How do you all handle your finances??

 (Let's discount owning a business for the purposes of this
discussion).

How can Joe Average build some sort of finanical cushion if not
wealth?  I'm curious as to where most financial investors, planners or
any of you with experience handling money (that get or have results,
not armchair types) rate the following in order of importance:

- Paying off Debt
- Regular Savings i.e. savings account
- IRA/401K
- Owning a House
- Investing

My finances are not good right now, and I figure the first thing I'll
do is pay off my credit cards.  I'm not that much in debt, only $
1,500 K (didn't have school loans), but I'm paying for a financed car
(I had to).

I'm only 25 though.  I thought I'd buy a house, but I'm really looking
at renting for another two years while I sort my finances via the
other options listed.  My credit is BAD, and I'm just recovering from
6 months of unemployment. Where would you guys start?  I'm ok now, but
I'm not "rich" - I don't know if that's relevant or not.

Any of you invest, or have multiple streams of income?

  Me? I stupidly spend myself into debt, then (lacking real friends or family
to seek advice from), I crosspost a troll to a bunch of newsgroups on
Usenet about it.

This is how I handle lots of personal problems in my life. I've found it
very effective.

 By cashing my check into pennies, dumping them into my bathtub, then
taking a money bath.  Makes me feel filthy rich.

 wanyikuli@gmail.com wrote:


The most important way for most is to buy the house you live in.

Its also important to save more than that and generally best to do that
in the stock market or mutual funds if you dont know what you are doing.


Its better to not get into debt in the first place except for the house
and maybe the car depending on your personal circumstances.


That produces a pretty poor return but is safe.


Thats normally worthwhile because its got a definite tax advantage.


Thats the most important thing for most, otherwise
you are just pissing your rent against the wall for life.
So it should be at the top of the list for most.


Very desirable to produce decent 'wealth' but definitely
requires more skill than the other alternatives.


No you didnt, you could have driven an older used car.


Makes a lot more sense to not wait.


Get a decent well paying job for starters. That isnt hard with an unemployment
rate of 5%.


Its acceptible at that age.


Yes, been doing that since I was still in school.

 

If you don't qualify or can't make the payments, start with something less
expensive, But START with something.  You can work your way up, in time, to
something better.  Buy and rent out a room, or 2, if you can.



You may not be able to put much away, but ALWAYS try to save enough to get
the maximum company contribution.


unemployment rate of 5%.

Don't forget, that buying your house IS an investment and not just an
alternative to throwing away money at renting.

There are many other advantages that are easily overlooked.
When you are buying your house, you could eliminate the following:
!) Frequent moving expenses.
    A)Transportaion of possessions.
     B) Having to fight for full security deposits upon moving.
     C) Unnecessary deposits and connection/disconnection/setup charges on
           telephone, gas, electricity, etc.
      2) Auxiliary storage expenses.
3) Rent increases at the landlord's whim.
4) Harassing or snoopy landlords.
5) Landlord showing your rental to potential new owners.
6) Eviction
7) Renter's insurance.
8) Wasting time looking for new digs because of #1 thru 7.

Yes, you will have homeowner's insurance and property taxes, but the taxes
will probably be deductible.
And, you are building up EQUITY and your credit.

Heiman