What would you tell your 25 yr old self?

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allisonwalker
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What would you tell your 25 yr old self?

Post by allisonwalker » Tue Jan 12, 2016 2:24 pm

Advice on money management, buying a home, getting a job, relationships, mindset, etc. What would you tell your 25 yr old self?

joebh
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Re: What would you tell your 25 yr old self?

Post by joebh » Tue Jan 12, 2016 2:41 pm

allisonwalker wrote:Advice on money management, buying a home, getting a job, relationships, mindset, etc. What would you tell your 25 yr old self?
"Hey, 25 year old me - next January, bet everything on the Steelers!"

stoptothink
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Re: What would you tell your 25 yr old self?

Post by stoptothink » Tue Jan 12, 2016 2:45 pm

The $6600 wedding dress, $500 shoes, "need" to wear $200 jeans and eat out almost every meal...those are all huge red flags regarding the girl you are about to marry.

J295
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Re: What would you tell your 25 yr old self?

Post by J295 » Tue Jan 12, 2016 2:55 pm

Great decision to marry that awesome girl. You sure out kicked your coverage!

CaliforniaInvestor
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Re: What would you tell your 25 yr old self?

Post by CaliforniaInvestor » Tue Jan 12, 2016 2:56 pm

I'm 25 myself so I'm interested also in what everyone else will have to say.

As a 25-year old, I tell myself most often:

- Save, save, save!
- Don't keep up with the Joneses
- You don't need the fancy cars and clothes your friends have
- Beware of lifestyle creep
- Save your raises
- Invest in yourself, in your education, in your health
- Network with people in your field of work
- Talk about money A LOT with potential spouses :wink:

Overall, my biggest challenge, and biggest complaint as a 25-year old is the pressure to conform to buying fancy, expensive material goods and travel. I see so many people my age, through social media, buying their first new sports car, going on weeks-long exotic vacations, and renting in hip urban (expensive) neighborhoods. I still live with my parents, drive a 15-year old car, am working on a graduate degree, and count every penny. But I also have no debt and a six-figure retirement fund. Lifestyle creep is VERY real at this age.
75% Equity : 50/50 American/International / 25% Bonds

corysold
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Re: What would you tell your 25 yr old self?

Post by corysold » Tue Jan 12, 2016 2:57 pm

Don't put all of your retirement eggs into the state of Illinois' basket.

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packet
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Re: What would you tell your 25 yr old self?

Post by packet » Tue Jan 12, 2016 2:58 pm

Yes you CAN live without that extra 1% or 2% going to your 401k, dum@55!

I'm happy to say that I don't have any other regrets that weren't worth the lessons learned... :)

:beerCheers,
packet
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cheese_breath
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Re: What would you tell your 25 yr old self?

Post by cheese_breath » Tue Jan 12, 2016 3:02 pm

25 would have been too late. But I would have told my 18 year old self to stay in CA about 20 more years until housing prices exploded, sell, and then move to a lower col state with my profits. Also don't marry any woman with initials PG.
The surest way to know the future is when it becomes the past.

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Ice-9
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Re: What would you tell your 25 yr old self?

Post by Ice-9 » Tue Jan 12, 2016 3:03 pm

My advice to 25-year-old me:

You're young: Stop making sins of omission! Make more sins of commission! :twisted:

bloom2708
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Re: What would you tell your 25 yr old self?

Post by bloom2708 » Tue Jan 12, 2016 3:08 pm

Dear 25 year old me: Every purchase of "stuff" (large or small) is delaying early retirement for 45 year old you!! :oops:
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

wolf359
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Re: What would you tell your 25 yr old self?

Post by wolf359 » Tue Jan 12, 2016 3:08 pm

Go 100% equities, buying Apple, Google, Amazon, and Tesla.

You don't need index funds if you have an actual working crystal ball.

fposte
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Re: What would you tell your 25 yr old self?

Post by fposte » Tue Jan 12, 2016 3:11 pm

IRA, not taxable!
Mutual funds, not individual equities!

(I don't think I'd have been able to accumulate without an advisor then, given that it was pre-internet and I wouldn't have put together the necessarily knowledge easily enough. But if I were 25 now, I'd say DIY, not with an advisor!)

123
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Re: What would you tell your 25 yr old self?

Post by 123 » Tue Jan 12, 2016 3:12 pm

Don't be in a rush to curtail financial connections when you change jobs. Leaving money in that old 401K plan with excellent (cheap) options may be more beneficial then immediately doing a rollover to a new 401k or IRA. If there was a credit union connected with a old job leave some money there to maintain a relationship, it may come in handy 2 to 5 years down the road. Make an effort to maintain contact with significant friends at your prior employers, just the fact that the work relationship ended doesn't mean everything has to end.

