Top Money Moves for your 20s

Introduction

Welcome to another episode of Black Mirror fly. I'm your alternation account. And I'm Tashaunda Dixon. And today we're continuing the conversation about money moves through the decades, and now we are squarely in the 20s.

Your 20s are for Deciding the Best Space for You

So what do you think, would be some good advice for people in their 20s? I think there's so much you can talk about thinking about my 20s What happened in my 20s? So I had a very interesting, you know, 20s experience. So I went to college in Louisiana. And when I was looking to graduate, I actually had an opportunity. Well, a couple of different opportunities. But one was, someone was saying, hey, go to I was going looking at Minnesota, and I have presented a job opportunity in Minnesota, right to go there. And that was kind of looking at other places that I could go and like, and at the time, by the way, I'm broke. I've been in college for the last four years, I don't really have much savings, I think I like to grant of savings to make this happen to get out of the college town and go somewhere. Yeah. And so I was looking at other places. And honestly, the first thing that I did was evaluate the best place to go. I wasn't tied to the family or anything like that. But so the first thing that I had to do is figure out where I wanted to live. She's such a planner, y'all. Like you're so methodical about everything. That's why these are the facts.

How do I feel about this place?

I didn't tell you that that was a part of it. So like for me, I had a choice in Minneapolis. And then I was like, Where else can I go? That'd be cheap. And because I was in Louisiana, I was like, oh, Texas is right there, buddy going to Texas, Texas. And so, so in Minnesota, they offered me $37,000 Just for the estimated $37,000 to work at Wells Fargo. And then in Texas, I didn't get a job offer. But I was looking at like, what the salaries were for the jobs. And they were like in the 40s. And kind of closer to 37. They were like the early 40s and whatnot. But then the other thing that I looked at was the cost of living. And so I did like you can do these apps where it says hey, how much is $1 worth in Minnesota versus how much to dollar in Texas. He did all this research.

At the time, it was like $1 in Minnesota is worth like $1.30 in Texas, and I was like wait, so I'm gonna make a little bit more in Texas and the cost of living is lower. Yeah. Or go to Minnesota make less and the cost of living is more. So basically what you saying is you want me to be poor in Minnesota and I can live a little bit in Texas. I want to Texas, I wish I knew this stuff. Why don't you tell me? I probably couldn't hear it. Yeah, you know, you couldn't hear so that was that was the first thing in my 20s it was about deciding where it's the best space for me. And for me that logic was based on work that I have the best life. Yeah, that's very logical of what I did was a little different. I was at school in DC, and I kind of just lingered in DC for the summer. You know, not many people say that DC but I feel like a lot of people go to college somewhere. And they decided that they're just gonna stay around there. Yeah, but not DC like this is this is a city where people especially people who come from New York or California, they come to DC for their four years, but they're gone Pune back. And let me some people stay, but they stay for maybe two to three years. But I think it's for reasons you're pointing at the cost of living is super expensive, and entry-level jobs that are not gonna pay you what you need to survive your city. Yeah. And so people rarely stay in DC. But of course, I did. decide to do, but you know, I would say, you know, I did a lot of the things that Tashaunda did not only did everything that she didn't do, I happen to get a job offer while I was a senior in college, and it was a job offer. And so I just felt like I needed to take it. It wasn't in my career field. It wasn't paying a lot of money. But I gotten it in the spring of my career field. I mean, in the spring of my senior year, and while all my friends were still searching for jobs, so I was like, Oh, I have a job when I graduate. Cool. Boom, pow. This is great. And it was a government job. And at that time I was like wow, this is what everyone wants. really evil got in DC Yeah. A government job is like you know, a golden ticket. Oh, good. You like long to have this government job and be a federal employee and retiring 30 years and get a pension and all this stuff. And so I was like, I just hit the lottery, you know, even though it wasn't in my career, I wasn't making a lot of money. I felt like I was good. Yes, I didn't even really have to try that hard to get it. Yeah. And so, you know, I think I just kind of settled into that. And I also did some other mistakes. But I will say the thing that I did well that I say this is the best decision I ever made in my career was immediately following my undergrad degree, I got my grad degree, even before I actually graduated, undergrad, I started my grad degree,

I don't think there's legal guy.

But the way my program was set up, it was like a fairly small, newer program. I actually ended up taking a ton of grad classes as an undergrad. So I was able to apply many of those credits to my grad program. And what Shawn was talking about in the college episode, like keyword mapping credits, and like doing dollars, I did all of that for my grad degree. And I finished in literally, one year, a two year program, I finished my undergrad and my grad degree. Yeah, literally at the same time, but that position me, you know, I was still like, 2223, that position me to go to my next job. And double, almost triple my salary, right. So I don't know who I wish. I waited to go to grad school. And I waited, I think it was like four years to go to grad school. And it was so hard for me to go back and mindset of being a student I did horrible. I was like, I gotta do some homework. And I just wasn't in my, you know, right ritual anymore. And so it's really hard for me to like hunker down and get through it. Yeah. So yeah, maybe just go.

