Money advice for a 19 year old

[displacedtexan]

I done 8 in the Marine Corps 0351-0352 and last tour 8411 first tour helped evac siagon, my ass was in the grass no cannon fodder here, would of went 20 but got married and started a family, To much seperation from the wife and baby. Nothing foolish in defending your country.

Thanks for what you did. Glad you're here to tell about it.

I didn't mean it as disrespect, but it's not "just another job", it's an honorable, respectable decision. But a decision.

 

[displacedtexan]

As a former Navy Nuke, the advice that was given was pretty solid. He wasn't advocating being an 11B in the Marines, the Navy Nuclear program or CT program, quite a few Air Force technical ratings will get you 2-3 years of schooling that a lot of Universities will give you credit for, a solid technical education and actual work and leadership experience. Plus, if you don't want to do 20 (or more) many of those programs also come with some sort of "college bonus" on top of the GI Bill, so that after you do your 4 or 6, you can go straight to school. Now you have a degree, actual experience, and leadership skills. Trust me, that means something and you will quickly surpass your "peers" who just have the degree.
I did 10.5 years in the Navy, was able to get my undergrad while I was in (tuition assistance meant I didn't have any debt either). I am less than 50 years old now and am the General Manager for a parent company that has three companies under it. I live debt free, live in a nice house (not a McMansion), own my own hunting property and will be able to retire at 60 if I wish.

If the military isn't an option and you don't mind travel, get on with an industrial construction company and learn a trade. Our welders are paid 32-35 per hour plus 130/day per diem. Most of our projects offer at least 60 hours per week during our busy seasons (spring and fall). You can easily make $120K and only work 6-7months out of the year. Our Superintendents/PMs are making $225K+. None of them have college degrees. All of them are very smart guys, lead people well, and work exceptionally hard.
I also know quite a few guys who started in the field, made good money and put a lot of it away. After 5-10 years, they parleyed that into full time maintenance jobs with one of our customers, or took some of that money, went to school, got an Associates or Bachelors degree and entered the corporate world, or in most cases joined the management track in their old company or similar company.

There are lots of options. Just commit to one and work hard.

Poorly worded on my part...

I didn't serve, for my own reasons. I've got many family and friends I respect who did. Wasn't saying it as anti enlisting.

But in my experience those that just saw it as a short path to retirement, had a terrible experience, and terrible assignments. Because it was something they didn't really think through.

 

[MattB]

Ramsey is great for getting for helping people learn discipline and getting out of debt, but that is not what this guy needs. As other have stated, set goals and invest in yourself. Set some goals and find an achievable path to meet them.

 

[robtattoo]

If you can live without it, do.

The best way I've ever found to actually save money, is to save it as cash in a safe. No, it won't earn you anything, but it'll also never be worth less than is printed on it & once you get even just a few hundred put away, you'll be reluctant to spend it. Increasing the stack size becomes more of a goal than using for things you don't need. Save it in the biggest bills you can. Everyone hates breaking into a hundred. Also, in this age of instant payment & debit cards, cash is harder to waste.

Drive an old gas truck & buy a repair manual for it. Spend $50 on a second hand bike & use it as much as possible. It's free travel & a workout!

Don't drink. Alcohol nearly ruined my health, but it also costs a fortune. Learn to make wine if you have the urge. It's nearly free.

I don't know if it's in your wheelhouse, or if you're mechanically minded at all, but I made a very respectable living as a kid repairing & selling old lawn mowers. You can pick them up at a junk yard for a couple of bucks, spend an afternoon & maybe $20 in parts (9:10 times) & flip it for $100. It's not a massive return, but if you can pick up & knock out 5 or 6 a week, that $50-80 profit soon adds up!

 

[jjohnsonElknewbie]

Ramsey is great for getting for helping people learn discipline and getting out of debt, but that is not what this guy needs. As other have stated, set goals and invest in yourself. Set some goals and find an achievable path to meet them.

Disagree. I have my last 2 teenagers in high school, and our schools don't teach them $hit about financial literacy. Ramsey does that in spades to the point of overkill. However, for young people that pay attention he can PREVENT them from accumulating debt and prioritizing at a young age. I'm not a fanboy of his at all and my company offers his program for free. IMO its just best to start early vs late.

