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murseinthemaking 4,818 Views

Joined Aug 9, '12. Posts: 140 (13% Liked) Likes: 22

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  • Feb 23

    Quote from FlyingScot
    Short answer...yes. Longer more boring answer...while you won't get rich you can live quite comfortably especially if you avoid the major pitfalls of money management. First you have to learn and accept the difference between wants and needs. You want a Mini Cooper but do you NEED an expensive car? I want a pool in my backyard. I can afford it but I don't need it so...no pool. It would be a stupid use of my money. Credit cards are for emergencies and rare special occasions when you don't want to carry cash. If you do use a credit card to purchase something it should only be used if you have the cash in the bank to cover the purchase. Pay them off EVERY month! Seriously, credit cards are not invisible money. If you don't have it...don't spend it. Your first splurge on your first paycheck (contrary to what has been posted on other threads) should be an appointment with a financial planner. He/she can help you plan for paying off student loans but most importantly will train you to start saving for retirement now not when you're 40 and you realize at the rate you're going you will be living in a box eating dog food when you get old. If you start when you're young you should have plenty of money to live comfortably when you're old. Also, although heavily taxed that money will be available to you if something catastrophic happens. Mini Coopers are cute, but expensive. Make owning one a goal for the future and start planning for it now. Buy a car you can afford to pay off in 2-3 years (not 5 or more!). Drive it for 10 (believe me it goes by very quickly) and for the 7-8 years you own it free and clear put what you had been paying for a car payment into a special account. At the end of the 10 years you will have a really nice down payment plus the trade-in value of your car to buy an MC and still keep the payment within reach. You should not go into financial ruin for a car...it's just transportation. Apartments are great but eventually you might want a house. Think about this carefully when you start looking. Do you really need 4,000 sq feet of McMansion that you can barely afford. When I bought mine I was pre-approved for $400,000 but that absolutely does not mean I could afford a $400,000 house (a lot of house here in Ohio). The bank wanted to make money off of me but why should they get my hard-earned cash? I bought a small 2 bedroom house in a great neighborhood for less than $120,00 and I can comfortably make the payments. I have a nice car (Subaru Forester), I take 2 vacations a year, have all the stuff I need and all the toys I want (bikes, small sailboat, kayak) while still maintaining a robust retirement account and 3 YEARS of living expenses in savings (used to be one year but in this economy you just never know). I can buy all the clothes I want, splurge a little on things for the house, hire a personal trainer because I make good decisions on where my money goes in general. So if you're smart about you absolutely can have a nice lifestyle and, lucky you, you're just starting the great adventure. You have a lot of fun ahead of you.
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