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Im off to college this year and its really got me thinking about money. Once I graduate I want to know exactly what Im going to do with my money. Im looking for anything good to read that teaches you how to spend wisely or to make your money work for you. Id also like to hear how you manage your money wisely or anyother tips you have regarding money. Im sure others on dootalk are interested this subject aswell
 

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Get a good accountant/ financial adviser. (I'm available). start a retirement plan as early as possible. Even now you can start putting money aside in investments or CDs. Then once you start a career max out your contribution until you use up what you have set aside, then keep putting in as much as you can after that. If you start $5000 a year at 25 and increase each year as you make more money until you are maxed out, you will be much better off when you want to retire. Most employers match around 3%, so at the very least figure out what 3% is and pay that so you get the full match. It is free money.
Then talk to a financial adviser once you are settled. A good one can tailor a plan to fit your particular circumstances. All different funds/bonds/stocks have different risks involved. Many factors to consider.

Remember the two worst investments are kids and cars. Never buy new.
good luck, its hard to make money with investments these days.
 

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Also saving towards your first house is very important, if you can pay off your mortgage early like when your 35 or 40. You will be in great shape and have an extra $1000 each month for fun and for retirement savings. I started investing at a early age of 18. It is important to have goals in life for example, to buy a boat by the age of 23 or a nice used truck. I graduate in a year from now in my 3 year college program. What are you taking in school? Try not to rack up unnecessary student debt is really important. Don't buy a T.V. Xbox, games, a new sled etc with your student loan.
 

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Although putting money into RRSP's is what everyone says to do, you should think real hard on that as they will kill you when you go to take it back out.Don't listen to the investor,go talk to real people in the real world.If it was me I would still put money into RRSP's but not everything,instead I would invest in realestate in the form of rental property.If you get 3,4,or even 5 places to rent,in 20yrs they will be paid for and now you will have that money as an income or you can sell them off and have lots of money all at once.Then you will need to watch your capital gains.To me this is a better deal as you will get a monthly income of what ever your rent is...minus property taxes and insurrance
 

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Get a good accountant/ financial adviser. (I'm available). start a retirement plan as early as possible. Even now you can start putting money aside in investments or CDs. Then once you start a career max out your contribution until you use up what you have set aside, then keep putting in as much as you can after that. If you start $5000 a year at 25 and increase each year as you make more money until you are maxed out, you will be much better off when you want to retire. Most employers match around 3%, so at the very least figure out what 3% is and pay that so you get the full match. It is free money.
Then talk to a financial adviser once you are settled. A good one can tailor a plan to fit your particular circumstances. All different funds/bonds/stocks have different risks involved. Many factors to consider.

Remember the two worst investments are kids and cars. Never buy new.
good luck, its hard to make money with investments these days.


priceless.........
 

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Stay out of debt, try to only have your mortgage payment each month. In my opinion cash is king when it comes to cars, sleds or just toys in general. My wife and I are on track to pay off our house in 6 years and can't wait for that to be done. The best advice about debt I have ever received is this " don't get yourself in a position that you have to work" to me that meant if I break my leg I won't be screwed financially I feel for people when they say " oh I would love to come ride today since it dumped 3' last night but I have to work on sat. so I can make my truck payment". That's having to work. On a side note I have no problems working 80 hr weeks if it's not snowing.
 

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Do like me, Work put money in bank, pay bills, dont go out party every week or some times of the week like some of my friends do(no cars no sled nothing) And you see that in 4-5 months youl have more moeny in bank that you think. LOL

Im 19 and I own my own 2001 Dodge cummins ext cab short box. Repainted orange, 35" toyo mt tires,5" suspsion lift,20x10" rims,a180hp more programmer, bigger turbo and injectors,..Now im planning on a transmision worth 6-7 grand but im waiting to have atleast 10 grand before buying to keep cash. I have to account at the bank ..1 to spend times to times and the other is jsut saving never touching it.. THen theres the pension plans ect..

Just saying to do big loans and get in dept..stay calm dont go party wasting it..
 

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here is an idea, dont spend more than you make. If you cant afford to pay cash, other than a house, dont buy it. Interest is the biggest waste of money ever.
 

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Although putting money into RRSP's is what everyone says to do, you should think real hard on that as they will kill you when you go to take it back out.Don't listen to the investor,go talk to real people in the real world.If it was me I would still put money into RRSP's but not everything,instead I would invest in realestate in the form of rental property.If you get 3,4,or even 5 places to rent,in 20yrs they will be paid for and now you will have that money as an income or you can sell them off and have lots of money all at once.Then you will need to watch your capital gains.To me this is a better deal as you will get a monthly income of what ever your rent is...minus property taxes and insurrance
MXZ-Man

If you take this plan you need to take a few other things into account. Having tennants also means having to woryy about collecting rent, getting stiffed by renters, getting calls at wacky hours about problems with buildings tennants etc.. Countless hours or dollars spent on maintaining, repairing, rehabbing, etc... the buildings don't get taken care of by themselves or the tennants (usually).

The other thing you need to take into acount is property values. Look at the loss the housing market has taken over the last 3-4 years or so. Usually a slumping housing market has a negative effect on monthly rents.

