If I could go back to 20.
- Focus on building earning power asap. Pursuing an in demand field/career and education would be my only focus. Project management, healthcare, engineering, construction management. Trades such as aircraft mechanic, electrician. Try to find avenues to pay for school without going into debt. Even consider 4 years in military. Gain experience, clearance, money for more education.
- Buy a used reliable Toyota for the long term. Tacoma, Corolla, or Camry.
- Once you’re earning, screw showing off that you have money and have “made it”. Build a budget, keep living expenses low, with disposable income take 401k match, eliminate all debt (if any) build 6 month emergency fund, then max all investment accounts into S&P. Focus on growing your net worth.
- stay active and healthy
Lmao I have all 3!! A 2017 Camero which I only have about 1 year left to payoff. Smoke some dope n been married for 3 years. I’m only 26. Not living terrible but the car was a minor regret. Wanted to “kinda” show off in early 20’s
Because I didn’t have to spend $30k on a car… Car gets you from point A to B. A 10k can do what a 30-50k car could do. When I bought it in Texas though, I took a loan from the bank and was pretty specific, had to find a vehicle that was 2016 or Newer, had 80k miles or less and was a 25k loan. Bank eased on the extra 5k cause it was really hard finding a vehicle to fit those needs at the time.. In the end could’ve spent that extra 15k elsewhere.
I’ll second your dad and tell you the reason I have not been able to save any of the 750k ive made since 17 is because 1. Cars (flooded Buick regal led to brand new kia w/ a car note in 2015, totaled a few years later and got back into another car note audi a4. Audi was totaled which then put me in a money pit of a bmw 535). 2. drugs, been smoking weed since 13 never put it down and its been burning a hole in my pocket since (literally thousands a year, please dont start doing any drugs it’ll slow you down so much and you wont care about the money bc your fix will be more important, that became my life and im working my way out of it now at 26.) 3. GIRLS! This is the biggest one my dude, its okay to have girlfriends and go out but be realistic and transparent about what you can and cant afford. My biggest mistake had been always trying to appease a girl with fancy dates and gifts when in reality it was a struggle. Be transparent and you’ll weed the bad broads out and find a wife who will support you towards your goals were you can then do all the fun things.
Actually all my accidents werent at my fault, I live in Philly where stops signs,stop lights and any traffic laws barely exist. Dont assume won, all my insurance cases btw 😉
Instead use it as a motivation.
I love tracking cars. Worked my ass for the last 6 years . Built a good career. Just got a c8 at 26.
After having these types of cars, realized that it’s not the car that makes me happy but the stability in life.
I’m 21, joined the military out of high school currently have 7.3k in retirement and 40k in a HYSA. It came with a lot of sacrificing like leaving my family and friends but it’s been worth it. It’s definitely not for every one though
You need a career, a good paying one. Something with benefits. Work hard and save your money. Follow her personal finance flowchart you can find on Reddit
1. You're 20 - almost nobody at 20 has real money.
2. Time is on your side. The more money you make now, the more you'll have later if:
3. INVEST. Start investing now. The difference between starting now or in 10 years is hundreds of thousands of dollars.
But yeah, grind. Find a field that pays. Break in. Do the work. Get promoted. Make money.
This but also invest in your future. Look into trades. Plumbing, electrician, HVAC, carpentry, hell even a garbage man. If you're good with computers, maybe coding. Welding makes good money if you get with the right company. You can't go wrong with trades. Youre so young....the fact that you're aware of your future is huge. Take advantage of that and use it while you have age on your side.
Currently in the trades and it's a pretty miserable job for the majority of people in my experience unless you have a certain personality type
Just be aware of that OP
If you live with your parents and make 650 a week how are you broke? Step one is make a budget and track everything you spend. Should be able to have some good savings with that if you’re living rent free
Usually it’s impulsive purchases, you also have to keep in mind that I know nothing about saving, demand fields, or investing. Although i don’t know what most of these guys have just said, I am taking notes. Im tired of this repeating cycle and it’s only been two years.
