Please give me one piece of advice that you wish you knew when you were 20!

Amatheya81

It's been said before but I'll say it again do not fall into the credit card trap or you'll never be debt free again.
Never trust a banker who wants to give you money.
A overdraft is the same as a loan, it is not free money.
No man is worth your money, if you find yourself helping him out all the time then get shot.
If you can't afford it don't buy it, if it will leave you short don't buy it, if you don't actually need it don't buy it... You'd be amazed how much stuff you thought you deaperately needed that you end up chucking away as junk a year latter.
Take advantage of your parents hospitality for as long as possible, shure you may have to live by their rules but you're bills will never be as low again in your life.

Jonahmaul

Haven't read through all the replies so some of this advice has probably been given before but I am still relatively young (28) but got myself into a lot of debt when I was younger which I scratched & clawed my way to be free of so I definitely wish I could speak to my 20 year old (and 18 and 19 year old) self! This culminated in me having to pay off £5000 of debt in less than a year before I went to do my undergraduate degree at 22 (luckily I lived at home & only paid £200 board & bills & there was a lot of overtime in my work but I was only earning £12,000 basic so this was very difficult).

As a result of my experiences my advice would be to first of all never buy anything you can't afford. Seems simple but it's so easy to not do, you think I'll just buy this thing now & pay if off at the end of the month but then you do that again, and again, and...You get the picture! This is particularly the case as you want to be going out with friends, having the latest stuff, looking good, impressing girls etc. The easiest way to do this is to avoid store cards and credit cards like the plague, if you don't have these then the temptation to spend is less, the same with overdrafts.

Once I'd paid off my debt the way I budgeted (including through university) was to work out what absolutely had to be spent each week (or month if this is easier for you); this includes rent, bills etc. You can also include social events in this; for example work Christmas meals and friends birthdays are often essential events that you can't really avoid but as long as you budget for them then this is not too much of a problem, just remember that not every night out is an essential event and you can miss some. Anything that you have left over each week/month you save & then DO NOT use it. Even if you think you need more money the next week/month TOUGH, you should've budgeted better and will have to go without.

Savings will definitely help you, they can be there as a fallback or for when you want to spend on something big or even just to make you feel that bit more secure just in case. Inevitably there will come a point in life where you will need to spend savings (car/children/house being the most obvious examples) and if you can afford these things without having to get yourself into debt then life will be a lot easier.

Obviously a lot of this advice is dependent on your personal circumstances (do you live at home/are you single/do you need a car for work etc.) but most can be applied regardless of your circumstances. The biggest thing to remember is the advice that's all over this website & that's 'do you need it' and 'can you afford it'? The first one in particular is the one to think about as more often that not you don't need it!

jintyb

FREEZ wrote: »

Don't go anywhere near credit cards! Don't spend what you haven't got. Save as much as you can while you still live at home with your parents. Sorry; I know this probably all sounds really boring to a 20 year old but when you're 40 you'll be so glad you did!

What they said!

lilherbz

Hi there,

Im 23 and i fell into the trap of credit cards, overdrafts, store card and catalogues at a younger age ... yawn boring!! Its not masses of money (under £4k) but its my own silly fault for getting myself stucked in to the world of free money - Note: nothing is free.:mad:

If i could go back 3 years i would have saved more money as now I have a stable relationship, i cant afford my own house and dont have any savings what so ever. At 18 I got a loan for my 1st car it was only £1,500 but i could have saved that in no time, then got a credit card, catalogue etc for new clothes to keep up with older friends who had good jobs. Everything got on top of me and now 5 years later i am still paying a loan as i had to get another to pay off my catalogues, credit cards and store cards it is a nasty circle.:mad:

I would have limited how much i spent on shopping, going out and gone round a friends house first with a bottle of wine before going out, lets face it if you go out at 7-8pm there is no one about and its bit boring so you drink more.

So have fun and live life if you want a credit card get one, catalogue, store card just get them but be sensible and manage your money properly and only use it if you need to and pay off in full every month, dont use it because there is a gorgeous dress and/or shoes you want and cant afford it all in one go because come next month you wont pay the full amount off because there will be something else you want to buy.

