Comments on: 7 Financial Moves to Make in Your 20s http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Wed, 23 May 2012 23:57:11 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Sarah http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-78234 Sarah Sat, 14 Apr 2012 06:32:08 +0000 http://moneyning.com/?p=4550#comment-78234 Well, I am in my 20s but I refuse to get an ipod or a smartphone. My parents opened a savings account for me I think when I was 5 or 6. I learned at a young age to work for my money collecting pop cans, selling farm animals, and selling produce to save money. I put majority of my money in the bank and saved it until I was teen and had the opportunity to travel. I had to pay for most of my trip and my parents helped where I needed a bit more. Even when I got a part time job and babysitting jobs, I was still putting a part of my money away. I have continued to do so and even took overseas teaching jobs to help pay off college debt so I could travel the world, as well as save some money. My debt is nearly gone and I live within my means. Not all 20 somethings are attached to tech gadgets. I disagree with you that it parents' job to start talking with their teens. It needs to start much sooner! Well, I am in my 20s but I refuse to get an ipod or a smartphone. My parents opened a savings account for me I think when I was 5 or 6. I learned at a young age to work for my money collecting pop cans, selling farm animals, and selling produce to save money. I put majority of my money in the bank and saved it until I was teen and had the opportunity to travel. I had to pay for most of my trip and my parents helped where I needed a bit more.
Even when I got a part time job and babysitting jobs, I was still putting a part of my money away. I have continued to do so and even took overseas teaching jobs to help pay off college debt so I could travel the world, as well as save some money. My debt is nearly gone and I live within my means.

Not all 20 somethings are attached to tech gadgets. I disagree with you that it parents’ job to start talking with their teens. It needs to start much sooner!

]]> By: Vincent http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-69550 Vincent Thu, 12 Jan 2012 15:03:26 +0000 http://moneyning.com/?p=4550#comment-69550 I am 28 yrs old. Here is my life story.. I am from Kenya. I am neck deep in debt and have been sinking much further everyday. I got caught up by cheap credit after i got my first job so i took credit cards, bank loans and sacco loans and lived way beyond my means. All the investments i tried seemed to fall one by one so i did some refinancing and started afresh. I cant tell you what i did with the money coz i got nothing to show for the over $50000 debt i am in. I started straining some time around 2010 when things i could do with ease like paying rent started to become hard so i moved to a smaller house. Even still, i still continued to make ends meet and to make matters worse,..Intrest rates in my country shot up a while ago so did my repayments. I even quit drinking so that i could better manage my debts but even still its not easy.It is when my car got repossessed by creditors that i sought help from my parents to bail me out. I just wish someone had told me taught me all the above. I have restructured some of my debts as at of now...and i hope never to get into the same situation ever again I am 28 yrs old. Here is my life story..
I am from Kenya. I am neck deep in debt and have been sinking much further everyday. I got caught up by cheap credit after i got my first job so i took credit cards, bank loans and sacco loans and lived way beyond my means. All the investments i tried seemed to fall one by one so i did some refinancing and started afresh. I cant tell you what i did with the money coz i got nothing to show for the over $50000 debt i am in. I started straining some time around 2010 when things i could do with ease like paying rent started to become hard so i moved to a smaller house. Even still, i still continued to make ends meet and to make matters worse,..Intrest rates in my country shot up a while ago so did my repayments. I even quit drinking so that i could better manage my debts but even still its not easy.It is when my car got repossessed by creditors that i sought help from my parents to bail me out. I just wish someone had told me taught me all the above. I have restructured some of my debts as at of now…and i hope never to get into the same situation ever again

]]> By: john http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-60622 john Thu, 01 Dec 2011 03:48:09 +0000 http://moneyning.com/?p=4550#comment-60622 Peace Corps as a "frugal travel idea"? you clearly have no idea what peace corps is about... it is far from a "travel idea" though it can certainly be "frugal" Peace Corps as a “frugal travel idea”? you clearly have no idea what peace corps is about… it is far from a “travel idea” though it can certainly be “frugal”

]]> By: missy http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-46333 missy Tue, 05 Jul 2011 02:42:17 +0000 http://moneyning.com/?p=4550#comment-46333 It's not a good idea to stereotype. There are people in their 20s who can't even afford a smartphone. It's good that you want to give sound advice, but you can accomplish this without stereotyping and assuming. Thanks. Hope this helps. It’s not a good idea to stereotype. There are people in their 20s who can’t even afford a smartphone. It’s good that you want to give sound advice, but you can accomplish this without stereotyping and assuming. Thanks. Hope this helps.

