financial stuff, thinking about moving out, got questions

[Pinseeker81]

+1 to the guy that said never get a credit card.
-1 to the one that said they're a good idea.
Almost NO ONE (I'll look up the actual number later) pays off their card in full every month, no matter how much they intended to do so when they got it. The ones who do are somewhere in about the 20% minority.
DON'T get a card for bonus crap like airline miles. Not only do you have to run an insane amount of money through them to get a useful amount of miles, 78% of cardholders never even use them anyway.
Annual fees are a further ripoff on an already bad product.

Also, studies have shown that you tend to spend about 20% more money when you swipe plastic than you do when paying with cash.

If you have NO DEBT, take the 401K up to the point they quit matching, then invest in a Roth IRA in good mutual funds. Even in tough financial times the market has still averaged 12% return. You can only put so much a year in a Roth, but based on your income you won't hit that number anyway.

If you DO have any debts, (like an American Excess card or the like) paying those off first will make you more money than investing. 18%, or 22% or 30%( ) NOT paid to a credit card is mathematically the same as earning it.

[Guinness23]

Pinseeker has very good advice overall. I am a certified financial planner and love to hear when young adults start making good financial decisions. I have a few rules of thumb for people just starting out on their finances:
*Save 10% of your income, no exceptions, get to that point as fast as you can
*No consumer debt
*Have an emergency fund of 10% of your income, that is realistic for most, 6-12 months is not realistic
*Get in the right size house for your income as soon as possible, typically 2-2.5x your income (this varies significantly on where you live, such as Cali and big cities). If you are going to be there for awhile, don't worry about the down payment as much, the sooner your in the better.
*Don't pay commissions for your investments. Do it your self if you have a good understanding of asset allocation, or find yourself a planner that you can work with that is a fiduciary (somebody who gives advice based on what is right for the client, first and foremost, somebody who sells advice not a product).
One last thing, enjoy your life and make sure you are putting more of your money towards the things you value (golf) and less towards things that mean little to you (lattes). Money is your servant, you are it's master! Feel free to contact me if you have more questions, I think my information is in my profile. Good luck, you seem to have your head on straight, and that will serve you very well financially.
Happy New Year.

[Voiceontapex]

can you even get a house loan without a downpayment?

cuase i know if you walk into a car dealership its doable to get a car, but i almost think they frown upon something like that

cause they hardly ever ask DO YOU have a down payment, they say,

HOW MUCH are you putting down lol

ive made it my new years resolution to save as much as possible and i think 10% is a doable number to push into savings every check and i probably wouldnt miss it and the weeks i dont spend much, ill push more than 10% into it

right now i live with my parents and my grandfather,

and if something happens to my grandfather the house then becomes mine

(my uncle didnt trust having my parents name on the house or something, so he made them put my name on it or hed get lawyers or something dumb haha, dont know the details) but my names on the house if something happens to him

but i dont have to worry bout it really cause my parents arent going anywhere so they still be payin for it

[BigDave]

If I woke up tomorrow in your shoes here is what I would do:
1. Get rid of the car payment ASAP. If you can't pay it off in the next couple of months, sell it and pay cash for a cheaper one.
2. Do not get a credit card.
3. Tithe 10% to God.
4. Save at least 10%.
5. Do not buy a house until you have 20% down plus 3-6 months expenses in an emergency fund.

This is not how I did things when I was your age but it is how I wish I had.

People talk about borrowing money but in actuality, you do not borrow money. You rent it. You can choose now whether you want to spend your life being the guy who rents money from others or the guy who rents out his money at a profit.

[Voiceontapex]

my car is a lease ive never had a payment other than cell payment, so i guess because of that it was hard for them to give me a decent interest rate

it would have been to much for me to buy

so i went with a lease option for lower payments its only for 4 years

and i didnt plan on having a car payment originally, i was saving up money to get another car that i could just pay off,

and one day my car just over heated on me, took it to the shop to get fixed turns out the oil was mixing with anifreeze somehow in the system,

so i had to shell out 800 for the tow bill and all the shop stuff

and i couldnt find anything nice enough for the money i had saved soon enough i needed something to get to work

so decided to try and get a car with the money i had saved up

[uttexas]

There is some really good advice here. I agree, don't get a credit card. My father told me regularly growing up that the only thing you don't pay cash for is a house. There are exceptions, lets say, you start your own business ( with a good business plan ). I have always bought a one-two year old car, still under warranty; but someone else payed for the depreciation (a new car loses 30% of its value as soon as you drive it off the lot)

10% investing is an easily achievable goal, especially if you stay at home. Agree with above. Max out the 5% matching. Then open a Roth IRA. Vanguard, imo, is the easiest, lowest cost, most user friendly, and best customer serviced online brokerage. As far as what to invest in. Keep it simple (at first). The simplest are the target retirement funds example. VFIFX target retirement 2050. This fund starts out with 90% stocks 10% bonds and as your fund ages, it automatically rebalances for you so that the bond percentage gradually increases. At 2050, the bond percentage is about 70%/5% money market/25% stocks. Great diversification, automatic rebalancing, ease of online Vanguard all for an expense ratio of 0.21%. This isn't the sexiest way to invest, but when starting out, this is what I would recommend. If you want lower risk, just choose the target retirement 2045 or 2040 or even 2035. But, your time horizon until retirement is substantial, and you the potential great benefit/risk ratio is in your favor at your young age.

PS, I do not, nor do I have any family members that work in the brokerage industry. This is advice based on my experience. I do all of my own investing/retirement planning/etc.

