As you may know in addition to this blog I write for HumbleDollar.com I didn’t write the following blog, but as you will see it definitely reflects much of my thinking and you may even have read similar ideas on Quinnscommentary.com
I urge you to check out the full article. You may even want to show it to the kids or grandkids.
45 Steps to Success Jonathan Clements | March 23, 2019
WHAT DOES a good financial life look like? Here’s a quixotic roadmap—comprised of 45 steps:
🤑Stuff part of your babysitting or lawn mowing money in a Roth IRA.
🤑Suggest to your parents that they should encourage this sort of behavior—by subsidizing your contributions.
🤑Get a credit card when you head off to college, charge $5 every month and always pay off the balance in full and on time. You’ll soon have an impressive credit score.
🤑Spend two years—but not much money—at community college, before transferring your credits to the college you want to graduate from.
🤑Live at home for a few years after college, so you can mooch off the free food and accommodation.
🤑Sign up for your employer’s 401(k) as soon as you join, rather than waiting for automatic enrollment to kick in, and stash everything in a target-date retirement fund. Contribute at least enough to get the full employer match. If there’s a Roth 401(k) option, favor that, because the tax-deduction on the traditional 401(k) won’t be worth much at your current modest income.
🤑Skip the new car—and accompanying auto loan—and buy a used car for cash.