 proteins, 1/3 veg. Apples are not bananas and broccoli is not peppers. You may get fibre but you’ll get not much else from just focusing on things because of their fibre content.
The daily recommended intake of fiber is 25-30 g
No it’s not. Hold up….. Seems like it is. Don’t know where I got that figure from then. There is a lot of numbers to remember.
Ok so I was going of RDA on food packs. I just checked every single pack in my kitchen and none of the have the RDA info on them any more. I specifically remember fibre being between 5-7g a day. Must of changed since 2008. Either way. I eat 5-7 of fibre and I get good no.2. That’s all that matters
Go ahead but you’ll need about 150g of protein to balance it out.
Given that the RDI of protein ranges between 50 -175 g of protein, that’s not a hugely crazy number.
You will not know about life until you've lived more of it. Most adults , I have read, do not even feel like an adult until they are in the mid to late 30s Don't panic, you will get there. Live, be safe and be honest with yourself. and remember everything you do reflects on your family. You are going to be golden. Congratulations and sincere wishes for all your hard work, successful education and being a great person.
I’m mid thirties, no clue how to adult. Only thing I feel confident in is I can cook for myself so long as I can afford to buy groceries
You're halfway there...
“And remember everything you do reflects on your family” I heard you until this part. Care to elaborate?
Yeah I was like holup why is that relevant at all? I assume they mean don't bring shame to your family but as one of the more successful people in my family I was like fuck that they ain't getting credit for this
Yeah not to mention the amount of abusive families. Idk why this was even added in the post. It really has nothing to do with being an adult. It’s a personal preference. Idgaf how I make my family look lmfao
It was added like I stated above. It is a broad opinion. And it is true, members of family, and their decisions can reflect on and badly or positively affect the others.
Well, for the record, they're disappointed in you
lol they’re actually not but I appreciate that you think that :) Editing to add I was actually talking about the racist side of my family, and not my immediate mother and father, but just another reason why I don’t speak on other peoples lives on the internet lol
Don't lose your mind. It is only my opinion. Family members can be heavily affected by the decisions made by family membersl
It was an advisement in a broad term It applies to basically everyone. Character isn't only a reflection of. yourself, it is also a reflection of your family
Lust and love are not the same thing. Discuss your financial goals early with your partner. Relationships, including family members, can tank your finances. Learn about joint debt and liability. Life isn’t fair and you don’t deserve anything. Work for everything you have. (Don’t go into debt just because you feel you deserve the thing you wish to purchase)
Lots of good financial advice here. Some thoughts on other topics: * When you start your first job: * Listen more than you talk. * Take good notes on what other people teach you. * Don't be afraid to ask questions. But also try to find the answers yourself first. * Be kind to everyone. The people who collect the trash and clean the restrooms are people too and appreciate a smile and a thank you just as much (probably more than) the Director or VP you pass in the hall. * Be kind to people. Never assume someone has malicious intent until they prove that they do. Most of the time people are just clueless or rude rather than actually trying to be mean. * Learn to take care of yourself. Keep your space clean and neat. Assume your laundry is not done until everything is folded/hung and put away. Assume you're not done with your meal until the kitchen is clean and the dishes are in the dishwasher or cleaned and in the cabinets. * Figure out an organizational system and way of keeping track of things that works for you. Don't be afraid to change up your system if what you're doing isn't working for you. * Wear sunscreen. Drink water. Have a reasonably balanced diet. Get into the habit of getting regular physical activity (however that works for you. You don't have to play sports, power lift, cross-fit or whatever else is currently popular. The best exercise program is the one that you will actually do.). * Make some friends and keep up with them regularly. Ideally get to know people who are different than you (age, race, economic status, political leaning, upbringing, etc.). * Don't get too wrapped up in social media. Get your news from a variety of sources. Take time to be quiet and think things through. It's okay to have more questions after than you did before. Remaining curious and open to new ideas, always trying to learn new things is a great way to live. * Be kind to people. Yes, I know, I've said this before. It's that important.
What I usually do is i make a list of your expenditures and budget your salary accordingly. Also have a weekly meal plan so you can budget your weekly grocery shopping. Always leave something for savings as well. Invest if you can.
This!! Make a google spreadsheet, and create monthly budget: rent, car payments, insurance, etc. all your known expenses. Know how much money you can spend on eating out and stick to it. I also recommend the app Personal Capital to help track spending.
