Give advice you wish you knew yourself

RMcD94 · Post by **RMcD94** » Thu Jul 21, 2011 5:17 pm

So, hey, now and again I see posts (not necessarily here) that go along the lines of "If only I had known that when I was younger" or "If I could tell myself one thing ten years ago it wouldn't have been to do X", etc, etc. Well, today, I give you the people of ERE Forums the opportunity to do so.
Just some information about myself: I live in the United Kingdom (Ayrshire, Scotland) so some advice might not be appropriate (for example our University is free). It's currently the summer holidays before the last year of school and I'm going to be honest I'm not positive what I'm doing after it, but I am a very frugal person and after reading up on this ERE thing it certainly appeals to me a lot. Now I might change my mind later on, but I can't imagine much harm can come from money.
So what lifestyle changes would you recommend, what kind of documents should I start keeping, what should I begin to read up on (stocks I've seen mentioned a lot)? If you have any further questions I'll do my best to answer them. I hope I'm putting this in the right forum to get the best responses.
Short version: If you could speak to your younger self what advice would you have told them?

Post by **jacob** » Thu Jul 21, 2011 5:23 pm

http://earlyretirementextreme.com/how-t ... g-run.html

mikeBOS · Post by **mikeBOS** » Fri Jul 22, 2011 3:33 am

I'd say, "You know all that advice you get from old people that you suspect is wrong? It is."

sree · Post by **sree** » Sat Jul 23, 2011 4:38 am

If I were to give advice to my 10- years younger self , I would say:

1. Don't buy that condo - rent instead. House values are not always going to rise.

2. Don't buy all those clothes. Better to buy higher quality, fewer clothes. You'll get rid of the bad ones anyways. Figure out a uniform. KISS.

3. Diversify your investments early on. Don't rely on large cap stocks only. Get help from a financial advisor if you don't know.

4. Cut out as many monthly bills as possible.

5. Dont waste money on eating out. You can learn to make better food then they can.

6. Plan your savings with a goal of ERE after 10 years of working. You can do it.

Chad · Post by **Chad** » Sat Jul 23, 2011 5:24 am

Don't get an accounting degree.

Redsted1 · Post by **Redsted1** » Sat Jul 23, 2011 10:54 am

-Work for yourself--you'll never have a bad boss.

-Always DIY in every way you can in life (personal, business, etc.). Labor will kill your funds fast! It's always going to double the cost of something or more.
-If you can avoid a car period, go for it. If you absolutely need one, buy something old and dependable that is useful.
-Take care of yourself. My friends always tell me I'm "skinny"...sorry, actually you're fat, get it right.
-Renting > Buying, in most "non-ERE" terms. Don't get too sexy with your living situation and you'll almost always be guaranteed to have an easy time saving money.

m741 · Post by **m741** » Sat Jul 23, 2011 1:15 pm

- Tracking your expenses will cause dramatic changes in your spending habits.

C40 · Post by **C40** » Sat Jul 23, 2011 2:39 pm

- Remember to live well below your means. (I seem to have forgotten for a few years what I had decided to do right out of college)
- Don't mess around with a couple of those girls. Pursue the ones you know you want more aggressively.

George the original one · Sat Jul 23, 2011 4:20 pm

A stock that yields "only" 3% is a better purchase than you realize if it's increasing that dividend by significantly more than inflation each year.
Use stop losses to get out of investments turning sour.
Saving 10% of income does not allow you to retire early unless you get lucky... learn the ERE numbers by heart and aim higher.

HSpencer · Post by **HSpencer** » Sat Jul 23, 2011 4:38 pm

All of the above, plus live every minute as if it were your last one.

RMcD94 · Post by **RMcD94** » Sat Jul 23, 2011 4:51 pm

This is some varied, and interesting advice guys. I'll definitely take them into consideration. Keep it coming!
[BLOCKQUOTE]Saving 10% of income does not allow you to retire early unless you get lucky... learn the ERE numbers by heart and aim higher.[/BLOCKQUOTE]
What are the exact figures?
Also, what websites should I join, for example freecycle and that book sharing one (whose name slips my mind)?
And "live every minute like your last", screaming my head off?