]]> By: Realistic Girl http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-44128 Realistic Girl Sat, 21 May 2011 05:01:49 +0000 http://moneyning.com/?p=4550#comment-44128 The dollar will eventually be devalued to nothing and paper currency will be useless. So let me ask this: where will your Roth IRA, all your investments in the stock market, and your paid-off credit cards get you then? Probably better to buy gold, get a goat, and plant a garden, people. Let's not pretend that the status quo--house, car, kids, savings, retirement--will stand in this "great" nation for much longer. Don't kid yourselves. The dollar will eventually be devalued to nothing and paper currency will be useless. So let me ask this: where will your Roth IRA, all your investments in the stock market, and your paid-off credit cards get you then? Probably better to buy gold, get a goat, and plant a garden, people. Let’s not pretend that the status quo–house, car, kids, savings, retirement–will stand in this “great” nation for much longer. Don’t kid yourselves.

]]> By: John http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-43616 John Fri, 13 May 2011 12:41:13 +0000 http://moneyning.com/?p=4550#comment-43616 Great job. Except for the 401k savings. Think about that investment vehicle a little bit. Other people/companies using your money to make 120% (doubling their investments every year) returns per year on real estate or stocks in America or developing countries until you turn the age of 67+ with only giving you the meger -8% to 8% avg. return each year while at the same time you are giving up 2.9% to 6.8%+ in interest to your car loans and student loans, and god for sake credit card loans. IF you pay into social security, let that be your "401k" income stream at the age of 67+. They will give you about $15k+ ... UNTIL you are completely out of debt, own a house for shelter(geez that could be from $55k to a staggering $500k+...), live below your means (Target expenses should be less than $13k for a family of 3 if frugal), and have saved/invested in stocks or real estate to about $150k to $300k+ (depending on how long you wish to slave for/ how much you make in your career from your 20s on); you should not invest in a 401k until much much later or invest only what percentage your company matches, because when you are financially free and decide to make a part time job doing whatever the hell you love to do, that extra side cash will then be taxed at your lower tax bracket(15% or less now @ making capital gains income of around $13k+), and since you are now equating the below your means expenses target of $13k and making $13k+ from the avg 0% to 120%+ returns of your $150k-$300k+ investment account, (which you should only spend about 4 hours a month thinking about), any extra money you make part-timing with writing a novel/ blog, advertising your latest game creation, or giving people tours/ teaching others cool things should then all be put into your 401k when you feel like it, if you wish too, just to lower your tax bracket even further...Take your life/money into YOUR hands, now matter how small the amount, and you won't be FEE-ED again and again, by banks or fund managers, or loan sharks, or even long-term 401k managers, or any other company/person in the world. Also with all your free time, money, and happiness; you can now become very very creative/inventive/social for maybe a business model, artwork, travel, or for Science. Great job. Except for the 401k savings. Think about that investment vehicle a little bit. Other people/companies using your money to make 120% (doubling their investments every year) returns per year on real estate or stocks in America or developing countries until you turn the age of 67+ with only giving you the meger -8% to 8% avg. return each year while at the same time you are giving up 2.9% to 6.8%+ in interest to your car loans and student loans, and god for sake credit card loans. IF you pay into social security, let that be your “401k” income stream at the age of 67+. They will give you about $15k+ … UNTIL you are completely out of debt, own a house for shelter(geez that could be from $55k to a staggering $500k+…), live below your means (Target expenses should be less than $13k for a family of 3 if frugal), and have saved/invested in stocks or real estate to about $150k to $300k+ (depending on how long you wish to slave for/ how much you make in your career from your 20s on); you should not invest in a 401k until much much later or invest only what percentage your company matches, because when you are financially free and decide to make a part time job doing whatever the hell you love to do, that extra side cash will then be taxed at your lower tax bracket(15% or less now @ making capital gains income of around $13k+), and since you are now equating the below your means expenses target of $13k and making $13k+ from the avg 0% to 120%+ returns of your $150k-$300k+ investment account, (which you should only spend about 4 hours a month thinking about), any extra money you make part-timing with writing a novel/ blog, advertising your latest game creation, or giving people tours/ teaching others cool things should then all be put into your 401k when you feel like it, if you wish too, just to lower your tax bracket even further…Take your life/money into YOUR hands, now matter how small the amount, and you won’t be FEE-ED again and again, by banks or fund managers, or loan sharks, or even long-term 401k managers, or any other company/person in the world. Also with all your free time, money, and happiness; you can now become very very creative/inventive/social for maybe a business model, artwork, travel, or for Science.

