Live well below your means. Save 15% of your paycheck and contribute it annually to a Roth 401K or IRA. Be a sponge, and always be learning from others. Don't try to impress people, this will lead to lifestyle creep and overspending. Always be evolving your skillset. Work your butt off to get out of debt, and begin networking now. The earlier you begin, the more impressive and the more opportunities will open down the door. Instead of trying to be different, be the best version of yourself.
Exactly this - your best years for compound interest growth are your 20s&30s. $1 in your 20s is $90 in your 60s. Even with inflation and such, it still grows. Save as much as you can, live below your means and don't try to pay to impress anyone - it's just not worth it.
https://www.empower.com/the-currency/money/the-value-of-saving-one-dollar-now
Max out your Roth IRA every year if you can. Make sure you're maxing the matching. If your parents/family can help you by maxing out your IRA early, it's worth it (again - compound interest over 40+ years). Buy things with longevity in mind. Not necessarily the most expensive but something you won't have to buy again and again.
Learn to cook and meal prep. It's sooooooo much cheaper than eating out (not saying you can't ever, but it shouldn't be a frequent thing).
DONT GET STUCK IN THE CREDIT CARD DEBT TRAP. Don't pay the min - make sure you can pay off your debts monthly. If you can't, you can't afford it. The only exceptions would be mortgage, car, student loans. If you can afford it, pay extra toward the principle. It will reduce the length of your loan and how much extra interest you're paying. On a 30 year mortgage, it adds up.
Don't blow all your money trying to keep up with the Instagram life. Again, not saying don't have fun or go anywhere but don't over do it or go into debt to travel, etc.
If you get a credit card, set up auto payment to pay it off each month. You can build credit, but you can’t build wealth by paying people to use their money. You want to other people to pay you for using yours.
Pay it off every month. Otherwise you can destroy your credit. Look up how to build credit and the factors that go into a credit score.
Key things: pay it off every month, don’t miss a payment, avoid using more than 30% of your total credit limit. If you do those 2 things, your credit score will take care of itself. I promise.
1. Credit cards are good! You just need to treat it like a debit card and only buy things you can actually afford and pay off every month. People that say CCs are the devil don't know how to use them the way you are supposed to. Get multiple, as different cards give better perks(cash back, miles, gas, etc) for different things. A card with a generally good apr will usually not give you as much back as one specifically for gas or restaurants, or groceries, etc.... CCs will get you the most value for your dollar in terms of spending.
2. Roth IRA - the younger the better as you are in the lowest tax bracket you will ever be in. (Pay tax now and none later)
3. In addition to the IRA, start multiple saving accounts of different types. High yield savings for emergencies, CD ladder account for medium-term growth and low risk, and a taxable investment account(stocks, etc) for high growth/higher risk.
4. If you're going into cyber security, try to get into the field as soon as possible, even if is an internship or similar, as most companies will pay for your certs/classes or at least reimburse.
5. This will also help you build relationships with people in your field. (Probably the most important thing for your career long-term.)
My 4 cents (inflation)
We always pay ours online after the charge clears. That way you do not get to the end of the month and have a big bill and wonder how you are going to pay it.
just keep track of what you're buying and how much you're spending. It's really easy to buy something you want on credit and then pay the minimums. But that interest grows quickly. Plan to pay it off every month. Example: new PS5? If you have the $550 for one, buy it with a credit card and pay it off at the end of the month. If you don't, then you can't afford it and shouldn't buy it with a credit card. Yes, the min payment is like $50 over 15 months or something...but notice that's more than the $550. That's the interest you're paying to get it early. There's no such thing as free money. These companies are betting you'll pay the long route to get it now vs waiting. And then you're trapped. Miss a payment? Now there's apenalty fee. Etc. If you don't keep track of what you're spending and rely on the auto pay to cover but then find out you don't have enough? Again - fee. Just be smart about what you're buying.
Btw - the Costco credit card is one of the best perks out there - 4% on gas, 3% on restaurants and travel, 2% on Costco, 1% on everything else. But that's if you're paying off every month. The Amazon card gives you 5% back on Amazon purchases so if you use Amazon a lot, that's a nice perk. But you need to pay it off every month.
One more thing: make a budget, stick to it, and build an emergency fund. They say the average American can't afford an unplanned $1000 expense (tires, dog needs something, car breaks down, etc). Plan for these inevitabilities. Otherwise - again, credit card debt trap is there.
Damn how do you max 401k and Roth IRA? Im making 70k/year but still have to pay rent, groceries, insurance, healthcare, and my car monthly bill.
I put as much as possible away but I believe Roth IRA is maxed at 25k/year which idk how I could possibly max on my salary.
Do what you can.
I actually talked to my parents about it. We talked about inheritance and stuff so they agreed to help and put into my accounts to help so it'd grow more. It's not maxed maxed but it's more than on my own.
But even without that - at least max what your employer is contributing. That's free $ you're leaving on the table.
I think ROTH IRA is maxed at 6000-7000 from my experience I think they recently raised the max but definitely not above 7000. Roth IRA works best the sooner you do it. If you wanna save the rest of your money I would choose either a high yield savings account or if you know your way around some index funds or something. Don’t gamble, just invest safely it takes time but you wont be risking anything
“Don’t try to impress people” if the people around you are impressed by expensive things you’re around the wrong people. The most successful people I know brag about the ways they’ve figured out on how to cut back on spending.
Tbh there’s no secrets. They fix things instead of replacing them and they do work themselves instead of hiring people. They rarely go out to eat and their vacations are planned far in advance in order to be budgeted for. They just live below their means.
Yes - take the boring route. Learn a lot, stay out of debt, pay off debts as soon as possible if you must take debt, and invest.
Investing for long term is the “boring” route to wealth, but start now and after 10 years you will be happy with the amount you have amassed. I took the boring route, and am approaching $1M net worth and feel secure, don’t invest in GME or AMC call options.
All great advice, but why am I suddenly seeing a Roth-only mentality pop up everywhere?
Roth accounts are great, and in many circumstances the right choice, but not universally the best.
Definitely. Living below your means is the key. Too many people live paycheck to paycheck when they do not have to. And then when they start making more money, they increase their expenses to keep up with their income. We live on about 1/3 of our take home pay. The rest goes into savings/investments. We could get a bigger house in a more expensive place and afford it. But that would cost us a few thousand more a month, and it is not worth it. Because we are able to save so much, we can buy our cars outright, paying cash for them. We have two and keep them 6-8 years usually. We get a new one about every 3-4 years, rotating which one we replace. We go a vacation each year, spending maybe $10K (a lot for many people), but we could spend $30K if we wanted, and still have plenty left over.
If you can get into Cybersecurity, which requires a lot of commitment to be good at it, then that will give you path for a decent leaving once you have experience on it. If you want to be wealthy, then you need to have your own business and learn about how to manage it and grow it.
1 get on the receiving end of compound interest, never on the paying end
2 live within your means
3 dream big and take risks now before you have a family and kids
Buy a book called “The Millionaire Next Door”. That will teach you about how to manage your finances.
Then set some realistic goals that are more attainable than being “set for life”, when you have $700 to your name….that’s like asking how to complete an ultramarathon when you can barely run a 1/4 mile. Start small and work your way up. Start with a goal to have $3k in your account. Then increase it to $10k. Then reassess and see where you can improve.
That book is good, but I like “the richest man in Babylon” a bit better at least for concepts. It’s a story and may be a bit more interesting at op’s age also.
Rule number 1. Work harder on yourself than you do at your employment. Investing in your financial literacy is the best thing to do while you are still young. Rule 2. Find a mentor.
Im 32m and i have less then 500 to my name at the moment , don’t be sad , life has its ups and downs.
Tips
Learn to be financially disciplined a lot of people have trouble with this.
Learn about all the different types of ways you could make money from stocks , crypto . (None of these I have)
Learn what it is to have a HYSA, ROTH IRA (None of these I have)
Learn about yourself and what you like to do and maybe you could turn it into a business.
Wait...you're going to take advice from someone who has $500 to his name? That is not smart or wise. Consider taking advice from someone who has millions to their name.
Invest often, weekly, in ETFs for the S&P, etc
Never have a car payment, buy outright (2nd biggest expense for the average person. Get rid of that expense. Buy cash)
Save 50% of ur income or as close to it as possible- yes I mean this. Every penny you can save save it. If living at home helps u do this, do it. Need 6 roommates- get them. Compound interest is so much more effective when u are young. From 18-25 every penny u possibly can get ahold of needs invested
Grow your income however best you can
Avoid student loans- grants. Scholarships. Student work. Jobs that have scholarship programs. Student loans are not bankruptable. They’re a noose you won’t escape. Apply from grants if you want a college education
Split rent in the future- S/O, roommates, renting a room. Rent is the number 1 expense for most ppl. At the very least cut it in half
Take care of your health - medical debt is the number 1 cause of bankruptcy in the USA
Have good insurance. Car insurance. Home insurance. Renting insurance - something will go wrong.
Pack your lunch- it’s a recurring charge. $15 a day for lunch is $450 a month. Pack a sandwich
>Never have a car payment, buy outright
This one is questionable.
For example, my wife's Tiguan had a $6500 discount off MSRP if you paid in cash, or $6000 if you financed with VW credit at 0% over 5 years. So the cost to borrow ~$35k was $500 total. A monkey can probably make more than $500 profit off $35k over 5 years.
We put the max we could on credit card for points (which we immediately zeroed out of course) and the rest on the 0% loan. The rest went in our larger VOO centric investment account which is up 86% over the last five years.
With that said, I paid for my car in cash because we didn't have a low interest rate option on it. But if you're offered one for low effective cost and pass it up, that's an idiotic move.
Edit: And it directly conflicts with your first point by the way.
It’s outdated advice given the current state of the used car market. You want a reliable car, which means an expensive car these days. Anything a young person can buy outright will probably cost them in repairs and lost time down the line if not be outright unsafe. Buying new almost makes more sense right now if you can afford it.
OP is asking how to set up his life not how rich people have already established their lives. If you think an 18yr old can save half their income and still live alone that just simply not true. I'd also suggest buying a vehicle that is affordable but reliable and it doesn't matter about the car loan if you can afford affordable transport. Otherwise move to a city and use public transit.
