im 18, i want to start saving now so I can retire early, any advice?

Answer 1

First off, congratulations for thinking of this already.

Second, beware of debt. This is the biggest mistake that Americans make. You do not need a new car. You can drive a used one that you pay cash for. You do not need to get a credit card yet, but if you do (in order to start building credit), make sure you pay it off every month. Use it like a debit card- only spend money that you already have.

Third, curb your materialism until you have a good job. Do not buy all the latest gadgets. Instead, save that money. Buy used things off Craigslist or shop at the thrift store.

Fourth, reconsider college. You might want to go or you might not. Unfortunately, American high schools tell all kids that they MUST go to college. It is true you need some sort of job prep, but not necessarily college. A two-year associates degree from the community college or a technical degree from a vocational school is much cheaper than a university degree and often lead into high paying jobs. Consider the whole spectrum. Many college degree jobs (like teacher, social worker) don't pay much while a vocational job (like plumber, journeyman) pay a lot more after you get some experience.

Fifth, be wise about college if you do decide to go. If you are dying to go to college because you have a passion for something or because it will lead to a high paying job, be smart about it. Go to community college the first two years. Then transfer to university. Your degree will say the same thing and no one in the work force will care.

Sixth, don't take out student loans. Work as a waiter or a bartender- you can work short hours and make a lot of money- and pay for college as you go. Apply for financial aid and scholarships. I know SO many people who graduated with 60,000 plus in student loans. It's really sad- they could have put that toward a house. Unless you are going to get a job that pays a HUGE salary, you could have spent that money better. And it is wiser to go slowly- take a 5th year and get out without loans. Your friends who finish in 4 years will be laughing at you, but later you will be laughing at them for a long time.

Seventh, wait to have kids. Don't have them until you are well established in your career, have your house mostly paid for and have a retirement plan set up.

MEANWHILE, you need to be setting just a little bit of money aside in a savings account every month. Even if it is just a hundred bucks. If you are paying for college as you go, you might not be able to do this until you graduate, but the moment you do, start setting aside some money. Eventually, try to save at least 500 a month. Once you have at least 5,000 saved, meet with a financial advisor who will show you how to invest it in IRAs and 401Ks.

Good luck!

Answer 2

You can educate yourself about saving and investing. You can be a much better caretaker of your money than any financial advisor.

Go for the long term, avoid fads and get rich quick investments. Regular savings put into good mutual funds is probably the very best way to start. That is what I did and was able to retire before I was 60 years old.

I would suggest another book besides Buffet's, "The Wealthy Barber." I'm sure you can get a used copy from Amazon cheap.

Answer 3

Get a good financial advisor..

Put away as much money asyou can afford-

Set aside a set amount out of each paycheck as your minimum.

Plan your future as if you were going to retire at 50,you don't have to retire then, but you will want to.
You will feel better knowing you are in control....

Answer 4

You are very smart for planning ahead. I would say try CD i dont know much about them but have been told a good way for your money to double over the years. Try putting so much money back in a savings and make sure never to touch the money until you are older.

Answer 5

The answer my friend, is blowin in tha wind, the answer is blowin in tha wind.