Money advice for a 19 year old

[Trapperkid]

Hey everyone I’ve been on this forum for probably a year now maybe and I’ve seen that at least some of you guys are going on really cool hunts and building these insane rifles with 2-5 k scopes. So clearly you guys know what your doing when it comes to saving money and planning for the future. So I’d like to ask for your money advice for a 19 year old kid. I have a few stocks and cryptos like 150 dollars worth. And I do plan on starting a Roth IRA this year. And I’m also planning on getting a little better paying job. 12$ an hour currently. I don’t have a truck yet which is what I’m saving for currently. Thanks for any advice.

 

[TL406]

Don’t assume that because someone has a $5k scope that their finances are in order, often it is quite the opposite…

People have mixed opinions about Dave Ramsey but for young guys, it’s a good place to start for financial advice.

 

[conley417]

Have you considered marrying a girl with generational wealth?

 

[william schmaltz]

Remember that comparison is the thief of joy and the Jones' are broke. It's all about priorities. I got buddies with fancy rifles, new pickups, and big houses that couldn't save a few grand over a year to come do a bargain hunt. I do a couple fly out hunts a year with a scope/rifle combo that's probably $750 and I'm wearing bargain but quality clothing.

Message me your address. I'll send a copy of Dave Ramsey's Total Money Makeover. If someone gave me that book 15 years ago when I was your age, I would have my slam by now. It will set a good foundation. The way he suggests investing is worth a discussion and not exactly what I follow. But again, the meat and potatoes is solid.

And the job market is hot. Go find some manual labor and pump up that salary!

 

[Trapperkid]

Have you considered marrying a girl with generational wealth?

Well my girlfriends mom is an accountant but she likes to spend her money building a new house every two years lol

 

[svivian]

Are you going to school for a trade or a degree? If so try to work part time while you are in school. If you are looking to load up on some gear early I would try working at a place like sportsman's warehouse. Once you have a career going try to find a place that offers a 401k with a match and contribute at least enough to match if not 10% or more. Don't get caught up on what toys everyone else has, they probably have a nice payment to go with it. Save save save but set aside some each month to do the things you enjoy or youll get burned out in the long run.

 

[publichunter1]

First lesson is just because you see people doing big hunts and building big guns does not mean they are good savers. It is typically the opposite, not always but a lot of the time.

Emergency Fund of at least $1000 and preferably 3- 6 months of expenses will save you a lot of stress and worry. Make a Budget.

Roth IRAs are great for retirement and just general mutual funds that track the markets are great especially early on. You can do these through Vanguard, Fidelity, etc and not pay someone to do them for you. The early you start this the better as Einstein said compound interest is the eighth wonder of the world.

It's easy math to see increasing your income increases your savings ability. But your savings and spending habits are the most important. I try to save 20-25% for retirement which is harder early on so you work up to it if you can.

Then set a goal for whatever else you are saving for with a timeline of when you want it. That will give you a realization of how much you have to save per check to get it in that time frame.

My general rules of thumb are housing expenses should not exceed 25% of annual income, you shouldn't have more than 50% of a years salary worth of motorized vehicles/toys, car payment shouldn't be more than 8% of income with a 20% down payment and a 3 year max loan. These are compiled from different people but are good rules. Getting harder to maintain but still math doesn't lie.

Whatever is left after all of those things are what you live off of. Everyone has different percentages but those are what work for me. Remember in the end these are just rules of thumb and you won't go to jail for breaking them. Your older self will thank you one day though. Good luck and remember to have fun.

 

[Still Hunter]

Buy Land! They are not making anymore.

 

[Ross]

As above noted perception may not be reality…….make a budget first and foremost…..see where money goes every penny month and contribute what you can after bills paid to two pots….pot 1 yourself for purchases you want and pot2 retirement pot you don’t touch…..second plan for things like unexpected expenses have emergency pot of money, three stay within your budget, four stay within your budget, five choose wisely on your partner, six go hunting…..keep things simple and don’t overthink it….lots of resources but is pretty straight forward common sense stuff

 

[BigDog00]

You're young and thinking ahead which is far beyond most people. Look up Dave Ramsey for general budgeting and a solid financial approach. Find a job that you ENJOY and can make good money, sounds like you're working on that. DO NOT try to keep up with the Jone's (i.e Roksliders). And don't spend money you don't have (stay away from debt). The roth is a great option, max it out every year for the rest of your working life. Look up Boglehead's guide to investing.

If all that fails, refer to conley417's advice.

Have you considered marrying a girl with generational wealth?

 

[wind gypsy]

Being able to afford nice toys is cool but it doesn't create happiness beyond a couple early endorphin dumps. Those nice things are more likely to reduce quality of life than improve it if the purchaser doesn't otherwise have their financial shit together. I've been on both sides of that equation.

You've been given good advice thus far. Dave Ramsey and the "rich dad, poor dad" books are good ways to at least get your financial mindset right.

The best thing you can do at your age is invest in your earning potential. Whether that is picking the right college major or learning the right trade. You should always keep a mindset of curiosity to learn more. Don't just become good at a trade, learn what goes into managing the projects, what makes them profitable, safe, builds a positive reputation.

 

[wyodan]

Start your retirement account now. Don't wait 25 years past your age like I did.