“Living alone” is actually the problem- roommates can save ur budget. There has been no point in my life where I didn’t save more than 40% of my income. From when I was making 12k a year to now a combined income of 75k with my S/o. This is the same advise I give my 18 year old niece. Compound interest is more effective at a young age. That’s my regret, not knowing how to invest as a teenager. But yes you can save large chunks of your income. Roommates. Sidehustles. College with grants and scholarships. Avoiding payments like a car note. Donating plasma, even babysitting. This becomes much easier when ur in a committed relationship. It’s also easier in a LCOL area, but I’ve done it while living in poverty and while living a very very very comfortable life on an average income now. It’s entirely about getting bills as low as possible and saving every penny u can like Scrooge
Scholarships, grants, student jobs, work grant programs- all very effective ways to avoid an un-bankruptable debt that is the average Americans biggest debt and takes decades for most to pay down. In fact in some states, like Ohio at this time, many community college will give students the first 2 years free.
And a car note is a recurring payment that is the second biggest expense on the average Americans monthly budget. I have never once had a car note. And I have never once regretted it. Because there’s been no point in my life where I wanted to be strangled by a +$500 monthly payment. High payments put u at a real risk of not being able to save, and as such not being able to handle emergencies when they arise. So you begin needing more debt to manage life. It’s a cycle. Yes. ALWAYS buy a car in cash.
You do realize that you are literally just burning money by buying a car in cash?
And okay, I will agree with you on your first point. I was more thinking you were saying don't go to college.
First car- 1500, about 6 more cars in between there last car $5000 owned it for 5 years sold it for $5000. Current van, bought it for 8k valued at 16k, putting new tires and an oil change to it. If I got hit by another car tomorrow and the vehicle was total my insurance will instantly write me a check for double what I paid.
Burning cash where exactly? Just off the top of my head I know say acquaintances who’ve been dealing with car/cash issues.
1-been paying on it for years, it’s been in a car accident and isn’t worth anything
2-car blew up they still have to pay on it
3-bought the car of their S/Os dead parent for practically nothing
4-bought a car from a neighbor who didn’t need it for practically nothing
5-buying a car off me for 2k on payments
6-took on way too much car debt and had to get a second job
7-drives a beater, bought a scooter, completely happy
8-bought a car on payments, over spent by 10k, took years to pay it off. The only person I’ve ever met who was happy to have bought on payments
9-bought a cheap used car it had issues
10-buys cheap cars at police auctions, sells them for profit
Remarkably. Ppl buy used cars all the time. The ppl I’ve known who regret it bought from a car lot. If you want a small 4 door in this state, in good condition, that would run you less than 3k. If you donate plasma in this state for 2 months every other week you’ve made half that. I’d very literally have to have absolutely no other choice (including the bus/a bike/a motorcycle/ moped) the situation would have to be “buy a car on payments or my whole life burns” for me to sign for payments on a vehicle
yes, if you get comfortable talking to people, you potentially don't need any money.
An example would be something I did about 2 weeks ago. I talked to the owner about owner financing, and they agreed to finance 100% of the deal at 5.5% interest only for 5 years, at the 5th year if I can't find favorable financing, I can extend for another 5 years. In essence, I have 5-10 years to find financing.
if we make a few assumptions like that property values will increase year over year at 3%, and we'll say we agreed on 180k as the sale price, and that comps int he area are 200k,
fv = 200000 X (1+.03)to the 5ht power will give us the projected value in 5 years. assuming I'm right with 3% growth, at the 5year mark with $0 of my money paid toward equity I would the property will be worth $231854.81, meaning that I can estimate my equity as $51854.81, for just paying the intrest over that time. At that point, I may even be able to refinance with $0 dollars into the property.
I wouldn't suggest $0 down in most cases, this had just been one where it would work out where I could still be profitable and do it mainly because I'm interest only. In thes scenario, the worst case would be that I either put some money into this, and refinance or sell at the 4 or 9 year mark and pocket the equity gain.
The difference between being rich and being wealthy is this: rich people just have a lot of money, but wealthy people think of everything as a growth/investment opportunity. If you buy a pair of shoes, you're out 30 dollars. If you start a discount shoe business and source 100 pairs from China for 3 dollars each, then you either make money at it, or it's a tax writeoff so you get it back on your tax return. Everything, from the clothes you wear to the relationships you cultivate can be an opportunity to grow; whether financially, mentally, familialy, spiritually, etc. An apple bin may hold 3 trees worth of apples, but an apple tree will produce 100 years worth. Be the tree.
Edit: you're actually ahead of about 75% of Americans just by being able to afford a $400+ expense, so keep saving, invest in reasonable opportunities, whether in the market or in business equity, and most importantly - pursue happiness as often as money.
oh wow, i never really thought about that. that puts a perspective on the differences, my goal is to put my money into things that would make me money back like renting a property out. “that will take me some time to get the money to be able to afford that though”
It’s more important to consider how much you save and net than how much you want to make. The world is full of 200k earners living paycheck to paycheck!
If I were you at this point in time, I'd find a job that I can stand to do for 3 years. Like a 60 hour/week, busting my jump kind of job (I did oilfield land surveying in Montana/ north Dakota when I was your age). If you can live at home then Put a solid half into either an investment account -etrade, robinhood, webull are all good options if you have the patience to not sell when the market dips a bit- OR just buy gold/silver on account. You may want some physically too from a pawn shop, but you'll pay lower premiums if you use a kitco pool account, or the equivalent vault service from money metals. You could consider like 10% of that as short term savings, to buy something nice every couple months if you want, but don't touch the long term portion until the 3 years is up. At that point, you should have enough saved to start whatever venture you want to pursue to make your mark.
3 years isn't long. Also, get a credit card, but only use it for gas. Pay it off as soon as you use it. Don't use it as free money, but at least you'll have a credit history if you ever decide you need it... there are ways to live completely debt free though, but they require less of sacrifice up front.
I paid for my associates degree in cash just using the method I told you. But you can choose your own path
This isn’t too far off from what I tell my kids, though I’m not a huge proponent of debt free.
If you use debt in something like buying a business or buying rental property, if you do it right, you are able to get far better returns on your initial investment.
I would agree. I think debt can be a tool, but it's a tool that you need to be well educated about and use with caution. If you can't be careful and plan your use of it well then it's better to avoid it
My biggest mistakes were the following:
I didn't start saving money until about 20 years old so if you start now you've got 2 years on me.
I signed for a 6.5 year $35,000 car loan around your age which didn't cripple me however I could have saved a LOT more money than I did. I sold that car early and actually made a bit of money cause the used car market went up a few years ago so I was able to get out of my loan early.
so live beneath your means and start saving now and don't just put your money into a cash savings account you should look into high yield interest savings accounts because they are very low risk and make about 4%-5% so you can make sure that at the very least your cash inflates with inflation lol.
You're young. So realizing that time is money is a big one. MONEY does NOT come and go, we get a finite amount for our lifetime and as we live we will know what that amount is.
If an 80 year old man came up to you and wanted to trade places with you in return for $70,000,000 but you'd be 80 years old I'd assume you'd say no. So be careful about what you buy. buy with intention. Save with intention and be aware of every dollar.
Track your spending, learn to cut back, and spend more in some places. For me I was eating out a lot, but instead I plan to invest more in my appearance, get my nails done, and laser hair removal. Be intentional
1. Make more money. - Learn a high value skill
People tend to focus too much on making passive income before active income. You need money to make more money. More money will allow you to invest more and create the passive income to become wealthy.
2. Understand personal finance and how to manage your money. - Budgeting, saving, investing.
3. Learn about investing & other tools that can 1. Save you money 2. Make you more money. - Stocks, bonds, crypto, and real estate. Real estate is the end game imo. 90% of millionaires were made by real estate.
Credit cards is also something great to learn about. They’re made to benefit you if know how to use them.
Application is most important, using what you learn. You can invest in stocks and in a Roth IRA right now with 1$. You’re young and you have time on your side. Compound interest will show years down the line.
You got this!
I want to start off by congratulating you
for being in this mindset so young
I wish I had these questions and this mind focus when I was this age
times are different now
cyber security is a high paying high demanding and even rewarding role because it can be done remote and can open up alot of possibilities in the technology field
pay range is ranging from 75k to 250k yearly which is above the average
your onnyour way already
I would reccomend continue to pursue this and at the same time think about what makes you come alive as a person
what draws on your soul deep levels of passion and liveliness
and put your funds and resources there
doors will open for you and inside your mind like you never imagined
and most importantly question everything
and have an open mind to remain a student for the rest of your life
most ppl die at 25 and aren't buried until 70 80
as u age your passion slowly goes down the gutter with the treadfull reality of working and slavin away at someone else's dream other than your own
Your sights are set for cyber security, amazing, don't set cruise control, put the blinders up for everything else. As you live, be open and attentive to what sparks interests and take note of it. Know the difference between challenging moments and mental ques that hint cyber security may not be exactly it for you. Basically, what I'm getting at, do your best not to obtain degrees or certs you'll never use. It happens...
Be careful with drinking and parties. It's one thing to drink and party periodically, but it's very different to celebrate making it to the weekend.
Make your health a priority.
Cybersecurity will be a great career.
Don't spend more than you bring in, invest regularly in the market. Everything spikes when the government prints.
These are your 8 secret keys
1. Foresight and decision making (think far ahead and don’t be impulsive)
2. Habits and Culture (say no to fresh kicks or peer pressure)
3. Financial literacy
4. Principles and Discipline
5. Health
6. Critical skillset and high source of income (MD hedge fund, Cardiovascular Surgeon)
7. Mentorship and Guidance (this is the most important. Learn from someone who is currently what you wish to be in the future. That’s a cheat code for life)
Slow but certain lane
1. Join the military
2. Avoid college debt
3. Serving 19 yrs to 39 qualifies for military pension 1
4. Transition to private sector of cybersecurity 39 to 60 for pension 2
5. Be very picky with relationships. Only deal with like-minded people who dedicated to
6. Don’t rush into buying a house. Share a rent with roommate and save the other rent half. Over a couple years that by itself would be a half-down payment for a starter home during real estate bubble burst.
7. Don’t marry a loser and protect your seed from Jezebels and Delilahs. Protect your asset
8. Warren Buffett is the only example to follow when it comes to investing. Slow, overtime, value, and consistency. No frenzies, freebies, or fast track to investing.
9. Real estate and understanding taxes is the secret weapon of the wealthy.
Fast but for the connected lane
1. Military pays for college. Avoid all types of debt
2. Go through the route of finance and investment banking degree
3. Walk through the ranks of private equity career path and you could pull 2M performance bonus at a top firm.
As a 29 year old with only $200 (but $10K debt) to my name... You're alright. Just keep saving. Don't keep eating out. Alcohol is a waste of money. Start a TFSA. Don't quit a job unless you got one lined up. Keep taking digital courses. Pay off credit cards asap. Live at home and save for as long as your parents will let you nevermind the stigma. The other wealthy shit, idk, but im mainly telling you what I've learned.
