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Nursing is an academic major for an RN, it's a 4 year degree. Vo-tech is fine for some, academic majors are better for others. You can't make blanket statements like that. Not everyone is cut out to be a plumber.
RN can be an academic major but it is not a requirement. the entire program can be completed in a jr college. shortest route i know is LVN a 42 unit program here in california with 2 semesters of the transition program to RN total of 3 years jr college. vocational training is very desireable because its nature is to be short in length and be cost effective, usually not true of most academic lines of endeavor (which come without a placement guarantee and come with a big fat student loan). i agree, not everyone is cut out to be a plumber, many lack the focus and work ethic to succeed in this noble profession to which many of my affluent friends belong. thank you. as to your note, i dont think these are outragious "blanket statements". what part of what i said is untrue? why should i not make them?
Last edited by Marka; 12-07-2007 at 01:00 PM..
Reason: personal
Part of paying myself first was minimize any interest I pay the bank. Mid 30's here and my home is pretty much paid off, (other then a few thousand), my caddi is paid off, and I have absolutely no other debt. Now I can begin socking that "mortgage" payment away to invest.
I'm amazed that all of the financial advise I see is to "pay yourself first" and leave debt outstanding.
Considering that you get 4-5% from "paying oneself first", and pay 7-12% in interest on debts, in my mind (and I'm no financial guru) one wants to pay the debt off first because you always want to pay off the highest interest rates first. Why lose 3-7% interest by paying oneself first?
With no debt, and no mortgage payments, I can weather pretty much any financial storm that comes along much greater then those that have a savings being eaten away by inflation and interest.
Plese correct me where I'm wrong because your not the first one that I've heard say this.
If you pay yourself first to your savings account then you most likely have cash to buy what you want without interest in the long end.
Something else to think about, is getting out of really short term, quick thinking.
In the 90's, I use to know a few people my age that wanted to get into acting, commercials. One girl had an agent, she was pretty serious about it. Another kid wanted to get into commercials.
The thing is, even if it goes your way, and you get a few commercials or a few deals and make $50 or $100 k, the money will be gone in a few years, then what?
I have an aunt that's into real short term, sort of "hot" deals. Time share deals, she was going to start a puppy business. One time she wanted to go on a gameshow, "going to win big money", that kind of thinking. Maybe it works, great. But in 6 months, or two years, then what?
Alot of people financially end up right back where they started in a few years, or worst.
Or you see it in alot of contests, prizes, a radio station pays your bills for a year. Great, but then what. Especially if you live in a place with a high cost of living, you've got to be alot more strategic to build something.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by npumcrisz
Without debts save at least 10% but with debts what is the minimum?
Does Automatic investment towards mutual funds, bonds, stocks also count or savings should be limited to interest bearing saving accounts.
With or without Debts I always save 10% - plus gift 10%, and set aside 10% for taxes... We always made it on a single income, just the single worker often worked 3 jobs... Now the roles have switched (payback)
Savings req with debt, depends on the debt... for short term, you need a way to pay it off if you get injured and can't work (you can do this with savings, or with disability insurance) ... for long term... you don't need to be as picky, but need to have funds available to make your regular payments without going into default. It is also a good idea to carry enough life insurance to pay off ALL your debt (if you are married), if you are single and no heirs, maybe not so important. Mortgage and credit card insurance is very spendy for the value. You usually are best off with a simple "term" life ins. policy. During your working years you need to insure for 'income replacement' and provision to care for kids / spouse if you croak. There is a lot to estate planning once you get responsibilities of kids / spouse / asset protection / businesses / realestate... it is very important, but not too tough, just keep asking good questions I have not had a standard interest bearing savings account for 30 yrs, usually a money market with check writing privileges. Or a Credit Union interest bearing checking acct (they USED to pay 5.5%...)
Savings... i.e. emergency funds should be in something liquid (money market with check writing privileges) I would not get too far into Bonds at this time in interest rate history, or while you are young. Systematic savings... good idea. If you are a disciplined strategist... you can keep a decent savings account (best with your favorite discount broker... Scottrade is mine) then... watching the 200 day moving average, on each potential equity investment do your systematic buying at opportune times. I use a figure that is a % deviation from 200 DMA and I try to buy on the upswing after a correction. Selling is harder, but... I again use a % deviation from 200 DMA or a rapid % gain in short time frame. I typically grab my profits and set them aside for another buying opportunity. This is best in IRA account, as you don't have to track cost basis, just initial contributions.
