[Hoover]

Originally Posted by Mr. Flopnuts

Okay, without knowing your interest rates and all here is some general advice from a former credit manager/professional. I worked in that industry for over 10 years.

1. Get health insurance yesterday if you don't already have it. People your age often think due to your age you don't need it. Fact is, health problems are the number 1 credit killer in this country.

2. Parents come last unless they need the money, then they come first. They're the ones that will always be there for you so they're the top and bottom priority at the same time. I think you're picking up what I'm laying down.

3. Knock out debt under a grand first, but hammer the highest interest debt most importantly.

4. Don't pay interest on depreciating assets unless the interest is stupid low, and it almost never is. Buy your cars in cash. For life. Spend stupidly once you've retired and can afford it. Now, if you can get a dealership to finance you at 0% that will sound appealing, until you realize the thousands you lose the second you drive off the lot. If you're willing to keep it for 10+ years, go ahead. Most people aren't though.

5. Buy your own home as soon as possible. Speaking of depreciating assets, I can't think of a bigger one than borrowing someone else's home. Home ownership is the single most important investment young American's can make. Make sure you can afford it, because you can always upgrade later as your income increases. If you have a 30 year note, make one extra payment a year and it will turn into a 20 year note. Think about that. Knock out 120 monthly payments by paying 20 of them early. Pay it down as fast as possible.

6. Do you want to retire? The sooner you start investing in it, the sooner you'll be done with working. The most free country on Earth? Move across country with no money, you can't work, that ain't free, wait a week and call me up and let me know how free you feel. Freedom is waking up when you want, doing what you want, and being able to pay for it.

Money is a tool. Use it the right ways and you'll have a nice balance of the things you want today, and the things you want more tomorrow. Bag your own lunch and eat cheap for the next 5 years, and you'll thank me for the next 20. I know we as Americans like having our own chefs more than ever, but it's expensive as ****.

You're in a great position to take financial control of your life. Better than tons of others at your age. The fact that you're thinking about it, is a real good sign toward your future. Best wishes!

This is solid advice.

When it comes to homes and cars, my wife and I have always believed that its better to love in a nice house than a drive a nice car. I've been married for 11 years. I bought the car I drive 12 years ago. It's a Toyota Carolla that has 250k miles on it. My wife currently drives an 08 Camry. It has 115k on it.

It used to bother me that I drive a shitty car, but I've gotten over that. Now I can't wait to upgrade to the Camry, which has been paid off for a while now. When we got married we agreed to only have one car payment at a time. The idea was to buy something every 5 years. Now, we are probably fools, but we buy new cars. Our next car will probably be new and pretty expensive. But we are preparing for the purchase. We will probably finance about half of it and then knock it out in 2 years.

This has really worked for us. Oh, and the other benefit is that you never have to haul your friends around. My buddy always offer to drive his LX. It's a sweet SUV, but every time I'm in it I think to myself what a waste of 80k. I'd rather have it in the bank or my house paid off.