I mean, but I wouldn't say go full time. Yeah, because I was going while I was working full time. And so and I also noticed a huge difference. And the people who were going to grad school full time they had they didn't wasn't taking it seriously, at all whatsoever. People who are working we like, we don't have time for this, like, we were doing a higher level of quality of work. And like, we just moved different was gonna say, so did you have so I felt like, so I actually, by the time I went to grad school, I was still in my 20s. But I wasn't really working in my career field yet that I was going into for grad school. And so I felt like, it wasn't as applicable. Until then, later on in my career, when I was actually doing the things that I was actually doing in grad school. I was like, Man, I wish I was doing this. Would I understand like, I understand it more. Now. Was that a factor for you?

No, I would say, I mean, mine wasn't related to what I was doing. I got the job that I had was in budget, I was a budget analyst or like a cost analyst from the government. Sorry, my degree was in management, engineering management to be specific, but it's similar to an MBA, basically. So I mean, I would recommend doing something general like that, unless you're a technical person who's like getting some engineering follow on or getting some it follow one, that will be and that's what happened to me. So I actually so. So I actually wasn't sure. So by time I went to grad school I was working in so my undergrad, you guys was in finance. When I worked for a company that was a finance company, specifically in options. And then I thought that my path would be like accounting and CPA, only because I looked salary. But I was actually so I started off grad school, and I was gonna go that path. And what happened at work is I actually got exposed to it at work. And I had an opportunity. While I was still in school, by way, I had an opportunity to move into more computer information systems area. And so I switched my track in grad school to do a cis and I had like, no experience in Computer Information Systems at the time. But so I felt like I didn't know enough about CIS when I made that transition at school. But then later on, I was like, Oh, this makes sense. Now, as I try to get past it, education wise, exactly. Yeah, I feel like that does happen. But I think is actually even hard to get into a degree program in which you don't have experience. If the school is doing a good job. They're not gonna let you in, you know, because they want most time. I don't know, we're in a different climate now where they just want enrollment numbers, but there was a time when they were very selective about who got into the program. Yeah, I guess it depends on the school. But I don't know I think I actually use a lot of words I learned in grad school now in my career, like, I couldn't hear a later thing like I didn't understand like, I was like, I understood that then it would have made more sense because and now I'm going back and I'm looking at, oh, this is what we're doing. And this is you know where we're at. And I'm like, I want to take the classes again.

Finances in Your 20s

Moving back, so, so finances in your 20s. So you went to a space where, in your first job, you didn't make a lot of money?

No, I was living in poverty, actually. And so I wasn't making good financial moves at that time. I although I own I had student loan debt. And I was continuing to pile it on because I was in school. And I wasn't making a lot of money where I could pay for my housing and pay for student loans at the same time. So I was in a very tight pickle. And so if I had to, like go back, or like, Tell somebody who's doing the same thing, I would tell my younger self moved to Maryland, near a metro stop, where you don't have to have a car, you can take the train, and most companies will use your living expenses. Yes, decrease living expenses, and take advantage of the benefits that are offered by your company. Right? My company had a gym, my company had transit benefit, like so I wouldn't have to eat those costs on my own. And I would have gotten roommates, right, which I have roommates. But in a cheaper area, I would have been paying even less than I was Yeah.

So for me, and the thing that I've thought about my 20s is that I felt like after I had done college, I felt like I deserve something, Mike. I was like, Oh, I worked hard. I need to get rewarded for my hard work. But I didn't have any dollars to show for it. Right? That's kind of what I hear you saying it. So in your 20s. Guys, you're just getting started. You did the work yet?

No. 20 year old or no college graduate wants to hear that. Because we like though because like, like, all the time that you spent in college was just throwing away money. You weren't making as much money you're spending, it's just not gonna happen. And so but if you did those things, so what no one told you why you're in college. Then payments is about 10% of whatever your loan price was, and 10% for 10 years. At minimum, at minimum. And so while you're like in your early 20s Yeah, you're getting started as your income is growing and whatnot. But what we generally do what I did, what it sounds like you did a little bit was up my expenses.

Exactly, my my expenses. Actually, I wouldn't say I increased my expenses very much because I was already living off campus from college. But I don't know what was different. Like I probably was making more than I was making in college. I think I was maybe going out more like, you know, we were going to happy hour. Like you're crazy. Listen, we will go out like four or $500 Regular and I'm like, I was like I guess this is payback cuz I never paid for.