[uttexas]

some good links.

http://www.fool.com/personal-finance...on-target.aspx

http://money.cnn.com/2007/12/26/pf/f...ewis.moneymag/

http://money.cnn.com/magazines/money.../actively.html

target retirement funds

http://www.consumerismcommentary.com...irement-funds/

http://forums.kiplinger.com/showthread.php?t=6885

[Voiceontapex]

my gfs dad is a stock broker, i dont know if hes one i should talk to or not

is it at all a good idea to do something like that thru your gfs dad? or should i go someplace else?

[uttexas]

Personally, I would do the investing myself, without a stockbroker. The vanguard website is really easy. They have online chat help M--F 8-5 if you have any questions. Investing by yourself is easy (definitely do a lot of reading first) and exciting. The market is terrible right now, but that means that it is a good time to invest. The market might go lower (I think it will---when the bail outs fail and more layoffs occur), but don't be discoraged. I have faith that America will adapt, overcome, and succeed. I have lived all over the world, and the American spirit and determination to overcome obstacles, develop new technologies, impliment ingenious business plans is unique. There is no other country so well suited to capitalism. Fifteen, twenty years from now, we will look back and think, 2008-2010 was a great time to invest. I could be wrong, but I really don't think so.

Stock brokers (in general) work on commission, and you might not get the most unbiased advise.

There is no one that cares more about your money than you. Outsourcing your investments to a broker is not something I would personally do.

[Pinseeker81]

On the car subject, I've GOT to post this.
Drive Free, Retire Rich.

Gives me chills every time I watch it

[Fraser]

+1 to the guy that said never get a credit card.

Well it doesn't matter how the rest of the world handle their credit or charge cards it matters as to how YOU handle them. I still think that in the hands of the financially responsible credit cards are very useful things, as you point out in those of the irresponsible nature they are horrible. The OP seems to have some sense of financial responsibility so think my advice isn't stupid. You happen to make mass generalizations about credit and charge cards.

The bonuses and cards with annual fees are useful but it depends on the card and the user. One of my American Express cards comes with a fairly hefty annual fee but if I add up the benefits that come with it (primarily related to travel; reduced hotel rates, room upgrades, car rental benefits and such) that annual fee has paid for itself more than three times over in 2008. That isn't including the fact that my money sits in the back for between three and seven weeks each time earning interest, something that for bigger spenders over the course of a year really adds up. Credit card companies are also useful when things go wrong. If I book a ticket on an airline that goes bust the credit card company gives me my money back, if someone steals my wallet then I'm not on the hook for the costs. If I have a wallet full of cash then that cash is gone. The key is finding a credit card that is suitable for your needs and behaviour. That behaviour may dictate that you don't need a card at all but don't let the scary facts about the financially irresponsible holding credit cards turn you off them as a product.

my gfs dad is a stock broker, i dont know if hes one i should talk to or not

A stockbroker, or a financial advisor? People often get them mixed up.

The latter would be helpful for giving you some pointers and free advice.

[Pinseeker81]

You sound like you work for a credit card company or something.

There are a small minority of people that can play with those snakes and are lucky enough not to get bit. That still doesn't change the fact that credit cards are a horrible rip off product.

"If I book a ticket on an airline that goes bust the credit card company gives me my money back, if someone steals my wallet then I'm not on the hook for the costs."
And the same holds true for my Visa Debit Card. Money on a debit card is cash too.


Debt is dumb, cash is king.

[zeg]

I'll toss my vote in for having a credit card if you're capable of controlling yourself. Like any tool, financial or otherwise, you have to understand what you're getting into. If you're someone who's going to forget or choose not to pay off in full regularly, then by all means stay away. If you can manage your finances enough to avoid interest, then go for it if you want.

In addition to the benefits that come with some cards, having a credit history is helpful when you apply for loans (car, house, etc).

In the end, there's no single answer to whether they're a good option. For some people they are, for some people not.

[ganjagolfer]

3. Tithe 10% to God.

exactly how do you give money to god and what does god need money for? i can hardly imagine god, the creator of the universe in all its endless splendor, having any use for cash.

[Big_M]

exactly how do you give money to god and what does god need money for? i can hardly imagine god, the creator of the universe in all its endless splendor, having any use for cash.

I am fairly certain you know what tithing is for... so my queastion is simply this... Are you trying to start a religion debate or do you simply feel the need to point out that you see no reason to tithe while others might.

[Surefire]

You sound like you work for a credit card company or something.

With regards to the debit card - credit card protection I am pretty sure that with a credit card legally you are liable for less if things go wrong, just lots banks currently operate good protection on debit cards out of good will. I'd rather rely on the law than good will.

Plus the interest free period alone is worth it to me, but as mentioned before it is an individual thing. If you can handle a credit card properly get one, if you can't trust yourself don't. However don't base this decision on what the guy next door or 'most' people do.

[Fraser]

You sound like you work for a credit card company or something.

Nope. I'm just one person who has found a credit/chargecard to be an excellent, useful and moneysaving tool

because I can responsibly use one. How can it be a horrible rip off product if used sensibly and as I suggest (paying off in full each month)? You aren't paying any more for your items (unless you pay cash and want to barter everytime you buy something!!) and you are delaying payment for anywhere from three to seven weeks. In that time my money is earning interest in the bank so I'm actually SAVING money. My cards with the annual fees pay for themselves several times over with the extra benefits they come with. You sound like someone who works for Dave Ramsey...or have just horribly misused credit cards yourself in the past.

[Voiceontapex]

lmao, sounds like 2 debates going on at the same time