What's a great way to manage money?

grasshopper_69 · 2016-05-22T03:00:13+00:00

Spend less than you make.

Put money away.

Don't use credit.

Don't buy girls anything. You will get nothing in return.

Simple.

spikemike625 · 2016-05-22T05:02:09+00:00

Once you get your first paycheck whip out the calculator. Whatever you made subtract 50. Okay, now take what you have left over and divide by 2. That's how much you can spend every week. Want to get even more aware? Divide by 7. Now you have an idea of how much you can spend each day.

VasiliyZaitzev · 2016-05-22T06:00:11+00:00

Save the first 10% that hits your hand, MINIMUM. You're used to being broke so you won't miss it.

If you wind up someplace that offers any kind of bennies like a 401K or employee stock purchase plans, take advantage. Count it as "savings" if you must. Some retail places, like Starbucks, offer this sort of thing to employees, even entry level.

Also, once you start working, officially, you can have you're own IRA, which at you're income level will be tax deductible (if that matters) and you can put in $5500, subject to how much money you make, so if you make $4K you can put $4K in (the rules may have changed, but that's how I remember it.)

This is important because if Guy A puts in the max contribution from 20 to 30 (10 years) and never puts in another dime, and Guy B puts in the max contribution from 30 to 65 (35 years), guess who winds up with more $$ at 65, assuming the same rate of return? Guy A.

Run far, far away from anyone who tries to sell you whole life (or even term life, at your age), or annuities.

Run even FARTHER away (and faster!) from consumer debt. If you do decide to get a credit card, which they won't give you until you're 18, minimum, only ever use it if you're going to pay off the balance IN FULL, every month, NO EXCEPTIONS. Those "interest free" deals are based on the banks counting on you fucking up and paying a shitload of interest later. And only carry a no-fee card, and one that gives you something in return, i.e. cash back, in your case. The only reason I would even suggest this is that it's way better to pay in 98 cent dollars, 30-60 days from now, rather than 100 cent dollars, now. If you are one of those guys who can't control his spending, do not get a credit card. If you are, then great. Having good credit will benefit you in the future.

A word about 12 months, same-as-cash financing, which you may run into as you get older and star acquiring stuff. There was a point where I would take advantage of those. How? I'd take the total balance and divide it by ten and pay it off in ten months. Why? Because if you read the fine print, if you miss a payment or if you go over the 12 months you are Well and Truly Fucked. First, the rate jumps to a zillion % and second, you can look forward to paying all the interest that you didn't pay during the 12 month grace period. One again, not a bad deal, but ONLY if you have discipline.

TheRedStoic · 2016-05-22T12:22:26+00:00

Spend less than you make.

Budget everything, even found money and time.

Time has its own value in every equation.

Understand opportunity cost.

Know very clearly, your goals.

Take incredible pleasure in saying no.

Reconcile your accounts every month when the statement comes in. Nothing makes you see the stupid expenses like counting receipts.

All charity must be selfish.

Title	What's a great way to manage money?
Author	UniversalFapture
Upvotes	6
Comments	14
Date	May 22, 2016 2:43 AM UTC (10 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/4kgsda/whats_a_great_way_to_manage_money/
Archive Link	https://theredarchive.com/r/askTRP/whats-a-great-way-to-manage-money.105792 https://theredarchive.com/post/105792

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