DVDend · Post by **DVDend** » Sat Jul 23, 2011 5:15 pm

@RMcD94: Here is a spreadsheet that can be useful for figuring the relationship between savings rate vs. savings time:
https://spreadsheets1.google.com/spread ... n_US#gid=0
(Use save as to make a copy to modify numbers to match your case)

webberchoked · Post by **webberchoked** » Sat Jul 23, 2011 7:49 pm

how is living every minute as if it were your last ever good advice? this would always result in blowing every cent you have since you're dead soon.

Wes · Post by **Wes** » Sun Jul 24, 2011 12:20 am

Don't waste your time worrying about what other people think.

dragoncar · Post by **dragoncar** » Sun Jul 24, 2011 4:45 am

Too bad a lot of this is specific to the advice giver's personality (e.g. tracking my expenses has given me insights, but has not dramatically changed my spending habits).
I agree that, on it's face, "live every moment as if it were your last" is foolhardy. We EREers tend to have a longer view than that. However, the spirit of the saying is appreciated. Perhaps "live every moment with purpose" is more apt. I've got to work on that one.
What advice would I give myself? Maybe I should have done cost-benefit analysis of my chosen college and major. Still, I'm surprised my parents didn't advocate a more practical approach to the post-secondary world. Maybe it's one of those cyclical parenting things (i.e. their parents were overly practical).

Chad · Post by **Chad** » Sun Jul 24, 2011 4:51 am

The cost benefit analysis of college is a really good one. I didn't have to do it as I played football, but there are still good schools that won't bury you with debt.
I would also tell myself, "You don't need others to respect your profession...only you."

Shandi76 · Post by **Shandi76** » Tue Jul 26, 2011 5:52 pm

Hi RMcD94. I'm also from Scotland

To give useful advice it would be helpful to know a bit more about you. What Highers are you doing at school? Are you planning on going to University? What kind of career are you interested in? Are you prepared to leave Scotland, at least temporarily, for career opportunities and wealth-building?
If I could go back to your age I would do some things differently. Back then I believed in 'education for the sake of education', rather than worrying about what was best from an income maximization point of view.

M · Post by M » Wed Jul 27, 2011 12:35 am

Life isn't all about being successful, achieving your goals, and accomplishing your dreams. Life is short. Relax. Have a beer. Don't worry about tomorrow. Try to enjoy today instead.
Go to all the dances in Junior high and High school. Take the lead. Don't be afraid to ask the pretty girls to dance. Have sex. Party. Meet new people. Have fun with life.
Try. Fail. Get back up and try again. Don't ever waste your time doing something that you regret. Run away from angry people. Don't give in. Stand your ground.
Don't spend your life trying to keep other people happy. You're not responsible for the happiness of others. They are. Everyone has free will. If they want to bathe in misery, they can - there's nothing you can do about it but weep and be miserable yourself. Let them go. They've made their decision. Now it's time for you to make yours.

Hoplite · Post by **Hoplite** » Wed Jul 27, 2011 1:10 am

Jacob's advice is a good general foundation for life.
MikeBOS is right, except that I would include young people as well (i.e., your peers). They really don't know.
Now my own advice to me which you can freely ignore

1. If you're going to fall, fall forward. Don't pay for the same ground twice.
2. Don't stay longer at something than is good for you. Inertia is deceptive, especially if you're in motion.
3. Comfort is a trap.
4. A metaphor, to be construed and applied as liberally as possible:
Never wrestle with a pig. You have to get down on his level and you will get covered with filth.
And the pig likes it.

dot_com_vet · Post by **dot_com_vet** » Wed Jul 27, 2011 5:04 am

If you're lucky enough to have a close family, don't move away for a career.
Discussed at a recent family reunion. Most of us moved out of state/country in our 20's.
At the end of the day, family is everything.