What is the best way for a 19 year old to learn about personal finance?

Question

I'm a young guy and I pretty much have very little idea on how personal finance works in the real world. I know that you have to deal with bank accounts, payments, investments, insurance, and money management; I just want to be able to know everything there is to know about all of this once I live an independent life after college.

Answer 1

Many things I learned from experience. If I could go back in time I would probably beat up my 19 year old self for some of the poor money decisions I made.

Here are some things you need to know.

1. credit cards and loans are NOT free money. Even though you may not have to pay on it anywhere from one month to 4 years from now it is not free!

2. The little expenses are what add up. That $3 cup of coffee, the $1.20 fries. In addition, buying your lunch everyday really adds up. Eating out seems convenient and appetizing but it kills your wallet.

3. Pay your bills on time. This seem captain obvious but if you don't you will be slapped with late fees, making it harder to pay your bills. Use ebilling, set up email reminders for payments.

4. Have only one credit card. If you feel uncomfortable with money then have 0 right now.

5. save at least 10% of your monthly take home pay and put it in an interest earning savings account.

6. Your utility bills can range from $20-$300 depending on season and the size of your home.

7. There are just some things you dont need and not worth the extra cost. These include $45 monthly gym memberships, over $100 month for a zillion premium channels you don't watch.

8. Don't act like you have a load of money to spend. It is common for young men to want to impress girls or their friends by acting like they have a lot of money to spend. If you don't have the money to eat out with your friends tell them you don't feel like it. You don't have to buy your date everything she shows interest in.

9. Expenses really do add up! When you get your pay check you may feel such joy at all the money you made but remember most of that will be gone due to bills. Have a conservative estimate of how much you will make and how much your bills will be before your next paycheck. That way, you don't suffer the "paycheck high" followed by the treacherous "bills low".

10. Budget! Keep up with your money. Know where it is all going, even the small things. Do not forget to write your expenses down.

Answer 2

As boring as it sounds read books and magazines about personal finance. I personally like Money magazine but you could buy a couple of different magazines at a book store, decide which one fits your personality and then get a subscription.

Answer 3

I agree with most of the answers written here -- read up! Books are a great way to start -- the dummies series is great, also, consult the wisdom of your elders-- like your mom, dad, your boss, anyone who's been there, done that, has learned a lot from their mistakes and is willing to extend some advice. Blogs are a great way to learn about finance -- just put "personal finance" or "finance management" in blogsearch.google.com.

Some basic advice -- get a savings and checking account, actually save, get a secured credit card but don't overuse it (it's just for buildilng credit) and don't apply for too many credit cards. Start small.

One book I can recommend for your reading is "Stop Sitting on Your Assets" by financial analyst and bestselling author  Marian Snow.  It talks about how you can take care of your financial future, and advice about buying and selling a home. You're actually doing much better than I am because you're concerned about this already! I'm 26 and just started reading about this stuff, mostly I had to learn through trial and error. Now I'm reading up, and I feel more confident about handling my personal finances.

You can also check out Marian's blog, there's a lot to learn from here:

http://mariansnow.typepad.com/assets



Here's a preview of the book I was telling you about.

http://www.stopsittingonyourassets.com/M...

Good luck, I hope this helps.

Answer 4

You can read the book The Total Money Makeover by Dave Ramsey, he also has a website and a radio show.  You can access the show online as well.  You can find this book at the library.  It will show how to stay debt free, creat wealth, manage your money and invest as well.  Check it out!!!  I read it and now I am an avid listener of his show.  I just became debt free and now I am in the process of buying a house.

Answer 5

"Personal Finance For Dummies" is a great starter book.

Answer 6

to answer this question i need to know more about your finances such as rent car payments electric insurance for what food for who just yourself please answer?

Answer 7

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Answer 8

Start by getting a free checking and free savings account at a bank near you. You can always ask the person setting up your account to show you how to use the registers and track your account on line through their internet banking. Also everytime you deposit put a little bit of money ($5-$10) into the savings as a back up in case of an emergancy or in case you ever overdraft your checking account. Make sure your savings is set up as your overdraft protection. This will start you off with learning to manage your own money. As for investments, insurance, and money management most banks will have an investment person or financial advisor that you can talk to for free and that can help you with your questions. Just don't get into credit cards! They are easy to get, it's very easy to damage your credit, and it's very hard to rebuild it after you've damaged it. Another great resource I found for money management is about.com. They have tons of information on money management, ect. that has been a big help to me. Also if you don't have a lot of money starting out on your own you will want to watch your budget so check out the frugal budgeting section on about.com.

Hope this helps you. Good luck! :)

Answer 9

I just started a website for people like us, you can find it a http://www.btgnow.net

In addition, I would also highly recommend the following books:

Personal Finance by Kapoor, Dlabay, Hughes, and Ahmad. This was the textbook I used in the personal finance course that I took, which also changed my life (needless to say, I recommend that people take a course in personal finance too!). It's a bit expensive, but it has EVERYTHING from bank accounts to credit cards to insurance, renting, wills, etc...I do not know if there's an "american" version however.

Some other books, all of which I have reviewed in the Book reviews section on http://www.btgnow.net:

The Wealthy Barber by Dave Chilton

The Automatic Millionaire by David Bach

The Millionaire Next Door by Stanley and Danko

Start with those, and you'll be well on your way (definately spring for Personal Finance by Kapoor et al!). And be sure to stop by BTGNow.net every once in awhile!

Good luck!

Answer 10

hey im 19 yrs old too ....and im just like you i still live with my folks...

its best to get your own bank account first like that you can get a little knowledge about what it is like

also its also good if you go to training classes with financial advisor's if there are any in your area look them up and call them and ask them if they can teach you any information  or give a book to learn from or suggest a personal finance class

most colleges dont offer a financial class

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good luck

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