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

bargainbetty

Echoing a couple of things - learn to cook, and be experimental! Cook for friends (offer to cook at their place for a night out).

Don't use a credit card for frivolities. Booze, shoes, handbags and that must-have pair of jeans? No. Items that need insurance and that you can pay off immediately upon returning home, yes.

Never, ever, ever co-sign on anything. Don't stand as guarantor for anyone, and if anyone says the wonderful phrase 'But I love you, you can trust me to pay the loan, I just can't get credit on my own' politely give them one of the following answers: 'No, 'Hell No,' or my personal favourite 'Get stuffed'. Unless it is a mortgage or there is an asset that retains value and is split equally between you, get stuffed is always a viable response.

Put away something each month before you spend - don't wait and put away 'what's left'. There won't be any.

Have two savings accounts. Name them. I have the 'Rainy Day' fund and the (sorry) F**k you fund. Work out your expenditure each month. Put one third of your saved amount into 'Rainy Day' and the the other two thirds into 'F**k you'. Save until you have at least three full months expenditure in the FY account. Then, you have your emergency pot for a rainy day, and you have the ability when you really, really can't go back to your job for the sake of your health or sanity or whatever, to say 'F**k you! to your boss and go. I've only done it once, but having the savings made a huge difference to my life.

Don't be afraid to say no to people. It's your money. Don't let other people spend it for you.

And one other thing, not money related. Enjoy your youth. Find cheap/free ways to seek out adventure and try new things. There is so much you can do that doesn't cost a fortune and will give you a fulfilled life and a head full of great memories.

Good luck x

inapickle9

OH TIBBLES.............Please , please do not take out any debt at all, its seriously not worth it.

I'm 24 and started taking debt out at 18 and I'm in 25-30k of debt, CCJ's and defaults coming out of my years, I can't have a decent future anytime soon as I can't pick and choose where I want to live (rent) as they all do credit searches, Its impossible for me to get a mortgage.

I've just posted a thread, you should be able to find it under my username, please read it and I hope to god it puts you off.

The best advice I can give you is let other peoples mistakes put you off, theres no need to take debt out at the age of 20, save as much as you can, I wish I had, just out as much money in a savings account as you can.

Take care x

cherry-pie_3

Never, ever, ever get a credit card! Never get an overdraft (or at the very least, don't allow the bank to keep increasing it!)

Of course it's easy to advise with hindsight, and it's often down to necessity/rotten circumstances that we end up in terrible debt (I know it was that way for me), but I still wonder if I could have made better decisions along the way.

However, regardless of all that, if you can manage it, please, never take out a credit card - it's probably the biggest regret I have.

YORKSHIRELASS

You are so lucky because you are starting with a blank canvas, for many of us on here we would love to go back to that point in our lives where we didnt have debts and could start again.

I echo everything that has been said already, especially the advice of NO DEBTS, unless its a life or death situation, and then get it paid off straight away.

The other thing to do is start keeping track of your money, know exactly how much you spend each month on petrol, going out, clothes etc. Seeing it all in black and white helps you to live within your means.

chopper_99

Always remember that the people around you who always seem to have money and the latest clothes/gadgets probably don't actually have money and will soon be regretting it massively. Trying to keep up with these people might seem like the thing to do now, but in 5 to 10 years time the person who can actually spend any of their earnings on things other than bills food and debt will be the person who was just a little bit more careful when they were younger.

Never get a credit card, if the bank gives you one cut it up. Before I went to uni at 19 years old I was excellent with money, my parents had no debt and never bought anything they couldn't save for and I was heading the same way. I had a full time job and one catalogue that I always paid on time, and my £500 car had been saved up for and paid in cash.

I remember the day I opened my student account at Barclays and they offered me a student Barclaycard. I told them I didn't want it and the guy said 'We'll send it out to you anyway, just cut it up if you don't want it'. How I wish I'd done just that. I remember my PlayStation breaking at uni and me using that credit card to go out and buy a new one the next day instead of just accepting the loss. Before I knew it that card was maxed and I had another one, a couple of years later I missed some payments, moved house a couple of times and got a couple of defaults and CCJ's. It's taken me from the age of 22 until now at 30 to sort out my credit history and be at the stage where I can actually apply for a mortgage without being laughed at.