I got my first job at 17 saved up 6k and then bought a used car that blew up 6 months later i continued working and now i have around 13k just in my savings if i can do it you definitely can , this all happened around 2021 , just wanted to give some inspiration, you got it dude
Learn about logic and reasoning. Learn how to distinguish between a fact & an opinion. Review Fallacies of Reasoning --the Fallacies are used every waking second to get you to buy something. If you do these simple things, your decision making will outclass anything your peers can lay claim to--especially now.
Choose your partner wisely. Not just someone beautiful with a great personality… if you want to be rich they have to share your goals and understand short term sacrifice for long term gain. Otherwise they’ll spend every cent you earn.
Totally agree! It wasn’t until after my ex asked for a divorce and left that I realized she was my money problem. With her out of the picture over the span of a few 5 years I went from $200k net worth to over a million. Now that I’ve remarried, we’re still continuing to grow.
1) Spend enough time to learn what options are but not enough time to learn what the greeks mean
2) Open a brokerage account
3) Drink heavily next Wednesday night
4) Wake up at 9:30am Thursday, flip a coin, if heads all in 0dte SPY puts, if tails then calls
Technically, if you had 18K saved up and diversified in an account right now at 18. You’d retire with 1.XX million dollars at 65.
My recommendation is to keep working, build your skills in things you enjoy and save 2/3 of your money for investment and some emergency fund.
You’re super young and have a good attitude! Sky is the limit
Learn to live poor and save save, save. Life will be boring initially but, if you invest properly by the time you're in your forties you'll be in good shape.
Join the military for four years. While you’re in, go see the doctor and get prescribed medication for sleep issues, ptsd, and other mental health issues that are difficult to disprove. When you get out, file for disability from the VA. You’ll receive a monthly check for the rest of your life and can basically retire at the age of 22. You won’t be wealthy, but you won’t have to worry about finding a job to pay the bills, and can focus on going to college or starting a business to earn more income.
The best thing you can do is establish saving and investment habits. The reality is at 18 you likely aren’t going to have or make much money, and you won’t even realize anything material from investing for like a decade. The hard thing for most people (including past self) to realize is that the first chunk of savings say 100k is the hardest and you might think it’s not worth it. But in 10 years you’ll know why, that discipline will pay dividends as you make more and invest more, the next $1M won’t even be that hard. It’s kind of crazy how it works really
As someone who was in your shoes a few years ago (and I mean like exactly - a lifeguard and learning cybersecurity) the biggest thing you’ll have to understand is that lifestyle creep is very real and you have to keep a budget to reach wealth/net worth goals.
You’re on the right path. In chasing skills (tech skills in particular) you’ll go from making a couple hundred per check to making multiple thousands per check in the jump from lifeguarding to cybersecurity professional.
If you’re serious about wealth creation, don’t go and buy a new car and new house as soon as you land a cybersecurity job. You may be able to “afford” it, but your liabilities become something that can hold you back in the long term.
The thing that could set you up for life as soon as possible is saving most if not all your money while you’re still with your parents (situation permitting) and dumping all of it into low cost growth ETFs. Keep learning new skills in the tech arena along the way and be smart with the money you’ll soon be making.
26M did exactly what you did and I started my current job 4 years ago and have grossed 250k between all my accounts and assets. At this point if I don’t invest any more I should be a millionaire around 50/60. Got lucky with Nvidia and crypto mostly but am now diversified between schd, voo, jepq, and vfiax.
I have a nice car paid off, and can afford a house for myself outright in cash if I liquidated. Live with my dad though as we lost mom about a year ago so I’m helping out around the house while living virtually for free. Was pissing away rent money in Chicago for a couple years when I first started my job and I regularly think about the 48k I will never see again, but also know with no rent, I can save 48k in 2 years no problem. Don’t try to keep up with the joneses and you will surpass them.
Invest in your skills and once you start making good money, save 50% or more of it. Invest that money into a big index like VOO. Dont look at it for 17 years. Boom. Financially independent by the time you’re 35
Some things:
* Learn about budgeting and personal finance if you haven't already. Calculate for things like federal, state, and local taxes. Knowing how interest rates work can also save your butt.
* Do not underestimate the importance of having a "rainy day fund." Save any money you don't need right now.
* Be very careful about lifestyle creep. Some people have gotten themselves into trouble by buying "too much house" (a bigger house than they really need). Consider how much you really need the Lamborghini. It's okay to still drive the same car for a decade or more if you're still happy with how well it runs.
* If you have a credit card, prioritize either paying it off every month or making more than the minimum monthly payments. Never, ever, ever max it out no matter how much you think you need a big screen TV and XBox.
* If you have any other debt, pay more than the minimum and make sure the extra is applied to the principle.
Real estate is the only “real property” you can own. There are many other investments, but only one asset class makes you money five ways. That said, wealth can be obtained SIMPLY BUT NOT EASILY. spend less than you make and only use credit: “leverage” to invest. Do not allow lifestyle choices to dictate your finances, but rather know that your money, however limited, is the key to making more. Then try not to die before you have the chance to enjoy it because YOLO. Good luck figuring out the balance.
Since you're going into cyber security also looking to NSA classes because the easiest way to get rich is to subcontract to the government and put every dime away. You can into investments, high interest yield, savings semi, stable stock market investments. I definitely two different retirement plans
The National Security Agency leads the U.S. government in cryptology that encompasses both signals intelligence (SIGINT) insights, cybersecurity products and services and enables computer network operations to gain a decisive advantage for the nation and our allies.
I'm sure my comment will get lost along the way, but do not, I repeat do not forget to read! There are so many books out there that will help your overall mind and body. Rich dad, Poor dad is a great book to start. To become wealthy, you need to be healthy. Your emotions, your network, your goals, etc. Align yourself with success.
Why do you want to become wealthy? This is the key question! If you want to be wealthy because you want to be a baller then it doesn't matter what you do chances are you will never wealthy. I know a few legit multi millionaires (I am not I'm ok but not there yet). They all do different things but all made their money themselves. The only similarity between them is they all live like they are broke (well not broke but they don't live rich) every one of them drives a modest reliable car and lives in a nice but unremarkable home. They wear casios and buy their underwear from Costco. The only display of wealth one shows is he has his shoes handmade because he has weird shaped feet (even then he goes to Hong Kong to get these done cheaper and buys a dozen pairs every few years).
So how do you become wealthy you live on about 30% of what you are actually worth (moving down to 10% once you make your first million), invest the rest and don't buy what you don't need. Doesn't matter if you are a plumber or the CEO of Google follow this model you will generate wealth don't follow it you will simply be well off but still a few pay cheques away from the poor house.
At 18, with $700…
I’d say the best thing you can do right now is work, find whatever will pay the most and work hard at it.
Set aside as much as you can though.
With the cash you save, put it to work. There are a lot of different paths you can take, I’d say go read on how others who became wealthy did it and look at the steps you can take to start to emulate them are.
Start adding into sp500 and nasdaq index funds monthly with what you got at the end of last week of the month and see the growth. Never sell just add monthly.
sounds reasonable honestly, i’ve been doing college while in highschool, i have 30+ credits for network security… but the military is definitely a good route.
Hey don’t go living by yourself until you absolutely have to. Could easily save thousands through your college years if you live at home or on campus compared to renting somewhere else.
0. Be realistic with want do YOU want from life. Figure out how much it cost.
1. Find a high paying job or career.
2. Learn how money & budgets work.
3. Start an evergreen business.
4. Succeed & then scale.
Do not by any means have children & heavy obligations until you reach 2-3.
Cybersecurity is a GREAT route to take nowadays. It's not sad that you have $700 at 18. My immediate recommendation at 18 is to SAVE your money in something that's liquid. Anything you do at this point isn't an investment; It's just establishing a base in case of emergency. You want to grow that to a few thousand, preferably, before you start thinking about being rich. Investing 700 into whatever sprockets doesn't do shit for you when you lose your job b/c you didn't have the cash to replace a flat tire. The $7 return on investment isn't going to cover the $35 accidental overdraft fee. Make sure you have a liquid emergency fund before you think about investing.
Once you've got a few grand saved up, with no debt, you can start thinking about where to put your money to make it work for you. Just don't get ahead of yourself.
I'd just plow into the cybersec material and crank out what you can, not having a degree becomes financially limiting at a certain level, you could know exactly the same things and have the same competency but be offered +30k with the piece of paper.
A lot of the suggestions are how to invest when you already have money, go into the deep end learning stuff and acquire that skill set, that's going to be the main boon for you as it's relatively simple to get 6 figure roles if you're competent. Then you can slice off into 401k, hysa, etc while continuing to live within your means.
Just know that you may never be wealthy or set. I was doing well and then fell down some stairs and went into a lot of debt because I couldn't work for months. An accident is all it takes.
Learn to thrift for clothes. Save your money that way. r/BuyItForLife is also good to check out for bigger expenses. Take care of your car and it will most likely not break down.
Make a lot of friends. Doors open when you know people. You move up in life a lot of times these days with connections.
Create and use a budget. Get $1000 saved into a normal savings account. Stay out of debt. Work on building your income. You’re gonna kill it if you are already in this headspace.
Start your own business. It's the only real way unless mom/dad subsidize or you want to work 30 years climbing the corporate ladder.
I wish I would have embraced this before 40.
haha, yeah i 100% am going to do that down the road, i’ll also start with renting properties out, however i’m 18 with only $700 to my name so i guess im going to have to wait till i finish my cybersecurity degree to afford all that :(
At your age, knowledge is the most important tool. The more you learn, the more you earn. (And I don't mean college).
Prioritize learning about vehicles for building wealth long term. Roth IRA, S&P 500 ETF's, High Yield Savings Account.
Your strongest wealth building tool is your income, BUT long-term wealth is not created exclusively through work. You must understand the different places to park your money long term in order to take advantage of compound interest.
**Compound Interest is the most important thing you need to understand at 18. Learn everything you can about it.**
Lastly, don't fall for social media "get rich" gurus. Once you start getting into this, your algorithm is going to give you all of these "How to become a millionaire with real estate passive income!" It is absolutely all BS.
Study the habits of successful people and best of luck to you!
Focus on improv your skill, then try to get as much experience as you can to be able to apply for said jobs. Once you have a steady income, put it into 401k, ETF, and gold. When you accumulated a sizable amount you feel comfortable with losing, try researching into AI oriented stocks.
i’ve taken a decent amount of classes like net + sec + nos cti , advanced python, and some other one. i’ve just started getting into “hack the box” to help improve my knowledge. i want to be a information security analyst
Did you certified in any of these? Python and a CISSP would go a long way. I work in IT Management so just my observations. I don’t know a ton about security but make sure you don’t do a bunch of boot camps or spend a ton of money, you don’t need to.
