View Single Post
Old 2019-02-02, 21:09   #7
kriesel's Avatar
Mar 2017
US midwest

172416 Posts

Why life insurance early? Typical vehicle is universal life, which builds cash value, and in which time is your friend, and eventually you might want to borrow against that for some major purchase like a house. "The most powerful force in the world is compound interest." (It can work for you, or for someone else and against you.) With no dependents and not much income, you don't have a need for cheap term life to provide for a big lump sum to help get through life the nonexistent spouse and children if something bad happens to you and they can no longer count on your big salary carrying them through. Insurance rates are economical and your insurability is easy when you're young and healthy. For both whole life and financial investments, the most powerful thing is compounding of gains over a long period. Roughly, would you rather contribute to your personal financial investments, 10% of gross income from the start, 50% from ~age 45, or work almost until you die and are physically unable?

It may be even more important to budget your time than your dollars.

Some other suggested monthly budget items:
books, used $10, 10 hours (7 habits of highly effective people, how to win friends and influence people, law and medical general references, basic cooking, investing basics, etc)
some volunteer activity $0, 10 hours (helping paint a homeless shelter or something)
caffeine, nicotine, ethanol, controlled substances: $0, 0 hours
legal defense costs for charges you're guilty of: 0 instances, $0, 0 hours (no DUI etc)
gambling: $0, 0 hours
overeating, extravagances, risky behavior: $0, 0 hours
medical care, time as needed, cost minimal with student health center and coverage til 26 on parents' insurance and healthy living choices
software: $0 (open source; universities compete on bandwidth in dorms)
dating: $?, ?hours
sleep: $0, 240 hours/30 day month
other routine self-care: shower, brush teeth, hair care/cut, shaving, exercise, laundry, cleaning,...

One time items hopefully:
small first aid kits, for dorm room and motorcycle
helmet and other protective wear

I once took a spill on a bicycle. Stitches on my forehead, triangle tears in both palms, a hole through the shirt I was wearing and deep abrasion there, less severe elsewhere on bike and clothing, hospitalization overnight and off work ~ a week for concussion. Was wearing a Bell deep bicycle helmet, more coverage than modern helmets provide. You don't have to be going fast; asphalt is hard and abrasive. Another time I wiped out on some sand in a turn on asphalt. High leather top shoes prevented my ankle from getting ground down to the bone.

Last fiddled with by kriesel on 2019-02-02 at 21:16
kriesel is offline   Reply With Quote