5 Money Rules I Wish I Learned in My 20s (Still Work Today)
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- Опубліковано 20 січ 2024
- This video discusses five simple rules about money that are really important to know, yet many people do not even know exist! While they are important at any age, the earlier you learn (and use) these the better off you will be.
Financial Literacy is a common problem for those starting out, yet even those who are nearing (or in) retirement sometimes miss important information that can change their future. This video will help show you the way.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Great you delete those scam comments. Folks, listen to this advice its rock solid.
Thanks Rick.
Yes, scammers keep posting. I always report them.
This is why I so enjoy your posts. You don't follow the lemmingings and report the hard truth, in such a kind and teacher-like way.
I’m showing this video to my soon-to-be 18 year olds. What a clear, succinct example of the time value of money. Thanks!
You bet
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
True though unfortunately mine always end up with losses 😭
I'm not one for offering unsolicited advice, but here is an exception for 18 year olds. Assuming Roth IRA rules will be the same 40+ years from now, I would put every penny I could into a Roth IRA and find the best return rate possible. Why? You have the great advantage of time and compounding interest. At 67 years, you should be pretty well positioned and all your withdrawals are tax exempt. Just my 2 cents.
The best way to learn is from others mistakes, not your own
Absolutely.
Ideally, but it usually is our own mistakes that we learn from. :-) Or we don't. Good to learn early, but us guys don't figure things out so early it seems. Darn!!!!
The thumbs up button has been activated !
Thanks very much!
College degree, obviously, depends on category. I personally know plumbers, electricians, welders, mechanics and truck drivers (Owner-operators) - all trade school graduates - who make more per year than the barista with a 'worthless' college degree. As was said in Indiana Jones, "... choose wisely...".
That is so true!
Yes, It can easily happen.
Excellent information! I will pass this video on to my son.
Love it!
I’m 26, $300K net worth. Been saving 50% of my salary, investing in stocks & living below my means. My goal this year is to be more serious and consistent with my investments for long term. Starting to save for a house down payment. I want to invest more this year but I'm not sure on how to mitigate risk
time in the market beats timing the market, Its best if you buy growth/blue-chip/large caps stocks only. looking at your budget It's advisable you work with an fiduciary advisor to help set up a well-structured portfolio
Exactly what I’m doing again this week. The smartest thing I’ve ever done was having 30% in cash to buy on the way down in 2021. It hurt watching 30-40% discounts drop to 50, but grabbing Google, NVDIA, Apple, and others near the bottom has paid off
Wow you’re amazing! Keep up the great work.
You didnt watch his otger vidros.. NEVER DISCLOSE your income, net worth etc to ANYONE
Well aren’t you special!
Congrats to you re: Wolverines. (My wife is from Michigan)
Excellent!
Glad you liked it!
Let me guess..
1. Continue to live like a broke student.
2. Save 25% of everything you ever earn.
3. Never pay full price.
4. Every discount is saved money.
5. Marry very carefully.
How did I do?
Heh, heh! One through four are all the same thing.
5. If you are a man, NEVER get married or have children.
These have ALL worked VERY WELL for me.
Now age 74.
Be careful who you marry, but if you marry the right person, it is a wonderful blessing!
Unfortunately, the risks are too great in my opinion. That "wonderful blessing" can and too often does, morph into a rapacious predator in divorce and child custody lawsuits.
Best to do without marriage and children in my opinion. That is what I chose, and at age 74 it has worked well for me.
@@SeattlePioneer Glad it worked for you. Some people like the Blessing of having and leaving a Legacy. But it’s not for everybody. Lol.
Good. But saving is not enough.
For me the key has been investing in stocks long term, often using DRIPS, and also rental real estate.
Thank you!
You are welcome
As always excellent. Thank goodness I learned my lesson at age 27 when I let a legitimate commodity investor talk me into hog and cattle futures. I lost about $1500 but I consider it tuition to a private school on investing. I got an A+ and never looked back.
Thanks for sharing your take - makes it easier to understand for others!
Because of compound returns I recommend getting a job right out of high school and invest as much money as possible for four years. Where I live you can have $100,000 saved in four years if you get a job at a local factory and live frugally. If they do that they would be guaranteed to have more than $million in retirement without investing another dime.
And without having to work like an indentured servant for 40 years.
do you advise against going to college? is college worthless to you? if not, what is your advice for paying for college.
@@DrSchor Most of the employers in this area have tuition assistance plans. I would use those plans to pick-up the college courses part time. Going part time will take longer but allow getting a degree with minimal cost. There were several guys that I used to work that did this and were able to snag professional positions at the company they worked for. Companies are in desperate need for smart motivated people. They can be quite flexible to help you reach your goals.
