Steadfast Finances

When I entered the real world, their were no personal finance or investing related blogs.  This forced me to rely on limited advice I received from others or I had to figure things out on my own.  Some things worked, and some things just blew up in my face. 

In reality, the only worthwhile financial advice available was through a decent financial planner / real-life broker who would actually return your call (depending upon the size of your account), reading the major personal finance magazines (i.e. Kiplingers, SmartMoney, etc), or having a mentor of some type.

Being a relatively quiet and cynical person, starting a blog is not a seemingly natural act for me.  However, one of the reasons I wanted to start a blog is so others could benefit from my mistakes. 

To start at the beginning, I think the best way for potential readers to get a good feel for where I’m coming from and expedite the learning curve would be to learn from the successes (and failures) I learned along the way.

Top 10 financial moves I ever made:

1. Find a successful investor to serve as a mentor.  I was fortunate to have a friend of the family who was a successful investor.  I mowed his lawn in trade for teaching me basic investing skills at the age of 17.  I began investing my own funds at 22, and now “work” as an independent investor/trader.
   
2. Learn from your mistakes and/or the mistakes of others. I grew up with spendthrift parents, and to this day, they never cease to amaze me with the antics they stumble into.  Their home should have a corporate VISA and Wells Fargo imprinted over the garage thanks to the quantity of home equity loans they’ve taken out over the years. 
   
3. Buy a home in your 20s. This approach isn’t a realistic possibility for some due to extraordinarily high prices in some major metro areas, but the vast majority of people can afford to buy a home if they put some serious effort into saving for a down payment and searching for a home to fit their budget. 
   
4. Get a roommate to pay half your bills. Having a roommate (a spouse, significant other or a friend) may not be a desirable choice for everyone, but having someone to cut your living expenses in half is a big plus.  This allows extra cash to build an emergency fund, short term savings goals, or boosting your retirement contributions.
5. Live below your means. Just because you make the cash to live the high life, doesn’t mean you have too.  One theme I found useful was to ignore any salary raises I got for an upcoming year, and allocate that raise into a savings account, investment account, or boost my retirement savings.
   
6. Avoid credit card debt like the plague. No way am I paying 10% or more in an interest bearing account to some corporate suit so I can buy an electronic gadget before I have the cash.  I avoid mindless self indulgences and wait until I have the cash.
7. Buy a car and keep it until the wheels fall off. Okay, that’s just an expression, but it supports the theory that continually maintaining a car payment is a poor personal finance decision unless you have money to burn.
8. Avoid the marriage trap. Now before I’m burned at the stake, I mean that one should be 100% certain they’ve found “the one” before making the big plunge into married life.  If your marriage ends prematurely, your financial future can take a serious hit before you even get started, or take an even larger hit after you have built up a suitable retirement plan.
9. Stay as healthy as possible. I know that healthy means different things to different people, but your health is your number one asset.  Maintaining a weekly exercise regiment fights a multitude of illnesses that can strike in later life, so think of your health as an investment in your future.
10. Monitor your credit report. It’s the least sexy of the entire list, but being a young adult and continually abusing your credit score means you’re begging for trouble in later life.  Your ability to function in a nation of consumers will revolve around your ability to use credit, and the expense at which credit is given to you.

Got a financial tip of your own and like to share?  Use the comment section below.

• Weekend Reads: The Dreaded Swine Flu Edition
• Municipal Bond Funds: The Easiest Way to Find Tax Free Investments.
• Investor Panic Sets New Records for Investment Firm Websites and Call Centers
• Would You Make a Run on Your Bank?

• Would you get a joint savings account with your significant other?
• 40+ Alternative Income Ideas and Resources
• how to talk to your teenager about personal finance
• Comparing Life Before Baby to Now