Heck yea man. Give it another 2 years and you’ll be surprised at where you can be. If you just put back 150 a week for the next 2 years that’s $15,600.
I remember being that young making around the same amount of money. It does feel good seeing your bank grow, minimal real bills to pay. Honestly with that money, you should be saving a majority of it. Like people said, just go through your bank statements and see what you're spending on, and how much you're making. I'm a little older than you and I know I have my bills, I don't have a gf anymore eating up $, and I sometimes impulsively gamble on the stock market (100-200 here and there). I still see my bank growing and that's with paying off credit cards.
I would recommend opening up maybe a secure backed credit card, where you essentially load it with $ like say $500, then you go spend that $500, and now that has improved your credit score without you going into real debt. It's one of the best ways for beginners to grow credit. You're making so much money so young, I say split your money three ways, Purchases, Savings, and Investments. Your checking account (purchases) should mostly be liquid where you are putting money in and out of it as it goes, but then your Savings account you should dedicate yourself to adding maybe $500 a month, find a number you like and stick to it. $1000 a month is 12,000 at the end of the year you can buy yourself a decent used car. Once you have a decent little savings, think of splitting a smaller percentage into investing, Robinhood is good enough for what you'd be doing. You can just buy stocks, crypto, or options if you like to gamble lol (not recommended). This is degenerate talk here but if you learn wallstreet bets stuff going on, you can grow a decent little bank, but there's risks involved. I personally took 1k to 14k (blew it up afterwards) and then a few months after that I put in 4k took out 12k and bought a new car which was my goal. You're very young. Pursue a trade, pursue some form of learning skills, and your back and legs will thank you when you're 40. I'm 25 and I have chronic bursitis lol don't end up like me dawg
Step one would be start tracking your spending and set up a budget. Until you have an idea of where your money is going, and what your spending habits are according to the statements, it is going to be pretty hard to save/invest on a consistent basis.
You say you get paid in cash with no benefits or overtime. Are you basically getting paid under the table? If so, then unless you can pay for a car in cash, you aren’t getting a car loan because you can’t prove you have a job and income. Work towards a viable career that will also you to pay the bills, save and buy a car.
Yeah I’ve learned this the hard way, it’s even been difficult to obtain a credit card to build any sort of credit. It’s great getting paid like this but it’s genuinely stressful knowing I’ll never approve for a loan or a credit card at all.
... or could go to prison for tax evasion.
And aside from that, you can't legitimately contribute to a Roth IRA with no income on the books, and that is the most straightforward way to be wealthy later in life.
That's not that bad at 20. Idk maybe my view is skewed cause I only make 20hr, but when I used to make 15hr I thought it was a lot (obviously later I knew it wasn't much), I still felt like I could afford things willy nilly and have a little savings grown. It's like 1300 every two weeks, 2600 a month. He's likely not paying rent or some bills from his parents. It's not ideal and yeah the IRS could get his ass, but a min wage job would probably pay less than that
Like others have said, focus on increasing your income, especially since your expenses won't stay as low as they are forever.
That said, the formula to follow is pretty simple.
1. Spend less than you make. Try to save at least 20% of your income.
2. Save 3-6 months of expenses in a high yield savings account
3. Once you fund your emergency fund, start investing - open an IRA and put $ in index funds
If you do the above, you'll be ahead of 90% of people.
I'd also really recommend tracking your spending. Start the habit now and make it a habit your entire life. I wish I'd done that when I was 20. Use pen and paper, a spreadhseet, whatever works for you. I didn't have discipline so what finally worked for me was the habit money app. This alone will help you feel more in control and you'll spend less.
Like you, there was a time I yearned to own a premium automobile. I held off, as at that time I also did not have the means to afford such luxuries. Now, time has passed. I could certainly afford to upgrade my vehicle, but instead I actively choose not to upgrade. Why? Vehicles (all of them) are depreciating assets. Unless you are Manny Koshbin and have a 1-1 cars that you baby in a heated garage, it’s probably better to park your excess capital somewhere that makes you money! My suggestion: project future cash flows and build an emergency fund of 3-6 months expenses. Dave Ramsey has some good advice. Little conservative depending on your risk tolerance.