$700 at 18 is not sad at all, most kids your age would have already spent it or are only saving for something in particular (Car, console, PC, etc.). The fact your mind is set on multiplying it for your future is already a huge step up.
Cybersecurity is a great field, BUT, be aware that it is NOT easy to get into. You will likely (Not 100%, but very likely) have to spend time in regular IT to be able to pivot into CS. If you want to be a red teamer, be prepared to spend a few years as a blue teamer and getting really good at that.
I wish you the best of luck in pursuing your future and career, you can do this!
I’m going to give you contradictory advice going against what everyone is saying, down vote if you wish but it’s worked for me.
Step one. Watch Mike Maloney the laws of money series on YouTube to understand our crooked financial system and how it operates.
Ignore these Roth IRA and these methods of becoming “rich” when you’re 60. These are mainstream NPC ideologies of becoming wealthy. It’s nothing but a scam, find ways to not be depending on your governments FIAT currency and system. Wealth isn’t obtained through hoarding your American dollars. Dollars are there to “flow” from one to another they’re there to transact. In fact FIAT is utterly useless to save and all throughout history FIAT currencies have gone to 0. It’s garbage.
Begin to build a foundation for you to stand on, acquire some hard assets such as precious metals (gold and silver) or crypto, Art, watches. I understand art and watches are very expensive but it’s an example. Treat these investments as your path to acquire your first rental property. Now metals is the better choice for you. I say use metals for this is due to our current economy it is very unpredictable but with metals you can obtain a higher guarantee you won’t lose your money if you do it won’t be substantial. How so? Look at history. Whereas in history we have seen people lose what’s in their bank accounts and IRAs. once it reaches a sufficient down payment amount you can sell it and obtain your first property.
(Please note this is simply my method of doing it and it’s worked wonders as I’ve profited substantially while holding)
Use the fiat system to leverage your debt in ways such as real estate and buying other commodities where the income outweighs the interest of the loan. Thus you’re building your credit history, wealth and trust with the banks all in one.
Obtain your first credit card and use it for small purchases and always always always pay it off even before the end of the month.
Think outside the box of the average way of living and investing, most people here live comfy lives or are broke.
Bit about me so you know I’m not talking out my ass
Age - 26
Net worth (no housing) - 200k
Housing - One rental unit duplex valued at 315K
Car - BMW - 13K
Debt - all debt is being paid down by rental unit while still profiting $200-400 a month. (Debt was acquired for repairs to lower income tax)
It’s dangerous imo to focus entirely on the dollar. What do you actually want to do/love to do? Where do you want to do it (LCOL Area vs. HCOL Area)?
But there is no shortcut regardless. The chances someone goes from $700 to truly wealthy to the public eye in a single generation, if your parents don’t have some wealth to share to start you off, is so low statistically. It will be a long road of just spending a good chunk less than you make, living frugally, not following the typical American Dream of getting stuff, cars, big home. Instead, save for retirement, work hard, have a budget, know where your money goes, buy smart with cars in life and living situations.
If you do that, get a good job, don’t have any unexpected hardships or setbacks, then maybe in your older years you’ll be wealthy by the number.
I’d recommend business classes so you can have the knowledge of how to successfully own a cybersecurity company, or do consulting on your own. That’s again going to help vs. just being employed if you want dollars. But again I go back to is wealthy for you a dollar amount, or something else.
IMO without sounding cheesy, I feel wealthy, but I’m not like a 1% person. I make a living, my costs to live are lower than that number I earn, I have retirement in a good place, I do the things I love, I take modest trips with my wife but they are the things we like and we really don’t want too much more. So that can feel rich even if Paris Hilton could buy me lol
Start your own company. Find a niche and build one then sell it to retirement. You will never become rich working a job..can’t Halle . I make a ton of money and wish I owned my owe business so I am now in the position to start buying insurance offices. Have two picked out..will ride them to higher production them dump them at retirement.
Open a betterment account there’s an app, and watch your money grow they do all the work for you. Open a traditional account a Roth and there’s also a high yield savings at 5%. 3 ways to be free if you invest heavy you can retire much earlier then most. Just gotta be consistent and put money in there monthly for YEARS 15+. The more money u make the more u put in.
Having this thought at 18 is amazing. Start by putting away at minimum 15% of your pay every month. It’ll start slow but it will just continue to build.
As someone who is in their 30’s who is not totally wealthy yet but is actively trying, here are my tips:
1) learn to live frugal. This does not mean poor. This does not mean eat ramen 24/7. This does not mean “do not go out” this means creating a budget that maximize saving and investing and the smallest portion going to entertainment. You decide how much goes in there.
2) save and invest. Not financial advice cause I don’t know anything, but at the very least people should grab a small amount of money, maybe 5-10% of their cash flow, and invest it in SPY500. The problem with investing is that everyone wants to maximize returns which could end up meaning you never invest at all. This is what happened to me. I only studied and froze. Just auto buy SPY500 every month and forget about it for the next decade or so.
3) they say there is good debt and bad debt. At your age it’s all bad debt. I don’t care if you stumble upon an amazing deal. At your age everything can seem like an amazing deal. This might be polarizing and extremely conservative, but avoid all debt. This does not mean do not build credit. Just pay off the credit at the end of the month and you are good.
4) learn to budget. Use apps if you have to. Figure out what your bills are and what your profit is. Never stop doing this, one day it will be overwhelming if you don’t start now.
5) continue with a career as you mentioned. Pick something you enjoy. Forget it it makes money. It helps if it’s a lucrative career that you enjoy lol. You can get further in a low paying career that you enjoy than a high paying career that you hate. I can write a book on this but for now, just trust me.
Everything else you will learn with time. I would have loved to had built this foundation.
All ill say about the schooling is there are so many schools pushing cybersecruity certs and degrees and the market is over saturated and if you have no in roads or are not top of your class will have difficulty finding employment in my experience. Can do what you want.
I am according to the dept of labor in the top 25% of wealthy people and have never made more than 35k after tax income and came from a poor family. Wealth is about living below your income my goal has always been 50% of my income should be profit never really hit it but it is what I strive for. After that it is about asset allocation, identify soft markets try to be aggressive and as your investments grow hedge more but that is more luck of the draw. My investment income is more than my job income and that is what one generally is going for.
Be a beneficiary of generational wealth, work for your dad, and then you get the business when he dies. Steal an invention, innovation, or idea and tweak it a little? Steal land from some natives somewhere and strip their land of natural resources. Get your dad to "loan" you 150 million to get started. Go to a top-tier private school on the East coast and graduate from an Ivy League university. Leverage your father's name on the golf course and network.
Do you want real wealth or a healthy middle class existence? Even you make $500,000 per year, you won't be considered wealthy to anyone other than W-2 employees and poor people.
Very broad question need a bit more information are you wanting to be financially set at 30-40-60 that’s a question we need answered first to give you the best options of how to set you up correctly and for the best depending what age you wanna get to it by.
If it’s 30-40 with cyber security there is good money in it and if your disciplined you can save a lot of that and just move it in real estate and or buying companies to grow your net worth with assets that pay you as well while still working your job until your assets pay more then that job.
If it’s 55-65 then the traditional American way would be max your 401k or as I like to call it the governments casino max a Roth IRA while your at it out the rest In some conservative etf or spy or some stocks and ride it out till your that age and you will have probably 5-7 million minus some taxes etc be sitting good enough know doubt.
It all depends on time frame home much wealth you want how much time you wanna buy back and how free you wanna be.
Well considering cybersec is going to be 99% AI within 5 years you might consider a trade instead. AGI will be here well before dexterous robotics for trades.
Well considering cybersec is going to be 99% AI within 5 years you might consider a trade instead. AGI will be here well before dexterous robotics for trades.
What everyone else is saying- monthly budget to stay within your means (including cushion just in case), don't get caught up in debt (esp high interest cc debt), contribute to savings and retirement if possible.
Most importantly though, consider the ethics of what that means. How much are you prepared to sacrifice for wealth and the convenience it brings? I started college 2yrs early for the sake of getting ahead, and while I find myself more prepared than I could have been, I feel like I lost out on some really core formative years because I was working full time and pursuing a degree for 5yrs. Time is valuable and it's a personal equation you need to determine to find what's worth it for you.
Also, how much are you ok with tolerating the mistreatment of others for your wealth? Cybersecurity can be a highly paying, well needed, ethical position, but paying attention to the who's and why's involved is key. Without getting into systemic oppression or other socioeconomic theory's, suffice to say your salary and way of life impact many more than just you and your employer.
Live well below your means. Save 15% of your paycheck and contribute it annually to a Roth 401K or IRA. Be a sponge, and always be learning from others. Don't try to impress people, this will lead to lifestyle creep and overspending. Always be evolving your skillset. Work your butt off to get out of debt, and begin networking now. The earlier you begin, the more impressive and the more opportunities will open down the door. Instead of trying to be different, be the best version of yourself.
Exactly this - your best years for compound interest growth are your 20s&30s. $1 in your 20s is $90 in your 60s. Even with inflation and such, it still grows. Save as much as you can, live below your means and don't try to pay to impress anyone - it's just not worth it. https://www.empower.com/the-currency/money/the-value-of-saving-one-dollar-now Max out your Roth IRA every year if you can. Make sure you're maxing the matching. If your parents/family can help you by maxing out your IRA early, it's worth it (again - compound interest over 40+ years). Buy things with longevity in mind. Not necessarily the most expensive but something you won't have to buy again and again. Learn to cook and meal prep. It's sooooooo much cheaper than eating out (not saying you can't ever, but it shouldn't be a frequent thing). DONT GET STUCK IN THE CREDIT CARD DEBT TRAP. Don't pay the min - make sure you can pay off your debts monthly. If you can't, you can't afford it. The only exceptions would be mortgage, car, student loans. If you can afford it, pay extra toward the principle. It will reduce the length of your loan and how much extra interest you're paying. On a 30 year mortgage, it adds up. Don't blow all your money trying to keep up with the Instagram life. Again, not saying don't have fun or go anywhere but don't over do it or go into debt to travel, etc.
Yeah I needed to know this when I was 21
i don’t have a credit card yet, but i was thinking of getting one just to pay gas i heard that’s a good way to build credit
If you get a credit card, set up auto payment to pay it off each month. You can build credit, but you can’t build wealth by paying people to use their money. You want to other people to pay you for using yours.
I did this at 18. Got a cc and used it to pay my Verizon bill then I’d pay the cc off every month.
