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Basic needs can cost and easy 20-30k year for small family/ couple..(and that might be underestimating) There are a lot of people that only make 20-35k. It becomes very hard to build financial independance, if living in the city.

This is why I say invest in your education or skills, get a job paying min 40-50k a long with a second income (spouce) suddenly things become much easier. That is the first step. Then everything else follows.
 

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Build a network, be part of a community.

In a world where who you know is more important that what you know, get to know as many people as you can. And get to know them well.

This can help in numerous ways:

Employment opportunities
Job security
Great quality, honest and personalized help (think a car mechanic who knows and likes you, that you can trust impeccably)
Discounts on items/services
Educational opportunities (apprenticeships for example, can be very difficult to obtain without a little push from someone who is connected)

Many communities are tight knit and help each other through the tough times, and share the wealth in the good times. If you can become part of a generous community, or build yourself a strong network, you'll reap the rewards.

That and the cliche "make more than you spend". Always a proponent of people making more money. Get a better job, get a second job, ask for a raise, start a side business, start a full-time business, get a paper route, open a lemonade stand, mow lawns, shovel driveways, walk dogs. There are really no excuses not to make more money.
 

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Dmoney that is another good point.
We went to a dance last night at the community hall and observing again I realized half the people there were ones I knew fairly well.
Small town living can become claustrophobic but stepping back (or traveling) you appreciate the social network.
My 2 sons couldn't wait to move to the big city bur they always pine away about not only local friends but the local fabric.

Having the internet also really widens your world so much so that I forget we live in the boonies.
But I digress, not sure if this now ties into a financial positive, doesn't hurt though.:)
 

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Basic needs can cost and easy 20-30k year for small family/ couple..(and that might be underestimating) There are a lot of people that only make 20-35k. It becomes very hard to build financial independance, if living in the city...
True ... but then again, I've known people making $16K who have made tough choices to build their financial independence.

+1 on the invest in education/skills.

If one had the energy, starting a sideline business has been another way.


Cheers
 

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I'd say concentration(on one thing!)Over the course of the last year i'm learning this in spades!(my foray into investing ect)I think it is a mistake to buy into:starting side businesses,creating extra streams of income ect(unless it is something that doesnt cost you ''mind'' capital)I have a business(it is/has been doing well)and i started to hatch a plan(investing)and ''adding" other streams(in areas im not strong in(yet)or uneducated/lack a advantage).Guess what starts to happen?You start losing focus and you start juggling multiple things(your mind/energy ect)gets sapped.....and you run the risk of mismanging everything you got going(esp,the chief thing your income comes from that brought you to the party in the first place),because you are scattered!Think of anbody you know in your life(that is successful/wealthy)9/10 they put there energy into ONE thing(and it aint speculated on the market) and mastered it or leveraged themself way above the competition.
I'm not sure i believe in the ''guy'' who has this/that and multiple incomes/business ect.(this could just be me/personality)but look around you who is at the top of anything-one thing/one business/one focus.
 

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I'm not sure that pay yourself first is a great piece of advice. Always pay your obligations first. Pay yourself next. Having creditors come after you is not going to help your financial situation. Putting $200 in a savings account just to be $200 short on rent is not going to help you very much.

This is obvious to some, other take the "pay yourself" mantra literally.
 

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I have many I have come thought the years.


Invest in yourself first. Focus on getting skills before money. I remember when I first started working and looking at differen pt opportunities my father always said picked the one with the best potential or learning a even if it was for less money.

Understand yourself, I mean REALLY gap get to know what makes you tick, what are your stengths, and weaknesses. I spend more time on reflecting than I do learning abut investing. This has been able to guide me what I should and shouldn't do. This one is more of a life tip.

Start saving when your are young, and get out of debt or stay out of it as fast as you can.

Make long term plans, but don't be inflexible and follow them to a tee.

Balance.... Money really isn't every.
 

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I'm not sure that pay yourself first is a great piece of advice. Always pay your obligations first. Pay yourself next...
It's really the same thing.

For me, what the "pay yourself first" did was cut down on the unnecessary spending. When I paid my bills first, whatever was left went into entertainment etc. as my attitude was "that's not enough to make a difference anyways, why not have fun".