Against the Gods is a fantastic book. I highly recommend it.
Agree!
im 68 now. if i had it to do over again i would have worked a municipal job. State Police, city worker, state worker and/or a union job. my friends who worked in those jobs now have a fat pension and retired after like 25 or 30 years. cash flow is king at retirement. my father worked 30 years for the city of Detroit. he always told me "son get that pension." he was correct. the private sector conspiracy basicly eliminated pensions on the backs of the working folks🤨
Those football helmets behind you, Delaware? Michigan?
Michigan / Ohio State :)
@@HolySchmidt That’s only asking for trouble! 😉
I was lucky to have $25 when I was 25 years old much less $25k.
I've been meaning to ask about those helmets perfectly located behind you. I'm sure I'm not the first, (in fact I saw a reference below) but those two don't mix well so it seems odd;-)
lol, yes they are total rivals. Makes Thanksgiving a lot more fun.
I have health insurance from my husband ( retired govt), a 1200 month pension( I’m a teacher), and 420k in portfolio ( taxable, pre tax, and tax free). House not paid for ( owe 150k), husband has 53k a year govt pension , no debt. Husband has 730k in portfolio too. I am 59, I am retiring in June. I will substitute teach some. How am I doing? Thanks - I like your channel. Should I retire? In Virginia
How about if have it with edward Jones ? They say they can invest my money for a 7 percent return. But if I take out any it won’t grow. I had to take some out to buy home couple times then help family . So I’m 60 now hope I can keep saving but I’m not working enough. I worry
😊
👍
The S&P 500 Index Fund is a low cost / low risk investment tool. I wish my family had smarter financial minded siblings but the parents did a good job of Buying a house in a really desirable town way back when the roads were dirt & oil plus the house was only the 2nd one on the whole block. Their investment in Real Estate was a good lesson. They lived a comfortable retirement after their working careers ended. What stock market investments they did have grew in their retirement years. The their house was the basis for being able to live out their lives in comfort.
I didn’t appreciate the comparison between college and trade school. Bad choice.
Your showing your age. Today's Vanguard is no longer known for low costs but is known for poor to no customer service.
you're showing your age. today your is spelled you're.
The vanguard 2030 fund charges fees of 0.08% the fidelity 2030 fund charges fees of 0.66%. Vanguard’s S and P 500 index fund charges 0.04%. T-Rowe Price’s S and P 500 index fund charges 0.2% (noting this is not a purchase recommendation but an example). I can cite more, but this is what they are known for.
Schmidt, I think I you’re just as bad with your overselling what the S&P will do. Maybe at some point in the past 10.26 was possible, but I doubt that anything close to that number will be possible for the coming 30 or 40 years. If that was the case I’d put 25k down right now in whatever fund for my grandson.
Feel free to call me Geoff…
Here is the market rationale for continued growth - pretty well understood. This has proved out in the past and (very likely) will prove out in the future.
A stock price is based on expected future earnings - there is no debate on this because this is what drives things like dividends and long term capital gains.
While there have been short term exceptions to this, once discovered a company either grows or dies.
If we assume that large companies know this (the S and P 500 for example), they will continue to manage efficiencies as they always have - investing in automation, only selling the highest margin products and closing down non productive resources.
The output you see today is a behemoth compared to twenty years ago and if you assume technology is growing exponentially, which it is, then today will look like the dark ages in 20 years.
Since revenue and profit are what drive share price, this formula heavily suggests that we are in for more of the same.
That is of course unless all of this automation suddenly stops… you tell me if this is likely?!?
Summary - Best advice to young people - put money in a range of Index Funds including international and live your life. Come back in 30/40 years.
I can't focus on the rules he keeps talking about scams and risk.
This works great if you and your wife are DINKS. Once you have Kids, than finances become a bumpy road. Lol.
Once in awhile I have gotten lucky putting funds into a speculative investment.
I have NEVER gotten lucky. I am always punished for taking risks.
@@michaelsmith4904 my lucky hits were FNMA in 2017, RON in 1982, WANGB in 1994, AMC and GME in 2021. I have lost more in opportunities than I made. I do invest in anything that has a modest dividend and I am getting out of mutual funds.
Your not investing your gambling. That's a suckers bet.
John John i still have over $1 million dollars. My speculation has never been more than $5 thousand dollars.
My biggest paper gain on a stock was Washington Mutual, and at one time it was my largest stock holding.
A little later, Washington Mutual was my biggest actual loss on a stock.
Figure that one out.