 

[Aoudaddy]

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

Get an education, manual labor (non tech degree/HS education) will only get you so far before you plateau.

Im a lawyer, started making 6 figures my first year out. Its been only up from there. Have emergency fund, investment properties, gift myself a pair of Lucchese every year, BMW paid off, and a list of hunts booked 2-3 years out. Ive worked my ass off so dont think its easy. Try to not buy “dumb” stuff or waste money on things that dont have purpose.

 

[woods89]

Dave does do a good job of being brutally honest with people who are in bad situations.

One thing I disagree with him on, is the fact that he believes you get by on beans and rice today to be wealthy tomorrow. That's great for those who live a long life, but it doesn't work that way for everyone. People sometimes work all their life and die shortly after the retirement they have prepared for so long. And some people unfortunately die young. Happiness is about balance. Saving is certainly a great thing, but do some things while your young as well. I'm 33, and I've been to CO hunting 3 times. Dave would have not said I was in a place to do that, but I don't regret it one bit.

A good book to read down this line is When Breath Becomes Air, by Paul Kalanithi. He had been through years of medical school, and was at the point of his neurosurgery career really paying dividends, at age 36, when he was diagnosed with terminal lung cancer. He lived for a little less than 2 years after diagnoses, and wrote that book in that time. It's a good reminder that the clock is ticking for all of us.

 

[MattB]

Disagree. I have my last 2 teenagers in high school, and our schools don't teach them $hit about financial literacy. Ramsey does that in spades to the point of overkill. However, for young people that pay attention he can PREVENT them from accumulating debt and prioritizing at a young age. I'm not a fanboy of his at all and my company offers his program for free. IMO its just best to start early vs late.

What is Ramsey's advice in terms of how to determine a career path? Trades versus college? Cost benefit to assess a bachelor's degree versus masters or PhD? Industries in which someone with a given education level stands the best chance to maximize earning potential? What are his recommendations for assessing personal skills and determining which of those paths is optimal? IMO those are the sorts of things that will give this young man the best opportunity of making the most with whatever skill sets, motivation, etc. he possesses.

Financial literacy is a good skill to compliment that, but I'd rather figure out a way to make $150K/year than how to stay out of debt while making $12/hour.

 

[wind gypsy]

Try to not buy “dumb” stuff or waste money on things that dont have purpose.

gift myself a pair of Lucchese every year

Joking.

 

[displacedtexan]

Dave does do a good job of being brutally honest with people who are in bad situations.

One thing I disagree with him on, is the fact that he believes you get by on beans and rice today to be wealthy tomorrow. That's great for those who live a long life, but it doesn't work that way for everyone. People sometimes work all their life and die shortly after the retirement they have prepared for so long. And some people unfortunately die young. Happiness is about balance. Saving is certainly a great thing, but do some things while your young as well. I'm 33, and I've been to CO hunting 3 times. Dave would have not said I was in a place to do that, but I don't regret it one bit.

A good book to read down this line is When Breath Becomes Air, by Paul Kalanithi. He had been through years of medical school, and was at the point of his neurosurgery career really paying dividends, at age 36, when he was diagnosed with terminal lung cancer. He lived for a little less than 2 years after diagnoses, and wrote that book in that time. It's a good reminder that the clock is ticking for all of us.

Great point.

I could have more in the bank, but at 39 I've done things many people will never do. Because we've tried to balance being responsible and having fun.

The right time is now.

 

[Mighty Mouse]

The best way I've ever found to actually save money, is to save it as cash in a safe. No, it won't earn you anything, but it'll also never be worth less than is printed on it

That's true in nominal terms, but in real terms (which is what matters) cash absolutely will become worth less over time. Even "modest" inflation of 2% per year (which is what the crooks at the Federal Reserve say is their goal) will cut the purchasing power of your cash savings in half over 35 years. Annual inflation of 6% (which is the current 12-month rolling average) will cut the purchasing power of your cash savings in half every 12 years.

I fully agree that saving is the most important financial habit to develop and that keeping a healthy amount of cash on hand is wise, but saving 100% in cash is not a good long term strategy for building wealth.

 

[jjohnsonElknewbie]

Financial literacy is a good skill to compliment that, but I'd rather figure out a way to make $150K/year than how to stay out of debt while making $12/hour.

