Letter to a Young Investor

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Don't buy what you don't need. You have everything and you don't need a million things to wear all at once. Who are you trying to impress? Random people at how much you are in debt? Not so great.
Live like no one does today (be fugil and cheap) so that you can live like no one else does tomorrow (so you can be a millionaire 2moro when everyone else is in debt)

Danielle of TX 10:53AM December 30, 2011

This is a great article. After I was laid from two companies in one year after they shut down and moved to Mexico, I was able to live on my savings for 6 months until I found employment. I usually put aside 20% each month into my emergency savings.
I like www.elliekay.com as she provides a lot of great advice and plenty of downloads. One in particular that i like is the really fancy MS Excel worksheet that makes it so easy to track every dollar that I spend. I've been able to put away significant savings due to the discipline this free tool provides.
Also, I'd recommend a few savings accounts. For example, I have an account just to save for my real estate and car taxes, another for my future car purchase, and if I have any left over after my monthly spending and savings, I put the rest into my "Fun Bucket". Right now, I have enough to take a really nice vacation.
Okay, thanks for reading.
D. Robinson
www.careercougar.com
careercougar.wordpress.com

Daphne Robinson of CT 7:00PM June 25, 2009

...long term saving & investing by young people MUST consider "INFLATION" (loss of purchasing power in saved $$$).
It is rarely even mentioned by vanilla financial planners.
Now with the Federal Reserve creating Trillions of $$$ from thin air for financial bailouts ... you can be certain inflation will soon be severe and lasting.

Doug of NY 6:15PM June 20, 2009

Super advice, mostly!
Sam X Renick
Author, Founder, CEO, Social Entrepreneur
The It's a Habit! Company, Inc.
Award Winning Financial Education Products & Programs Since 2001
www.itsahabit.com
www.sammyrabbitblog.com
http://twitter.com/sammysays

sam x renick of CA 4:11PM June 19, 2009

I'd add this: The age of "buy and hold" with stocks is pretty much over, kinda like the age of working a whole career for one company is pretty much over.
Like it or not, the investment world is inhabited by very, very sophisticated traders who constantly practice "sector rotation" to shake ordinary people in and out.
You must not "avoid" investing. But, increasingly, a good result may require more of your time and thought than used to be the case.

Muser of NM 1:53PM June 19, 2009

First, I would concentrate on getting a good education in something you enjoy doing that will provide you with good income with potential [for growth].
While I don't disagree with the education part (or finding something you enjoy doing), the income part is what I disagree with. We all have a different idea of what a "good" income is. My mother maxed our her earnings potential in her district. Unless she gets a new job in a different district (throwing away her YEARS of seniority), she will never make more than 50K. I have friends who make that much, if not a little more. However, the tradeoff is while my mom's salary may be considered low by some, her benefits more than make up for it. She rarely pays more than 15 dollars for a prescription. My sister was in the hospital for a few days in 2004 and mom didn't owe a dime.
Quite honestly, if living in a condo instead of a house means we get awesome healthcare, it's a trade off I'm willing to make.

Veronica of NH 9:56AM June 19, 2009