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delay buying a new car until more financially established... it's crazy how many students I see lease a brand new car just after they graduate despite having much higher financial priorities. That is just a bad idea.
delay buying a new car until more financially established... it's crazy how many students I see lease a brand new car just after they graduate despite having much higher financial priorities. That is just a bad idea.
Yup I learned that the hard way. I was in a sugar high after graduation, went to the dealership and financed a $24k car that I paid over $30k for in the long run when you count interest.
Had I saved/invested for 3 years I could have bought a better car with cash. I won't forget that lesson.
Never sell yourself short and always ask for more. When I started working it would never have occurred to me to ask for a higher starting salary when an offer was made, and I had no mentor to tell me. I never asked for more, didn't really ask for promotions, because I stupidly thought my hard work would be recognized.
My nephew recently started his second job out of college. He was offered a great job, with a great company and negotiated a good bump in pay. There was going to be some lag in paychecks between one job ending and the other beginning, and he asked for a sign on bonus. My sister (his mother) was horrified. They said, "Yeah, we can do that." Ask. Don't wait to be seen.
I'm sure someone else already said this, but increase the 401K contribution every time you get a raise.
It is great if your son starts learning saving money from his young age. To become a financially healthy person good spending habits are required.
The main secret that I use and share with everyone is making a budget. It really works, because you can see where your money is going each month and allocate funds to saving, bills and entertainment.
The second advice is to teach your son to correctly save and invest. Putting away just a few dollars a week can be of great help especially when a financial hardship such as car repair, home repair, and other surprise expenses strikes.
And as for investing, if his employer offers a 401(k) account, he can contribute just 2% of his salary and increase it as time goes on.
Keep it simple. Live below your means. Don't charge more than you can pay off each month. Always save at least 10% first. Don't buy everything new right off the bat. It is hard to not go overboard when you first start making money. Buy a used car from one of the car rental companies, if you need "new" wheels. Whenever you get a raise, bank it.
Do not marry anyone with a spending problem. Do not marry anyone with significant credit card debt.
Do not marry anyone with significant health problems.
Do not marry anyone with significant family baggage evidenced by relatives asking for loans or money.
Do not marry anyone with breast implants. Date her, enjoy the implants, motor boat them, but don't marry them.
A life partner should share his values regarding money & wealth to maximize the probability of a successful marriage.
And, his planning assumption should be that Social Security will NOT be there when he retires, so he should save, save, save. I'm not fear-mongering; maybe it will, maybe it won't but that's not the point. The point is for planning purposes he should assume it won't be in any recognizable form.
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To help your son successfully launch, you should tell him there will be no inheritance. Tell him your estate plan & will specifies you will give away all your remaining assets to charity, and he will get zero.
What you actually put into your will isn't the point - lie to him if need be - but he should live his financial life assuming he's on his own. Tell him you've done your piece: you've raised him, paid for his education & launched him. The rest is up to him, and you want him to do great things - but the Bank of Mom & Dad is now permanently closed.
And charge him rent.
Last edited by RationalExpectations; 06-14-2019 at 10:04 AM..
Do not marry anyone with a spending problem. Do not marry anyone with significant credit card debt.
Do not marry anyone with significant health problems.
Do not marry anyone with significant family baggage evidenced by relatives asking for loans or money.
Do not marry anyone with breast implants. Date her, enjoy the implants, motor boat them, but don't marry them.
A life partner should share his values regarding money & wealth to maximize the probability of a successful marriage.
And, his planning assumption should be that Social Security will NOT be there when he retires, so he should save, save, save. I'm not fear-mongering; maybe it will, maybe it won't but that's not the point. The point is for planning purposes he should assume it won't be in any recognizable form.
**********
To help your son successfully launch, you should tell him there will be no inheritance. Tell him your estate plan & will specifies you will give away all your remaining assets to charity, and he will get zero.
What you actually put into your will isn't the point - lie to him if need be - but he should live his financial life assuming he's on his own. Tell him you've done your piece: you've raised him, paid for his education & launched him. The rest is up to him, and you want him to do great things - but the Bank of Mom & Dad is now permanently closed.
And charge him rent.
I agree with all of this except the "Don't marry in your 20s" part. I'd say don't marry before 25. It's getting to the point where people are marrying so late, they're having kids late or having fertility problems. And having kids in your 30s increases their risk of inheriting a lot of genetic problems (autism, etc.).
If you don't want kids, then that's fine. But if you do, I think marrying in your mid to late 20s is better.
Holy crap, don't do that! People abuse the hell out of rentals.
I bought one 3 years ago and haven't had any problems. It came from the recommendation of a friend who bought a rental a few years prior and she hasn't had any problems with hers, either.
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