- Jackson Wise
Worst advice that most people believe going into their 20 somethings...
save yourself time and money and avoid this advice.
Advice #1: Avoid using a credit card
STAY AWAY FROM CREDIT DEBT. We've seen so many fall under the pressure of debt and accumulation of interests. This ruins your credit score and your life. That's awful. Avoid that. Sounds easy; it is. All you gotta do is spend less than you make. Put it all on your credit card, and make sure you pay off everything you're borrowing. If you don't owe them more than what you can pay, you'll be fine. All it takes is budgeting a little more than you already are. This will grow your credit score, and give you more buying power in the future.
Advice #2: Renting is better for now
The idea is that you don't have enough for a down payment, so you rent to build capital. If you are saving up enough for a better down payment, and you have a solid plan, I support this. But let's look at the numbers. Let's say you want to rent for the next 2 years. Average rent right now for a 2 bed apartment is about $2,000/month in California. That's $12,000 a year that's just gone. It didn't add to your wealth at all. Instead, you could be paying $12,000 for a down payment, and have a housemate pay you rent to put towards the mortgage. Now at the end of your year, you have a house that you could be living in rent free, or limited rent. The other misconception is that we're about to enter into another housing crash with extremely low home prices. That is just not the case. The trend says everything is getting pricier, and the best we can hope for is a lower interest rate which we can re-fi later.
Advice #3: You should get 3+ insurance quotes
So many people are under the misconception that when you make insurance agents compete for your business, they will get your rate as low as possible and this will safeguard you from them overcharging you to get more commissions. The fact of the matter is, Insurance is highly regulated, and agents don't have the power to raise premiums without raising your coverages. The agent is just the expert middle-man. So instead of competing agents, it's best to go to an independent agent. This type of agent brokers out rates and competes inwardly to get you the best deal: kind of like Google Flights or Expedia. So to get the best insurance, go to an independent agent and try and fully understand your coverage rather than just shopping price agent vs agent.