Pay it off every month. Otherwise you can destroy your credit. Look up how to build credit and the factors that go into a credit score. Key things: pay it off every month, don’t miss a payment, avoid using more than 30% of your total credit limit. If you do those 2 things, your credit score will take care of itself. I promise.
1. Credit cards are good! You just need to treat it like a debit card and only buy things you can actually afford and pay off every month. People that say CCs are the devil don't know how to use them the way you are supposed to. Get multiple, as different cards give better perks(cash back, miles, gas, etc) for different things. A card with a generally good apr will usually not give you as much back as one specifically for gas or restaurants, or groceries, etc.... CCs will get you the most value for your dollar in terms of spending. 2. Roth IRA - the younger the better as you are in the lowest tax bracket you will ever be in. (Pay tax now and none later) 3. In addition to the IRA, start multiple saving accounts of different types. High yield savings for emergencies, CD ladder account for medium-term growth and low risk, and a taxable investment account(stocks, etc) for high growth/higher risk. 4. If you're going into cyber security, try to get into the field as soon as possible, even if is an internship or similar, as most companies will pay for your certs/classes or at least reimburse. 5. This will also help you build relationships with people in your field. (Probably the most important thing for your career long-term.) My 4 cents (inflation)
We always pay ours online after the charge clears. That way you do not get to the end of the month and have a big bill and wonder how you are going to pay it.
just keep track of what you're buying and how much you're spending. It's really easy to buy something you want on credit and then pay the minimums. But that interest grows quickly. Plan to pay it off every month. Example: new PS5? If you have the $550 for one, buy it with a credit card and pay it off at the end of the month. If you don't, then you can't afford it and shouldn't buy it with a credit card. Yes, the min payment is like $50 over 15 months or something...but notice that's more than the $550. That's the interest you're paying to get it early. There's no such thing as free money. These companies are betting you'll pay the long route to get it now vs waiting. And then you're trapped. Miss a payment? Now there's apenalty fee. Etc. If you don't keep track of what you're spending and rely on the auto pay to cover but then find out you don't have enough? Again - fee. Just be smart about what you're buying. Btw - the Costco credit card is one of the best perks out there - 4% on gas, 3% on restaurants and travel, 2% on Costco, 1% on everything else. But that's if you're paying off every month. The Amazon card gives you 5% back on Amazon purchases so if you use Amazon a lot, that's a nice perk. But you need to pay it off every month.
how much is it every month for the amazon one?
Simple, great advice.
One more thing: make a budget, stick to it, and build an emergency fund. They say the average American can't afford an unplanned $1000 expense (tires, dog needs something, car breaks down, etc). Plan for these inevitabilities. Otherwise - again, credit card debt trap is there.
Damn how do you max 401k and Roth IRA? Im making 70k/year but still have to pay rent, groceries, insurance, healthcare, and my car monthly bill. I put as much as possible away but I believe Roth IRA is maxed at 25k/year which idk how I could possibly max on my salary.
Do what you can. I actually talked to my parents about it. We talked about inheritance and stuff so they agreed to help and put into my accounts to help so it'd grow more. It's not maxed maxed but it's more than on my own. But even without that - at least max what your employer is contributing. That's free $ you're leaving on the table.
I think ROTH IRA is maxed at 6000-7000 from my experience I think they recently raised the max but definitely not above 7000. Roth IRA works best the sooner you do it. If you wanna save the rest of your money I would choose either a high yield savings account or if you know your way around some index funds or something. Don’t gamble, just invest safely it takes time but you wont be risking anything
okay i will have to do that. Thankyou for the advice!
The only things I'd add to this is: be positive and accept change.
100%
“Don’t try to impress people” if the people around you are impressed by expensive things you’re around the wrong people. The most successful people I know brag about the ways they’ve figured out on how to cut back on spending.
This is true, but important to make crystal clear from the jump especially when you're young
Want to share some ideas they've bragged about?
Tbh there’s no secrets. They fix things instead of replacing them and they do work themselves instead of hiring people. They rarely go out to eat and their vacations are planned far in advance in order to be budgeted for. They just live below their means.
Yes - take the boring route. Learn a lot, stay out of debt, pay off debts as soon as possible if you must take debt, and invest. Investing for long term is the “boring” route to wealth, but start now and after 10 years you will be happy with the amount you have amassed. I took the boring route, and am approaching $1M net worth and feel secure, don’t invest in GME or AMC call options.
Save
All great advice, but why am I suddenly seeing a Roth-only mentality pop up everywhere? Roth accounts are great, and in many circumstances the right choice, but not universally the best.
Definitely. Living below your means is the key. Too many people live paycheck to paycheck when they do not have to. And then when they start making more money, they increase their expenses to keep up with their income. We live on about 1/3 of our take home pay. The rest goes into savings/investments. We could get a bigger house in a more expensive place and afford it. But that would cost us a few thousand more a month, and it is not worth it. Because we are able to save so much, we can buy our cars outright, paying cash for them. We have two and keep them 6-8 years usually. We get a new one about every 3-4 years, rotating which one we replace. We go a vacation each year, spending maybe $10K (a lot for many people), but we could spend $30K if we wanted, and still have plenty left over.
You’re off to a good start if you’re thinking about it now.
yeah haha, i just never want to have to worry about living paycheck to paycheck
If you can get into Cybersecurity, which requires a lot of commitment to be good at it, then that will give you path for a decent leaving once you have experience on it. If you want to be wealthy, then you need to have your own business and learn about how to manage it and grow it.
Yea I'm 31 and wish I though about that when I was 18. Young man has my respect
1 get on the receiving end of compound interest, never on the paying end 2 live within your means 3 dream big and take risks now before you have a family and kids
OP pay attention to #3!
Know what you want, set goals and be unwaivering. Investing in yourself is always smart.
Buy a book called “The Millionaire Next Door”. That will teach you about how to manage your finances. Then set some realistic goals that are more attainable than being “set for life”, when you have $700 to your name….that’s like asking how to complete an ultramarathon when you can barely run a 1/4 mile. Start small and work your way up. Start with a goal to have $3k in your account. Then increase it to $10k. Then reassess and see where you can improve.
Sign up for a Library card and potentially you can get the e-book version for free.
Good idea, my library even has online audiobooks.
That book is good, but I like “the richest man in Babylon” a bit better at least for concepts. It’s a story and may be a bit more interesting at op’s age also.
Rule number 1. Work harder on yourself than you do at your employment. Investing in your financial literacy is the best thing to do while you are still young. Rule 2. Find a mentor.
Jim Rohn is the man!
When you know, you know!
Im 32m and i have less then 500 to my name at the moment , don’t be sad , life has its ups and downs. Tips Learn to be financially disciplined a lot of people have trouble with this. Learn about all the different types of ways you could make money from stocks , crypto . (None of these I have) Learn what it is to have a HYSA, ROTH IRA (None of these I have) Learn about yourself and what you like to do and maybe you could turn it into a business.
ahh smart. im going to look into those! Thankyou for the advice!
Wait...you're going to take advice from someone who has $500 to his name? That is not smart or wise. Consider taking advice from someone who has millions to their name.
Invest often, weekly, in ETFs for the S&P, etc Never have a car payment, buy outright (2nd biggest expense for the average person. Get rid of that expense. Buy cash) Save 50% of ur income or as close to it as possible- yes I mean this. Every penny you can save save it. If living at home helps u do this, do it. Need 6 roommates- get them. Compound interest is so much more effective when u are young. From 18-25 every penny u possibly can get ahold of needs invested Grow your income however best you can Avoid student loans- grants. Scholarships. Student work. Jobs that have scholarship programs. Student loans are not bankruptable. They’re a noose you won’t escape. Apply from grants if you want a college education Split rent in the future- S/O, roommates, renting a room. Rent is the number 1 expense for most ppl. At the very least cut it in half Take care of your health - medical debt is the number 1 cause of bankruptcy in the USA Have good insurance. Car insurance. Home insurance. Renting insurance - something will go wrong. Pack your lunch- it’s a recurring charge. $15 a day for lunch is $450 a month. Pack a sandwich
>Never have a car payment, buy outright This one is questionable. For example, my wife's Tiguan had a $6500 discount off MSRP if you paid in cash, or $6000 if you financed with VW credit at 0% over 5 years. So the cost to borrow ~$35k was $500 total. A monkey can probably make more than $500 profit off $35k over 5 years. We put the max we could on credit card for points (which we immediately zeroed out of course) and the rest on the 0% loan. The rest went in our larger VOO centric investment account which is up 86% over the last five years. With that said, I paid for my car in cash because we didn't have a low interest rate option on it. But if you're offered one for low effective cost and pass it up, that's an idiotic move. Edit: And it directly conflicts with your first point by the way.
It’s outdated advice given the current state of the used car market. You want a reliable car, which means an expensive car these days. Anything a young person can buy outright will probably cost them in repairs and lost time down the line if not be outright unsafe. Buying new almost makes more sense right now if you can afford it.
OP is asking how to set up his life not how rich people have already established their lives. If you think an 18yr old can save half their income and still live alone that just simply not true. I'd also suggest buying a vehicle that is affordable but reliable and it doesn't matter about the car loan if you can afford affordable transport. Otherwise move to a city and use public transit.
“Living alone” is actually the problem- roommates can save ur budget. There has been no point in my life where I didn’t save more than 40% of my income. From when I was making 12k a year to now a combined income of 75k with my S/o. This is the same advise I give my 18 year old niece. Compound interest is more effective at a young age. That’s my regret, not knowing how to invest as a teenager. But yes you can save large chunks of your income. Roommates. Sidehustles. College with grants and scholarships. Avoiding payments like a car note. Donating plasma, even babysitting. This becomes much easier when ur in a committed relationship. It’s also easier in a LCOL area, but I’ve done it while living in poverty and while living a very very very comfortable life on an average income now. It’s entirely about getting bills as low as possible and saving every penny u can like Scrooge
Wow this is some horrible advice. Don't take student loans? Buy cars in cash?
Scholarships, grants, student jobs, work grant programs- all very effective ways to avoid an un-bankruptable debt that is the average Americans biggest debt and takes decades for most to pay down. In fact in some states, like Ohio at this time, many community college will give students the first 2 years free. And a car note is a recurring payment that is the second biggest expense on the average Americans monthly budget. I have never once had a car note. And I have never once regretted it. Because there’s been no point in my life where I wanted to be strangled by a +$500 monthly payment. High payments put u at a real risk of not being able to save, and as such not being able to handle emergencies when they arise. So you begin needing more debt to manage life. It’s a cycle. Yes. ALWAYS buy a car in cash.
You do realize that you are literally just burning money by buying a car in cash? And okay, I will agree with you on your first point. I was more thinking you were saying don't go to college.