Im definately learning the hard way, but glad I have stopped my mad spending before i got myself in to alot of trouble.

Wishing you the best on that straight and narrow path. xxx

sockdrawer

Can I add what I would have said to myself at that age....
Never, never ever start smoking. Even socially.
Learn to cook, and keep a planned storecupboard. Add a few snacks and nibbles for after the pub instead of going to the curry/kebab shop.
As Tigger955 said. Learn to fix stuff. Saves a packet, and while you're at it, learn to sew and mend as well.
Use the library. If you have a good uni/college library locally, then they may let you subscribe even if you're not a student there. Our local one has an art library, and a general library with huge amounts of useful books in. My subscription? £30 a year. I'd never have spent the amount I did on books in my 20s 30s if I'd known about that.
Accessories brighten up the most tired outfit.
Don't live up to a lifestyle by using debt. It's not real money until you have to pay it back.
Be satisfied and content with what you have, and be aware of your vulnerabilities regarding when and for what reasons you spend money.
Don't spend to please a partner.
Oh, and don't "aspirational" spend when you're not really going to use it ie don't spend to try to be the person you'd like to be... gym memberships, courses you think you should do, that type of thing. Unless you're truly motivated it never works out.

Simon_c_2

Here's what I wish I knew at 20....

• Budget what you think you'll spend, and Keep a diary of what you spend. Takeaways and drinks add up, do you really want to be spending £50-£100 a month on takeaways cos you can't be bothered to cook at home ?
• Setup regular savings as others have said
• A credit card is a *loan*, not something to use to pay for daily needs when you've run out of cash. See Martin's advise for how to use the credit card. If you can't use it sensibly (i.e. pay off at the end of the month), don't have one.
• If you're still living with parents at home, figure out what your outgoings would be if you had your own place, and once you've paid your board, put the rest into savings. *that* is the real money you have for yourself.
• increase your savings amount by half of any pay rise, if you do get pay rises.
• (this is only with the benefit of hind-site on the property market) When you're comfortable in your house, and have plenty of spare money, consider moving up the property ladder or saving, not blowing the spare money on holidays and expensive gadgets.
• Keep abreast of the financial news. Don't think things that happened before will happen again. (I'm thinking 15% interest rates making me reticent to get the best house I could afford when were DINKYs, and 2% interest rates making others think they will stay like this forever.) One can be too cautious as well as too rash.

• When you settle down with someone, establish very early on what their finical literacy is like. If they don't want to be involved with day to day budgeting, then they should have no input on deciding if you can afford that holiday/car/house.
• Yes, it *is* worth having that argument about whether you can afford that gadget/holiday etc now, and not just saying yes for a quiet life (yeh, I learned those last two by bitter experience. )

And, a couple of things I did know, but would want to pass on anyway when my kids reach that age.

• You very very seldom get a good pay rise or promotion staying in the same job. Always have your CV up to date, and be aware of the job market in your line of work.
• *Aim to get a job you enjoy, but be realistic enough to know every job has it's cr*p parts of it.
• If you're planning on going to university, make sure the degree you're getting is worth the debts it will take to get it. Otherwise, it may be better getting the degree part time while working.
• make sure you want to work in the industry you're getting the degree in, otherwise it will be a complete waste of time and money.

alisonannk

Great post and it has motivated me to register and reply (I was an unregistered lurker before!).

At 27 I wish I could go back to 17 when I started uni and where it all began!

So...

Don't shop when you're emotional/down in the dumps. Buying stuff might make you feel nice but it doesn't solve the true problem.

If you want something walk away then buy it on the second visit/after research. If its not in stock when you go back its not going to have a huge negative impact on your life! Buying it unnecessarily will.

If you're a student don't just take out a student loan because it is offered to you - think about what you'll use it for otherwise you'll fritter it away. Likewise for student overdrafts and cards - before you know it you'll be working and then the student rates disappear and you're in bother if you don't have a job/income to pay it back!

If you work don't assume you'll always have the job. Thinking 'I'll pay it back with next month's wage' doesn't work. No matter how small the spend is.

Don't get a credit card for company expenses - when you get paid the expenses you may just see it as 'extra' money and the credit card debts begin to mount. Be strong and make sure all expenses are paid for by the company.

