The best financial advice I ever got

Our experts share what they have learned three best financial lesson

It takes time to learn how to manage money – even on financial writer. Fortunately, there are a lot of people out there willing to offer tidbits of wisdom, we can prove invaluable. Advice good money, especially when you’re young, can make all the difference in your long-term financial security. That’s why my colleagues and I are happy to share some of the best money we have received proposals.

For each of us, someone at the university our voices changed our world view, affect our management of funds, the day of the presentation of the financial guidance. Hope that these experiences can also help you manage your own money, regardless of your current financial situation is how old are you or what

Make your money work for you

Christie Bieber : when I was in college, I was very happy to get a great summer job to pay at the time it seemed like a fortune. I can fund awesome spring break travel at the bar, in the evening, upgrade my wardrobe, and may even save a down payment on a nice car, I can take back to school with me.

Fortunately, this work made great boss who is leaving employee retirement and travel apparently lived a good life at the age of 49 my boss and leave work at the very young age of where there is a lot of time and money to enjoy retirement. I made it must be how good is the boss and can afford to do so, my boss let me in on a little secret throwaway comment: it don “t you no matter if you spend all this much money .

He said, you work hard for your money, so you need to make your money work for you. this means that these dollars for you to earn more money, rather than blindly consume them. he said, he always had a budget priorities to put money into the stock market, and the money invested in youth, which is why he likes, let him buy nice things, and mostly retired his peers and the financial success of.

Inspired me to open an IRA with the first summer job and start saving. to this day, I give my money to invest a large amount of my monthly will automatically transfer fundsBefore, I had the opportunity to spend money.

Because I listened to this advice and began to invest about Earl y and stay consistent, secure track on my early retirement, I have wasted a lot less money than I would otherwise. Oh, I still continue to spring break, but I narrowed my expectations – and still memorable trip

Beware of lottery tickets, good embrace of debt, avoid bad debt

Matt Frankel, CFP : like Christie, I received some suggestions of my life the best money while I was in college. My electromagnetism professor (I am a physics) are followers and regularly pop up before or after school will issue a financial investor and avid stock market. One day, some of my classmates and I were talking about buying after school (winning grow quite large) group of people lottery tickets, our professional picture SOR call lottery “on the stupid tax. “Although I will not go very far, he has a point, mathematically speaking. If you play blackjack in Las Vegas have a good strategy, you can expect 99% of your bet is returned to you in a very long period of time. Slot machines usually have to pay far more than the proportion of 90%.

Meanwhile, the state lottery winnings are in the range of 60% -70%. In other words, the odds are really in favor of the house. The risk of bad debts and the value of The professor also taught me good debt. Good thing you debt financing  need in a low interest rate, as well as what they buy may even go up in value. For example, a mortgage to buy your home, it should be worth more over time. Ÿ car loans to buy European cars to go to work, let you make money. On the other hand, credit card debt and high interest rates have been using (often not) to finance non-essential spending. 

Always have savings

Maurice Beckman : my colleagues, I got some very solid in college financial advisory – only it was from a woman who, at best, work in the campus cafeteria, earned about $ 10 per hour. We talk about a day in the life of many bills (for her, mortgages and auto loans; to me, The tuition and textbooks), and she shared how she often struggles to pay her expenses month after month. That is to say, she never so much credit card debt racked up a penny, because she always had savings to fall back on. Although she and her husband did not make a lot of h uh, they always put in 10% of the bank’s income. This, in turn, allows them to build came in handy when some cash reserves, unplanned expenses pop up out of nowhere.

When I got my first individual work surface, (summer position in investment banking during the university), the first thing I do is put a chunk of my income aside and put it in the bank. When I graduated from college, I have a few thousand dollars of savings, which is not bad, considering that I pay a big chunk of my education, I went along to avoid deep debt graduate.

Once out of school, I continued to give my savings account until I have a solid emergency fund – enough money to pay for more than six months of living expenses. Do not get me wrong about T: The fund, I have dipped and added that over the years, has come in handy things like car repair, home repair, and medical expenses. It also spared me nervous world of those times when unpleasant surprises financial hit me out of the blue.

In my work, I was fortunate to learn from a lot of smart people. But I have I owe to my colleagues taught me in front of the university canteen, I have learned one of the most valuable financial lessons.