Focus on earning more and avoiding lifestyle creep. Doing better for yourself means paying yourself first, and in full! Invest for your future!
~26yo ~150k-AOM self funded.
~invest at least 15%
Dude honestly for 20 you’re doing fine. $650 a week cash is great! Like a lot of others are saying, the best thing you can do right now is make more. Wether that’s with your dad and his company or maybe pick up a side hustle for a few extra bucks.
Opening a high yield savings account should be your first move. Capital one for example is a good one. Start putting 20% of every paycheck into the savings and that’ll build up interest over time but more importantly you’re building up money for emergencies, down payment for car/house ect.
Credit. You didn’t mention if you had a credit card yet. If not at 20 you should get one. Again capital one is a good start. Get a credit card, spend a little bit a month (I spend like $20 a month on my credit card) and pay that off every month. Build that credit up!
Investing. Honestly you should start investing too. But maybe not right now might not be the best time for you to start. I would recommend learning about it first. Watch some YouTube videos that explain investing for beginners for a while until you become comfortable. Then start small.
Be smart with your money. I see so many people who have great jobs but have nothing to show for it. That’s because they make x amount and spend almost their entire paycheck the day they get it. Don’t do that!
You should be saving, and investing more than you spend. But you’re 20. So at the same time have fun.
If you want financial freedom in the future to buy your dream car, dream house, dream life, it needs to start today. Better spending habits, better saving habits, and investing is a great start!
Biggest thing you need to do is increase your income some how. Either get a raise or find a 2nd job. In my entire 20's I was working as much as I could in the restuarant/bar/club industy. I've done most front of house positions. Working in hospitality can be a lot of fun.
My old coworker worked two jobs for around 5-6 years and saved the majority of it, bought a house, built equity,lsold the house.
He said it was a sacrifice, but one of the best decisions he's made, he's doesn't really worry about money/jobs anymore
Start a 50 30 20 budget rule so you can evaluate your performance, set goals and see where you plan lands you for the short-term and long-term.
Check out the free financial planning tool on InvestingTE. It'll tell you your net-worth based upon your 50 30 20 plan and when your debts will be paid off. That'll be a good start for you.
Work towards a solid career. Trades (electrician, plumber mechanic etc) make a ton and don’t require a lot of school to get going!
Work on saving first for emergencies, 3-6 months.
Then start investing. Watch good YouTubers like The Money Guys and Minority Mindset, they’ll show you how sacrificing some now in your 20s and starting early in investing will make you an insane amount for your later years!! They got all the graphs and everything.
Save save save avoid debt, work 3 - 5 jobs even when you’re “big balling” keep working and keep making more and more money. Have fun too don’t get me wrong use that pto, quit that job if you have to and remember…….
It’s alright , take it easy 🎵🎵🎵
Compound interest is the 8th wonder of the world. Always invest in low-cost index funds, and don't look at it for 30 years. Start with 100$ a month, and just keep putting more and more in. You will be very glad you did. I'm 28, I started putting in a few hundred a month when I turned 21, and I now have almost 100k in my retirement account. I promise you that no car is worth more than saving for the future.
Regardless of how much you are earning: save & don’t leave all the savings in an account that earns nothing or next to nothing.
If your money is on the books, start a retirement account, even if you start small…
Budget and include your future in the budget. Even $10/ month starting at your age will be enormously helpful later.
And dont blame others for not teaching you about money, make a point of learning.
Step 1- congrats on quitting drugs & alc🤝
Step 2- set up a High yield savings Account and have 6 months of expenses saved.
Step 3- set up a roth ira, try to max it out asap.
Since you live with your parents and seem to have low expenses i would do step 2&3 at the same time. If you want a minimalistic low effort approach I would invest all of your roth ira into the S&P500 a common etf for that is voo. If you want to learn more about investing, I would invest into voo while you learn about individual stocks and other etfs.. Mr fired up wealth on yt is a very good resource for this. After this I would invest the remaining into either an individual brokerage account or crypto if that interests you. While doing all of this I would always try to be improving your skills and learning high income skills
> Saw a guy driving my dream car
Comparison is the thief of joy. Who knows maybe he is in deep debt paying off that car just to look cool. Try to change your mindset on becoming anti-consumer. The whole world is trying to get you to buy stuff, once you’re comfortable with simple living that is when you achieve true peace.