ROTH's are really great, as you can pull out your initial contributions after they have vested 5 yrs. You really don't want to have to do that BUT... vested contributions would work just fine for that 'emergency' savings account, and would be earning you good $$ while they wait.
If it hasn't been mentioned...
5% maximum in any single equity investment, like an individual stock and possibly a risky sector. I am getting totally out of individual issues as soon as possible via mitigated tax issues. I always use appreciated stock for contributions to charities yearend, or whenever they are at year highs. And unfortunately... year end usually has me grabbing my $3000 losses.
ETF indexes are really nice for low costs, mitigated risk, and active trading. I'm not sure why I would have a mutual fund, unless I found some that have great managers in an area that is specialized. This time of the year I think about all the yrs I got hammered with Capital Gain distributions from mutual funds, and I smack myself up side the head! - don't get too complicated, probably 10 total investments will be adequate diversity, unless you want to split your international (which is a good idea). Latin America has been great this yr, but I usually try to buy well diversified world funds (ETF's), with a few extra investments in some of my favorite stable international markets. There is some very heavy weighting in Financial's in many international funds. BE CAREFUL.
oh, and yes; the real estate... it contributed 30% to wealth building, but is much easier than working 3 jobs, tho it tends to become one... I can't emphasize enough how much benefit my commercial props have been, and I feel they're even more important now that homes are priced way out of "cash-flow" range. Do check into it, but I think your $$ go farther in providing $$ in the pocket than residential. If I would have done the commercial props at age 20, I would have been sitting very pretty at age 40. Can you imagine buying something for $300k (same as a house) and getting $3000/month cash coming out of it!!! It is like a pay-off in a slot machine, except at the point the loan gets paid off, then it just keeps paying you, whether you are in Tahiti or Rome.
My father only sold one or two properties in his life, he always kept his real estate (along with most everything else). It served him well.
I would say go for the short mortgage (I have bought single-family properties on 5 and 7 year notes, even). It's painful but will pay - off. If you do this and max out your 401K you can pretty much just spend the rest without counting pennies or budgeting. NO CC debt, however, and no borrowing from your home equity or 401K...
I did the military career and retired with a pension at 42.
I took some cash out from my investment portfolio to buy a farm, cash.
And now we are able to live on that farm, debt free, and watch as my portfolio grows back up once again.
We bought apartment buildings at almost every duty station. Let other folks pay your mortgage, there is no good reason to pay your own mortgage with your own money, not when so many others are willing to give you their money.
Never carry a balance on a CC.
Learn to do your own taxes. Then take courses on tax-planning! Anyone who wastes the first third of their income on government taxes is stupid. Keep that money in your paycheck and invest it. If you refuse to learn taxes, then you will pay for that privilege for the rest of your life, every year, again and again. Can you really afford to skim off 15% off the top of your income just because you refuse to learn to do your own taxes? 20%? 28%?
Study how other Net Worth accumulators have been doing it. 'The Millionaire Nextdoor' is a great book! Watch how they do it, watch and learn.
I worked for 20 years and now I am retired. I do not foresee holding a job ever again.
I have apartments and a farm; everyone that I attended highschool with are all the same age as I am. Everyone of them is 48 just like me. Everyone of them has at least another 14 years to go before they can retire. I have already been retired for 6 years.
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We always made it on a single income, just the single worker often worked 3 jobs... Now the roles have switched (payback
)
I have not had a standard interest bearing savings account for 30 yrs, usually a money market with check writing privileges. Or a Credit Union interest bearing checking acct (they USED to pay 5.5%...)
- don't get too complicated, probably 10 total investments will be adequate diversity, unless you want to split your international (which is a good idea). Latin America has been great this yr, but I usually try to buy well diversified world funds (ETF's), with a few extra investments in some of my favorite stable international markets. There is some very heavy weighting in Financial's in many international funds. BE CAREFUL.
