How did you learn about personal finance?

[EconDiva]

For those of you that weren't taught about personal finance through family/growing up, how did you learn the ropes?

Was it through someone else close to you? Through books? Trial and error?

My first step in mastering personal finance right now is to have complete control of a realistic and workable budget. I think for years something inside of me cringed a bit at the thought of the "B" word...must be some kind of deprivation associated with budgeting in my mind....

Anywho, one of the first things I've learned is that automating things is one of the best things I can do to stay on budget.

Was just curious how others learned along the way, and what were some of the simple and most important things you do that keep your finances on the right track?

[bjl584]

I learned a lot and continue to learn a lot from my Stepdad. I've also read several books on the subject, I read various articles on financial websites, I watch channels like Bloomberg and CNBC, and there was some trial and error in there. No one knows everything. There is always something to learn.

Oh, and did I mention that I've been a member of these fine forums for 6 years?

[jpg7n16]

For those of you that weren't taught about personal finance through family/growing up, how did you learn the ropes?

Was it through someone else close to you? Through books? Trial and error?

How I learned about finances:
I studied it in college. Got my degree in it. Later I took the educational courses for the CFP designation.

Something that might be good for you: Financial Peace University - daveramsey.com

How I decided to put it into action:
Saw my parents/family really struggle when my dad lost his job. Realized I didn't want that to happen again. Decided to make a change, and did.

My first step in mastering personal finance right now is to have complete control of a realistic and workable budget. I think for years something inside of me cringed a bit at the thought of the "B" word...must be some kind of deprivation associated with budgeting in my mind....

If the word "budget" has a negative connotation for you, replace it with "spending plan." It's the exact same concept, just without the same connotation. No one wants to be "restricted" by a budget, but some of those same people prefer to "have a plan" for their income each month.

Was just curious how others learned along the way, and what were some of the simple and most important things you do that keep your finances on the right track?

2 things I think are pretty simple that I do:
1) I pay off my credit cards any time I check their balance, which I typically do every weekend/every other weekend. Can't build up debt if you're always paying it off.

2) Automate my retirement savings. For instance, use 401k to save for retirement. When it comes staight out of your paycheck, it's easy to trick your mind into thinking that your paycheck is all you have to live on, when in reality, you had 10-15-20% more and are saving it.

[cypher1]

In the beginnings it was from parents with basics: pay yourself first, don't use credit cards, but if so, pay in full each month. Going further was just reading up, and asking others around me for different opinions. It wasn't till I bought a home (3 yrs ago) where I found this site, where it really opened my eyes to habits, money management and priorities.

[SnapDuck]

The basics like never carrying a credit card balance I learned from my parents. I really started getting into after a co-worker gave me his old Money magazines. After reading a few of them I was hooked on learning all I could about personal finance.

[feh]

Trial and error. Didn't get instruction in school or from my parents. I'm frugal by nature (I don't like waste), which seems to have prevented any financial disasters.

[Like2Plan]

I got a lot of my big ideas from mentoring by co-workers. This was with my own filter of wanting to save for retirement and not to be in debt.

[Mori]

I wasn't taught but I learned by observing. I saw what the abuse of a credit card could do. My grandparents grew up during the great depression and I saw how they wisely used money. When I started college credit card applications were everywhere but I never got one. I just didn't want to get myself into financial trouble. Even now, I pay with cash and save up for the big stuff.

On side note they was a guy who took 8 years to graduate from college because he refuse to take out a loan. He would take classes until he ran out of money, then go save up again and repeat the process. He said he didn't want to go through life owing money to anyone.

[kork13]

Various sources... It started with my parents, mostly just learning not to needlessly waste money, and to avoid debt where possible... In a family with 5 kids, simple things like that make a big difference.

In college (my junior year), one of my instructors took an evening to sit down with a bunch of us to talk finances. From him I learned about some investing basics, retirement accounts, automating my savings, and generally "wealth building" ideas. That's when I first got serious about really being smart about my finances, and first started to develop my "spending plan" (as JPG mentioned, that term is much more "friendly" than the 'B-word').

Around that time I also found 2 books that were quite helpful for me as well: "The Millionnaire Next Door" is good to help shape the way you think about money (basically, you don't get rich by spending all of your money); and to learn the basics about a wide variety of financial topics, I read the Wall Street Journal's "Complete Personal Finance Guidebook".

In my senior year, I found this site, and most of what I've learned since has sprouted either from these forums, or from looking stuff up online and reading news/financial articles. These forums are great, because we all learn from eachother, bounce ideas off of eachother, and we also learn by researching stuff to help answer other peoples' questions... I love this place!

[maat55]

I got mad at a bank, started listening to Dave Ramsey, read about 50 books while participating on this site.

[snafu]

If you dislike the 'B' word, try Cash flow. I learned by watching older, spendthrift brothers who never had enough of the 'ready.' As a teenagers I was always working out how many hours I needed to work to get together enough money to buy the latest trend...was it worth all that hard work for that item? Often NOT! I want to enjoy the stuff I buy, never found it satisfying o buy on impulse.

[Kircheis]

I learned most if from my parents (especially about not spending more than you earn).

I also read multiple books on personal finance. I am now reading books on investing and retirement planning.

[angiegrainger]

Getting Started

I learned that Budgeting didn't work. No matter how much I tried, I still lived paycheck to paycheck. When I learned about using a cash flow statement and net worth statement instead, I was more motivated to take control.

I used to keep a big poster board on my wall and chart the balance of my savings and my credit card debt, so that I couldn't hide anything...and so that I could see my progress.
Angie

For those of you that weren't taught about personal finance through family/growing up, how did you learn the ropes?

Was it through someone else close to you? Through books? Trial and error?

My first step in mastering personal finance right now is to have complete control of a realistic and workable budget. I think for years something inside of me cringed a bit at the thought of the "B" word...must be some kind of deprivation associated with budgeting in my mind....

Anywho, one of the first things I've learned is that automating things is one of the best things I can do to stay on budget.

Was just curious how others learned along the way, and what were some of the simple and most important things you do that keep your finances on the right track?

[97guns]

for me it began very early from my parents, it is a lifestyle and way of life for my family. i can remember when i was 6 years old my neighbor friend gave me a smurf figurine, the smurf was holding a penny and my friend said that he picked that one out because im always saving my money, 6 YEARS OLD !!!

[dontgopoor]

From most family and friends growing up I learned what not to do.

But I started to read after college - about car loans, mortgages, mutual funds, and markets. It was helpful that I was good at math because I could build my own financial models and figure out who really knew what they were doing and who was just parroting cliches.

Then I read everything I could about PF including Money Magazine. Then equity and bond markets. Then insurance. All of this before the internet started - late 80's.

Then I took the courses required to become a CFP/CFA, although I had no interest in becoming either. There I learned that almost every other CFP/CFA student was just a salesperson selling what their firms told them to sell. Very few understood markets, cash flow analysis, and intrinsic value, risk management.

Then I hit the payload - I discovered Warren Buffet's annual letter to shareholders. Read every one and look forward to them every year. Now I just keep up with global market news, interest rates, and the few, highly diversified eggs in my basket .