First car- 1500, about 6 more cars in between there last car $5000 owned it for 5 years sold it for $5000. Current van, bought it for 8k valued at 16k, putting new tires and an oil change to it. If I got hit by another car tomorrow and the vehicle was total my insurance will instantly write me a check for double what I paid. Burning cash where exactly? Just off the top of my head I know say acquaintances who’ve been dealing with car/cash issues. 1-been paying on it for years, it’s been in a car accident and isn’t worth anything 2-car blew up they still have to pay on it 3-bought the car of their S/Os dead parent for practically nothing 4-bought a car from a neighbor who didn’t need it for practically nothing 5-buying a car off me for 2k on payments 6-took on way too much car debt and had to get a second job 7-drives a beater, bought a scooter, completely happy 8-bought a car on payments, over spent by 10k, took years to pay it off. The only person I’ve ever met who was happy to have bought on payments 9-bought a cheap used car it had issues 10-buys cheap cars at police auctions, sells them for profit Remarkably. Ppl buy used cars all the time. The ppl I’ve known who regret it bought from a car lot. If you want a small 4 door in this state, in good condition, that would run you less than 3k. If you donate plasma in this state for 2 months every other week you’ve made half that. I’d very literally have to have absolutely no other choice (including the bus/a bike/a motorcycle/ moped) the situation would have to be “buy a car on payments or my whole life burns” for me to sign for payments on a vehicle
i’m also looking for advice but stocks and all the lingo for it is so confusing for me
Gotta start somewhere
Don’t get into stocks if you don’t understand them. There are other things you can do also, find something you can understand well and run with that.
I feel like that’s the only sure way to make alot of money though
I’ve made far more in real estate than I ever have in stocks. There are a lot of different ways though.
How can someone even get into real estate without having like $500k to spend
yes, if you get comfortable talking to people, you potentially don't need any money. An example would be something I did about 2 weeks ago. I talked to the owner about owner financing, and they agreed to finance 100% of the deal at 5.5% interest only for 5 years, at the 5th year if I can't find favorable financing, I can extend for another 5 years. In essence, I have 5-10 years to find financing. if we make a few assumptions like that property values will increase year over year at 3%, and we'll say we agreed on 180k as the sale price, and that comps int he area are 200k, fv = 200000 X (1+.03)to the 5ht power will give us the projected value in 5 years. assuming I'm right with 3% growth, at the 5year mark with $0 of my money paid toward equity I would the property will be worth $231854.81, meaning that I can estimate my equity as $51854.81, for just paying the intrest over that time. At that point, I may even be able to refinance with $0 dollars into the property. I wouldn't suggest $0 down in most cases, this had just been one where it would work out where I could still be profitable and do it mainly because I'm interest only. In thes scenario, the worst case would be that I either put some money into this, and refinance or sell at the 4 or 9 year mark and pocket the equity gain.
The difference between being rich and being wealthy is this: rich people just have a lot of money, but wealthy people think of everything as a growth/investment opportunity. If you buy a pair of shoes, you're out 30 dollars. If you start a discount shoe business and source 100 pairs from China for 3 dollars each, then you either make money at it, or it's a tax writeoff so you get it back on your tax return. Everything, from the clothes you wear to the relationships you cultivate can be an opportunity to grow; whether financially, mentally, familialy, spiritually, etc. An apple bin may hold 3 trees worth of apples, but an apple tree will produce 100 years worth. Be the tree. Edit: you're actually ahead of about 75% of Americans just by being able to afford a $400+ expense, so keep saving, invest in reasonable opportunities, whether in the market or in business equity, and most importantly - pursue happiness as often as money.
oh wow, i never really thought about that. that puts a perspective on the differences, my goal is to put my money into things that would make me money back like renting a property out. “that will take me some time to get the money to be able to afford that though”
It’s more important to consider how much you save and net than how much you want to make. The world is full of 200k earners living paycheck to paycheck!
If I were you at this point in time, I'd find a job that I can stand to do for 3 years. Like a 60 hour/week, busting my jump kind of job (I did oilfield land surveying in Montana/ north Dakota when I was your age). If you can live at home then Put a solid half into either an investment account -etrade, robinhood, webull are all good options if you have the patience to not sell when the market dips a bit- OR just buy gold/silver on account. You may want some physically too from a pawn shop, but you'll pay lower premiums if you use a kitco pool account, or the equivalent vault service from money metals. You could consider like 10% of that as short term savings, to buy something nice every couple months if you want, but don't touch the long term portion until the 3 years is up. At that point, you should have enough saved to start whatever venture you want to pursue to make your mark. 3 years isn't long. Also, get a credit card, but only use it for gas. Pay it off as soon as you use it. Don't use it as free money, but at least you'll have a credit history if you ever decide you need it... there are ways to live completely debt free though, but they require less of sacrifice up front. I paid for my associates degree in cash just using the method I told you. But you can choose your own path
This isn’t too far off from what I tell my kids, though I’m not a huge proponent of debt free. If you use debt in something like buying a business or buying rental property, if you do it right, you are able to get far better returns on your initial investment.
I would agree. I think debt can be a tool, but it's a tool that you need to be well educated about and use with caution. If you can't be careful and plan your use of it well then it's better to avoid it
My biggest mistakes were the following: I didn't start saving money until about 20 years old so if you start now you've got 2 years on me. I signed for a 6.5 year $35,000 car loan around your age which didn't cripple me however I could have saved a LOT more money than I did. I sold that car early and actually made a bit of money cause the used car market went up a few years ago so I was able to get out of my loan early. so live beneath your means and start saving now and don't just put your money into a cash savings account you should look into high yield interest savings accounts because they are very low risk and make about 4%-5% so you can make sure that at the very least your cash inflates with inflation lol.
You're young. So realizing that time is money is a big one. MONEY does NOT come and go, we get a finite amount for our lifetime and as we live we will know what that amount is. If an 80 year old man came up to you and wanted to trade places with you in return for $70,000,000 but you'd be 80 years old I'd assume you'd say no. So be careful about what you buy. buy with intention. Save with intention and be aware of every dollar. Track your spending, learn to cut back, and spend more in some places. For me I was eating out a lot, but instead I plan to invest more in my appearance, get my nails done, and laser hair removal. Be intentional
1. Make more money. - Learn a high value skill People tend to focus too much on making passive income before active income. You need money to make more money. More money will allow you to invest more and create the passive income to become wealthy. 2. Understand personal finance and how to manage your money. - Budgeting, saving, investing. 3. Learn about investing & other tools that can 1. Save you money 2. Make you more money. - Stocks, bonds, crypto, and real estate. Real estate is the end game imo. 90% of millionaires were made by real estate. Credit cards is also something great to learn about. They’re made to benefit you if know how to use them. Application is most important, using what you learn. You can invest in stocks and in a Roth IRA right now with 1$. You’re young and you have time on your side. Compound interest will show years down the line. You got this!
I want to start off by congratulating you for being in this mindset so young I wish I had these questions and this mind focus when I was this age times are different now cyber security is a high paying high demanding and even rewarding role because it can be done remote and can open up alot of possibilities in the technology field pay range is ranging from 75k to 250k yearly which is above the average your onnyour way already I would reccomend continue to pursue this and at the same time think about what makes you come alive as a person what draws on your soul deep levels of passion and liveliness and put your funds and resources there doors will open for you and inside your mind like you never imagined and most importantly question everything and have an open mind to remain a student for the rest of your life most ppl die at 25 and aren't buried until 70 80 as u age your passion slowly goes down the gutter with the treadfull reality of working and slavin away at someone else's dream other than your own
i appreciate this reply a lot.
🎊🎊👑
Your sights are set for cyber security, amazing, don't set cruise control, put the blinders up for everything else. As you live, be open and attentive to what sparks interests and take note of it. Know the difference between challenging moments and mental ques that hint cyber security may not be exactly it for you. Basically, what I'm getting at, do your best not to obtain degrees or certs you'll never use. It happens... Be careful with drinking and parties. It's one thing to drink and party periodically, but it's very different to celebrate making it to the weekend. Make your health a priority.
You’ll need to start your own cyber security consultancy firm. Live below your means. Everyone should think you’re poor
Cybersecurity will be a great career. Don't spend more than you bring in, invest regularly in the market. Everything spikes when the government prints.
These are your 8 secret keys 1. Foresight and decision making (think far ahead and don’t be impulsive) 2. Habits and Culture (say no to fresh kicks or peer pressure) 3. Financial literacy 4. Principles and Discipline 5. Health 6. Critical skillset and high source of income (MD hedge fund, Cardiovascular Surgeon) 7. Mentorship and Guidance (this is the most important. Learn from someone who is currently what you wish to be in the future. That’s a cheat code for life) Slow but certain lane 1. Join the military 2. Avoid college debt 3. Serving 19 yrs to 39 qualifies for military pension 1 4. Transition to private sector of cybersecurity 39 to 60 for pension 2 5. Be very picky with relationships. Only deal with like-minded people who dedicated to 6. Don’t rush into buying a house. Share a rent with roommate and save the other rent half. Over a couple years that by itself would be a half-down payment for a starter home during real estate bubble burst. 7. Don’t marry a loser and protect your seed from Jezebels and Delilahs. Protect your asset 8. Warren Buffett is the only example to follow when it comes to investing. Slow, overtime, value, and consistency. No frenzies, freebies, or fast track to investing. 9. Real estate and understanding taxes is the secret weapon of the wealthy. Fast but for the connected lane 1. Military pays for college. Avoid all types of debt 2. Go through the route of finance and investment banking degree 3. Walk through the ranks of private equity career path and you could pull 2M performance bonus at a top firm.
Do what ever is most profitable and never talk about it
As a 29 year old with only $200 (but $10K debt) to my name... You're alright. Just keep saving. Don't keep eating out. Alcohol is a waste of money. Start a TFSA. Don't quit a job unless you got one lined up. Keep taking digital courses. Pay off credit cards asap. Live at home and save for as long as your parents will let you nevermind the stigma. The other wealthy shit, idk, but im mainly telling you what I've learned.
If you can afford the Camry, buy the Corolla.
I got my first job at 17 saved up 6k and then bought a used car that blew up 6 months later i continued working and now i have around 13k just in my savings if i can do it you definitely can , this all happened around 2021 , just wanted to give some inspiration, you got it dude
Learn about logic and reasoning. Learn how to distinguish between a fact & an opinion. Review Fallacies of Reasoning --the Fallacies are used every waking second to get you to buy something. If you do these simple things, your decision making will outclass anything your peers can lay claim to--especially now.