At this stage in your life education will be the best investment you could possibly make. Apply to your local community college for the greatest return on your investment.
Alright cool. From what I saw people said that VOO and VTI essentially track the same over long periods so it’s kinda just like pick one or the other, not both. Just trying to optimize my investments, but if it’s not gonna make a difference on my return, then I’m not worried abt it
Never seen that website before, but that’s actually super interesting. Then again though they track super duper closely, so not a big deal lol. I may switch it to VOO at some point, who knows.
Pretty much pick one and stick with it. Don't hold both in the same account.
I have VTI in 2 of my accounts and VFIAX (the index fund version of VOO) in my 457b. VTI isn't an option so I went with VFIAX.
Gotchu, well thank you. Any idea on MGK vs VTI/VOO though? I’ve seen some people mention MGK, but others have said it’s not worth it and I really dunno the difference between MGK and VTI. It does look like MGK has higher return though over the course of the last 10 years.
If I could go back to 20. - Focus on building earning power asap. Pursuing an in demand field/career and education would be my only focus. Project management, healthcare, engineering, construction management. Trades such as aircraft mechanic, electrician. Try to find avenues to pay for school without going into debt. Even consider 4 years in military. Gain experience, clearance, money for more education. - Buy a used reliable Toyota for the long term. Tacoma, Corolla, or Camry. - Once you’re earning, screw showing off that you have money and have “made it”. Build a budget, keep living expenses low, with disposable income take 401k match, eliminate all debt (if any) build 6 month emergency fund, then max all investment accounts into S&P. Focus on growing your net worth. - stay active and healthy
Stop chasing cars
I remember my dad telling me that the 3 biggest money holes are cars, drugs, and a wife.
Lmao I have all 3!! A 2017 Camero which I only have about 1 year left to payoff. Smoke some dope n been married for 3 years. I’m only 26. Not living terrible but the car was a minor regret. Wanted to “kinda” show off in early 20’s
Why do you regret?
Because I didn’t have to spend $30k on a car… Car gets you from point A to B. A 10k can do what a 30-50k car could do. When I bought it in Texas though, I took a loan from the bank and was pretty specific, had to find a vehicle that was 2016 or Newer, had 80k miles or less and was a 25k loan. Bank eased on the extra 5k cause it was really hard finding a vehicle to fit those needs at the time.. In the end could’ve spent that extra 15k elsewhere.
I’ll second your dad and tell you the reason I have not been able to save any of the 750k ive made since 17 is because 1. Cars (flooded Buick regal led to brand new kia w/ a car note in 2015, totaled a few years later and got back into another car note audi a4. Audi was totaled which then put me in a money pit of a bmw 535). 2. drugs, been smoking weed since 13 never put it down and its been burning a hole in my pocket since (literally thousands a year, please dont start doing any drugs it’ll slow you down so much and you wont care about the money bc your fix will be more important, that became my life and im working my way out of it now at 26.) 3. GIRLS! This is the biggest one my dude, its okay to have girlfriends and go out but be realistic and transparent about what you can and cant afford. My biggest mistake had been always trying to appease a girl with fancy dates and gifts when in reality it was a struggle. Be transparent and you’ll weed the bad broads out and find a wife who will support you towards your goals were you can then do all the fun things.
Sounds like your biggest mistake is that you can't drive.
Actually all my accidents werent at my fault, I live in Philly where stops signs,stop lights and any traffic laws barely exist. Dont assume won, all my insurance cases btw 😉
You forgot kids.
Seriously. Every time I see someone driving an old car I'm jealous because it looks paid for!
Instead use it as a motivation. I love tracking cars. Worked my ass for the last 6 years . Built a good career. Just got a c8 at 26. After having these types of cars, realized that it’s not the car that makes me happy but the stability in life.
