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For starters. what should a 21 year old do

 
Old 03-02-2006, 10:08 AM
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Default For starters. what should a 21 year old do

Ok so im 21. i make descent money but it goes mostly to my 14 month old baby. been reading, rich dad poor dad and many other books. the main thing i got from it is, cut your costs. and blah. So my main question is, where should i start and what should i do, how to invest my money. i would love to buy an investment home or a Home instead of paying rent. but only 21 and my credit is around 670. i only have $500 bucks right now. what to do?
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Old 03-02-2006, 10:20 AM
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Default Re: For starters. what should a 21 year old do (onnoff7)

1. Start saving cash. You need 3-6 months of cash on hand in case of emergency or unemployment.

2. Pay of credit cards or other high-interest loans.

3. Start contributing to a retirement plan (401k, IRA, etc). These have tax advantages over cash savings, but you can't normally withdraw the money until retirement age. If your employer matches funds into an account, do this ASAP - it's FREE money for you (you just can't use it until you retire).

4. If you have a large car loan, consider trading for a less expensive car (assuming you owe less than the car is worth). I know too many people with $500+/month car payments when they should be saving for a house.

5. Plan to buy a house as soon as it make sense. Buying generally costs less if you plan to live in the same place for 7+ years. There are calculators online (google for them) that will tell you if renting or buying is better for you and how much you can afford.

Finally, you're 21, so it's not too late to get out of credit/financial trouble if you have it. And it's also never too early to start planning ahead. So, I'd say by asking, you're starting down the right path.
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Old 03-02-2006, 01:17 PM
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I'm not sure how the housing market is over there, but it is one of the best things you can do, because paying rent BLOWS!

670 isn't a bad score, but try to get it into the 700's because that is "A prime" and you'll get a better mortgage rate.

This is where selling your new car, downsizing and paying off debt comes into play.

If you have someone in real estate start looking with them for a potential buy. Otherwise start looking on your own.

Since you don't have any cash. Look into 100% financing. Get a home loan with no money down.
Look into only buying a house with a cottage or attached rental, even if it's more expensive. Then your tenants will help you pay your mortgage. Use your own labor and fix the place up. Sell it for a profit and buy another house.

you'd be suprised, you might end up paying per month, it might be close too or less than rent!

I'd actually put the bare minimum in a 401k because you can't touch it. Look to putting more in when you are making more salary so the tax benefits are more evident.

At 21, it's very good to start thinking about this stuff, you'll be ahead of the game.

I'm 27, and just bought my first house, but it's a lot more expensive here. Just to get your wheels going, we spent 588k to build a house an d cottage, it is now worth 920k.

Houses make more money than people can...

hope this helps some.
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Old 03-02-2006, 06:57 PM
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Default Re: (808_si)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by 808_si &raquo;</TD></TR><TR><TD CLASS="quote">

I'm 27, and just bought my first house, but it's a lot more expensive here. Just to get your wheels going, we spent 588k to build a house an d cottage, it is now worth 920k.

Houses make more money than people can...

hope this helps some.</TD></TR></TABLE>

i'm impressed. congrats on that man.
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Old 03-02-2006, 08:03 PM
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Default Re: For starters. what should a 21 year old do (Crack Monkey)

Sounds like the Dave Ramsey philosophy. Yeah, pretty much get out of debt and start saving your money to have some kinda pillow to fall on incase of emergencys. Then save the extra money for investing. Looks like this prosper company will help smaller investors too. Check them out. Read alot of books but a wide variety so your not so focused on 1 persons point of view. I read robert kiyosaki and only saw his point of view until sergek brought his book collection over and had me started on Dave Ramsey. Glad I didnt just jump into using OPM for my investments like I planned or else I'd be fucked right now.
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Old 03-02-2006, 08:14 PM
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Default Re: (svtec)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by svtec &raquo;</TD></TR><TR><TD CLASS="quote">i'm impressed. congrats on that man. </TD></TR></TABLE>

thanks, it was A LOT of hard work holy cow. I was also flat broke for a year straight. but it's worth it in the end!
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Old 03-03-2006, 03:36 AM
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i was thinking of getting a house but then with 0 down and 100 financ. thats crazy alot of the people i talk to said its basicly impossible. i was looking for a place in cali though. i just moved here a year ago and it sucks. lookin to move back. so with the $500 i have now, is there any way to make some quick bucks from that, or is there no QUICK BUcKS.
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Old 03-03-2006, 05:24 AM
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Default Re: (onnoff7)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by onnoff7 &raquo;</TD></TR><TR><TD CLASS="quote">i was thinking of getting a house but then with 0 down and 100 financ. thats crazy alot of the people i talk to said its basicly impossible. i was looking for a place in cali though. i just moved here a year ago and it sucks. lookin to move back. so with the $500 i have now, is there any way to make some quick bucks from that, or is there no QUICK BUcKS.</TD></TR></TABLE>

That's what I did, not impossible at all.
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Old 03-03-2006, 10:37 AM
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Default Re: (uncle)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by uncle &raquo;</TD></TR><TR><TD CLASS="quote">That's what I did, not impossible at all.</TD></TR></TABLE>

exactly. you have to go and find out. People all the time tell me you can't do this and you can't do that. Do they really know what they're talking about? do they actually know the specific loan programs, rates, etc? Find out for yourself, I have a friend that is a loan officer for coldwell banker in cali. I might be possible, it might not. the only thing is that the market in cali is still pretty high...
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Old 03-03-2006, 01:24 PM
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Default Re: (808_si)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by 808_si &raquo;</TD></TR><TR><TD CLASS="quote">

exactly. you have to go and find out. People all the time tell me you can't do this and you can't do that. Do they really know what they're talking about? do they actually know the specific loan programs, rates, etc? Find out for yourself, I have a friend that is a loan officer for coldwell banker in cali. I might be possible, it might not. the only thing is that the market in cali is still pretty high...</TD></TR></TABLE>

The market will remain high for a long while -- get in and hold on NOW
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Old 03-03-2006, 01:27 PM
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Default Re: (onnoff7)

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by onnoff7 &raquo;</TD></TR><TR><TD CLASS="quote">i was thinking of getting a house but then with 0 down and 100 financ. thats crazy alot of the people i talk to said its basicly impossible. i was looking for a place in cali though. i just moved here a year ago and it sucks. lookin to move back. so with the $500 i have now, is there any way to make some quick bucks from that, or is there no QUICK BUcKS.</TD></TR></TABLE>

In Real Estate there is nothing that is impossible...its all negotiable!

What part of Cali sucks? Are you living in a bad neighborhood or are you at a low paying job?
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Old 03-04-2006, 06:30 PM
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"What part of Cali sucks? Are you living in a bad neighborhood or are you at a low paying job? "

I used to live in cali. my whole life. i just moved away to mass, it sucks.
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Old 03-07-2006, 07:04 AM
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Default Re: (onnoff7)

one of my friends did a 70% financed and then got another mortage with a little bit higher interest rate for 30% financed so really it is 100% financed just in 2 different mortages,also if you get into the 690's + credit wise you will be consider an a tier so that would also help you. i cant really give any advice on buying a house because all im doing is finishing my race car and saving the other money i have left over. btw if you have like 3 or 4 project cars, you dont need them because i realized that along time ago not all of them will ever get done and youll end up going broke trying to get everyone of them done
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