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Old 07-05-2007, 05:07 PM   #1
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Ok so i have been thinking lately, whats the best advice for someone if they were currently working an hourly job and then get a salaried job. For instance, someone who just graduated and is 25 years old with no real finacial possibilities except for rent and the college loans.

I only ask this question, because i have seen plenty of young adults my age just start spending there money on toys and brand new cars. Ive always felt that it was one of the worst decisions any young adult could make but maybe i dont know. I have a friend that just got a good job and lives in an apt. He bought a new trailblazer, brand more honda shadow, used pop up camper and is always spending money now.
So i guess i dont know, i thought about investing in a duplex or some other kind of real estate. Or maybe buy a house right away and go from there..

Anybody got any advice? for someone my age, its so easy to just start buying things that Ive never had before.... for me and for the social status.
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Old 07-05-2007, 05:24 PM   #2
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But the toys while you aare young and single and can afford it.

BUT!!!!

Do it with a budget in mind. Save some money, because one day you'll need it.

Trust me....

And do not become a landlord, unless you like cleaning up other people'* messes, counting on someone else to pay your mortgage, etc. If you plan on living in the city you're in for a while, buy yourself a house.
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Old 07-05-2007, 05:30 PM   #3
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Too many people live for the moment.

Some people ask themselves how much debt they can afford.
Smart people ask themselves how much they can afford.

(I actually just made that up)
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Old 07-05-2007, 05:41 PM   #4
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Tony, I recommend not going money crazy. I have seen alot of people our age do this, and in 5 years things are being reposessed, and their credit is crap! Buying a house is one thing IF you know you can afford it now, and in the future. Don't get me wrong, everyone wants nice things. But there is a HUGE difference from wants and NEEDS.

Do you need a new car? Probably not.... But would you like a new car? Hell yeah!

If you do not need it, don't do it. Save up money, make sure your job is secure, and then go from there.
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Old 07-05-2007, 05:45 PM   #5
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The "make sure your job is secure" point is a biggie that I forgot. Lots of money right now can go belly up if the job disappears.

Again, trust me.....
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Old 07-05-2007, 05:49 PM   #6
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Save at least 25% or more for a down payment.... Before you buy if at all possible..

Not only will it keep your mortgage lower Incase things happen but you gain interest on saving.
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Old 07-05-2007, 06:13 PM   #7
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Yeah thanks for all the great advice, i guess my biggest question would be. To invest or to not? i have a friend that has invested in a two apt deplex and he lives on one side and rents out the other. Hes having success and my girlfriend has also thought about this too. I wouldnt mind investing in something like that and spending more time in a apt setting. Just wondering if you guys have explored in this area before or if you guys have stayed away from this because of a certain downfall.
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Old 07-05-2007, 06:18 PM   #8
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As long as you screen your tenants well and are prepared to spend when things go wrong and are ready to be on call 24/7 then thats not always a bad move...

But I still suggest you save some cash and have a little nest egg built up.

Because in the worst case you need a furnace in the middle of winter and you don't have the cash on hand you have to borrow and that costs more always.
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Old 07-05-2007, 07:46 PM   #9
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Well, IMO you should buy toys and invest. If you do all of one and none of the other, you will may look back and regret it. If you do either, you will definitely look back and regret it (I know)
I would say don't spend more on toys than you invest. I really regret that I never saved any money when I could ( I blew so much in my twenties and have nothing to show for it). Toys are not a good investment financially, but you'll have the memories. I have neither, (well, I have some GREAT memories, but also suffer short term memory loss ) I look back and think of all the toys I could have had and think what a waste of what I did. However, I probably wouldn't still have them, so investments would do me more good now.
I hope I am making sense.
Bottom line, do both in moderation.
As far as being a landlord, I agree with the consensus, It can be a good investment but also a lot of headaches. I have no experience in this, but have heard nightmare stories form people who have.
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Old 07-05-2007, 07:56 PM   #10
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Keep in mind that many empoyers routinely let there people go to reduce their pension liability. Others went 401k years ago. Both cases require YOU to save for your retirement. I would suggest you put as much as you can into your 401k and if you max that open an IRA or an annuity. These are the years that will make the most for you in interest, the longer you put it off; the less you retire with.

Your retirement savings does not count towards your other Savings that you need to do. Financial experts recommend a Saving/liquid (somethng you can get your cash from fast) account equal to about 6 months of pay.
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