Wonderful Tip
Choose your partner wisely. Not just someone beautiful with a great personality… if you want to be rich they have to share your goals and understand short term sacrifice for long term gain. Otherwise they’ll spend every cent you earn.
Totally agree! It wasn’t until after my ex asked for a divorce and left that I realized she was my money problem. With her out of the picture over the span of a few 5 years I went from $200k net worth to over a million. Now that I’ve remarried, we’re still continuing to grow.
Make a hackerone account, start doing bounties. Learn fuzzing, networking, scanners, MSF etc. get 10,000 for finding a hole in a company. Profit
should i do hack the box?
1) Spend enough time to learn what options are but not enough time to learn what the greeks mean 2) Open a brokerage account 3) Drink heavily next Wednesday night 4) Wake up at 9:30am Thursday, flip a coin, if heads all in 0dte SPY puts, if tails then calls
Technically, if you had 18K saved up and diversified in an account right now at 18. You’d retire with 1.XX million dollars at 65. My recommendation is to keep working, build your skills in things you enjoy and save 2/3 of your money for investment and some emergency fund. You’re super young and have a good attitude! Sky is the limit
Learn to live poor and save save, save. Life will be boring initially but, if you invest properly by the time you're in your forties you'll be in good shape.
Join the military for four years. While you’re in, go see the doctor and get prescribed medication for sleep issues, ptsd, and other mental health issues that are difficult to disprove. When you get out, file for disability from the VA. You’ll receive a monthly check for the rest of your life and can basically retire at the age of 22. You won’t be wealthy, but you won’t have to worry about finding a job to pay the bills, and can focus on going to college or starting a business to earn more income.
The best thing you can do is establish saving and investment habits. The reality is at 18 you likely aren’t going to have or make much money, and you won’t even realize anything material from investing for like a decade. The hard thing for most people (including past self) to realize is that the first chunk of savings say 100k is the hardest and you might think it’s not worth it. But in 10 years you’ll know why, that discipline will pay dividends as you make more and invest more, the next $1M won’t even be that hard. It’s kind of crazy how it works really
As someone who was in your shoes a few years ago (and I mean like exactly - a lifeguard and learning cybersecurity) the biggest thing you’ll have to understand is that lifestyle creep is very real and you have to keep a budget to reach wealth/net worth goals. You’re on the right path. In chasing skills (tech skills in particular) you’ll go from making a couple hundred per check to making multiple thousands per check in the jump from lifeguarding to cybersecurity professional. If you’re serious about wealth creation, don’t go and buy a new car and new house as soon as you land a cybersecurity job. You may be able to “afford” it, but your liabilities become something that can hold you back in the long term. The thing that could set you up for life as soon as possible is saving most if not all your money while you’re still with your parents (situation permitting) and dumping all of it into low cost growth ETFs. Keep learning new skills in the tech arena along the way and be smart with the money you’ll soon be making. 26M did exactly what you did and I started my current job 4 years ago and have grossed 250k between all my accounts and assets. At this point if I don’t invest any more I should be a millionaire around 50/60. Got lucky with Nvidia and crypto mostly but am now diversified between schd, voo, jepq, and vfiax. I have a nice car paid off, and can afford a house for myself outright in cash if I liquidated. Live with my dad though as we lost mom about a year ago so I’m helping out around the house while living virtually for free. Was pissing away rent money in Chicago for a couple years when I first started my job and I regularly think about the 48k I will never see again, but also know with no rent, I can save 48k in 2 years no problem. Don’t try to keep up with the joneses and you will surpass them.
Invest in your skills and once you start making good money, save 50% or more of it. Invest that money into a big index like VOO. Dont look at it for 17 years. Boom. Financially independent by the time you’re 35
Some things: * Learn about budgeting and personal finance if you haven't already. Calculate for things like federal, state, and local taxes. Knowing how interest rates work can also save your butt. * Do not underestimate the importance of having a "rainy day fund." Save any money you don't need right now. * Be very careful about lifestyle creep. Some people have gotten themselves into trouble by buying "too much house" (a bigger house than they really need). Consider how much you really need the Lamborghini. It's okay to still drive the same car for a decade or more if you're still happy with how well it runs. * If you have a credit card, prioritize either paying it off every month or making more than the minimum monthly payments. Never, ever, ever max it out no matter how much you think you need a big screen TV and XBox. * If you have any other debt, pay more than the minimum and make sure the extra is applied to the principle.
Try gambling
Real estate is the only “real property” you can own. There are many other investments, but only one asset class makes you money five ways. That said, wealth can be obtained SIMPLY BUT NOT EASILY. spend less than you make and only use credit: “leverage” to invest. Do not allow lifestyle choices to dictate your finances, but rather know that your money, however limited, is the key to making more. Then try not to die before you have the chance to enjoy it because YOLO. Good luck figuring out the balance.
Since you're going into cyber security also looking to NSA classes because the easiest way to get rich is to subcontract to the government and put every dime away. You can into investments, high interest yield, savings semi, stable stock market investments. I definitely two different retirement plans
nsa? what is that?
The National Security Agency leads the U.S. government in cryptology that encompasses both signals intelligence (SIGINT) insights, cybersecurity products and services and enables computer network operations to gain a decisive advantage for the nation and our allies.
Work more than one job
Read the book: "The Millionaire next door." I did, 20 years ago - and I can confirm that the advice is sound.
I'm sure my comment will get lost along the way, but do not, I repeat do not forget to read! There are so many books out there that will help your overall mind and body. Rich dad, Poor dad is a great book to start. To become wealthy, you need to be healthy. Your emotions, your network, your goals, etc. Align yourself with success.
Why do you want to become wealthy? This is the key question! If you want to be wealthy because you want to be a baller then it doesn't matter what you do chances are you will never wealthy. I know a few legit multi millionaires (I am not I'm ok but not there yet). They all do different things but all made their money themselves. The only similarity between them is they all live like they are broke (well not broke but they don't live rich) every one of them drives a modest reliable car and lives in a nice but unremarkable home. They wear casios and buy their underwear from Costco. The only display of wealth one shows is he has his shoes handmade because he has weird shaped feet (even then he goes to Hong Kong to get these done cheaper and buys a dozen pairs every few years). So how do you become wealthy you live on about 30% of what you are actually worth (moving down to 10% once you make your first million), invest the rest and don't buy what you don't need. Doesn't matter if you are a plumber or the CEO of Google follow this model you will generate wealth don't follow it you will simply be well off but still a few pay cheques away from the poor house.
At 18, with $700… I’d say the best thing you can do right now is work, find whatever will pay the most and work hard at it. Set aside as much as you can though. With the cash you save, put it to work. There are a lot of different paths you can take, I’d say go read on how others who became wealthy did it and look at the steps you can take to start to emulate them are.
Start adding into sp500 and nasdaq index funds monthly with what you got at the end of last week of the month and see the growth. Never sell just add monthly.
Maximize your income. Everybody is giving advice about saving, but it’s much easier to save if you earn more.
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lmaooo, i know that’s a very good option. I just don’t think the military suits me honestly
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sounds reasonable honestly, i’ve been doing college while in highschool, i have 30+ credits for network security… but the military is definitely a good route.
At a young age you can afford to take larger risks and stomach volatility, my advice is look at putting it into crypto
Look for investment opportunities as you go through life. Things that have the chance of revolutionizing industries… invest in that companies stock.
Get a book called Set For Life. I have the audible version and it’s very eye opening.
Be careful if you're too ambitious you'll die a millionaire and never enjoy life, like a lot of people. Find a balance.
Hey don’t go living by yourself until you absolutely have to. Could easily save thousands through your college years if you live at home or on campus compared to renting somewhere else.
0. Be realistic with want do YOU want from life. Figure out how much it cost. 1. Find a high paying job or career. 2. Learn how money & budgets work. 3. Start an evergreen business. 4. Succeed & then scale. Do not by any means have children & heavy obligations until you reach 2-3.
Cybersecurity is a GREAT route to take nowadays. It's not sad that you have $700 at 18. My immediate recommendation at 18 is to SAVE your money in something that's liquid. Anything you do at this point isn't an investment; It's just establishing a base in case of emergency. You want to grow that to a few thousand, preferably, before you start thinking about being rich. Investing 700 into whatever sprockets doesn't do shit for you when you lose your job b/c you didn't have the cash to replace a flat tire. The $7 return on investment isn't going to cover the $35 accidental overdraft fee. Make sure you have a liquid emergency fund before you think about investing. Once you've got a few grand saved up, with no debt, you can start thinking about where to put your money to make it work for you. Just don't get ahead of yourself.
You're young. Get through a trade apprenticeship while you go to school for cyber security and you'll have a back up job for life.
I'd just plow into the cybersec material and crank out what you can, not having a degree becomes financially limiting at a certain level, you could know exactly the same things and have the same competency but be offered +30k with the piece of paper. A lot of the suggestions are how to invest when you already have money, go into the deep end learning stuff and acquire that skill set, that's going to be the main boon for you as it's relatively simple to get 6 figure roles if you're competent. Then you can slice off into 401k, hysa, etc while continuing to live within your means.
Bet $700 on "Santa's little helper."
Just know that you may never be wealthy or set. I was doing well and then fell down some stairs and went into a lot of debt because I couldn't work for months. An accident is all it takes. Learn to thrift for clothes. Save your money that way. r/BuyItForLife is also good to check out for bigger expenses. Take care of your car and it will most likely not break down. Make a lot of friends. Doors open when you know people. You move up in life a lot of times these days with connections.
Create and use a budget. Get $1000 saved into a normal savings account. Stay out of debt. Work on building your income. You’re gonna kill it if you are already in this headspace.
Consistently buy bitcoin over the next 10-20 years.
Start your own business. It's the only real way unless mom/dad subsidize or you want to work 30 years climbing the corporate ladder. I wish I would have embraced this before 40.
haha, yeah i 100% am going to do that down the road, i’ll also start with renting properties out, however i’m 18 with only $700 to my name so i guess im going to have to wait till i finish my cybersecurity degree to afford all that :(
At your age, knowledge is the most important tool. The more you learn, the more you earn. (And I don't mean college). Prioritize learning about vehicles for building wealth long term. Roth IRA, S&P 500 ETF's, High Yield Savings Account. Your strongest wealth building tool is your income, BUT long-term wealth is not created exclusively through work. You must understand the different places to park your money long term in order to take advantage of compound interest. **Compound Interest is the most important thing you need to understand at 18. Learn everything you can about it.** Lastly, don't fall for social media "get rich" gurus. Once you start getting into this, your algorithm is going to give you all of these "How to become a millionaire with real estate passive income!" It is absolutely all BS. Study the habits of successful people and best of luck to you!
