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Read more at: http://news.yahoo.com/s/space/20090330/sc_space/mosthabitablezoneonmarsrevealed
Live as cheaply as you can for as long as you can
Posted by Data Babble | 11:26 AM | debt, life | 1 comments »It's in our nature to adjust our lifestyle according to our income. We get a raise and we then go out and buy a new car or bigger house. We might also buy new clothes or go out to eat more often. This is why there are many people out there making $150k+/year and are completely broke.
My advice for young people is to live as cheaply as possible for the first 5-10 years of your career. Buy or rent a modest home and live there for as long as possible. Keep your cars as long as they run. Every time you get a raise, don't adjust your lifestyle accordingly; save this extra money!
I know this is difficult because it's typically the first time in your life that you actually have a decent income. It opens up so many more opportunities to finance fun things like houses and cars. It sounds so simple: "all I have to do is make that monthly payment." But pretty soon you'll have several monthly payments stretched out over many years. The possessions you financed will get old over time and that monthly payment will become a chore and a burden on you and your family.
Stay out of debt and save up for large purchases. You'll save a ton in finance charges and you'll be in a better position to truly decide if you want to spend your "saved" money for an item. When forking over a large amount of cash, you may re-evaluate your potential purchase.
6 Steps to Finding That Fine Line Between Being a Miser and Enjoying Life
Posted by Data Babble | 9:39 AM | life, save money, Savings | 0 comments »I think it's important to make sure you put enough away for a rainy day, but I think often times many people over do it (by saving too much or spending too much). Life isn't always about saving for the future, it's about living too. There's a fine line between living life and saving money like a miser. It's important to find this line while you're young. Save enough to feel secure, but live enough so you have little regret. Contribute to your retirement, whether it's a Roth IRA and/or 401(k), etc. Build up an emergency fund and only spend within your means. Save up for entertainment and then enjoy life. Just don't over do it with spending and don't use credit cards if you can't pay them off each month. It's really pretty simple; save enough to be happy and spend just enough to be happy. Here are some steps:
- Get a job, or two
- Build emergency fund, about $2000 to start. Put in high interest savings account and try not to touch it for anything but emergencies
- Contribute as much as you can to a 401(k) at work, at least 10% if possible
- Start a Roth IRA and contribute the max each year, refer here
- Save entertainment fund and use for fun
- Don't rely on credit cards