What do they need to know?

baby12x

Wed, Sep 06 2017, 10:54 am

This was partially inspired by imamother so I figured I would come here to ask for advice.
I just started a blog giving financial advice. I am mainly speaking to young, just graduated girls. When I write I picture myself talking to a girl who just came home from seminary and is starting her first job. Obviously, I hope many others can gain from this as well.

So.. what did you wish you knew when you were just starting out? what topics do you wish were discussed?
If you have a child, what do you wish they would know about finances in this stage of life?

(Here is a link to the blog: www.adimesaved.com)

amother

Blonde

Wed, Sep 06 2017, 11:37 am

just took a look. It looks really good! I'm happy to see that you talk about compounding interest. It's really incredible how just a little bit of money put away early enough can really become a significant amount.

There's one small typographical error- in intermediate savings you accidentally wrote out instead of put- happens to all of us Wink

Hatzlacha with the blog!

amother

Bisque

Wed, Sep 06 2017, 11:46 am

Just finished grad school. I have 40 k in student loans, and 40k in mutual funds. Do I dump out all my savings and pay off the loan, or Do I pay it off slowly. It's a standard government loan, interest is high. If I choose the slow option, it'll take me about 2 years. Also, if I choose slow option, Do I change the loan so that I have lower interest rate?

amother

Brunette

Wed, Sep 06 2017, 11:53 am

When I was single and living at home I put away half of everything I earned (into savings) and spent the other half. I also maxed out my 401(k) from work. Both of these things came in handy! I also used a debit card instead of a credit card so that I wouldn't go into debt.

Things that didn't work for me - in my first year of work I invested $5000 in a stock tip from my father's friend - it was a penny stock (a tech penny stock in 1999 ... these were all the rage) and I lost all of it - around 8 years later I got back $300 from the initial investment and that was all! (Meaning the $5000 was all lost). So no more stock tip investing!

Also I put my 401(k) mainly in the S&P 500 Index Fund and that has done really well for me B"H.

I also always bought my cars instead of leasing - that has worked very well for me considering that my 2001 Camry (bought in 2005) is still being driven every day! However I am just not into nice cars - I imagine that someone who is single and loves "nice things" might prefer to lease.

I also separated maaser and made 2 checking accounts - one for regular checking and one for maaser so that I could write checks directly from the maaser account (it doesn't hurt at all that way!) ... right when I got paid I moved 10% over from the post tax take home pay.

Here's my last tip for now - if you can study for a high paying job, do it. I work in a high paying job and I am working the same hours as my friends who do very low paying work. I am fine with what I do ... No need to do something "meaningful" if you are going to hurt financially ... like social work, for example, which is a field that costs a lot of money to get a degree but then doesn't pay well. 18 years in the workforce has shown me that there isn't so much glory in the noble sacrificial profession of social work and there is more glory in being well fed, clothed and housed. However this is only my opinion and I am sure that there are plenty who would disagree with me.

amother

Brunette

Wed, Sep 06 2017, 11:56 am

amother wrote:

For sure do the slow payment.

amother

Salmon

Wed, Sep 06 2017, 5:04 pm

[quote="amother"]When I was single and living at home I put away half of everything I earned (into savings) and spent the other half. I also maxed out my 401(k) from work. Both of these things came in handy! I also used a debit card instead of a credit card so that I wouldn't go into debt.

Things that didn't work for me - in my first year of work I invested $5000 in a stock tip from my father's friend - it was a penny stock (a tech penny stock in 1999 ... these were all the rage) and I lost all of it - around 8 years later I got back $300 from the initial investment and that was all! (Meaning the $5000 was all lost). So no more stock tip investing!

Also I put my 401(k) mainly in the S&P 500 Index Fund and that has done really well for me B"H.

I also always bought my cars instead of leasing - that has worked very well for me considering that my 2001 Camry (bought in 2005) is still being driven every day! However I am just not into nice cars - I imagine that someone who is single and loves "nice things" might prefer to lease.

I also separated maaser and made 2 checking accounts - one for regular checking and one for maaser so that I could write checks directly from the maaser account (it doesn't hurt at all that way!) ... right when I got paid I moved 10% over from the post tax take home pay.

Here's my last tip for now - if you can study for a high paying job, do it. I work in a high paying job and I am working the same hours as my friends who do very low paying work. I am fine with what I do ... No need to do something "meaningful" if you are going to hurt financially ... like social work, for example, which is a field that costs a lot of money to get a degree but then doesn't pay well. 18 years in the workforce has shown me that there isn't so much glory in the noble sacrificial profession of social work and there is more glory in being well fed, clothed and housed. However this is only my opinion and I am sure that there are plenty who would disagree with me.[/quote

Can you share your profession? ]

crl

Thu, Sep 07 2017, 5:07 am

Love the blog!! It's so important to have smart financial skills and its not taught as a standard, which is a shame.

My advice is more job oriented: Go for a career that either pays well or that you really want to do and caters to your skills, not just one that you "hear is flexible for marriage", especially since one never know when it will happen.

Also, don't limit yourself to the Jewish sector. My job title maybe exists in a few select companies but does not pay nearly as much as in the general sphere. However, you also need skills that meet the industry standard, but if you're good, it will be rewarded financially.

Don't be afraid to know your value and ask for it. Keep up with your career and stay current, even if it's hard, because again, makes you more valuble.

I have a lot more general career tips that translate to money (hopefully) but this mama has to get to work. To be continued!