 

[ewade07]

As stated previously, just because someone has a 5k built gun doesn't necessarily mean they have the money for it. Lots of people out there in debt up to their eyeballs but never show it. You're young and poor. At your stage in life that's expected. My advice is to learn to live poor. Don't live outside your means. You don't need to waste money having the greatest and best of anything. Buy cheap and buy used. Down the road you will make more money but continue to live like you are poor. Don't get swept up into the "living like the jones" mentality. As far as the truck, honestly you don't need it. Gas is expensive and pretty much any truck you're looking at is going to guzzle gas. Look into something that will get good gas mileage and get you around to your hunting spots, like a Subaru or something. Start a budget. When I was in college I hunted out of a Subaru forester and lived off of cabbage, onions, rice and elk meat. It wasn't glorious (well, for me it was) but I had money to actually go out and do things I liked to do.

 

[drot]

As mentioned, Dave Ramsey is a good place to start. Live well within your means and realize it takes quite a bit of time to get in a good financial position. It is about making the wise choice over and over for many years.

 

[southLA]

Find a way to make more money. Save half of your net income. Go from there.

 

[CorbLand]

Boring and consistency pays.

Save a 3 month emergency fund. Your young enough, you shouldn't need much more than that. Then start the things below and work less aggressively towards a 6 month.

Get that Roth started and put as much as possible into each and every year. Invest it in boring index funds and retire a millionaire at 55 or a multi millionaire at 65.

Get yourself some form of higher education. Go to a four year college or learn a trade. Make yourself marketable and learn things people are willing to pay for. I am not going to pay someone to teach my kid lesbian dance theory but I would pay someone to tile my bathroom.

Live in the cheapest, livable place that you can until you can afford to buy a house. Buy a house as soon as you can, do not wait to time the market. Time in the market beats timing the market 90% of the time. A lesson I am learning the hard way.

Buy vehicles that you can afford double monthly payments and make them. Pay your vehicle off as quickly as possible. Don't always buy the cheapest thing because there is something to be said for reliability. Look at long term maintenance on what you are buying. Also, do you really need a pickup or would a smaller SUV/Crossover work? Yea, it may not be as cool but being able to afford to drive places is pretty nice.

Take some ******* risk. Start your own business, get some rental properties, invest, it doesn't matter but take some risk. Decide what you want and make it happen. I have an uncle that gave up 12 years of his life to build a very financially successful business. I have a brother that runs his own business and has just enough clients to make a living and work a 9-5. Neither are wrong. You determine what you view as successful for yourself.

Marry a good girl, or dude, that is willing to stand by you through thick and thin, pick you up when you are down, defend you to the end and tell you when you wrong. Trust them, love them and watch everything else fall into place.

Don't forget to have a little fun along the way and you can always make more money.

PM me your address and I will send you a couple books. All I ask is that you read them and pass them along when someone else can use them.

 

[Kilboars]

Make your State of Mind that you will be financially independent at age 30-40-50? Then get after it. It’s a fantastic feeling because you’re also able to easily help so many others in your life.

Keep talking to the right people. Stay away from Dream Stealer’s and always be into a good book to help you on through your journey.

The Millionaire Next Door: Stanley, Thomas J., Danko, William D.: 9780671015206: Amazon.com: Books

The Millionaire Next Door [Stanley, Thomas J., Danko, William D.] on Amazon.com. *FREE* shipping on qualifying offers. The Millionaire Next Door

www.amazon.com

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[dirtytough]

Check out Bogleheads. It’s the best financial forum I’ve come across.

Get a better job. $12 an hour isn’t that great in this market. Or go to school and get a degree that will actually help.

 

[Marble]

Hey everyone I’ve been on this forum for probably a year now maybe and I’ve seen that at least some of you guys are going on really cool hunts and building these insane rifles with 2-5 k scopes. So clearly you guys know what your doing when it comes to saving money and planning for the future. So I’d like to ask for your money advice for a 19 year old kid. I have a few stocks and cryptos like 150 dollars worth. And I do plan on starting a Roth IRA this year. And I’m also planning on getting a little better paying job. 12$ an hour currently. I don’t have a truck yet which is what I’m saving for currently. Thanks for any advice.

The best thing you can spend your money on at 19 is investing in yourself. Whether it's school, a trade or things you need to build your career.

Save money, avoid debt and be intentional with your money.

The biggest mistakes I see young people commit is to not get educated or vested into a career, and accumulating debt.

Be your own hero at 29, imagine what you want to be at that age for work, in life and as a man and make a plan to be there.


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[jimh406]

Although there are plenty of Dave Ramsey believers, I'm not one of them. I think he spends so much time on the wrong problems. Focus on making money and a career while young. Learn how to invest. It's as important as saving and more important than being debt free because you absolutely can make more in investments than you can by being debt free.

Developing a career means a lot of luck and more focus on work up to the point of being a workaholic at least while you are developing a career. Do a good job, but don't stay working at a company that doesn't give you big raises when there are other options out there. Almost no companies value loyalty or experience. Don't burn bridges with the previous employer ... just find the better opportunity. There are plenty of companies that will watch you leave and then hire you back years later after you worked at a different company.

If you live where there are few opportunities of developing a career, move!

As the saying goes, it's just as easy to learn to love a well off person as a poor person. Btw, that means that person also needs to have focus the same as you. There are plenty of people who have good jobs who spend more than they make. That's ok if you never want to retire.

There isn't a right answer ... only choices.