I'm not knocking what Mack is saying just pointing out that it's not all roses.
 

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Discussion Starter · #10 ·
A wife and kids are a long ways away for me. Im going to school to be a powerline technicain so my job will have me travelling the province. Ill have to look more into RRSPs, I really know nothing about them. I have also looked into realestate and have an older friend who already owns and rents out 2 houses. He said in a few years he plans to buy an appartment complex and would let me in on the deal.(I know ill have to research the deal well). Ill also make sure to get a good financial advisor when the cheques start to come in. Thanks for the tips, keep them coming
 

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Discussion Starter · #11 ·
i just did a quick read about RRSP's. do you think they are the way to go persue other investiments
 

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Your most of the way there, at least you have the right idea. Making money is ok, saving money is good, but having your money work for you is the ticket!! Having to ability to earn a residual income and enjoy tax breaks at the same very often changes people financial situation drastically!!

I can show you how!!
 

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Im off to college this year and its really got me thinking about money. Once I graduate I want to know exactly what Im going to do with my money. Im looking for anything good to read that teaches you how to spend wisely or to make your money work for you. Id also like to hear how you manage your money wisely or anyother tips you have regarding money. Im sure others on dootalk are interested this subject aswell
Do like Ron Paul says,live within your means not beyond them. If you do that you will not get yourself in over your head. Steer clear of using the plastic too, when interest rates start going up and inflation hits,hold on it is going to get crazy then.
 

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financial advice from a 19 year old. I'm sorry but thats the funniest thing ever. You are about to embark on the best time of your life. There are so many things that can change from here to later that its not even comprehencible.For now lay low with the credit card and when you graduate and grow up you will have forgotten all about this post. Then get your CD's 403B and a good pension.
 

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One investment you should consider is your health. Visit the dentist, eye doctor, and general physicals. I don't know how things are in canada, but if you have the opportunity to purchase cheap life insurance and fixed long term care at a young age, it can be a big difference later on in life.
 

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i just did a quick read about RRSP's. do you think they are the way to go persue other investiments
You need a mix of investments. RRSP's are part of the mix, real estate, stock market, etc. could be others. The immediate perk from RRSP's is the first R, registered. Meaning they are tax deductible. Ie. they decrease your earnings (from the governments eyes). As an example, if you made say $50k in a year, and you paid $10k in federal tax. Your RRSP limit will likely be around $10k (18% of earnings I believe). If you contributed 10k to RRSP's you will get 4k back when you file your tax return. Essentially, it's tax free $ at this point - but you cannot use it til you retire. But that is another perk. During your life, you invest into RRSP's to lower your earnings - therefore in effect being taxed less. When you retire - and you withdraw these RRSP's, they then count as 'income', and you have to pay taxes on it. The big difference is, when you're 65, you can likely live off of 25k a year comfortably, whereas when you're in your prime $ making years, you are probably making 75k+. The taxes on 25k is a lot less than 75k. So, you save the taxes when you invest, you pay minimal taxes when you use. If you don't move funds into RRSP's, then you have to pay taxes on earnings period.

The kind of RRSP depends on you. They will tell you mutual funds are safe, ie. balanced funds, money market funds, etc. etc. etc. But, they are not. As an example, this week with the 'financial crisis', mutual funds have tanked. Combine that with the previous tanking in 2008 - and the gains that people have made with mutual funds over the past 10 years are wiped out. A more conservative fail-safe approach is laddered bonds or GIC's. Over the span of 40 years - they probably perform just as well as other more risky items.

One last tip - be careful of MER fees. These are the fees that banks charge to manage a mutual fund for example. They can be upwards of 3% on funds. Your friendly advisers will not mention anything about these evil things - and they come right off your principle and earnings... without you even knowing. My advise, sign up for a Direct Investing account - the MER's are either lower or non-existent depending on where you park your $.

That's my 2 cents. Take it for what it's worth
 

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Im off to college this year and its really got me thinking about money. Once I graduate I want to know exactly what Im going to do with my money. Im looking for anything good to read that teaches you how to spend wisely or to make your money work for you. Id also like to hear how you manage your money wisely or anyother tips you have regarding money. Im sure others on dootalk are interested this subject aswell
Do NOT get a credit card in college, or perhaps EVER!

Do NOT purchase a vehicle with a car payment. Put that $400 per month into a mutual fund account, earning a modest 5%, and when your retire at 62, you'll have about $602,000 that you can start drawing on. And that wouldn't include any retirement you might have!

Do marry someone who thinks about money like you do.

Do buy a house and put a boat-load of cash down on it so that no matter what happens, you don't end up like so many who now owe more than their homes are worth....

Do not take out a Home Equity Loan EVER!

Pay cash for your toys, maintain them well, and then sell them before they are worthless...

Good word, at 48, I could go on and on and on.......

Tim
 

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here is an idea, dont spend more than you make. If you cant afford to pay cash, other than a house, dont buy it. Interest is the biggest waste of money ever.
it's tip the US government could use....


and, interest paid is a tax deduction, not as much as I'd like, but is still the case......
 
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