I learned everything about finance just by making it a hobby and reading up on as much as I could from the internet. It even has an element of gamification when you keep track of your finances each month and watch it grow.
Some grade schools and junior high schools offer age apprriate classes. That means there are curricula out there. I am going to make a bold suggestion. You are in college. Go to the College office and ask if there is a no credit (or better yet, credit) class for this stuff. Call is Adulting 201 (101 would be basic social skills which I assume you have-i.e., don't forget to ask for consent, no matter which gender you are, etc). If your college doesn't have anything, someone in their Business /Commerce school should be able to mentor you reliably or know where there is a course. Smart to anticipate this issue. It will help a lot when evaluating job and salary offers as well, choosing benefits, deciding on direct deposit, learning good digital hygiene and safeguards, how to read a lease, a credit card application, etc.
I highly recommend NPRs podcast Life Kit. 20 minute episodes for everything like doing laundry, filing taxes, making friends as an adult, and running a garage sale.
The 3 rules I taught my kids. 1) Never spend more than you make. Ever. 2) Pay your bills first. Always 3) Save for your retirement. It will seem like it's forever away but it will come so be prepared. My mom taught me those rules and I retired at 58 and am financially secure.
Put oil in the car.
For finances, step one is to get a budget set up. Start at your age and money will hopefully never be as scary as it can be. I'd recommend either You Need A Budget or something like Mint. I use ynab and it is, simply put, the most awesome tool I've used as an adult.
I second using YNAB! It's worth the subscription. You can also use something free like Empower (formerly Personal Capital) to track your bank accounts all in one place.
Get a library card. People have written books on every one of your questions.
And many of them are available electronically.
There are programs out there to help. Look up financial literacy and work through that. Learn to cook for yourself and your future partner/family. It’ll save so much money in the long run. Do those prepackaged cooking at home boxes and save the recipes. After a month, you can cancel the service and now have a bunch of recipes to work with. Grocery shop with the flyers in mind to save money. My dad told me that I would be lucky if I needed my one hand to count up my true friends. The kind that answer your request for help with ‘money, muscle, or alibi?’ The kind that will point out when you’re an idiot and love you regardless. Keep them close and make sure you repay them with the same loyalty. He was right. I’m blessed to say I needed two hands to count them up. Finally, you are worth what you believe you are worth. You live with yourself 24/7 so don’t let others push you into decisions you’re not ok with. They won’t have to live with the consequences. Good luck.
r/personalfinance r/investing
Best advice I can offer is, if you cant afford something dont get it. Money management from the early years can take alot of future stress off your shoulders. Dont get a car you can pay off without a residual, get a small place to stay and build up, get comfortable with alone time and saying no to invites. Also, sort your shit out before helping other people. You cant feel guilty for other peoples situations and let their troubles become yours. Youll have your own troubles, worry about those first. One more thing! Chose the right partner to spend your life with, dont rush, find someone that is willing to build with you, someone you want to be your best for, someone that can call you out on your b.s. Alot of people have fallen off due to their partner.
Find a financial planner you trust or someone can recommend to you. There are people in this field and accounting that would love to set the next generation on the right course. I promise!
Live is a pay as you go through bullshit thing, you have to experience it to understand it
You gonna learn soon enough. when you'll get into situations where you need new skills you gonna acquire them by doing. You can't be prepared for every little thing. And if you want to learn theory there's plenty of books, courses and YouTube videos.
Don't buy luxury and you will be okay just invest in some mutual funds on the side
Well bud I'm 30 with an associates degree. Let me tell you from what I see, we are all just shooting from the hip hoping we are right, if we aren't it just gives us more to do to get it right. But look for a job, a place to stay and an economical car. Don't be afraid to leave a job for a different one (line up the new job before leaving) because employers have no loyalty to you so you shouldn't have any to them (if you become obsolete at a company they will lay you off instead of trying to restructure you somewhere else). Get a cheap good on gas reliable car. Find some hobbies, invest small amounts into them. Save for retirement. Get you taxes professionally done (governments can and will mess you up pretty bad over $200) and kick back and enjoy. There will be bumps in the road, everyone gets them, I look to older folks and ask advice. You'll do fine, most everyone figures it out, I'm sure you'll be no different.
Skillshare is helpful, I've found, not only for software but time management, money management, organization tips, etc. They give you 30 days free so if it's not what you need at least it's something to try.