All of the things you mention don't mean squat if a kid doesn't know how to write a budget, save for unexpected expenses, or God forbid balance a check book. Not to mention if/how/when to use credit to your advantage. You may think these are "givens" or no big deals, but I can tell you from my own mistakes and the little I see my kids being taught that they are not.

Too many kids try to figure out the big picture, without having any idea how to pay for it or avoid common budget disasters. Ramsey provides kids with the fundamentals to prepare to make the decisions you talk about first, before making a big move and then figuring out how to pay for it.

Would you go to a dealership to buy a new vehicle without knowing what you can afford or how you were going to pay for it?

 

[Aoudaddy]

View attachment 391675

Joking.

LOL those boots look great with suits when walking into court my friend

 

[browning2480]

What is Ramsey's advice in terms of how to determine a career path? Trades versus college? Cost benefit to assess a bachelor's degree versus masters or PhD? Industries in which someone with a given education level stands the best chance to maximize earning potential? What are his recommendations for assessing personal skills and determining which of those paths is optimal? IMO those are the sorts of things that will give this young man the best opportunity of making the most with whatever skill sets, motivation, etc. he possesses.

Financial literacy is a good skill to compliment that, but I'd rather figure out a way to make $150K/year than how to stay out of debt while making $12/hour.

Dave has him covered with Ken Coleman. He is all about career and how to get there. Free services for resume building and how to turn your skills into marketable assets in the job market. They push trades heavy. Not arguing but just pointing out that what you ask is covered under the Ramsey Solutions umbrella

 

[conley417]

LOL those boots look great with suits when walking into court my friend

Texas

 

[loganwayne]

I'm 30, and will admit i did it all wrong. Ill tell you the same thing i tell everyone that i talk to when i got back to the college i went to for their mentor programs.

You need to decide what is important to you, things or experiences.

Just because you can afford a nice new truck doesnt mean go out and get one. I have a very good salary now, i DD a 99 nissan frontier that the windshield leaks on that i bought for 800 dollars, and i have a 07 tundra for pulling my boat. i could afford a new truck but would rather put the money into other things. i could also walk out of my job and work fast food the rest of my life and be fine.

If you want to start saving money the easiest and fastest way to save several hundred dollars a month is to not eat out for any meal. i didnt read everything before my post so you may be doing this now. but sit down and figure what you pay for a meal 5 bucks for breakfast, 10 for lunch, 15 for dinner is pretty common around where im at. thats 30 dollars a day now x7 thats 210 a week, 840 a month. me and my wife can grocery shop for a whole month for less than 250 typically. now we still go out to eat and what not but limiting that you can save alot of money.


At 30 im debt free, house is payed for, vehicles, and toys are all payed for. None of these items are the nicest newest out there, but if i wanted to buy a new rifle i can go do it, if i want to go out west on a hunting trip i can plan it and not have to worry about if i can afford it or put it on a credit card.

Alot of people i know are driving brand new cars, big new house and brand new toys, but they are in debt up to their eyes and living pay check to pay check to cover the bills of the toys.
Don't be those people.

 

[dtrkyman]

I had a high paying construction job when I was 18, worked 7 12s for a long time!

Instead of being smart, I quit the job and lived off the money for a couple years, I was living with my parents and if I would have invested all of it I’d be retired!


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[ewade07]

I had a high paying construction job when I was 18, worked 7 12s for a long time!

Instead of being smart, I quit the job and lived off the money for a couple years, I was living with my parents and if I would have invested all of it I’d be retired!


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Hind sights 20/20. How else does one learn?

 

[CorbLand]

Hind sights 20/20. How else does one learn?

Definitely when I look back and go "wow, that was a dumbass decision I made."

 

[ewade07]

Definitely when I look back and go "wow, that was a dumbass decision I made."

No doubt. I'm financially stable at this point in my life but looking back it wasnt good. My low point came when i moved back from NE (moved there for a gf) to MT dead broke. My brother had to buy me groceries for the first week back. I had to move in with some family friends who were gracious enough to let me live with them for a semester before i got the boot there. I packed all my shit into my car and lived in it/couch surfed for a week before moving in with my gf at that time simply to have a place to live. Thats a whole nother story....