Invest in your future if you have done your research. I.e. if you pay for a course make sure the job prospects at the end will be worth it. We spend most of our life working so you need to enjoy it but don't sell your soul for a wage packet or sell yourself short!

Keep an excel spreadsheet of income and outgoings and DONT ignore when you spend more than you bring in - just be aware you can change it/do something to rectify it.

Don't not spend on things you enjoy but please forsake that starbucks coffee that you enjoy for something bigger you enjoy - i.e. a holiday with friends. Small sacrifices for longer term pleasure.

Be prepared for the worst - i.e. redundancy, unemployment.

Use the recession as a perfect example to refuse credit when offered to you if you struggle to say no. Bad attitudes to credit got us in this mess!

Balance is the key - don't save everything and not spend but don't spend without saving/paying bills. Extremes will feel great in the short term but will make you miserable long term.

If it seems too good a deal it probably is!

Good luck, be cautious but don't let money ruin your enjoyment of life!
:j

jess444_2

Oh this could be a long list ....

Keep paying into your pension - you will get old. I opted out when I went part time when children were young...seriously regretting this now!!!

Money does not just 'disappear' it gets spent on lots of rubbish that you don't really need - one day you will look back and wonder what you have to show for all of the debt. So..keep a diary of your spending.

DO NOT under any circumstances consolidate your credit card bills into one 'easily affordable monthly payment'.

DO NOT under any circumstances remortgage your house to consolidate the loans you took out to consolidate the credit cards!!!

DO NOT take 'payment holidays' from your mortgage to pay for Christmas.

You might 'deserve a holiday because you work hard', but if you can't afford it you shouldn't go.

Try to save something when you are working, because one day the job you thought was 'safe' - won't be.

I am sure I could go on, but probably the best piece of advice is to regularly log on to MSE - it will serve you well.

Jess

tibbles209

Heh We got a mention in the weekly email

Flat_Eric

I have more than one suggestion for you. Firstly though, a very informative and interesting thread with some fab contributions from mse members :j:D

I echo a lot of what has been said already but have the following to add/repeat.

Whilst credit cards have their uses (i.e. if purchasing something that costs over a £100), then unless you are going to be paying the card off in full every month then they are (in my personal opinion) the easiest route into debt possible. That was how I first got into debt in my early twenties. I was unhappy in my job, had a credit card in my purse, and went shopping accordingly. Fast forward a year or two ? and I take out a loan to pay off my credit card debts only to keep the credit cards ! and run up just as much debt if not more !! I have a vivid memory of phoning up whichever credit card company I was moving my balance to and hearing the visible shock in the person's voice as I informed them the balance of close to £1000 odd had been run up in just a few weeks :eek:

Treat credit cards with the disrespect they deserve. In fact they do not deserve to be called credit cards - they should be known by their proper name of DEBT CARDS

Avoid all internet shopping when you have been drinking !

Identify what kind of shopper you are ? I shop to make myself feel better, only if I don't have the money in the first place, I end up more miserable and thus the cycle repeats. Identify whether shopping gives you a "buzz" and see what you can do to achieve the same buzz but without the financial hangover.

With interest rates so low, having money squirreled away in a savings account can warrant very little, if any interest. I started buying premium bonds a few years back and whilst I know :money: has a feature on this which tells you whether they are worth it, in my opinion, premium bonds worked very well for me and were the only reason I ended up with any form of savings (sadly all gone now) because once I bought the bonds, I did not want to cash them in for fear of missing out on winning a prize !

When you meet the love of your life, despite any promises given, always keep your own bank account as well as any joint account you may have and always have at your disposal some money that is yours and solely yours and is available for you as and when you need it. Life is full of surprises and you never know what is round the corner. Always try to have at least two months salary in the bank so if the worst happens, you have a safety net. I would even go as far as to say, have money that your better half does not know about. I know in relationships, we should be honest and that in this day and age, what is mine is yours but as I say, we can never be certain what is round the corner and thus it doesn't hurt to have safety net.

shop in charity shops, supermarkets over high street. ebay also

will be back with more soon !