On Fridays, I work at
Marketplace. I take scripts, edit and format them for the web and I take Q&As and transcribe and format them. Not the most exciting job, but I get to listen to a lot of stories -- stories that explain things, stories that give advice. On all the things that I don't know.
I'm nearly 24 and I have no idea how to file taxes (which might not happen until I get more hours) or how to invest money. To my credit, I am an excellent saver and a pretty rational spender (not counting that one time in freshman year when I spent $90 on two scarves to fill the whole left in my heart after I lost a gorgeous cashmere scarf a friend got me).
Anyways, I've heard a few good stories on Marketplace and other places about money that made me think:
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Parents: Why make money talk taboo?: GOOD QUESTION, because simply put, I'm screwed. The only reason I know how to save is because it's the only thing my mom and dad talked about with me. But everything else -- taxes, retirement, etc... nada. So you don't make the same mistake your parents did, check out the series Marketplace did on teaching kiddies about money:
Financial Futures.
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Dave Ramsey talks debt-free living: I really think this guy makes sense. He's the guy who wrote
"Total Money Makeover". Basically, he's against credit cards and debt -- the only exception is a home mortgage. And it makes sense. My parents got me the best graduation gift: paying off my college debt. And I'm planning on keeping myself debt-free, because I feel like debt is just this gray cloud that'll just follow you around forever.
Ramsey also recommends you spend CASH. Even with debit cards, it's a lot easier to give into impulses. But when you're counting out and handing over the green stuff, well, it makes you re-think spending $90 on two scarves.
[But if you must use your credit cards -- for the airplane miles, points, etc -- a source from another story (can't remember which) says that whenever he uses his credit card, he puts that amount down in his checking account book. By doing so, he keeps within his means and pays off his credit card balance, no problem.]
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Lead Us Not Into Debt: Megan McArdle, the biz and economics editor at The Atlantic (and frequent guest on Marketplace), decided to put Ramsey's debt-free living lifestyle to the test. She and her fiance budgeted all their expenses -- down to date night -- and withdrew that amount of cash, divvied it up into envelopes and stuck with the program. And at the end, she realized it was a pretty painless transition and pleasant at that.
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A tale of debt and redemption: Russell and Kandy Hildenbrandt had $106,000 in debt... and they managed to pay it all off. Russell worked as a chemist by day and a janitor by night -- basically 80-100 hour weeks, for FOUR AND A HALF YEARS. But they stuck to it and paid off every single penny of that $106,000 debt. Isn't that insane? This story took FOREVER to transcribe, but the story was so amazing that I didn't really care.
Some people knock them for getting into debt in the first place -- the Hildenbrants don't deny it's their fault -- but a lot of people are in their situation now, and this story just shows that you really can conquer massive debt, if you really try.