- Don’t buy a car you can’t afford. New cars depreciate in value as soon as they are purchased. Toyota and Honda are known for their vehicles lasting a long time and repair costs being reasonable. For more info on knowing the value of a car, see Kelly Blue Book.
- Invest in your education / skills. People pay for specialized skills.
- Learn about investing. The average return year over year is about 10%. The average inflation rate year after year is about 3%. The idea is the you want to beat inflation, and you want your investments to be there in retirement when you need them. Calculate your potential future investment returns over time using a tool like this. See Vanguard and Bogleheads, a forum devoted to talking about Vanguard’s low cost index funds.
- Don’t spend money to impress people. That fancy car is a depreciating asset. Instead of luxury brand names, opt for a simple and classic item. Often a well-fitted timeless piece can look elegant as well.
- Familiarize yourself with your local library and all of the free resources it has to offer. Libraries offer a lot of free resources that you might not have been aware of.
- Learn how to budget and live within your means.
- Set aside money for an emergency fund.
- Pay off your credit card every single month.