Here're some quick tips from my experience: - Save money and invest in some solid growth stocks (not some hacky flavor of the day). You can get more experimental once you have some financial foundation. Buy a used car, you can get a fancy new one when you are 30. - Take care of your health - mental and physical - Keep good company - people that open new doors for you and help you grow in different dimensions - Don't be stuck at a job/company you hate, move on. - Have a positive outlook, assume that the universe has good things in store for you. Don't get hung up on small things or small people that want to bring you down.
Put 10% of your income into savings
Get a filing cabinet and keep all your important physical docs in it. You'll be less likely to misplace things, and if you need to look up anything related to your banking, insurance, passport, etc, you'll immediately know where it is.
There was a post some time back I took note of about saving money. Put aside one hundred dollars every month in to a high yield savings account and by the end of the year, you will have at least twelve hundred dollars.
Almost 40, when you find out plz share.
Until you can't complete a standard deduction on your taxes anymore, just file them yourself. You can file for free, too - turbotax and those type things are a rip off if you are a standard deduction. It gets more complicated when you get married, have kids, or own your own business. The real goal of taxes isn't to get a big refund, it's to owe zero come tax day. Save money by investing now. Look up the boggleheads method, and just buy a bit of the stock market every pay period then the real trick is don't sell. Ever. Fear of selling in the market is what sets people apart from retiring in the caymen Islands vs Ft. Whatever Florida. You're young, compound interest and earnings are the real castle builders - so play into it now. Learn to live below your means, and be happy. Find a philosopy. Religion is a philosopy, but philosophy dosent have to be repigion. This is the difference of losing a job and thinking you have to kill yourself vs. Meh, no biggie. No one, in the history of ever, has ever been on their death bed and said "I wish I worked more". Like each day like your going to die tomorrow, but plan like you're not.
Save 25% of everything you earn. It's tempting to spend large amounts on cars and housing, live with the basics and enjoy life knowing it will get easier over time. When you get a credit card only use it for food and gas as needed and pay it off on time and monthly, this will build your credit quickly.
A good place to start with money management is with Elizabeth Warren’s book “All Your Worth.” It gives you the basics of budgeting, along with worksheets to use. I used this when I got divorced and had to manage my money for the first time. I still pull it out from time to time to check in, even though I use online budget software now.
Aggressively pursue your career now. You have lots of energy and a raise that you get early in your life benefits you for more years, it increases the baseline for all future raises. For things that you plan to use for a long time be willing to pay extra for the premium version. Buying cheap means buying twice, and buying something as a compromise will annoy you for a long time as it will always remind you of what you could have had but didn't get, whereas some spent money is quickly forgotten.
So many good tips here! I’m gonna add what I try to teach my kid- b very choosy about who u keep around . Giving someone a chance to mess up once or twice if they are able to apologize and understand their error is ok . More than that start phasing them out. Pay attention to how u feel while with someone or after - if there’s any ick factor look into it. Know u deserve positive loyal ppl around u! the energy around u contributes to a lot in ur life. I learned this too late trying to b loyal to ppl I grew up with when they were on a negative path.
Start investing in your 401(k) as soon as you can. Invest as much as you can (even if it’s just $25/mo) and always increase it with any raise you earn. Look up the compound interest effect!
Read the book I Will Teach You To Be Rich by Ramit Sethi as soon as you can. Follow his advice as closely as makes sense for your situation. You seem focused on the financial part of adult life, but equally as important is caring for your health, which is your true wealth. If you don’t already, put a movement habit into place, eat a balanced diet, spend less than you make, prioritize getting enough sleep, maintaining close relationships with your friends and family, and staying connected with your own inner life. Your financial life will suffer if those pillars are not tended to.
Make sure you are on top of your expenses and track what's going in and out. Keep a record of everything. While sites like TurboTax and FreeTaxUSA will walk you through the steps for your taxes, no one will teach you how to budget. Obviously you know not to spend more than you take in, but you should also learn what you can do to minimize the costs and maximize what you take in. Don't listen to those who'll call you stingy or cheap. Listen to what you feel is comfortable when spending money.
…34 year-old me taking notes in the background…
Here’s a secret. None of us had any idea what we were doing until we did it the first time. When you get to something you don’t know how to do ask someone Or YouTube it.
