Please Post Your Best Financiall Advice.

[jaminmd]

...and then charge off that CC debt and brag about it.

But... isn't that a money saving budget tip? After all, that is her best financial advice.

 

[Sagginit]

paying off debt is always a good investment in your future. every little bit extra helps b/c it saves you on interest. on that note do not lump debt into good debt and bad debt. yes you need a house and an education, but debt is still any money you owe and are paying interest on.

anticipate your weakness and plan ahead. i found myself running out to the deli at work for snacks and drinks. i now stock up on chips, candy bars, nuts, and drinks and bring into work. i would rather build them into my budget and pay less than try to convince myself i don't need them and end up paying twice as much when i have a day that i just need a pick me up.

 

[ilovemk76]

Don't think that settling your debt and going bankrupt is a sound financial plan.

 

[mdsoccermom]

Don't think that settling your debt and going bankrupt is a sound financial plan.

Are you kidding? There are people on this board that think it's an outstanding financial plan.

 

[windycitymom]

My advice is to attend Dave Ramsey's 13-week Financial Peace University. Classes are starting up this week! It's the best $99 you will ever spend. By the way, the first class is free, so there is no obligation if you find it's not for you.

 

[Katy Belle]

Your kids dont need to be in every activity. Perhaps you cant afford it.

 

[JandJ]

Don't spend money you don't have.

Not always easy to do (i.e. with a mortgage) but still great advice.

 

[dizkids]

Make a list before you go the grocery store and make yourself stick to it. Even if i have a long list its so much cheaper than tossing stuff into the cart.

 

[MEM]

Lots of good advice so far. I think somebody touched on this earlier, but I'll be more blunt. Never give up your financial independence. Sooner or later you're likely to be left alone. Do not marry unless you're totally able to support yourself. Do not have children unless you're totally able to support yourself and your children without assistance from someone else's income. Too many people ruin their lives by being unprepared for sudden independence.

I think this is excellent advice! It may not be very romantic to think that your spouse might leave you some day but I have seen too many divorced women end up struggling because they put their career on hold to be a SAHM.

 

[crisi]

I think this is excellent advice! It may not be very romantic to think that your spouse might leave you some day but I see it all too often. I cringe when I read about women who leave a secure job to be a SAHM. I have two children and have always worked outside the home. I don't want to start a debate, however, this is just my personal experience.

Sometimes its worth the risk....but if you do it, you can lower your risk by keeping one toe back in the career world. Get out to lunch with your former coworkers. If your profession needs continuing education, keep it up. Read trade sites.

Also, as your kids get a little older and being a SAHM isn't such a full time job - volunteer. Volunteer with school. Run a Scout Troop. Coach soccer. You'll be meeting other parents and creating contacts, plus keeping something on your resume external to running a house and family (and managing a well run household IS a skill, just not one that gets a lot of respect if you are forced into job hunting).

 

[disykat]

I cringe when I read about women who...... I don't want to start a debate....

Really?

 

[timmac]

Know how much money you have available, and live below that... never the other way around (e.g. Don't think first in terms of "what do I need?" and then try to find where that money is going to come from... too often, needs start to include wants that can be done without)

Be wary of one-size-fits-all advice. Instead, use advice as a springboard for your own thinking. That is, think about each financial decision (and indeed each life decision you make) and know in your mind that you've thought it through and are comfortable with the reason for making that decision. Often times you'll find that "good advice" is genuinely good, and you'll be more confident in your decisions. Occasionally you'll find "good advice" with which you disagree wholeheartedly.

 

[bettymae1121]

If you can't pay off a car in three years...you can't afford it.

If your company offers one, start the 401k when you start your 1st "real" job. Don't put it off thinking "I'll start it in a few months once I do X" because you'll never get around to it, or there will always be a reason to put it off longer. Always put in at least enough to get the full company match, if one is offered. I started mine at age 23 and now I'm 75K ahead of those just starting one in their mid-30's, and I never missed the money.

Unless you have an impulse buying problem, find a credit card with a good reawards program. Purchase everything you can on it it (while still staying within your budget of course) and pay it off monthly to avoid interest. Cash back or free travel for doing nothing more than spending money you'd be spending anyway is the closest thing to a free lunch that you can get in this life.

 

[crisi]

Be wary of one-size-fits-all advice. Instead, use advice as a springboard for your own thinking. That is, think about each financial decision (and indeed each life decision you make) and know in your mind that you've thought it through and are comfortable with the reason for making that decision. Often times you'll find that "good advice" is genuinely good, and you'll be more confident in your decisions. Occasionally you'll find "good advice" with which you disagree wholeheartedly.

Very good! There is very little advice out there that is going to work for absolutely everyone. There is even bad advice that sometimes works (I know someone who won $20M in the lottery. Now, I wouldn't recommend the lottery be your long term savings plan, but it DID work for them - and they are sensible people who twenty years later, are still living off their lottery winnings). And some advice that is good "rule of thumb" advice, but needs to be tailored for your circumstances (I think the six months of emergency savings is one of those - its good rule of thumb advice, but if your severance package is a year's pay and you work in an in demand field, you might not need a whole six months).