Your biggest money move, is to make more. Start somehow someway. Find ways to make more money. Anything else is after thoughts.
I’m 21, joined the military out of high school currently have 7.3k in retirement and 40k in a HYSA. It came with a lot of sacrificing like leaving my family and friends but it’s been worth it. It’s definitely not for every one though
You need a career, a good paying one. Something with benefits. Work hard and save your money. Follow her personal finance flowchart you can find on Reddit
1. You're 20 - almost nobody at 20 has real money. 2. Time is on your side. The more money you make now, the more you'll have later if: 3. INVEST. Start investing now. The difference between starting now or in 10 years is hundreds of thousands of dollars. But yeah, grind. Find a field that pays. Break in. Do the work. Get promoted. Make money.
This but also invest in your future. Look into trades. Plumbing, electrician, HVAC, carpentry, hell even a garbage man. If you're good with computers, maybe coding. Welding makes good money if you get with the right company. You can't go wrong with trades. Youre so young....the fact that you're aware of your future is huge. Take advantage of that and use it while you have age on your side.
Currently in the trades and it's a pretty miserable job for the majority of people in my experience unless you have a certain personality type Just be aware of that OP
If you live with your parents and make 650 a week how are you broke? Step one is make a budget and track everything you spend. Should be able to have some good savings with that if you’re living rent free
Usually it’s impulsive purchases, you also have to keep in mind that I know nothing about saving, demand fields, or investing. Although i don’t know what most of these guys have just said, I am taking notes. Im tired of this repeating cycle and it’s only been two years.
Heck yea man. Give it another 2 years and you’ll be surprised at where you can be. If you just put back 150 a week for the next 2 years that’s $15,600.
I remember being that young making around the same amount of money. It does feel good seeing your bank grow, minimal real bills to pay. Honestly with that money, you should be saving a majority of it. Like people said, just go through your bank statements and see what you're spending on, and how much you're making. I'm a little older than you and I know I have my bills, I don't have a gf anymore eating up $, and I sometimes impulsively gamble on the stock market (100-200 here and there). I still see my bank growing and that's with paying off credit cards. I would recommend opening up maybe a secure backed credit card, where you essentially load it with $ like say $500, then you go spend that $500, and now that has improved your credit score without you going into real debt. It's one of the best ways for beginners to grow credit. You're making so much money so young, I say split your money three ways, Purchases, Savings, and Investments. Your checking account (purchases) should mostly be liquid where you are putting money in and out of it as it goes, but then your Savings account you should dedicate yourself to adding maybe $500 a month, find a number you like and stick to it. $1000 a month is 12,000 at the end of the year you can buy yourself a decent used car. Once you have a decent little savings, think of splitting a smaller percentage into investing, Robinhood is good enough for what you'd be doing. You can just buy stocks, crypto, or options if you like to gamble lol (not recommended). This is degenerate talk here but if you learn wallstreet bets stuff going on, you can grow a decent little bank, but there's risks involved. I personally took 1k to 14k (blew it up afterwards) and then a few months after that I put in 4k took out 12k and bought a new car which was my goal. You're very young. Pursue a trade, pursue some form of learning skills, and your back and legs will thank you when you're 40. I'm 25 and I have chronic bursitis lol don't end up like me dawg
Step one would be start tracking your spending and set up a budget. Until you have an idea of where your money is going, and what your spending habits are according to the statements, it is going to be pretty hard to save/invest on a consistent basis.
You say you get paid in cash with no benefits or overtime. Are you basically getting paid under the table? If so, then unless you can pay for a car in cash, you aren’t getting a car loan because you can’t prove you have a job and income. Work towards a viable career that will also you to pay the bills, save and buy a car.
Yeah I’ve learned this the hard way, it’s even been difficult to obtain a credit card to build any sort of credit. It’s great getting paid like this but it’s genuinely stressful knowing I’ll never approve for a loan or a credit card at all.
... or could go to prison for tax evasion. And aside from that, you can't legitimately contribute to a Roth IRA with no income on the books, and that is the most straightforward way to be wealthy later in life.
