Posted on Aug 16, 2016
What financial advice would you give to your 20 year old self?
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Money
Guidance
Responses: 13
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To build credit early, use your credit card like a debit card and pay it off at the end of every month. Do not use it unless you're absolutely sure that you have the money.
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SPC(P) (Join to see)
Question for you Sir, so I just got my first credit card and I have the money to pay if off right now... But I've been told to wait until the day it's due to pay it, because it looks better.... Is this a myth? Or should I go a head and pay it off ASAP?
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PO1 Kevin Dougherty
Personally, I pay mine when I get the bill. All the credit report shows is paid according to agreement. You can schedule it for the due date. I do that with a couple, as I know the money will be there then. That way I don't get busy and forget.
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SSgt (Join to see)
I find it easier to pay the balance every pay period. Yes, 2 payments each month. Part of what is reported is the percentage of credit free each month. So, if you have a $5,000 credit limit, spend let's say $1,000/month and pay it back every 2 weeks you will average $500 used which is 90% free. If you pay it once a month it could get reported as $1,000 used or 80% free credit. For me personally, I like paying it as soon as I can.
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Capt (Join to see)
I wait until the end of the month so I can analyze my spending habits. I have USAA and I set it to pay the entire statement on the first available date.
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* Learn to budget and learn to stick to the budget.
* Include in your budget a way to get out of debt. Debt is a soul sucker.
* Maintain good credit but do not depend on credit. Credit is still something fairly new and we've already been taught to put more emphasis on credit and to carry a debt load to be "successful".
* Recognize that owning a house that you live in is NOT an asset. Assets are something that generate income without the need for continual work being put into it. Rental houses can be an asset.
* We are taught to build a Net Worth that will produce income later on. What you should do is learn how to build assets that generate monthly income and use that to build Net Worth. Net Worth only has value as long as someone is willing to pay for what you have. We've all seen the stock market crash. We've all seen the value of stock portfolios lose a Billion dollars over night. Where did that money go? Tip: It was never there *until* someone paid for that stock.
There are more tips buried in my brain housing group but I am tired. I will leave you with this:
Success is not *just* financial. To truly be successful I believe you need to define what success is, for you, in this areas at a minimum: Spiritual life, spouse (you will be married someday, right?), relationships (which includes your kids), health and finally finances. I have listed them in the order I think is most important to least important. But isn't it funny that we spend the most time on the least important telling ourselves that it is to be able to put time into those other areas. Yet we end up giving our left overs to those other areas and putting the most emphasis on "earning money".
* Include in your budget a way to get out of debt. Debt is a soul sucker.
* Maintain good credit but do not depend on credit. Credit is still something fairly new and we've already been taught to put more emphasis on credit and to carry a debt load to be "successful".
* Recognize that owning a house that you live in is NOT an asset. Assets are something that generate income without the need for continual work being put into it. Rental houses can be an asset.
* We are taught to build a Net Worth that will produce income later on. What you should do is learn how to build assets that generate monthly income and use that to build Net Worth. Net Worth only has value as long as someone is willing to pay for what you have. We've all seen the stock market crash. We've all seen the value of stock portfolios lose a Billion dollars over night. Where did that money go? Tip: It was never there *until* someone paid for that stock.
There are more tips buried in my brain housing group but I am tired. I will leave you with this:
Success is not *just* financial. To truly be successful I believe you need to define what success is, for you, in this areas at a minimum: Spiritual life, spouse (you will be married someday, right?), relationships (which includes your kids), health and finally finances. I have listed them in the order I think is most important to least important. But isn't it funny that we spend the most time on the least important telling ourselves that it is to be able to put time into those other areas. Yet we end up giving our left overs to those other areas and putting the most emphasis on "earning money".
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Put aside 10% in retirement savings, 10% to God (Charity) and 10% for yourself. Live on what's left. You'll be a multimillionaire when you retire.
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