Author Topic: Advice for 18 year old  (Read 1667 times)

colinhopkins

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Advice for 18 year old
« on: February 13, 2019, 12:22:15 PM »
I'm 18 years old and I want to set myself up for the future. I've already invested $1400 in ETF's, I'm on track to save 12 months of expenses for when I move out, and I'll be attending a university to study Finance. I'd like to continue to save and invest for the future so that I'll be financially free as soon as possible. My ultimate goal is to have a million dollars in assets by age 30. I need advice on what I can do now and how I can meet my goals. Any life or financial advice would be much appreciated!

LifeHappens

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Re: Advice for 18 year old
« Reply #1 on: February 13, 2019, 02:01:35 PM »
You're starting off in a great place already! There are so many smart people on this forum who will gladly help optimize your finances. I just want to offer one bit of advice I wish someone had told 18 year old me.

Remember to have some fun!

That may sound like the opposite of what you've asked, but if you're anywhere near as intense as I was at 18, you need to hear it. If I could go back in time, I would do my best to get into a little more trouble :)

colinhopkins

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Re: Advice for 18 year old
« Reply #2 on: February 13, 2019, 08:01:39 PM »
I have a full scholarship to any university in Florida thanks to our Florida lottery system. I'm currently working 4-5 nights a week after class and averaging around $15-20 an hour. I'm at a local community college, but I'm looking into moving out of my parents' house and living on my own outside of a university.

mavendrill

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Re: Advice for 18 year old
« Reply #3 on: February 13, 2019, 08:30:22 PM »
for college years:
1)study hard and smart - study good topics that have lots of earnings potential (AND THAT YOU CAN SUCCEED IN - there is no point wasting time on something you won't enjoy and won't be good at)
2) get into the habit of living cheaply.
3) one thing people eager for money in college do that is a mistake, is they focus on money above all else.  Working during school is great.  But make sure to prepare for internships (possibly after sophomore year and DEFINITELY after junior year).  Some of this means looking around and planning and applying early and setting plans on how to get a great internship.  But it also means being financially able to foot the bill of one.  If you got offered an internship at the best firm in the world and it was unpaid, and this firm hires 95% of its interns, you need to always be in the financial position to accept this.  If the point of going to school was just to boost earnings, you can become a hair stylist in ~6 weeks and (depending on area) see a moderate boost to income.  My point is be willing to invest in yourself.
4) don't do drugs, or anything that might get you a criminal record - its expensive and limits job prospects
5) avoid booze,
6)If you are struggling in any of your classes - go to office hours of the faculty.  If you are not struggling in any of your classes, take harder classes (and go pester for permission to get into harder classes if necessary (this is less true at community college than at flagship universities)).  Struggle creates success, especially in the long run.
7) set a budget, and learn to stay on it.  Even if your finances are good, be deliberate with them.
8) talk with your parents about money, your goals for life, and happiness in general.  Talk with your roommates about things that are bothering you, and about things that matter.  Get good at handling conflict (the easiest way to lose lots of money is a medical emergency, but the second easiest way is a divorce or other bad relationship - so start working now on trying to be good at relationships, it will make you happier now, and a LOT happier later).

damyst

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Re: Advice for 18 year old
« Reply #4 on: February 13, 2019, 10:59:07 PM »
There's a great theme going on in these answers, which is:
Investing means more than just stashing away surplus money.
With all due respect to the million dollar goal, you're *also* going to have to build yourself up as a valuable and resilient human being over the next decade or so.

Invest in your skills. These compound much faster in your favor than your brokerage account does.

Invest in your social circle and professional network. It's extremely hard to buy on the open market what those networks will provide to you free of charge.

Invest in experiences. I mean the authentic, affordable ones, not the mass-market "luxury" type. There are many things you can do in your twenties that are far less feasible later. Some of these things are destructive. Avoid those, for the most part.

If you find a partner and are considering settling down: that person either becomes your biggest asset, or your largest liability. Insist on someone who lifts you up rather than dragging you down. Don't dare compromise on this point.

Invest in your health and fitness. It's much easier to make money in your thirties and forties than it is to bounce back from poor health.

Keep your eyes and mind open, and always be learning. It's quite possible you'll find that the things that make you happy have nothing to do with money in the bank.

All this may sound like generic old-timer life advice, but you can actually map each element here back to dollars and cents pretty easily.

If this seems like a tall order, well, welcome to adulting :-) Your twenties in particular are a time for "yes-and-yes", not a time for "either-or".

kei te pai

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Re: Advice for 18 year old
« Reply #5 on: February 13, 2019, 11:12:22 PM »
Do not make babies with someone you do not want to spend the next 20 yrs + involved with.

Freedomin5

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Re: Advice for 18 year old
« Reply #6 on: February 14, 2019, 01:33:38 AM »
In addition to the good advice you’ve already received, I’ll add:

Make it a habit to save a percentage of what you earn, even if you are earning very little. If you’re making $15-$20 per hour, save 10% and live off the rest. As you continue to make more, increase the percentage you are saving. I saved 10% when I was making $500/month, then 25% when I was making $2000/month. My savings percentage has continued to go up from there.

Work part time during the year and definite work during the summers. Ideally, get a paid internship in your field, but if not, then get a summer job. You can learn a lot of soft skills (perseverance, working through conflict, responsibility, etc.) through even a menial, hard labor summer job.

Stay humble. Be willing to do the tasks that others feel are beneath them. Be willing to learn. Accept that others are probably more knowledgeable and experienced than you are.