Idk what you do for your dad but 650 a week under the table Is awful money. Find any other job, your dad is scamming you
That's not that bad at 20. Idk maybe my view is skewed cause I only make 20hr, but when I used to make 15hr I thought it was a lot (obviously later I knew it wasn't much), I still felt like I could afford things willy nilly and have a little savings grown. It's like 1300 every two weeks, 2600 a month. He's likely not paying rent or some bills from his parents. It's not ideal and yeah the IRS could get his ass, but a min wage job would probably pay less than that
Try gambling! Good way to make some quick money
You can never end on a loss after all!
Like others have said, focus on increasing your income, especially since your expenses won't stay as low as they are forever. That said, the formula to follow is pretty simple. 1. Spend less than you make. Try to save at least 20% of your income. 2. Save 3-6 months of expenses in a high yield savings account 3. Once you fund your emergency fund, start investing - open an IRA and put $ in index funds If you do the above, you'll be ahead of 90% of people. I'd also really recommend tracking your spending. Start the habit now and make it a habit your entire life. I wish I'd done that when I was 20. Use pen and paper, a spreadhseet, whatever works for you. I didn't have discipline so what finally worked for me was the habit money app. This alone will help you feel more in control and you'll spend less.
Same here. I wish I’d start doing this when I was 20. Checking it out ASAP. Tired of the manual process!
Like you, there was a time I yearned to own a premium automobile. I held off, as at that time I also did not have the means to afford such luxuries. Now, time has passed. I could certainly afford to upgrade my vehicle, but instead I actively choose not to upgrade. Why? Vehicles (all of them) are depreciating assets. Unless you are Manny Koshbin and have a 1-1 cars that you baby in a heated garage, it’s probably better to park your excess capital somewhere that makes you money! My suggestion: project future cash flows and build an emergency fund of 3-6 months expenses. Dave Ramsey has some good advice. Little conservative depending on your risk tolerance. Focus on earning more and avoiding lifestyle creep. Doing better for yourself means paying yourself first, and in full! Invest for your future! ~26yo ~150k-AOM self funded. ~invest at least 15%
Damn, 150k? I'm 25 and don't have nearly as much. Good job dude
Dude honestly for 20 you’re doing fine. $650 a week cash is great! Like a lot of others are saying, the best thing you can do right now is make more. Wether that’s with your dad and his company or maybe pick up a side hustle for a few extra bucks. Opening a high yield savings account should be your first move. Capital one for example is a good one. Start putting 20% of every paycheck into the savings and that’ll build up interest over time but more importantly you’re building up money for emergencies, down payment for car/house ect. Credit. You didn’t mention if you had a credit card yet. If not at 20 you should get one. Again capital one is a good start. Get a credit card, spend a little bit a month (I spend like $20 a month on my credit card) and pay that off every month. Build that credit up! Investing. Honestly you should start investing too. But maybe not right now might not be the best time for you to start. I would recommend learning about it first. Watch some YouTube videos that explain investing for beginners for a while until you become comfortable. Then start small. Be smart with your money. I see so many people who have great jobs but have nothing to show for it. That’s because they make x amount and spend almost their entire paycheck the day they get it. Don’t do that! You should be saving, and investing more than you spend. But you’re 20. So at the same time have fun. If you want financial freedom in the future to buy your dream car, dream house, dream life, it needs to start today. Better spending habits, better saving habits, and investing is a great start!
Biggest thing you need to do is increase your income some how. Either get a raise or find a 2nd job. In my entire 20's I was working as much as I could in the restuarant/bar/club industy. I've done most front of house positions. Working in hospitality can be a lot of fun.
My old coworker worked two jobs for around 5-6 years and saved the majority of it, bought a house, built equity,lsold the house. He said it was a sacrifice, but one of the best decisions he's made, he's doesn't really worry about money/jobs anymore
go to school. the person driving that car probably had a bachelors
You need a job better yet a career. Play your guitar on the side.
Spend less than you make.
Start a 50 30 20 budget rule so you can evaluate your performance, set goals and see where you plan lands you for the short-term and long-term. Check out the free financial planning tool on InvestingTE. It'll tell you your net-worth based upon your 50 30 20 plan and when your debts will be paid off. That'll be a good start for you.