Maybe the message is the that sometimes the grass isn't always greener in the long run. Sometimes we long for things we left behind because we didn't really appreciate their value at the time.

The less stuff you acquire the more open to opportunities you will be. Think twice (or more) before you buy anything. Sure it's great to have a collection of good books but do you really look forward to moving them along with you for the next 40 to 50+ years?
Last edited by 123 on Tue Jan 12, 2016 3:20 pm, edited 1 time in total.
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quantAndHold
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Re: What would you tell your 25 yr old self?

Post by quantAndHold » Tue Jan 12, 2016 3:16 pm

Save as much as you can while you're unencumbered.
Understand how the tax laws apply to your situation.
Understand the multiple types of investment risk.
Understand the positive and negative effects of leverage.
Don't wait until you're 65 to travel around the world.

rbaldini
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Re: What would you tell your 25 yr old self?

Post by rbaldini » Tue Jan 12, 2016 3:18 pm

Technically my 25 year-old self is in the past, which would mean I have the benefit of hindsight.

So I would say: "For God's sake, don't be a Boglehead; invest all your money in [some tech stocks]! Then, once you reach Jan 2016, become a Boglehead!"

I realize this is not helpful to you, but I'm only 28.
Last edited by rbaldini on Tue Jan 12, 2016 3:31 pm, edited 1 time in total.

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Sbashore
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Re: What would you tell your 25 yr old self?

Post by Sbashore » Tue Jan 12, 2016 3:26 pm

Buy Yahoo as soon as it appears on the exchanges. Keep buying it with every available dollar. Borrow money to buy Yahoo. Sell Yahoo when it hits 299.00 per share.
Steve | Semper Fi

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goingup
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Re: What would you tell your 25 yr old self?

Post by goingup » Tue Jan 12, 2016 3:31 pm

Don't put all your 401K money in the company stock. It's going to $5 from $70.
Don't cash out your IRA for grad school.
Spend more time with Mom--she'll be gone in 3 years.

Median Joe
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Re: What would you tell your 25 yr old self?

Post by Median Joe » Tue Jan 12, 2016 3:35 pm

1. Sell ESPP/ESOP as soon as they vest.
2. Don't own individual stocks.

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Raybo
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Re: What would you tell your 25 yr old self?

Post by Raybo » Tue Jan 12, 2016 3:38 pm

Create a plan for what you want to do with your life and then use the furthering of that plan as a basis for whenever you have to make a decision.

Develop interests that will serve you both when you are working and when you are not.

Take more bicycle riding vacations
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.

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steve roy
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Re: What would you tell your 25 yr old self?

Post by steve roy » Tue Jan 12, 2016 3:44 pm

Buy index funds and never sell them.

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alec
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Re: What would you tell your 25 yr old self?

Post by alec » Tue Jan 12, 2016 3:50 pm

Don't buy a house in 2005.
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" - Upton Sinclair

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Will do good
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Re: What would you tell your 25 yr old self?

Post by Will do good » Tue Jan 12, 2016 4:04 pm

1. Your savings rate is doing fine.
2. Buy more than $1000 of AAPL at $3.25, buy $5,000.
3. Buy your building in the North side of Chicago instead of the suburbs. :annoyed
4. Spend more times with the family :oops:
5. Your life and career is about to take off, enjoy the ride. You are a lucky man.

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allisonwalker
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Re: What would you tell your 25 yr old self?

Post by allisonwalker » Tue Jan 12, 2016 4:11 pm

stoptothink wrote:The $6600 wedding dress, $500 shoes, "need" to wear $200 jeans and eat out almost every meal...those are all huge red flags regarding the girl you are about to marry.
haha whoa! I like it

rbaldini
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Re: What would you tell your 25 yr old self?

Post by rbaldini » Tue Jan 12, 2016 4:12 pm

Useful investing advice directed specifically at young folks:

https://www.etf.com/docs/IfYouCan.pdf

From Berstein. First investment advice I ever read.

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oldzey
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Re: What would you tell your 25 yr old self?

Post by oldzey » Tue Jan 12, 2016 4:17 pm

25 years old = 1992.

Move away from the Midwest and experience other parts of the country/world while you're young. You can always come back.

Oh, and be sure to exchange all your mutual funds in your IRA for AAPL. :D
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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avenger
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Re: What would you tell your 25 yr old self?

Post by avenger » Tue Jan 12, 2016 4:22 pm

Don't take out a private student loan to buy a new car (ouch)!
Don't take so many exotic vacations in medical school.

Oh well. I have some pretty incredible memories from the travel so I don't regret that. But the car. Ouch.
cheers ... -Mark | "Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau | [3 fund portfolio: VTI, VXUS, SV fund (yield 3.01%)]

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whatusername?
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Re: What would you tell your 25 yr old self?

