Monday, June 12, 2006

Advice for the Class of 2006...

Really this goes out to all the grads that never had a parent willing or able to have a real face to face conversation on $$$.

I'm paraphrasing an article in today's NY Times with some of the bullets.....

* Say this with me - NEVER, EVER Play the lotto, scratch-offs or other crack-like state lotteries. These things are taxes disguised as entertainment which unfairly capitalize on the poor who have little understanding of their workings. The lottery provides a nice paycheck to the schools of our state every year, but it is not your duty to subsidize the schools until you are a property owner. When you are starting out the lottery may look tempting but run in the other direction. If you want to gamble ask for my tips on options pricing.....

* Make your own coffee. Say you spend just $3.50 every workday for your latte or mocha frappachino. If you drank the free office brew instead, you'd have more than $11,500 to play with after 10 years.

By the same logic, if you smoke, now is a good time to quit. Doing so will save you on average $25,600 over 10 years not to mention the enormous burden you will eventually be on my healthcare system if you keep smoking.

* Live within your means - This is hard in today's age of play now, pay later, but it's in your best interest. If you really need that new pair of jeans pay cash or earn the money to pay cash. Avoid credit card debt like the plague. More young adults are hurting their financial futures by excessive use of credit than we know.


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