? asked in Business & FinanceInvesting · 2 months ago

For older adults: What financial advice would you offer the younger generation today?

What advice would you give to someone wanting to spend their young days spending their money and experiencing the pleasure of life? Would you tell them to save their money and invest it into their future? Would you tell them to sacrifice their young days working their butt off and invest in their future? Or would you tell them to be enjoy their life and experience all that they want as long as they aren't spending all their money?

I'm curious to know, I'm 23, I've always wanted a BMW in my teenage days, but when I turned 22, that changed and I wanted a Mercedes Benz for when I save up the money, but now I don't want any luxury car. I think its better for me to save all that money and invest it for my future, possibility my retirement which may sound crazy but my dad had saved a million dollars for his retirement but when he lost his job during the COVID pandemic while working at a restaurant, he already began stressing out about his financial situation. 

13 Answers

  • 1 month ago

    My hot car of choice was a Mustang GT, funny enough my Net Worth started to explode after I ditched it.  These are the things I did mid-30s to get myself financially set: I spent a couple years working my kester off to get my debts under control, a sizable down payment for my home built up (lower monthly payments mean more discretionary income every month), bought the home when the market was low and refinanced when interest rates were.  I started spread sheeting my finances every month, set financial goals (like the down payment fund), made a plan and enacted it.  I religiously save, invest and pre-pay debt every paycheck.  I turned 50 this year and I am on auto-pilot now to any early retirement and a year long round the world trip (another goal I set).  But the single best thing I did was the spreadsheet, it just keeps you focused on the big picture and cuts down on the pointless splurging on nothing important.  

  • Anonymous
    1 month ago

    Expensive cars are the enemy of building wealth. You need to strike a balance between saving and experience.  I look back and wish I did some things that were very expensive but if I did a lot of those things regularly I never would have achieved financial independence.

    Im talking about things like Jet Skiing, helicopter rides & so forth.

    All my vacations were done on the cheap and I do wish I would have taken more but again, that spending could have had quite a negative effect on my financial security.

    One thing I learned at a young age is most millionaires do not buy new cars.  And I never have. I bought one decent car on finance when I was young and I paid it off early and was determined to never have to finance a car again. So I always paid cash. It took planning and saving. 

  • 1 month ago

    My own kinda advice to the young and old people outta there is to join the Forex/bitcoin trading through a reliable manager like “Annie Fox” on Facebook

  • kswck2
    Lv 7
    2 months ago

    It is said that 'He who dies with the most toys, wins'. I see it as 'He who dies with the most toys, still dies. And most of those toys get sold off or thrown out'. When my Dad died, many of his most 'treasured' things, that had no real value, went into the trash. 

    For the next generation though I would offer this: 

    There is no such thing as having enough retirement money-I don't mean obscene money like Jeff Bazos-since you will never get there anyway. 

    What I DO mean is that You need to start saving NOW. Open the ROTH Ira, contribute to it-NEVER drain it, even for a new baby or a new house. Participate in an employers 401k-and for each raise you get, increase that contribution by Half that amount-you will never miss it in your paycheck. Max them Both out, Every year. Invest in tried and true stocks-not 'The next best ting since sliced bread'. This is for you to Live on the rest of your life. 

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  • 2 months ago

    SAVING MONEY is the best advice I could ever give anyone young. SAVE. Always have a savings account, emergency fund and a future plan for your money. No matter what you want to buy, you will need it later. 

    Lots of people think saving is old fashioned or foolish. It's anything BUT. 

    Stay out of credit debt as much as possible--keep your debt low, and budget the money you do have. EDUCATE yourself about what is sensible and profitable--and how money actually works. Learn about credit. Learn about investment. Learn what your rights as a consumer are. 

  • 2 months ago

    Get better at sharing, and find people who want to share as many things as is practical. I'm not talking about swingers who frequent the clubs. I'm talking about family, neighbors, coworkers, and friends. Pretty much anyone you have a relationship with, build better relationships through quality leisure time, and quality work. Try to convince the people to think of things like multifamily homes more. Seek out a great community center in your neighborhood, where neighbors learn a lot about each other. Design a community where you always get more out than you put in, because finance is a failure. Capitalism is a failure. Respect people's property, but don't be shy to use it. Don't be too proud to lend it either. Forgive accidents and remember what you have. Think of this, no matter how much money our government prints, peoples maximum possible effort will always be the same. People are only capable of so much, and if we tap it all out on personal space, other things must suffer. If the government gave everyone $2,000 a month all of a sudden, potential will decrease. Some people will work for more, but overall, a lot of people would suddenly decide to slack off. Giving out money doesn't increase potential, it'll decrease is. Money isn't magic, you cannot just increase human potential with it. People need to have a reason to work, and staying alive isn't even going to be enough anymore. Drones who watch TV all day, or play video games don't need a lot to be happy, and furthermore, they're really just miserable. People need inspiration, and a group of people they want to experience a wonderful life with to do great works. Money won't give them that, only their hands, their feet, their heart, their mind, and their mouth can give them that. Invest everything you've got into relationships my friend. With family, friends, workmates, neighbors, community, and surrounding communities. That's the only investment that can give the coming generations a future today. 

  • Steve
    Lv 6
    2 months ago

    Im going to speak to you since you posted a bit of you. As for your car thing, Ive never had me heart set on a particular vehicle. Luxury or sport. With that said, though, I was once your age, too. People change. Including their wants. Yours has already changed. So in 3 years, you may be a family man and see that you need to drive a practical automobile that fits both your Father role as well as your taste at that time. Will that interest be the same as it is now in a few more years? Probably not, but maybe. The question is can you put off now what you may not want tomorrow? Besides, cars depreciate in value so much. I dont think the car you drive now will matter much in how you enjoy life. Thats up to you. Not the car. As for now, you can enjoy your life while still investing some. When you feel the need, you can get more serious with your investing. It is a great idea to invest your money, but it is also a great idea to enjoy your life. You have to find the balance that you are happy with. If you want a family, things wont be about you anymore, so choose wisely. Investing and having a good time will be limited at that point. Best of luck to you!

  • Murzy
    Lv 7
    2 months ago

    Save something every week.

  • 2 months ago

    I would every young adult live a basic lifestyle and invest in themselves NOW.

    - college, trade-school and/or taking advantage of development opportunities at a job

    Look at a trucker = at 21 you can make decent money, but if you haven't developed yourself when you hit 42 and your back doesn't allow you to maneuver the brake peddle you may be f-ed. 

    You never lose the development of skills/knowledge and you can use that to transition into new opportunities. 

  • ?
    Lv 7
    2 months ago

    Buy a Mercedes Benz for $50,000 and in 15 years it will be worth almost $0.  Invest $50,000 in the stock market and in 15 years it should grow to at least $138,000.

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