Post by whatusername? » Tue Jan 12, 2016 4:23 pm

Calm down, you're doing everything correctly that you can control, it'll all work out. Go travel and don't worry about it.

N.b., the annual distributions from mutual fund distributions in your taxable account have to go on your returns each year, even if you don't trade the account.

pennywise
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Re: What would you tell your 25 yr old self?

Post by pennywise » Tue Jan 12, 2016 4:29 pm

"Start saving for retirement in a tax sheltered account RIGHT NOW!"

I didn't start till my mid-thirties and although it has worked out ok, I'm beyond pleased that both my twenty-something offspring immediately began participating in their respective tax-sheltered retirement saving options as soon as they were hired into career track jobs. My son is extremely fortunate to have a government job with a DB pension but my daughter is already participating in her 401K plan even though there is no match for the first couple of years (teacher at a private secondary school).

DRGoldsberry
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Re: What would you tell your 25 yr old self?

Post by DRGoldsberry » Tue Jan 12, 2016 4:33 pm

First I would tell myself all the major turns of the market. (Black Monday anyone?) Then, with the funds that generates, buy experiences over things and plan for earlier retirement. Oh, yeah, about all those things the kids are going to do . . . . . . .

Dantes
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Re: What would you tell your 25 yr old self?

Post by Dantes » Tue Jan 12, 2016 4:42 pm

Check out the computer science courses - you work for the University so they're free. You are going to want a different profession in a few years.

(I did that at 30 instead of 25. Cost me a few painful years).

38,000 ft
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Re: What would you tell your 25 yr old self?

Post by 38,000 ft » Tue Jan 12, 2016 5:19 pm

I would tell my 25 year old self to avoid taxable investing entirely until you're maxing your 401k, HSA, and IRA. Culture and media portray the stock market as a way to make quick money and encourage trading and as a young person it can be hard to avoid. One way to help my 25 year old self along the path would have been to encourage retirement savings since they are more long term in nature. I get very anxious when I see people wanting to put their home down payment savings into the stock market.

I would also tell them about this forum!
Last edited by 38,000 ft on Wed Jan 13, 2016 1:56 am, edited 1 time in total.

38,000 ft
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Re: What would you tell your 25 yr old self?

Post by 38,000 ft » Tue Jan 12, 2016 5:25 pm

CaliforniaInvestor wrote:Overall, my biggest challenge, and biggest complaint as a 25-year old is the pressure to conform to buying fancy, expensive material goods and travel. I see so many people my age, through social media, buying their first new sports car, going on weeks-long exotic vacations, and renting in hip urban (expensive) neighborhoods. I still live with my parents, drive a 15-year old car, am working on a graduate degree, and count every penny. But I also have no debt and a six-figure retirement fund. Lifestyle creep is VERY real at this age.
I would tell my 25 year old self to quit Facebook and Instagram. It is easy to meet people and maintain friendships in other ways. On Facebook people tend to only share their successes and triumphs etc. Nobody shares their failures. It is a very unrealistic portrait of the people around you.

I would travel as much as you can, as cheaply as you can. I did and don't regret any of it. If you can manage credit responsibly credit card bonuses can provide ample airline miles and hotel points.

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friar1610
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Re: What would you tell your 25 yr old self?

Post by friar1610 » Tue Jan 12, 2016 5:42 pm

I'm not sure my 25 year old self would have had the good sense to listen to my 70 year old self.
Friar1610

alwayshedge
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Re: What would you tell your 25 yr old self?

Post by alwayshedge » Tue Jan 12, 2016 5:52 pm

CaliforniaInvestor wrote:I'm 25 myself so I'm interested also in what everyone else will have to say.

As a 25-year old, I tell myself most often:

- Save, save, save!
- Don't keep up with the Joneses
- You don't need the fancy cars and clothes your friends have
- Beware of lifestyle creep
- Save your raises
- Invest in yourself, in your education, in your health
- Network with people in your field of work
- Talk about money A LOT with potential spouses :wink:

Overall, my biggest challenge, and biggest complaint as a 25-year old is the pressure to conform to buying fancy, expensive material goods and travel. I see so many people my age, through social media, buying their first new sports car, going on weeks-long exotic vacations, and renting in hip urban (expensive) neighborhoods. I still live with my parents, drive a 15-year old car, am working on a graduate degree, and count every penny. But I also have no debt and a six-figure retirement fund. Lifestyle creep is VERY real at this age.
You're a mirror of myself except I am 30 and working on a graduate degree. I completely agree with you on the friends and buying fancy things. A couple of my friends drive expensive cars and always have fancy clothes and items but I can tell you they are all cash poor (I know this because they have both asked me to borrow money on different occasions). Keep doing what you're doing.

