Do You Have Financial Advice?

Mark D asked:

What is your best financial advice to pass along to those of us just starting out?

Cover your costs.

No, seriously.

Cover. Your. Costs. When you’re just starting out, make sure you have enough in the bank to get you through the first few months. Think of things like office supplies, payroll, taxes, personal living expenses and on and on and on.

You also need to be sure you pay your bills on time. Vendors won’t work with you anymore if you aren’t paying them in a timely fashion. Never rob Peter to pay Paul. Dinner out can wait. That new pair of shoes can wait – even if you’re barefoot. Pay the invoices when they’re due or you’re going to be sunk before you get started.

What about all of you? What’s your best financial advice for those just starting out?

What's Your Best Financial Advice?

2 thoughts on “Do You Have Financial Advice?”

  1. Yeah, automatic monthly deductions from your paychecks to an Index Fund as soon as you can afford $100/month. Your goal is to get those payments up to $3000/year, anything above that is CREAM! The SOONER in life you do this, the better because of the extra impact of compounding (where you’ve set up your contributions so that any interest or profit is automatically reinvested as well into the same Index Fund account). I also advise not touching it til you are 60 & you SHOULD be a millionaire by then! Even better to put $100/month for your kids & spouse, this will greatly help them buy a house. The other advice I have is buying whole life insurance where your contribution provides both for term life insurance as well as an INVESTMENT w/a LOCKED IN % on the return (my rate is 5% which is currently very high, but wasn’t at the time).

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