My parents give me sound financial advice - if grew up during their time. Let's face it, some of the fundamental money lessons that were learned from the great depression and baby boomers don't apply to generation Y. Thanks to this article, I have a clearer grasp of which of pa's advice to scrap.
The article in a nutshell:
1. Don't Count On the Degree: do something that you enjoy, but research the job outlook for your field before committing to the degree program. (Lawyers are having it tough
2. Be Afraid of Credit: don't think of your current job as safe. Many have been laid-off, leaving them with no way to pay their debts. Keep debt at a much lower level than in the past.
3. A Home Isn't an Investment: if you purchase a home, don't do it because it's a good investment. Do it for other reasons, like a low interest rate and a great price. Don't count on making money from your home when you move.
4. Invest Early and Often: think about your retirement plans on the first day of your career and continue investing more than you think you should
Well, it's too late to learn from Lesson 1. I'm working on lesson two. And as for lesson three? I beg to differ.
The article states that the average homeowner will only live in their home for an average of 7-9 years - not enough time for the value of the house to appreciate. I agree with the author on that point, but not with the lesson. So you want to move? Find folks to rent your home to offset the mortgage and maybe even make some extra dough. Wait until it appreciates (this could take decades) and THEN sell it.
Lesson four: I'll get on this when student loans are gone! I have began investing actually...but very small. I am adding all the toonies and loonies I receive from change to a big crayon piggy bank. Perhaps over years and years, it'll add up to something. :)
Let the savings begin restart!
Let the savings
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