A few days ago, I readeFIPO's post on "Generation Y Not". It was somewhat shocking and amusing. It's true that the Generation Y (people born in 1972-1981 1978-2000, age 6 to 28) is in deep debt, having less net worth, and facing super-high housing costs. But at the same time, the Generation Y still have the time to make changes. Better yet, the high debt level is met with low interest rate. Moreover, the home ownership for 35-or-below is 43%, higher than 37% of 10 years ago.
I ran into Feed the Pig that intuitively teaches people how to save money. Personally, I think latte factor is not practically. Here are some recommendations I collected from Feed the Pig:
Plan for retirement early: Start saving at 24 will give you an edge over someone starting at 35. Save $4,000 per year and invest in IRA . The amount will grow to $449,000. If you wait until 35 to start, it will only grow to $232,000.
Prioritize goals: Save from various sources, spend it on something your really want, say a high-class honeymoon or a 42" plasma TV. When you have a goal, it's easier to make sacrifice on minor things.
24-hour wait period: Commercials nowadays are well-designed, they persuade you into buying things you often don't need. When you want to buy something you're not sure about, give yourself 24 hours to think over.
Eliminate credit card debt: Enough said. Start from high to low interest rate and pay it back ASAP, even if you need to do overtime or shop at dollar-store.
Buy a house (townhouse, condo): Nothing beats investing in your own residence. Certain markets are over-prices, so wait for the right buyer's market.
Learn to invest: The difference between 6% and 10% return on investing $200 per month can be $500,000 in 35 years.
I'm planning ahead! I'm finalizing my cash flow for October and writing about The Money Book for the Young, Fabulous & Broke by Suze Orman.