 

[crisi]

Another one....

Think ahead. I'm always surprised when events like college sneak up on people - and while you might qualify for grants or get scholarships - every year a few people around here are shocked to discover how high their EFC is. Same with retirement. And, if it floats your boat, expensive weddings.

Its easy when we are young and our kids are little to think that we have plenty of time before we retire, our kids go to college, or they get married. But it happens SO FAST and you turn around to discover you are in your 50s, with kids in high school, and tiny retirement funds and nothing set aside for college.

Spend some time with online calculators figuring out how much you will need for retirement/college. Don't let the high numbers discourage you - setting aside something to meet that need is better than setting aside nothing. The need doesn't disappear just because you avoided it.

 

[MEM]

Really?

I did emphasize that it is my personal experiences/observations.

I should clarify that I work in the field of dental medicine and I see bright young women spend over $300,000 for their education and then put it on hold for 15-18 years while they are SAHMs. They could work part-time and still maintain their skills but quite a few do not.

 

[disykat]

I did emphasize that it is my personal experiences/observations.

.

Yes, but writing that the choices of others make you cringe is loaded. Surely if a SAHM said they "cringed" when moms continued to work it would bother you? Oh, and btw, let their opinion stand with no debate. I think women can have their own opinions and make their own choices without trying to insinuate their choices on everyone else. Thinking that your own opinion/choice is best is normal, on every issue.

 

[DawnM]

Well, then maybe the first advice should be to choose an education that doesn't cost $300,000 and if you do spend that much, be prepared to pay it off.

I do even know dentists and doctors who don't have that much (or even close to it) in student loans.

However, many women can study and have a degree or two without that kind of debt, stay up to breast in their chosen field, AND stay at home for a while.

I am not worried that my husband will leave or that we will get divorced, BUT, anything could happen. My husband could be hurt or worse and we do wish to be prepared for that. The first step is adequate insurance, which we believe is important to keep, but I also worked for 16 year in my field and, even though I am currently a SAHM, I am pay for my new licenses every 5 years and keep up the ability to go back to work should I need to.

Dawn

I did emphasize that it is my personal experiences/observations.

I should clarify that I work in the field of dental medicine and I see bright young women spend over $300,000 for their education and then put it on hold for 15-18 years while they are SAHMs. They could work part-time and still maintain their skills but quite a few do not.

 

[happygirl]

Good tips so far

 

[vickalamode]

Buy a car you can live with for many years. Buying a New or New to you car every couple of years will cost you thousands of dollars.

Live BELOW your means.

I like this one about the car! I have been toying around with trading mine in but I probably won't. Potential repairs are still less than a car payment over time. DBF drives a 1991 Honda Accord station wagon and he says it is the best car he has ever owned XD He paid $500 for it over two years ago, it has over 200,000 miles on it, he drives at least 60 miles every day and we have done a 1,500 mile road trip on it with no problems. He can do most repairs himself for really cheap even though he isn't a mechanic, since it's such an old car it is pretty basic inside.


We just recently moved out on our own to our first apartment together, and this is some stuff I have found that helped me out and might help someone else who is just getting out on their own too...

-We got an apartment further away than we would have liked because the rent was almost half the price of the areas we were looking at. Because of doing this, we spend WAY less money doing random things with friends (like going out to dinner or for a couple of drinks...every week! That adds up!) and our gas cost driving isn't really that much more. Moving further away has SAVED us money!

-I started clipping coupons. At 21 I never thought I would clip coupons but it has saved us so much money! Normally I would end up at Wal-Mart every week or so to just pick up a couple of things that we needed, like shaving cream and shampoo or something, but instead of just getting those 2 things I would end up spending $60 on things I didn't really need. I've only been doing coupons since May, and I have such a good stock pile that I don't need to buy any toiletries for at least a few months. I actually haven't even been to CVS or Walgreens for the "Deals" in over a month because I don't need anything!

-I started paying attention to sales! Usually every week or every other week there is some kind of meat that is on sale for $2/lb or less. That is usually the only meat I buy for that week, but I buy about 10lbs of it and freeze a lot. Meat can be so expensive, lots of times $4-5/lb around here. Right now in the freezer I have lots of London broil steaks, chicken thighs, chicken breasts and pork chops. All for $2/lb or less. I also like to check out the marked down meat. I always make it a point to freeze it or use it that day, and have never had a problem. I get a lot of good deals buying that.

-For general groceries, I also pay attention to the sales...if something we use is on sale, I usually buy some even if we don't need any...because sure enough, when we need it, it will be $3 instead of $1...for example Near East Cous Cous is something like $2.50 usually but sometimes the grocery store will do a 10 for $10 special on it, so I stock up when they do that. I also try to use coupons with groceries, but I try not to buy too much junk food so I don't have much luck with grocery stuff. But here and there I definitely get good deals using coupons on groceries! Especially things like jarred pasta sauce etc