]]> By: PaulT http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-43392 PaulT Mon, 09 May 2011 21:49:03 +0000 http://moneyning.com/?p=4550#comment-43392 Pure rubbish. Typical American Protestant/Puritan/Old Testament rubbish. If you're in your twenties and thinking about financial plans, you were simply not raised right. Go outand see the world, leave this money nonsense to bleary eyed merchants and the lifeless drones who occupy commuter trains every day. (Yes, your parents.) Look around and see the real value of saving and working, versus being creative and thinking outside the box. Pure rubbish. Typical American Protestant/Puritan/Old Testament rubbish. If you’re in your twenties and thinking about financial plans, you were simply not raised right. Go outand see the world, leave this money nonsense to bleary eyed merchants and the lifeless drones who occupy commuter trains every day.
(Yes, your parents.)
Look around and see the real value of saving and working, versus being creative and thinking outside the box.

]]> By: wackes http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-42395 wackes Mon, 18 Apr 2011 21:04:49 +0000 http://moneyning.com/?p=4550#comment-42395 Maybe,you will think that I am cheap,but there is only one rule: you get 1500 dollars a month,you spend less than 1500 dollars a month. Is it hard to understand? You spend more than you get,you're gonna owe money ,lose your freedom and get into trouble. People thinks that you can get money out of thin air(mortgages,insurances,microcredits...all with very high interest),it only works for the banks.You borrow money,you're gonna pay a lot of money to get it before starting to pay what you borrowed for.Does people believe that banks are philantropists?Maybe commercials wash very clean people's brains(if not why spending so much money on it). The money you get for a month,you put it in a bag for the month,and when it's gone,it's gone(except for eating,it just about surviving not wasting money).No more.If you see there's just a few remaining you will be more careful about buying unuseful crap. Before the banks borrowed everybody some money,people had just the money in a bag or anything else for the month and had to be careful with that.Maybe it seems for modern people to be harsch,but at least less people get kicked out from there house. So just spend less than you get,it's elementary school math. Maybe,you will think that I am cheap,but there is only one rule:
you get 1500 dollars a month,you spend less than 1500 dollars a month.
Is it hard to understand?
You spend more than you get,you’re gonna owe money ,lose your freedom and get into trouble.
People thinks that you can get money out of thin air(mortgages,insurances,microcredits…all with very high interest),it only works for the banks.You borrow money,you’re gonna pay a lot of money to get it before starting to pay what you borrowed for.Does people believe that banks are philantropists?Maybe commercials wash very clean people’s brains(if not why spending so much money on it).
The money you get for a month,you put it in a bag for the month,and when it’s gone,it’s gone(except for eating,it just about surviving not wasting money).No more.If you see there’s just a few remaining you will be more careful about buying unuseful crap.
Before the banks borrowed everybody some money,people had just the money in a bag or anything else for the month and had to be careful with that.Maybe it seems for modern people to be harsch,but at least less people get kicked out from there house.
So just spend less than you get,it’s elementary school math.