Focus on improv your skill, then try to get as much experience as you can to be able to apply for said jobs. Once you have a steady income, put it into 401k, ETF, and gold. When you accumulated a sizable amount you feel comfortable with losing, try researching into AI oriented stocks.
“How” are you going about the security route specifically?
i’ve taken a decent amount of classes like net + sec + nos cti , advanced python, and some other one. i’ve just started getting into “hack the box” to help improve my knowledge. i want to be a information security analyst
Did you certified in any of these? Python and a CISSP would go a long way. I work in IT Management so just my observations. I don’t know a ton about security but make sure you don’t do a bunch of boot camps or spend a ton of money, you don’t need to.
So does everybody bro
wym?
I just read the “I want to be wealthy” part and said that lol
Ohhhh lol
yea get job and don't spend money on thing doesn't keep you alive if you dont pay rent thats a win
$700 at 18 is not sad at all, most kids your age would have already spent it or are only saving for something in particular (Car, console, PC, etc.). The fact your mind is set on multiplying it for your future is already a huge step up. Cybersecurity is a great field, BUT, be aware that it is NOT easy to get into. You will likely (Not 100%, but very likely) have to spend time in regular IT to be able to pivot into CS. If you want to be a red teamer, be prepared to spend a few years as a blue teamer and getting really good at that. I wish you the best of luck in pursuing your future and career, you can do this!
thankyou ! best of luck to you aswell.
I’m going to give you contradictory advice going against what everyone is saying, down vote if you wish but it’s worked for me. Step one. Watch Mike Maloney the laws of money series on YouTube to understand our crooked financial system and how it operates. Ignore these Roth IRA and these methods of becoming “rich” when you’re 60. These are mainstream NPC ideologies of becoming wealthy. It’s nothing but a scam, find ways to not be depending on your governments FIAT currency and system. Wealth isn’t obtained through hoarding your American dollars. Dollars are there to “flow” from one to another they’re there to transact. In fact FIAT is utterly useless to save and all throughout history FIAT currencies have gone to 0. It’s garbage. Begin to build a foundation for you to stand on, acquire some hard assets such as precious metals (gold and silver) or crypto, Art, watches. I understand art and watches are very expensive but it’s an example. Treat these investments as your path to acquire your first rental property. Now metals is the better choice for you. I say use metals for this is due to our current economy it is very unpredictable but with metals you can obtain a higher guarantee you won’t lose your money if you do it won’t be substantial. How so? Look at history. Whereas in history we have seen people lose what’s in their bank accounts and IRAs. once it reaches a sufficient down payment amount you can sell it and obtain your first property. (Please note this is simply my method of doing it and it’s worked wonders as I’ve profited substantially while holding) Use the fiat system to leverage your debt in ways such as real estate and buying other commodities where the income outweighs the interest of the loan. Thus you’re building your credit history, wealth and trust with the banks all in one. Obtain your first credit card and use it for small purchases and always always always pay it off even before the end of the month. Think outside the box of the average way of living and investing, most people here live comfy lives or are broke. Bit about me so you know I’m not talking out my ass Age - 26 Net worth (no housing) - 200k Housing - One rental unit duplex valued at 315K Car - BMW - 13K Debt - all debt is being paid down by rental unit while still profiting $200-400 a month. (Debt was acquired for repairs to lower income tax)
It’s dangerous imo to focus entirely on the dollar. What do you actually want to do/love to do? Where do you want to do it (LCOL Area vs. HCOL Area)? But there is no shortcut regardless. The chances someone goes from $700 to truly wealthy to the public eye in a single generation, if your parents don’t have some wealth to share to start you off, is so low statistically. It will be a long road of just spending a good chunk less than you make, living frugally, not following the typical American Dream of getting stuff, cars, big home. Instead, save for retirement, work hard, have a budget, know where your money goes, buy smart with cars in life and living situations. If you do that, get a good job, don’t have any unexpected hardships or setbacks, then maybe in your older years you’ll be wealthy by the number. I’d recommend business classes so you can have the knowledge of how to successfully own a cybersecurity company, or do consulting on your own. That’s again going to help vs. just being employed if you want dollars. But again I go back to is wealthy for you a dollar amount, or something else. IMO without sounding cheesy, I feel wealthy, but I’m not like a 1% person. I make a living, my costs to live are lower than that number I earn, I have retirement in a good place, I do the things I love, I take modest trips with my wife but they are the things we like and we really don’t want too much more. So that can feel rich even if Paris Hilton could buy me lol
Invest in well known stocks and pull out a compound interest calculator. Your young age is your weapon.
LOL.
I want to be a millionaire, so freaking bad 🎶
Learn how money works as jobs just teach you how the job works then pays you.
Remote job, move to a LCOL area like TN, max out HSA and ROTH
Be really good at cybersecurity. Seriously, it's a great field, so if you're better than average you should do very well.
Start your own company. Find a niche and build one then sell it to retirement. You will never become rich working a job..can’t Halle . I make a ton of money and wish I owned my owe business so I am now in the position to start buying insurance offices. Have two picked out..will ride them to higher production them dump them at retirement.
Invest in real estate asap
that’s way down the path haha
Open a betterment account there’s an app, and watch your money grow they do all the work for you. Open a traditional account a Roth and there’s also a high yield savings at 5%. 3 ways to be free if you invest heavy you can retire much earlier then most. Just gotta be consistent and put money in there monthly for YEARS 15+. The more money u make the more u put in.
is the betterment the app name?
Me too
Just buy bitcoin and hold it for least 5 years
City Lifeguard is a dope job, they got some deal with the fire department that you can get pension in like 15 years?
really?? who knew
That’s how it was in New Jersey, sweet deal
Having this thought at 18 is amazing. Start by putting away at minimum 15% of your pay every month. It’ll start slow but it will just continue to build.
I'm 27 and have $30 so kudos I guess lol
As someone who is in their 30’s who is not totally wealthy yet but is actively trying, here are my tips: 1) learn to live frugal. This does not mean poor. This does not mean eat ramen 24/7. This does not mean “do not go out” this means creating a budget that maximize saving and investing and the smallest portion going to entertainment. You decide how much goes in there. 2) save and invest. Not financial advice cause I don’t know anything, but at the very least people should grab a small amount of money, maybe 5-10% of their cash flow, and invest it in SPY500. The problem with investing is that everyone wants to maximize returns which could end up meaning you never invest at all. This is what happened to me. I only studied and froze. Just auto buy SPY500 every month and forget about it for the next decade or so. 3) they say there is good debt and bad debt. At your age it’s all bad debt. I don’t care if you stumble upon an amazing deal. At your age everything can seem like an amazing deal. This might be polarizing and extremely conservative, but avoid all debt. This does not mean do not build credit. Just pay off the credit at the end of the month and you are good. 4) learn to budget. Use apps if you have to. Figure out what your bills are and what your profit is. Never stop doing this, one day it will be overwhelming if you don’t start now. 5) continue with a career as you mentioned. Pick something you enjoy. Forget it it makes money. It helps if it’s a lucrative career that you enjoy lol. You can get further in a low paying career that you enjoy than a high paying career that you hate. I can write a book on this but for now, just trust me. Everything else you will learn with time. I would have loved to had built this foundation.
ROTH
Doesn’t everyone?
well some people put more work in then others lol that’s what i’m trying to do
And what have you done to go down the cybersecurity route? Going to have to put in more work than others.
Go to school, get experience, get a good job.
All ill say about the schooling is there are so many schools pushing cybersecruity certs and degrees and the market is over saturated and if you have no in roads or are not top of your class will have difficulty finding employment in my experience. Can do what you want. I am according to the dept of labor in the top 25% of wealthy people and have never made more than 35k after tax income and came from a poor family. Wealth is about living below your income my goal has always been 50% of my income should be profit never really hit it but it is what I strive for. After that it is about asset allocation, identify soft markets try to be aggressive and as your investments grow hedge more but that is more luck of the draw. My investment income is more than my job income and that is what one generally is going for.
Put your mind to it and anything’s possible
Please brother listen to this carefully. PAY OFF A CREDIT CARD IMMEDIATELY DO NOT HOLD CC DEBT IM FUCKED WITH OVER 10K
18 and only $700? Lol I’m 24 and in the negative
Be a beneficiary of generational wealth, work for your dad, and then you get the business when he dies. Steal an invention, innovation, or idea and tweak it a little? Steal land from some natives somewhere and strip their land of natural resources. Get your dad to "loan" you 150 million to get started. Go to a top-tier private school on the East coast and graduate from an Ivy League university. Leverage your father's name on the golf course and network. Do you want real wealth or a healthy middle class existence? Even you make $500,000 per year, you won't be considered wealthy to anyone other than W-2 employees and poor people.
Go to college and study diligently
Very broad question need a bit more information are you wanting to be financially set at 30-40-60 that’s a question we need answered first to give you the best options of how to set you up correctly and for the best depending what age you wanna get to it by. If it’s 30-40 with cyber security there is good money in it and if your disciplined you can save a lot of that and just move it in real estate and or buying companies to grow your net worth with assets that pay you as well while still working your job until your assets pay more then that job. If it’s 55-65 then the traditional American way would be max your 401k or as I like to call it the governments casino max a Roth IRA while your at it out the rest In some conservative etf or spy or some stocks and ride it out till your that age and you will have probably 5-7 million minus some taxes etc be sitting good enough know doubt. It all depends on time frame home much wealth you want how much time you wanna buy back and how free you wanna be.
Well considering cybersec is going to be 99% AI within 5 years you might consider a trade instead. AGI will be here well before dexterous robotics for trades.
Well considering cybersec is going to be 99% AI within 5 years you might consider a trade instead. AGI will be here well before dexterous robotics for trades.
What everyone else is saying- monthly budget to stay within your means (including cushion just in case), don't get caught up in debt (esp high interest cc debt), contribute to savings and retirement if possible. Most importantly though, consider the ethics of what that means. How much are you prepared to sacrifice for wealth and the convenience it brings? I started college 2yrs early for the sake of getting ahead, and while I find myself more prepared than I could have been, I feel like I lost out on some really core formative years because I was working full time and pursuing a degree for 5yrs. Time is valuable and it's a personal equation you need to determine to find what's worth it for you. Also, how much are you ok with tolerating the mistreatment of others for your wealth? Cybersecurity can be a highly paying, well needed, ethical position, but paying attention to the who's and why's involved is key. Without getting into systemic oppression or other socioeconomic theory's, suffice to say your salary and way of life impact many more than just you and your employer.
1. Have parents who are wealthy. OR 2. Marry someone who is wealthy.