Financial advice to an 18 year old

  1. Get a first job (if you don’t have one) and a second job; or a first job and a small job like lawn mowing on the weekends to make some extra money
  2. ⁠Get a “discovered it” secured credit card for $500 so you can build a credit score early
  3. ⁠Get a credit builder Loan from “self”; 1 year is fine to build some more credit; should cost around $50 a month or so and when you get the money back add it to the next step
  4. ⁠Set up an emergency fund in a high yield savings account; goal is 10k in there; also 1k cash on hand and 1k in precious metals for an emergency; should take around 1-2 years to build depending on your income
  5. ⁠After that’s complete open up a Roth IRA and contribute $120 a week until it’s maxed out; if you do this for 40 years (until 60) at a 9.8% (which is what the market returned) rate of return you’ll have $3 million tax free, so your retirement is secure
  6. ⁠Don’t buy a new car, get a clunker for cheap or something 5+ years old so there’s no depreciation
  7. ⁠Go to college, and focus on your education outside of college
  8. ⁠Finally focus on real estate, after the emergency fund is setup put every penny you can into a second high yield savings account, your goal with this is to get to 30k and to buy your first rental property to generate cash flow; you should be able to buy at least 3 properties by age 30, check out other subs for more info
  9. ⁠Also open a bank account at a local bank, they usually offer student accounts
  10. ⁠If your company offers a 401k do it, especially a Roth 401k, contribute then necessary amount to get a company match, for example if they match 100% on 5% contributed that’s free money; if you put in $15 a week, they’ll give you an extra $15; remember you can’t withdraw the 401k or IRA until age 59.5 (basically 60) so just forget about it.
  11. ⁠Make a budget every month, write down your bills first, then write down your investments but pay the investments first and bills second; ex: gym, insurance then investments but pay the investments first

Published by Chad Thunder Cock

Chad thundercock is an alpha male with big dick energy. He's the coolest guy you'll ever meet.

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