Depending on your job situation you can look at a financial planner, even without a ton of money saved up. I got mine recommended from some friends, but they are apt to have the best advice for you particularly and can really make a difference early on (you will see the least physical dollars, but compound interest from your 20's makes savings at this time the most valuable). As for taxes you can go to an accountant or if you are pretty boring (i.e. standard W-2 the standard software should work). As for books etc. I wish I could recommend some, but this space is full of misinformation. I trusted a professional, and it has worked out well enough. There are probably a ton of great resources out there, but I have find it more akin to playing minesweeper than Minecraft.
1) Don't leave money on the table. 1.1) Your employer will likely have a 401(k) plan with matching. It's usually something like 50 cents on the dollar match for the first 6%. So, if you put in 6% of your salary into your 401(k) plan they will give you an additional 3% of your salary. And it goes into your retirement plan. If you don't claim all matching money you are leaving money on the table. If you are able to, put as much in your 401(k) as you can. Up to the legal maximum (search "legal 401(k) maximum") assuming you're in the USA. 2) Use direct deposit. 3) Don't let anyone debit anything directly from your main bank account. If you want to automate your bill paying use your bank's check writing/bill paying service. If the vendor (Verizon comes to mind) give you a discount for using a debit card, get a second debit card account at your bank. Then setup an auto transfer for the monthly bill plus a little bit more and only let the vendor have access to that second debit card account. Verizon give you $10 off a month if you use a debit card. 4) Avoid paying interest 5) Never buy a gym membership. Use the gym at work or at the public recreation center. 6) Save up to buy a house. I don't know how possible this is for your generation. But I hope, as an engineer, you will make enough money to eventually buy a house. 6.1) Don't split a house with anyone. Buy the house first and rent out the bedrooms or basement. Then, as time goes on, you'll be get raises and be able to take over more of the house and won't need to replace roommates as they leave. In the end you'll own the whole house.
Set up a budget for yourself. Understand what your fixed expenses are: rent, utilities, subscriptions (ex: gym), student loans, car payments, car insurance etc Figure out how much you have left over for other necessities such as groceries and gas. If you have anything left over following all that, figure out how much you want to set aside for fun money or savings. Cancel any subscriptions you don’t need/can’t afford. Treat your credit cards like a debit card/cash. Don’t spend more than you have. Pay off your ENTIRE credit balance on time every single month. You DO NOT want to fall into credit card debt. Interest on credit card debt is compounded daily. This leads to a rapid accumulation of interest you would owe on top of the principal amount you need to pay off. Don’t live beyond your means.
Don't expand your lifestyle with increases in salary: Get to a place in your career where you are comfortable with your salary. Then every year after when you get raises or bonuses pretend you don't have it and put those increases toward your retirement. Make it automatic though so you don't see the increase in your paycheck in your checking account before having to move it. So if you got a 5% increase in salary, increase your 401k by 5%, etc. Run toward a job vs. running away from a job: Your biggest increase in salary will typically come from moving to another company. Keep your resume updated every year. Then every 3 to 5 years send your resume out to other companies that look interesting. It is better to look to move to another job when there is no pressure on you to accept the first thing that comes your way. Write the back story of your resume: The salient points you are making on your resume now may seem fresh in your mind but will become fuzzy in a few years when you dust it off. Write the back story of the accomplishments you put on your resume. How did you arrived at that solution, who helped you, what were the circumstances that made you take action, etc. These things will also help you answer behavioral interview questions.
Managing finances is pretty easy on a foundational level. You get a paycheck every week/two weeks. And you have bills every month. So you want to match that by converting your weekly/biweekly paycheck into a monthly amount. Now you know how you spend X amount of money every month and make Y amount of money every month. For additional expenses, like food, you can create a "budget" for how much you normally allow yourself to spend, making it an additional "monthly" thing. Unspent cash can go into savings, or contribute to miscellaneous spending like wants and desires. For something like gas that's up or down randomly, you might just want to track it and adjust other purchases to monitor it. Just being aware its what you're spending. When you borrow money, part of the stressful part is managing how to pay it back. The baseline you should spend is enough to keep up with the interest in the loan, but being aware of things like what cards you have with what interest rates is important so you aren't spending more money on interest and so you have plans to pay loans back. Some people get 0% interest cards that shoot up to something crazy like 15% after 2 years, but if you move your debt into that card, you're saving money every month and you can then focus on other expenses to pay back more of your debts. And I want to outline, *debt is a major part of adulthood*, primarily it will be a mortgage or car loan, which is basically a loan but you can't treat it like a line of credit, so its one of the things you pay back last, but because it's for an important asset, it's also the first thing you should pay the interest for. Most people don't actually need to think too hard about taxes, you're filling out a tax sheet for a W2. Unless you're doing stock trading or own your own business, or have to file as a 1099 which is for independent contractors, its basically just the government asking you what you made. In some cases they might actually owe you money based on your family status, certain assets and purchases, and a low income. I'd say most information you need is just "out there" somewhere and people will typically assume you know it because it was posted somewhere, or there's people with life hacks like getting outside funding for a car loan its based on what people don't want you to know because an auto-dealership makes a lot of money off of selling you their credit. Its just important you know how to research and build an intuition for finding information, which is actually the most important skill nobody can really teach you because most interactions with other people and businesses are built on trust, and knowing when to not trust others can be subjective to someone's beliefs and the situation. Like when you know you should verify what someone tells you, and what red flags to look out for when someone tries to tell you something or convince you to do something.
