Comments on: Financial Advice For Young Adult Needed

By: Ms Money Penny

Ms Money Penny — Thu, 04 Jun 2009 02:08:21 +0000

Hi again Mr Beagle – Thanks for your advice! Hopefully our young reader learns from your valuable tips here!

By: Mr Beagle

Mr Beagle — Wed, 03 Jun 2009 03:24:03 +0000

I hope that this advice is still relevant, I’m not sure if your reader is still monitoring this post

My best advice for Uninsured Kid is NOT to make any investments YET.

Instead, he/she should spend time doing the following:
a) Join a library with a good selection of personal finance books. I find the PJ library to be excellent, but I”m not sure about the others.
b) Read as much as possible. Learn about the different investment methods so you don’t go in blindly or by using wrong justifications.
c) Find someone who can give him good advice. Make sure those people do not give biased advice (this rules out insurance agents and unit trust salesmen)

In this period of study, he/she might learn that unit trusts may not be the best investment tool.

My second best advice is DON’T SPEND MONEY on the latest gadgets, clothes, cars and eat at expensive restaurants. All this money you are spending today means you are losing thousands tomorrow!

Regarding insurance, go for TERM LIFE or hospitalization coverage only, and never go for those investment linked plans. Insurance should be insurance, and not used for investment.

By: Ms Money Penny

Ms Money Penny — Mon, 30 Mar 2009 06:57:10 +0000

Hi Richardo – Thanks for your comments. I hope it helps Uninsured Kid. I like your last comment on it being an endurance race!

By: Ricardo

Ricardo — Mon, 23 Mar 2009 12:28:34 +0000

I’m also a young adult, I’ve been in the workforce for 3 years now, and the biggest advise I can give you is try to diversify where you put your money.. It would be too difficult for anyone without much knowledge on investment to find the Holy Grail of investment returns, but if you try several instruments that are low-risk and decent return, in the long run you’ll be better off. Here’s a couple ideas:
* If you have any special talent.. invest on it, and use it part time: Now that you are student, you may have a little bit of free time to do something on the side. Don’t go for the usual jobs, test your talent and you may be rewarded. I made a decent student living by tutoring and working as a “sound guy” for small concerts.. Here’s how it worked, with the little money i was making as a tutor, I bought a few mics, cables, and a mixing board with a friend and started working in small nightclubs.. I recover my investment and made more money
* Start putting aside some money for the long run. Invest in an account were you can profit out of compound interest (if you don’t know what it is, go read about it right away).
* If you like the stock market, try to look for investment funds that are low risk and start learning about it.
What I have learnt so far is that making money is a endurance race, you have to be persistent and dedicated.. if you sprint you may lose..