Bad common advice given to teens and young adults

   / Bad common advice given to teens and young adults #31  
Get a credit card and keep a medium balance to start building credit (not entirely 100% bad; but I think this thinking often escalates and turns bad)
I disagree with keeping a balance.
Don't charge more than you can pay off every month.
The difference in your credit between carrying a balance and paying it off every month isn't enough to be worth the interest you will pay every month.

Aaron Z
 
   / Bad common advice given to teens and young adults #32  
Don’t have kids you can’t afford. Be intelligent about your situation before you get pregnant.
- I don’t want to support your kids.



It is your job to raise your kids… Not the school, daycare, state or fed.



Save for the future, but don’t forget to live now. For you, the future may not exist.



Not all debt is bad debt, unless you are irresponsible, in which case no debt is the best debt for you.



Nothing is owed to you, you must earn everything.



Everyone deserves baseline respect. Your personal interactions with people determine whether they move up or down that respect ladder. Don’t determine that level based on other’s input.
 
   / Bad common advice given to teens and young adults #33  
I disagree with keeping a balance.
Don't charge more than you can pay off every month.
The difference in your credit between carrying a balance and paying it off every month isn't enough to be worth the interest you will pay every month.

Aaron Z


Keeping a balance is not equal to paying interest. 30 day grace. A low percentage of used credit when reported to agencies is better than $0 used for most analytics.

Still pay off all purchases prior to paying interest.
 
   / Bad common advice given to teens and young adults #34  
Keeping a balance is not equal to paying interest. 30 day grace. A low percentage of used credit when reported to agencies is better than $0 used for most analytics.

Still pay off all purchases prior to paying interest.
You both just said the same thing in a different way. :)

Another good way to build credit early is to take 90 days same as cash offers (must have the cash though). Pay them off on time and use someone else's money for free (yes, it is baked in, but you are usually paying the same either way, so you are doing worse by paying cash).

Don't worry about depreciating assets in terms of loans. If you can earn more money investing the cash than you lose in interest, take the loan and invest the cash. If not, pay cash. Depreciating assets often are levers you can use to boost income. The calculus is not always as straightforward as some would claim.

For most people, getting married before 25 means you are doing so without a fully developed brain. Sure, it Might still work out, but for many it means messed up marriages and messed up kids.


Another important piece of advice for the young. Anecdotal evidence is rarely useful as a guide in life. Data is not perfect, but it is better than advice from people who use one data point as a source.
 
   / Bad common advice given to teens and young adults #35  
Don't bet on THAT. At the inception of computers I knew a man that set up a nationwide auto parts distributor allowing them to dramatically cut their workforce at multiple warehouses. System worked so well they thought they had no further use for him so fired him. Six months later the system crashed,distribution ceased and all the the kings horses nor all the kings men could put the system together again. He programed the system to do it unless he made a few keystrokes and at that time other programmers didn't know how to circumvent what he had programed. Most economical thing they could do was rehire the IT guru at 3x his previous salary and sign his v-e-r-y generous contract with perks and severance clause.
So he deliberately caused harm to his employer just incase he got let go? Sounds like just the type of dude I'd gladly get rid of.
 
   / Bad common advice given to teens and young adults #36  
My advice for my boys was simple. I said don’t worry, you will figure it out just before you die. Good luck! :ROFLMAO:
 
 
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