Building up one's credit is very important. Keep in mind, however, us 18-24 year olds often are very susceptible to sudden downturns in that we often work in the retail world– retail jobs quickly cut hours and lay off employees when their demand decreases. (see the two comments on the first part of this article). Also, and I am sorry to say this, we don't have the best track record of money management (I speak from experience here). In the long term your suggestions are excellent. In the short term however, if you know that you are living on a very tight budget, it is smart to only spend the money that you have right now (if someone has the self-discipline to follow your advice and set the money aside, more power to them.)

Secondly, my parents face the same issues you are discussing and have a very different take on the economy than I do. My concern is always with the lower echelons of society. Those for whom an extra $50 a month would allow them to buy a warm coat for their children, food for their table, perhaps even a few school supplies. A nice date with their spouse is a pipe-dream in that scenario. Poverty is a major problem for our economy. It is the kiss of death for many promising children. Their hopes and dreams are often quickly battered to death by the harsh reality of their situation.

I live in DC… trust me– this is not simply an idealistic Lib talking. This is reality from where I sit.

Once again, thanks very much for your perspective. All of your points are very valid and I appreciate your comments.

Secondly, I will try my best to not make this political, but the “upper echelon” or “rich” in Obama and/or Clinton’s “tax reform” means any families making more than $75K will face higher taxes. For example, in most states, a married couple where both are teachers would qualify as “rich”. The problem with their plan is that they never publicly get into the specifics of exactly who is “rich”. Most of us out in the world hardly feel “rich”. I’m 30 & an engineer & make decent money. However, I have a wife & two kids to support and I have very little left over at the end of the month after a mortgage, a car payment, student loan payments, utilities, food, insurance, etc. In the long run, tax reductions help everyone, not just the wealthy. An extra $50 a month means that much more I can invest in retirement (i.e. stocks, mutual funds, etc.) That investment by me (& millions like me) gives corporations capital for research, job creation, expansion, etc. Or, that $50 a month can go to a nice date a month with my wife & it is more money to a restaraunt to help them pay part time college students. Be careful of anyone proposing placing more of the tax burden on the “rich”. The top 5% of earners already pay over half of the income tax in America anyway. It is the truly wealthy’s desire for more income that drives the creation of companies, expanded corporations, innovations, and so on which creates the opportunities for employment and growth of our economy. The more of the money they earn that they get to keep, the more they will have to invest. That is a good thing for our economy.

Sorry for the terribly long post, but I felt it was important information and maybe a slightly different perspective from someone who has been in the working world for a few years but still isn’t terribly old.

Building up one's credit is very important. Keep in mind, however, us 18-24 year olds often are very susceptible to sudden downturns in that we often work in the retail world– retail jobs quickly cut hours and lay off employees when their demand decreases. (see the two comments on the first part of this article). Also, and I am sorry to say this, we don't have the best track record of money management (I speak from experience here). In the long term your suggestions are excellent. In the short term however, if you know that you are living on a very tight budget, it is smart to only spend the money that you have right now (if someone has the self-discipline to follow your advice and set the money aside, more power to them.)

Secondly, my parents face the same issues you are discussing and have a very different take on the economy than I do. My concern is always with the lower echelons of society. Those for whom an extra $50 a month would allow them to buy a warm coat for their children, food for their table, perhaps even a few school supplies. A nice date with their spouse is a pipe-dream in that scenario. Poverty is a major problem for our economy. It is the kiss of death for many promising children. Their hopes and dreams are often quickly battered to death by the harsh reality of their situation.

I live in DC… trust me– this is not simply an idealistic Lib talking. This is reality from where I sit.

Once again, thanks very much for your perspective. All of your points are very valid and I appreciate your comments.