So quite simply don't take on any credit. Your 20's is the time when you'll be chopping and changing your life a lot. If I could go back and have a word with myself I would make sure I cut that card up and that I was a hell of a lot more careful with my money while at uni.

newleaf

Ziggazee wrote: »

Hmm.....newleaf...."don't embark on a relationship with anyone who is in debt"....bit harsh! Most people post on this forum (including yourself) because they are in debt, are you suggesting nobody should enter into a relationship with them?

Just speaking from bitter personal experience, that's all ...

danothy wrote: »

Maybe a more reasonable paraphrasing might be "don't embark on a financial relationship with anyone who is in debt, or seems to have a problem managing their money"

Thanks, that's better.

skint-student-nurse

hmmm...for me its dont let any bank throw credit at you - just be strong and say no! no loan,no credit cards,no spending money like its going out of fashion! And dont give up that really good life you have just to please others as it is only going to land you in a financial heap of poop.

Erme

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!

It's so true....CC's like you should realise by now are public enemy no.1 and store cards are CC's but under a different name....A bargain is only a bargain if you NEED it....not just cos it's 70% off...

5t3ve wrote: »

Everything above is perfect advice. The only thing I would add is start budgetting NOW. If you have to - stick your outgoings and income into an excel spreadsheet - just so you know how much money you ACTUALLY have.

One of the biggest reasons for 20 odd year olds getting into debt is that there's no real vision of how much you're actually spending.

Its not until you total it up a few years later that it hits home there's 20 odd grand to pay back (Speaking from experience here!).

If you ever find you can't survive without a credit card or loan - change your spending so you can!

The spreadsheet is one of my God's...helps me keep track of everything. Also menu plan (old therapist taught me this one a few years ago)...and when you go to the supermarket you're not so tempted if you've already got a shopping list with you of groceries and 'kind of necessary but only for the store cupboard' ...don't get a too huge a store cupboard though or else it'll be gone off before you eat it! Not least in a wee place....Even if you choose to go the ultra cheap option and live with parents until you can afford your own place offer to cook for them once a week...it'll help..

Treats are part of my spreadsheet - nothing like chocolate on a bad hair day - but they don't have to cost the earth...choc can cost as little as 34p (for 2 kids bars from the corner shop...has good effect or even less for a big 100g bar from Asda) and if that's the different between you having a bad day and a pull your hair out day then it's worth it ...

Like someone else said - if you've got the time charity shop, skip dive; dumpster dive...go the supermarkets just before they close or when you know they reduce stuff for things like bread etc (or make your own - put a decent food processor like a magimix on your 21st birthday present list now! It'll last you 40 years and save you a fortune ). In the summer I got a £70 hoover out of a bin that I'd seen just be put in there and it works fine. Just needed a new belt...keep the receipt for things in case of explosions etc (can happen - not supposed to but can) and remember most electrical items/household items you can download the manual online...Become the local charity shop guru amongst your friends and you'll be very popular. I know I am...Believe it or not these things are actually 'trendy' these days and there's nowt like CS for retro one off items (no you do not need a £2K vera wang dress for a ball when a bridesmaid 2nd hand dress or similar will do just as well.....no one will notice)...cannot say this strongly enough 2nd hand does not mean 2nd best Often stuff made in the 80's was built to last a lot longer than you're throwaway 2010 stuff so it's cheaper and better....and there's always the fun of fixing it if there is a slight prob....

Book wise - download...don't buy or get from library...depending what you're into they can be downloaded for next to nothing...This was one of my big mistakes of my twenties....

Friend's birthday? Nothing like homebaking...they'll be talking about it for ages after or something you've made for pennies.....best site for this is thriftyfun.

As Dave Ramsey says (he was my first debt free wannabe guru) - Don't do debt - let's be WEIRD )

Blessings

E

tibbles209

Some really good pearls of wisdom here If anyone else has any more tips I'd be glad to hear them!

natsplatnat

Hmmm - top tip from me....

Don't do credit cards and if you do - whatever you do - DO NOT take out a consolidation loan to make "one easy (affordable) monthly repayment". I did this once.... if I had not spent on CC's again, my £10,000 loan would be ending about now, I would be debt free and I wouldn't have an additional £6,300 to pay off!

Stay well clear - find the excitement in saving, watching those pennies grow and grow!!! Make it a game to make as much from your money as you can (obviously not by gambling and probably not playing the stock-market) but by making sure it is earning as much interest as possible!

Wishing you all the luck in the world in staying debt free, Nats x