Like, but yeah, so we were living in limited life like it was golden. Baby. That's it. I was traveling a lot. I was doing a lot. So maybe yes, I did increase my lifestyle. But you don't necessarily have to do that going out. And I don't so honestly though. The thing that I think that I did do well, in my 20s is I knew that it was important to start saving then. And so I did. And it was the basics, like I started my 401k Yeah, I started like, just little stuff like that there was just putting money aside.

Yeah, I would say my health was in great condition in my 20s. And you know, I lived in a very walkable city. So I was like, super healthy. And I think that that actually set me up for my 30s Right. I'm not as healthy but like I at least have a better starting point than I would if I wouldn't have had that in my 20s.

And that became more of a habit for you. Right. Yeah. In your 20s Yeah, so yeah. So it's easier to do because it was a habit.

Exactly. And when I'm not doing it now in my 30s I'm like what's wrong with you? Yeah, something's going on. You're off. So I think that was important.

Savings and Investing in your 20s

I agree with the 401k What else would well I just want to throw out there so you guys can rationalize it guys. There is this thing that time value of money, but they say it's the strongest thing in the world. It's Yes. So, guys, I'm not just saying it's important. Like if you start in your 20s your money grows so much faster because the most powerful thing is time that you that you are saving for a longer period of time that will grow your money more than you putting more money in a time frame. So guys like it's just something little started in your life. whinnies because that that Joker can grow. Like, for me, I started out at a company when I was 22. And I was there for eight years. And I did not let me just tell you, I was only making when I was there to start, I made like $40,000. And I was just putting the minimums of, hey, they're gonna match 5%. So I'll put in 5%, or whatever. And when I left there, I was still in my 20s. And I had almost $100,000 in my retirement, I think it was like $86,000. And I was still in my 20s. And I wasn't putting nothing big my videos, whatever, whatever. And, like, in my 20s, I had 100 grand in my 401k. And yeah, it was just little, little well, but I think the reality because I, I do want to encourage people to do that, if that's for you. But I've taken out, I've liquidated my 401 K's twice now once in my 20s. And once in my 30s. So, I mean, I think perhaps what I would say for people in their 20s is like, explore your investing personality, awesome. Say I don't think a 401k is required. And so my message would be start to save. I'm not gonna tell you the vehicle because I think the vehicle is specific to who you are. And you guys can check out some of our other episode to figure out a little bit about that. But just the concept of saving, and it's not that. So yes, compound interest in growing is huge. But it's also about what we talked about earlier with kids. Is it setting the habit that you don't spend everything but you make exactly that you put something aside? And that's just what you do? You know, as a person that habit about Yeah, yeah, I would agree with that. 100%.

Real Estate in your 20s

Is there anything else you would recommend for people in their 20s? I think the only thing other thing that I would say is I wish I would have purchased a home and my toilet. Yeah, I was not ready. I've spent so I've spent probably more than $200,000 on rent over the last home. But I just don't think that I was ready for the responsibility on the home. So I would I don't know, like maybe I would do like a condo or like something smaller, with less responsibility,

I would have done a duplex. I mean, yeah, I've tried. I mean, I've moved a lot over the last, you know, 15.

That's another reason that I'm not really sold on home purchase in your 20s. I feel like you're still kind of figuring out where you want to be what you are.

But the way that I look at real estate now, it's not so that you have a home, I want to be clear about, okay, it's an investment vehicle. And so I think when we talk about discovering what your investment personality say, Well, from my perspective, I could see that and just knowing that you could still move that you could still do things, because in some numbers out there. So I bought my first home in 2011, or 2012 2012, I painted of 11. I paid $136,000 for that house. And now we are 10 years later. And that house is now worth 350. And if I would have been continuing to just pay down my balance, I would have owed 100 grand on it at this point today. And so that meant my net worth just from me paying for a place to live and appreciation in the market base would have grown by 252 50. Yeah. So those are the things that I think yeah, like, I was looking at a condo in Dallas around 2012. I bought that was 100k at that time, and I thought that was so much money. And then I was looking at multi units in Baltimore. And they were like 150, and I thought that was so much money and like, now what those properties are worth and like what they would cost me like, yeah, it just outweighs it blows it out of the water. Yeah. And so I have big regrets about not dipping my toe in the real estate world prior to now. Yeah, it's hard. I think that is a preparation game, though. So I would just say it could be in the way that I heard you say it is it's that start to save thing. It's that that thinking about and I'm going to get to this in the 30s episode, but thinking about your future and what what your choices today in your 20s mean in the future.

Exactly. And there's a lot of responsibility. Oh, I get it. I get it. management companies. They are like home warranties. There's a lot to prepare for

Takeaways

Yeah, so if there's anything that we would say for your 20s just explore the possibilities you are you're wrong. You're healthy, are more capable. Yeah, just just know that it's downhill.

All right. 30 We come in for you. So until next time, y'all. I'm gonna go finish Nicole on Saturdays and we are black girl fly.