hey guys
My uncle came today, and it really did hit me today....after the lecture he gave me, i was shocked...My parents used to give me the same lecture but i didnt bother listening to them.
He asked me this question "You work two job, you make $28/hr in GM and making about $15/hr in the other one...where did all ur money go......" that question got me thinking!!!!! I'm a student, my parents pay for my gas, insurance basically everything..all i'm paying for is my food at school and thats about it. So where did my money go? I should have like ATLEASE 15 g in my bank accont, but i only got around 91 cents....This year i'm gonna be cheap and not spend ANYTHINGGG.....no more spending money on friends, no more giving money to anybodyyyy...i have spend around $5gs this month and the month just started.....

He said to save up n buy stocks etc, if it wasnt for my uncle i think i wouldnt have even thought bout this....
we'll c end of the year how much i save up...hopefully all my cheques r going to stocks, or in a savings account.....

 

Manbir, your parents and your uncle are wise people giving you sage advice. From what you've said it seems they're right. Do everything you can to soak up that knowledge and experience. The lessons and habits you learn now at an early age will stick with and reward you the rest of your life. Learn them well and practice them immediately.

You're also at the stage of life living at home where it is so much easier to save money. Set a written budget and plan with the help of a family member and implement that plan. It doesn't mean you can't do some fun things or buy some gifts but do it wisely and pay yourself first. Ask your uncle what that means if you're not sure. Be sure to set regular "check up" times with them to keep you on track.

Do some reading and learning about money management and wealth creation. A couple of simple books like the Wealthy Barber and a old classic Richest Man in Babylon would be a great start. Please read and let me know what you think.


Good luck
Deane

 

It may take a while to get your setup correct. Track where you spend money and analysis what you can do without.

A saving account should be a temporary place to store your money, unless you can not find a place to put it. From my experience, saving accounts will not yield the individual much interest. I would look into Mutual Funds rather than Stocks just because historically they have lower risk while also having higher returns than a savings account.


I have talked to a lot of people about where to put my money and the answer I have received is simple. If you have the time and you are good enough to pick stocks which give you a great return, do that. It is fun. If you don’t have the time to manage stocks then let someone else do it (MF). Either way it sounds like you are on the right track.

 

RRSP's!!!!

Best to start young and try to max out every year if you can.

 

^^+1 RRSPs, get them and leave them as Bill said.

 

+2. It's hard to beat an RRSP in Canada.

 

Great post Deane, I agree 100%. IMO, learning money management is one of the most important things to learn in life. When I was in my teens and early twenties, I blew money like crazy. Maybe not as bad as you Manbir, but still pretty excessive. As I have grown older, I've educated myself on money management a great deal. I have always been a big fan of Robert Kiyosaki and David Bach books. Now I know where every cent of my money is going and I ALWAYS pay myself first. Like others have mentioned, RRSPs are a fantastic way to pay yourself first.

 

at your age I know where the money went to, Booze, on woman, and on usless things and food.

 

I can tell you had an eye opening day, Manbir.....and that's a very good start, along with your family's advice and the advice of your friends here.

Best of luck with your new 'venture'....we all have faith that you'll succeed, but don't forget to have a little fun in the process....

C.

 

Yep, I can relate to that too.

 

Thanks Shane, I also agree about money management being a top life skill. There really should be more focus on that in the public education system since more than a few parents aren't even able to do it properly themselves.

RRSP's are a no brainer and a forced savings plan. Before doing that however the Godfather (and everyone) should understand the principles of paying oneself first, being thrifty and the power of compound interest (like basic rule of 72). That will provide a knowledge foundation and motivation to want to do it. After that life long learning about investments can begin, even if someone else is chosen to manage the portfolio initially and/or long term. However, I've learned no one will ever pay attention to your money like you will yourself.

Starting early is the key. It allows a more conservative investment portfolio and much smaller investment contributions that are easier to sustain. Most of all, the long term compounding value is staggering. The peace of mind that comes with being/on the road to self sufficient is worth every small sacrifice.

 

Great post #2 Deane. I never understood why money management wasn't apart of the public education system either. I think it do a world of good if it was.

 

hey guys,
thanks for all ur advices, and Deane you meantioned the book Wealthy Barber, i remember reading it in grade 12, a year ago..lol....
I understand what all of you mean, start off early...the early, the better. I decided to buy a condo..lol....(yes i know i make plans last min) lol....I'll prob buy it, place it on rent cuz the location of this condo is really goooood....and for sure the price will be going up in the future. The money i make could go in the condo but its all worth it, atlease end of the day i know i have a investment instead of wasting it on other people.

Thank you guys, I really appreciate all your help.
Again you guys r the best..... this isnt just a car forum, i think everyone gets connected to each other.

 

If you attempt to quit spending and save everything, you will likely fail. Balance is important and saving should not be painful or you will not stick to it. Decide on a percentage of income which you can live with and arrange for the funds to be deducted from your account automatically or borrow for your rrsp's at prime and have the payments come off like a car payment. Calculate a comfortable amount per month and buy annually with the payout ammortised over 12 months. You will be saving with no effort. I have used debt to build wealth very successfully but you need to be disciplined and manage your risks.

Now off the topic, what do you do for GM that they would pay you $ 28.00/hr. You are too young to have a trade so if they are paying unskilled workers this kind of money, no wonder they are in trouble. This is a journeymans wage for many trades. If this is what the unions have done to GM, they are doomed. No offense, but unskilled workers are not worth that kind of money.

 

^+1 I wasn't going to comment on that but now that you've said it.... I couldn't believe it myself. I think we all know GM is doomed in the long term. Besides their products, the negotiated pension and health costs are also killing them.