]]> By: Sharief http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-42290 Sharief Sat, 16 Apr 2011 09:36:54 +0000 http://moneyning.com/?p=4550#comment-42290 I am from the banking sector and live in Dubai , a haven for people to live above their means , an average middle class working employee is eligible for a loan that is 20 times his or her salary and banks aggressively chase customers for credit cards and loans. Cars are dirty cheap , considering the price of gas here , which allows almost everyone to go ahead and buy fancy cars. (Yes, BMW and Porsche is a lot cheaper in Dubai than in Europe). I was a victim of the credit card debt and had over $5000 in outstanding payments , over $15,000 in education loans and a $20,000 on my car and I was in my mid 20s. Thankfully, I was able to clear all of it , cancelled my credit cards , used my annual bonus to pay off my debt and I am proud to say I am debt free and seen my savings shoot up. There is no trick to this , First have a financial plan in place to pay off you debt, when i mean a plan you need to put together a plan which will state how much of your monthly paycheck will be allocated to pay off your debt and for how long, then stick to it. . Second maintain a balance sheet , several balance sheets are available off the internet to track your spending and if you have a credit card , do not forget to check your account statement twice a week. I am from the banking sector and live in Dubai , a haven for people to live above their means , an average middle class working employee is eligible for a loan that is 20 times his or her salary and banks aggressively chase customers for credit cards and loans. Cars are dirty cheap , considering the price of gas here , which allows almost everyone to go ahead and buy fancy cars. (Yes, BMW and Porsche is a lot cheaper in Dubai than in Europe). I was a victim of the credit card debt and had over $5000 in outstanding payments , over $15,000 in education loans and a $20,000 on my car and I was in my mid 20s. Thankfully, I was able to clear all of it , cancelled my credit cards , used my annual bonus to pay off my debt and I am proud to say I am debt free and seen my savings shoot up. There is no trick to this , First have a financial plan in place to pay off you debt, when i mean a plan you need to put together a plan which will state how much of your monthly paycheck will be allocated to pay off your debt and for how long, then stick to it. . Second maintain a balance sheet , several balance sheets are available off the internet to track your spending and if you have a credit card , do not forget to check your account statement twice a week.

]]> By: Kory http://moneyning.com/life-style/7-financial-moves-to-make-in-your-20s/comment-page-1/#comment-39733 Kory Thu, 24 Feb 2011 12:18:42 +0000 http://moneyning.com/?p=4550#comment-39733 You should read my comments above. Manage your cash flow and you will not feel as stressed out. If your student loans are $600 per month on $60k, mine were only $450 per month on $60k. Try to either consolidate them or get a lower interest rate or longer term to reduce that $600 per month. Regarding your car payment versus savings. There is no point in paying a $300 or so per month car payment at 4-5% and then have more than enough money in savings to pay off that loan when savings are returning 0.25% or less. You would be best off investing your savings at a higher rate (possibly higher than your car loan) or maybe you may decide that the best option is to take your savings and pay off the loan with the highest per month cost, which is probably your car loan. To calculate that figure out how much per month you are paying per $1k. $13k at $300 per month means you are paying $23.08 per month per $1k of debt. Let's say one of your student loans is for $20k and costs $200 per month - this means you are only paying $10 per month per $1k of debt. In this case you would be best off investing at a higher percentage or taking your savings and using it to pay off your car. Does that make sense? You should read my comments above.

Manage your cash flow and you will not feel as stressed out. If your student loans are $600 per month on $60k, mine were only $450 per month on $60k. Try to either consolidate them or get a lower interest rate or longer term to reduce that $600 per month.

Regarding your car payment versus savings. There is no point in paying a $300 or so per month car payment at 4-5% and then have more than enough money in savings to pay off that loan when savings are returning 0.25% or less. You would be best off investing your savings at a higher rate (possibly higher than your car loan) or maybe you may decide that the best option is to take your savings and pay off the loan with the highest per month cost, which is probably your car loan. To calculate that figure out how much per month you are paying per $1k. $13k at $300 per month means you are paying $23.08 per month per $1k of debt. Let’s say one of your student loans is for $20k and costs $200 per month – this means you are only paying $10 per month per $1k of debt. In this case you would be best off investing at a higher percentage or taking your savings and using it to pay off your car.

Does that make sense?

]]>