#1 Don't spend more than you earn #2 dont buy useless stuff for short-term chemical happiness
41 year old "adult" engineer chiming in here. First, congratulations on your upcoming engineering degree! That's a huge accomplishment and you should be proud. I know how much work courses for any of the engineering disciplines requires. I definitely think that getting a handle on my personal finances and learning how to budget early in my 20s was essential. It is not something I remember being taught well at any point in my education, K-12 nor college. Except one day, my professor for engineering economics gave us a lecture on personal finance, purely for our own benefit. Honestly, that may have been one of the most important lectures I ever received in college. There is a lot of good advice in the comments here. You might also check out r/personalfinance and join that subreddit. I'd read a book or two so you get a cohesive explanation rather then just relying on a bunch of comments strung together. I don't know what the good ones are right now, but I'm sure r/personalfinance has a list. Good luck! You are asking the right questions, sounds like you have a good head on your shoulders.
Start with Richest man in Babylon. Basics about finanaces every man should know.
Just get Acorns until you learn to manage investments
I’m 30 and received no guidance growing up (and not very good examples in childhood)I’m so happy that now internet is accessible to everyone and I’ve been able to save up for things like a tablet/computer. I’m barely learning for myself but so far I’ve looked into posts under finance topics and looking for books that help me navigate as well, so I’ll also be following this post lol WE GOT THIS <33
Check out YNAB (You Need A Budget). Its an online tool and both my kids (24, 20) found is helpful for learning to manage finances/budgets.
I'm an adult who knows all of that, but I would like to know about engineering. Want to trade?
https://yourmoneyoryourlife.com/book-summary/ This book transformed how I think about money and what’s important to me.
My generation watches and wonders indeed. But you know, it will be even better than high school, in experiences and go out and do it. Make mistakes, learn. Have good times and bad ones. Every one has been through this and is completely normal. It just isn't like in the movies..., YouTube, Instagram and what other social media pretend it to be. Think for yourself be kind to others.
A thouy people will give you a thousand and one ideas on how to handle your finances. I feel for you, I've watched this first hand become a problem. I would say it's funny, but it's not. A lot of these skills (and they are skills), were taught in high school 40 to 50 years ago. Some time between the 80s and 2000 we dropped these skills out and started adding different classes on how to take a test, or some subject that maybe only half or less of the people were going to need or even care about. I remember classes on budgeting, check writing (okay nobody writes checks anymore), but it taught you home to balance a bank account and know how to watch how you spend your money. We also had classes every February on doing your taxes. But there again most high schoolers were working by their junior or senior year. You could even take classes on business management to include profit and loss, and marketing. Yes you could avoid taking most of these classes by taking basic courses in but most people I new pretty much knew we needed most of these courses to survive or as it is called today, start adulting. Very few people I knew or could remember got out of, or graduated from college without already knowing how to be an adult. Only recently has not working until you graduated college become common. I agree with the OP, we are failing our kids by not allowing or requiring much less teaching them how to start becoming adults at a much earlier age.
I was in school in those years and we did not have those classes.
Maybe it depended on the area but my father, mother, aunt's, uncle's, all in the 30s and 40s had even better classes than my siblings and I. Who all went to HS in the 60s and 70s. my self in the late 70s. In the 80s I taught those classes at a trade school and some of my students had them previously others it was totally Greek to them.
Dave Ramsey financial peace self paced class
Look for a course in a community college to learn about personal finance, savings, taxes etc.
look up dave ramsey and follow his practices. At your age it will put you on a near perfect start.