Paying myself first meant that I did not touch that money and I knew I had to pay my obligations, so I'd make any adjustments needed to pay those (ex. I'd skip a night at the movies or out at the bar, knowing the electricity bill was coming where my bank balance would not support both).

As long as one does not touch both the first and second priorities, the order won't matter.


Cheers
 

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I thought CC asked for one single best tip by everyone :)
Since everyone is contributing multiple tips, here is my #2 (or actually this might even be tied for #1):

Buy good quality things, take care of them, and make them last

To clarify, I am obviously not recommending running out-dated, under-performing things like refrigerators, desktop computers, cars, etc. well past their useful life.

But we can make things last longer by buying based on better quality and then taking care of (i.e. maintaining and repairing) things rather than dumping them in the landfill and buy a new one, just because we can.
 

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Want is not the same as need so avoid using credit-card(s) if you can with your purchase.
I respectfully disagree!

Credit cards are not destructive products & there is nothing wrong if used responsibly. Abusing them by piling up debt & using them to upgrade a lifestyle that they can't afford, is entirely another matter.

I almost always use credit cards [2nd debit/3rd cash] and get cash back & other rewards/consumer protection, etc.

It also builds credit history for those who need it.
 

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Toronto.gal: Thanks for elaborating on what I wanted to say actually.

Harold:
I thought CC asked for one single best tip by everyone
... yes, that's what his thread says. But doesn't hurt to hear all the tips, speaking for myself that's. :peach:
 

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@SR - about as useful as your reply? Read the post, there's quite a few examples listed in there.
OK I deserved that-must have been a little cranky. I just find these conventional pieces of advice of limited use, although I agree they can be fun to discuss.
 

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I just find these conventional pieces of advice of limited use....
Some yes, but not all.

You're thinking from the perspective of now being older/wiser [I believe a retiree?], but you forget that there are many young people on this forum [and even not so young] that still need the most basic advice of all [given their questions].

The thread after all, is about financial literacy.
 

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Screw the banksters / usury, pack your own lunch, live within your means, invest in your own/your family's education, don't trust your own Government and look also into other systems/see how other countries work / think outside the box. Find/build a real house, instead of barracks made of wood chips.
 

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Don't smoke.

This is probably the biggest one to come out of everyones life on this forum and everywhere when they are young and still in high school. I for one couldn't see the point in wasting hard earned lawn cutting and paper route money on such a useless item. Going forward the health costs and cost to smoke is huge over time.
 

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Hi:

Keep or take a car out of your life. The average annual cost of running a car is something like $9000. I didn't take on an automobile until age 35, and the avoided costs and investment returns on the capital paid for my first house.

Do some serious analysis on your work commute. The primary driver for so many automobiles is the daily commute. In my case, when I worked in Ottawa best case, if I had commuted by automobile, I would have saved 1 hour a day. This is best case, typical would have been 1/2 hour. So at 1 hour/day, working 250 days a year, and assuming no other usage of the car, the cost of that hour save is 9000/250 or $36 - after tax of course. At 1/2 hour/day we get $72/hour.

Of course, commuting isn't the sole reason for owning a car typically. But then the hour a day (or half hour) isn't necessarily lost time either. Some times, I got considerable exercise in bicycling to work where a car owner might pay for a gym membership and drive there 3 times a week. Some times, I commuted by bus and could spend the time reading, something I would do anyhow at home if the opportunity to do it on the bus wasn't there. Some times the girl in the next seat on the bus was plain stunning. Consider the intangibles.

Most folks won't give a good hard honest look at their relationship with the automobile. They don't have the imagination to consider their lives in an integrated fashion. If everyone in Canada did, I think that the number of cars that could come off the road would be well into 6 figures.

For disclosure, we had two cars on the go for a transition period, but are now happily down to one again.

Cheers,

hboy43
 

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Hboy, your post got me to pull out the ol' calculator and see what our truck costs us per year - turns out to be around $4000.

My advice to those who are fortunate to have above average household incomes would be this: instead of living within your means, or even below your means, consider living "well below your means". This isn't for everyone, especially those who like to "live for today", but if one can stay disciplined for a spell of years, you can pay off all your debt, and save/invest a tidy sum and simply stop stressing about money for good. My wife and I have been on this path for about 6 years. In the Retirement section I have detailed that our need for two incomes is pretty much at an end, so I am close to becoming a "kept man". :tongue-new:
 
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