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Deduct enough for the employer match. Try to save 10% on top of that on his own
He's driving on borrowed time with that 15 year old car. I'd set a medium term goal of saving enough to buy a decent car in 1-3 years. Decent cars that'll last you 10+ years are 20-30k.
One of the first major financial decisions I made was financing a new car. Won't do that again.
The other most important financial decision he'll ever make will be who he marries. I'd set a hard move out deadline for 1 year from now. He needs to live his own life and he won't be able to do that living with his parents.
All good advice here. If I had to boil it down to the most important, it would be: get an emergency fund saved, save as much as possible towards retirement, and stay out of debt.
The other most important financial decision he'll ever make will be whom he marries.
Oh, yeah. My Ex was a financial disaster with more "wants" than our budget could handle. It did not end well. I also worked with a guy who married an MD but then she decided she wanted to stay home with the kids. They were still paying off her student loans. Nothing wrong with wanting a stay-at-home spouse (my late mother and my wonderful DIL are shining examples) but make sure it's feasible if that's what you both want.
1) My greatest financial advice I can give anyone is this: SAVE MONEY. If you don't know how to save your money, nothing else matters. Buy what you need, not what you want.
2) Protect What You Have. Have the proper Insurance to cover yourself in the event of Lawsuit, Illness, and Death.
Well, the fact that you know what FU money and FIRE stand for means that you already know what he needs to do even if perhaps you don't do it yourself. Have him start with MMM. Give him a collection of personal finance classics as a graduation gift.
Thanks. I first learned about FU and FIRE from a podcast called Afford Anything. I assume MMM stands for Mr. Money Mustache podcast?
Oh, yeah. My Ex was a financial disaster with more "wants" than our budget could handle. It did not end well. I also worked with a guy who married an MD but then she decided she wanted to stay home with the kids. They were still paying off her student loans. Nothing wrong with wanting a stay-at-home spouse (my late mother and my wonderful DIL are shining examples) but make sure it's feasible if that's what you both want.
Yup, financial problems are the #2 most cited reason for divorce.
Who you marry can be a great financial asset - my wife has more than doubled our net worth not only because of her career but because she influenced me to make good decisions I might not have made otherwise.
But I've had friends whose ex-wives cleaned them out, & they basically started from scratch.
Sometimes living with parents is a good way to save up for a down payment on a house, if he wants to do that.
Absolutely I lived with my mother until she passed away. I saved a ton of money on living expenses (I still paid her modest rent, took care of food, and chores/home maintenance) and she got the assistance she needed in old age to be able to continue to live in her house. I built up a pretty large nest egg.
I was sucessful in convincing one of my daugthers to do just that, staying at home, skipping the apartment phase and went straight to home ownership.
I have had parents try similar things on me, and some well-meaning friends, but usually I explain to them that it doesn't make financial sense for me to go from renting a room to buying anything bigger than a single room. If this approach doesn't work, then I intimidate them with fancy financial math that they won't follow or understand, which usually gets them to be quiet.
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