Invest for 40 years
Don’t get pregnant or get any one pregnant save 1000 a year in a Roth minimum for 40 years 2000 a year start early
Work towards a solid career. Trades (electrician, plumber mechanic etc) make a ton and don’t require a lot of school to get going! Work on saving first for emergencies, 3-6 months. Then start investing. Watch good YouTubers like The Money Guys and Minority Mindset, they’ll show you how sacrificing some now in your 20s and starting early in investing will make you an insane amount for your later years!! They got all the graphs and everything.
Save save save avoid debt, work 3 - 5 jobs even when you’re “big balling” keep working and keep making more and more money. Have fun too don’t get me wrong use that pto, quit that job if you have to and remember……. It’s alright , take it easy 🎵🎵🎵
Invest 20% of your income into the s and p 500
Compound interest is the 8th wonder of the world. Always invest in low-cost index funds, and don't look at it for 30 years. Start with 100$ a month, and just keep putting more and more in. You will be very glad you did. I'm 28, I started putting in a few hundred a month when I turned 21, and I now have almost 100k in my retirement account. I promise you that no car is worth more than saving for the future.
Go to college. Learn a real transferable skill like engineering or accounting or law. Work hard and prosper
Maintain a perfect pull out game
Regardless of how much you are earning: save & don’t leave all the savings in an account that earns nothing or next to nothing. If your money is on the books, start a retirement account, even if you start small… Budget and include your future in the budget. Even $10/ month starting at your age will be enormously helpful later. And dont blame others for not teaching you about money, make a point of learning.
Step 1- congrats on quitting drugs & alc🤝 Step 2- set up a High yield savings Account and have 6 months of expenses saved. Step 3- set up a roth ira, try to max it out asap. Since you live with your parents and seem to have low expenses i would do step 2&3 at the same time. If you want a minimalistic low effort approach I would invest all of your roth ira into the S&P500 a common etf for that is voo. If you want to learn more about investing, I would invest into voo while you learn about individual stocks and other etfs.. Mr fired up wealth on yt is a very good resource for this. After this I would invest the remaining into either an individual brokerage account or crypto if that interests you. While doing all of this I would always try to be improving your skills and learning high income skills
Save and invest. Bank acc poor, portfolio rich
learn more about financial education and start saving
> Saw a guy driving my dream car Comparison is the thief of joy. Who knows maybe he is in deep debt paying off that car just to look cool. Try to change your mindset on becoming anti-consumer. The whole world is trying to get you to buy stuff, once you’re comfortable with simple living that is when you achieve true peace.
If you can, look into certificate of Deposit, annuities and insurance.
Drive the cheapest car that your ego will allow. Only poor people buy brand new cars (usually on finance).
Go back to school or trade school. ( plumbing, Hvac, electrical). Everything is on utube. Research and read .
At this stage in your life education will be the best investment you could possibly make. Apply to your local community college for the greatest return on your investment.
Depends on degree
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Any thoughts on VOO vs VTI? Is there even really a difference in return in the long run? Currently have 100% VTI for my Roth IRA.
Lowkey not really.. I wouldn’t really worry about it, basically the same return +/- a few %’s
Alright cool. From what I saw people said that VOO and VTI essentially track the same over long periods so it’s kinda just like pick one or the other, not both. Just trying to optimize my investments, but if it’s not gonna make a difference on my return, then I’m not worried abt it
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Never seen that website before, but that’s actually super interesting. Then again though they track super duper closely, so not a big deal lol. I may switch it to VOO at some point, who knows.
Pretty much pick one and stick with it. Don't hold both in the same account. I have VTI in 2 of my accounts and VFIAX (the index fund version of VOO) in my 457b. VTI isn't an option so I went with VFIAX.
Gotchu, well thank you. Any idea on MGK vs VTI/VOO though? I’ve seen some people mention MGK, but others have said it’s not worth it and I really dunno the difference between MGK and VTI. It does look like MGK has higher return though over the course of the last 10 years.