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snowshoes
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Re: What would you tell your 25 yr old self?

Post by snowshoes » Tue Jan 12, 2016 7:36 pm

Two roads diverged in a wood, and I—
I took the one less traveled, not the social media road,
And that has made all the difference.”
― Robert Frost,
I slightly :wink: amended the quote.

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nisiprius
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Re: What would you tell your 25 yr old self?

Post by nisiprius » Tue Jan 12, 2016 7:42 pm

"You're gonna do OK, kid. Don't worry about it."
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

Levett
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Re: What would you tell your 25 yr old self?

Post by Levett » Tue Jan 12, 2016 7:46 pm

You're gonna have a far better life than you could ever have imagined (and I don't mean money).

That would have been 48 years ago.

Lev

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zaboomafoozarg
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Re: What would you tell your 25 yr old self?

Post by zaboomafoozarg » Tue Jan 12, 2016 7:58 pm

Stop caring so much about money.

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Maynard F. Speer
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Re: What would you tell your 25 yr old self?

Post by Maynard F. Speer » Tue Jan 12, 2016 8:05 pm

Put it all in private equity

Sell it all in 2016
"Economics is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions." - John Maynard Keynes

joebh
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Re: What would you tell your 25 yr old self?

Post by joebh » Tue Jan 12, 2016 8:06 pm

Dear 25 year old me: Yes, you can time the market, at least up until January of 2016.

Gather up as much money as you can now, because in my next communication I'm going to tell you exactly the days you should buy, and exactly the days that you should sell.

Grogs
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Re: What would you tell your 25 yr old self?

Post by Grogs » Tue Jan 12, 2016 8:07 pm

24, but close enough: "Maybe you should rent for the two years you're stationed at the Army post rather than buying a house." I bought the house on one of those $0 down VA loans. When I left the Army and tried to sell it, it sat empty for nearly a year, and then I rented it for ~80% of P&I for the next 2. When I finally sold it (after 5 years paying the mortgage), I think I cleared just enough to get about $100 at the closing. I ended up going heavily into credit card debt to keep myself afloat while it was on the market, and it took several years to dig out.

Topic Author
allisonwalker
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Re: What would you tell your 25 yr old self?

Post by allisonwalker » Tue Jan 12, 2016 8:16 pm

zaboomafoozarg wrote:Stop caring so much about money.
What a great answer

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obgyn65
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Re: What would you tell your 25 yr old self?

Post by obgyn65 » Wed Jan 13, 2016 4:41 am

I would say to myself "Don't trust people as much as you do."
"The two most important days in someone's life are the day that they are born and the day they discover why." -John Maxwell

carolinaman
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Re: What would you tell your 25 yr old self?

Post by carolinaman » Wed Jan 13, 2016 6:54 am

Establish priorities for your life and invest your time and energy according to those priorities. I would recommend that God and family be at the top of your list. There were many times in my life when my priorities and how I spent my time were not in sync. Do not make that mistake.

beardsworth
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Re: What would you tell your 25 yr old self?

Post by beardsworth » Wed Jan 13, 2016 7:04 am

Except for the five-year age difference, this was the subject of a thread several years ago.

"What Advice Would You Give Your 30yo Self?"

viewtopic.php?t=105502

joebh
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Re: What would you tell your 25 yr old self?

Post by joebh » Wed Jan 13, 2016 7:22 am

Still waiting for the "What would you tell your 60 year old self" thread...

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SquawkIdent
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Re: What would you tell your 25 yr old self?

Post by SquawkIdent » Wed Jan 13, 2016 8:12 am

1. Make her sign a prenup
2. Don't DCA into CMGI
3. Keep your portfolio 60/40 and forget about it
4. Enjoy yourself, this isn't a dress rehearsal
:sharebeer

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stickman731
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Re: What would you tell your 25 yr old self?

Post by stickman731 » Wed Jan 13, 2016 8:35 am

1. Remember to say I love to the people around you - time is fleeting and it will pass you by before you realize it.

2. Do NOT, I repeat, Do NOT, actively trade stocks - invest in low cost mutual funds and invest, invest, invest slowly over time.

3. If you travel for work, take sometime to enjoy the places you visit.

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stemikger
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Re: What would you tell your 25 yr old self?

Post by stemikger » Wed Jan 13, 2016 8:42 am

This time take the road less traveled!
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

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bertilak
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Re: What would you tell your 25 yr old self?

Post by bertilak » Wed Jan 13, 2016 8:52 am

Would have been a waste of time to tell my 25 year-old self much of anything!
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet

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