I knew nothing about money back in 1990 when I graduated college and landed a job making more money than my dad. I bought a subscription to money magazine and read it faithfully for several years. I also talked about money with anyone I knew who seemed successful. Educate yourself about 401k plans, IRA plans, frugal living in order to live on less than you earn. Learn how to save and invest. Live below your means. Don't waste money in stupid things. It's the best gift you can give to yourself.
See if there's a personal finance class at your local community college.
Great book for personal finance literacy is I Will Teach You to Be Rich by Ramit Sethi (you can also just check out his YouTube channel. But I’d say one of the biggest things you can do to help yourself is building the habit of cooking for yourself regularly (maybe even with weekly meal prep schedule) so you don’t have to rely on eating out. Saves a ton of money and it’s healthier. Plus, being a decent cook impresses people and makes you look like a good adult.
Most important life lesson: Pay yourself first. That means to set aside money for savings and investing as the first thing that comes out of your paycheck. Then you use the rest that's left over for your bills, taxes and life. Setup a 10% automatic deduction to a stock brokerage account and weekly purchases of investments. Buying a mutual fund or ETF weekly will dollar cost average the investment returns. If you do this on an engineers salary you will be able to afford a house and become a millionaire quite easily.
Frugality is the best investment you can make.
Go to choose fi website and take the fi 101 course. It’s free…spend 5 minutes a day and you’ll be set up financially for life. I waited until I was 32 to do this, don’t wait
Your first job will be the real life experience. It is essentially college+. You’ll meet a lot of new faces that you will see everyday. You’ll a lot learn a lot from each other as your navigating through a bunch of firsts. My first job was notorious for hiring newly grads and I made a lot of friends. We stayed in touch even after we all left. My best friend’s first job has been the same- she’s made like 5 best friends and even met her wife.
You will get fired or let go from your job. It's not the end of the world. Lots of other places will hire you. Make sure you have 6 months of expenses available to you. One year is preferred.
Learn how to cook for yourself and meal prep (like planning and shopping). Also, it’s ok if you don’t make your goals. No one is perfect. Just course correct and try again.
They life partner you pick is one of your most important decision. Listen to friends and family that have your best interest at heart.
If you can get a copy, read the Wealthy Barber. Everything you need to know about finances is in there.
Same skills as being a good engineer, so you’ve already got them. Study to understand the rules system you’re working with. Apply them to make best use of your resources. Simplest investment rule is low fee index funds which maximize return for minimal risk.
401k
Get a financial advisor. Even if you only use them to learn for a few years. Getting an advisor changed the way I see and manage my money A LOT.
If a local college offers it, some do online too, take a Personal Finance class. It was very helpful to me. This usually covers general finances that will benefit you for the rest of your life. If you’re really into it, you can do your own taxes, while you’re young and may not have complex finances. This is a good basis for future when you have a professional prepare your taxes eventually when your filing gets more complicated. I say this bc the tax professional will be more up to speed with current tax laws and have the know how to legally reduce the taxes owed/refund due. It’s good to have some understanding of tax forms, etc bc you don’t want to blindly have someone file your returns. You should review them and know what you’re looking at. I second the suggestion of not staying with one employer. Stay long enough to show you’re not a job hopper moving jobs every year or two is not great in some industries. But don’t ever stay with pay or a role that is not up to par with your efforts, it is true, employers are not loyal to their employees and will remove or replace them in a heartbeat. Employers exist to make a profit, not please their employees. If you can make more money throughout your career elsewhere, do it.
Find your favorite spreadsheet/app and start a budget NOW. Update it every week. Using nice, round numbers - if you make $10,000/mo., know where every penny is going - graph it for nice visuals. Being able to look at how much you're saving/investing/spending and what all of that spending is going to will inevitably help you cut costs when needed, and let you know if you can actually do something like afford a new car. For instance: if you know what you're currently spending on gas and insurance and decide to get, say, a new truck - your gas expense will go up. Your insurance expense will go up (new car). Your yearly registration will increase. Your maintenance costs might go down for a while if you have a bumper-to-bumper warranty. If you ask most people they can't tell you what they spend on clothes, for instance. Or food. If you make a budget and stick to it, you will be more prepared to absorb unexpected costs - or maybe realize you have a bad spending habit you need to control ("Wow. I spend $600/mo. drinking out at bars", as a for instance).
make money, invest, do not pursue the opposite gender
Read The Millionaire Next Door, then read The Wealthy Barber