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Originally Posted by braisler
1. Buy your own house as early on as you possibly can. Renting is a losing game. If you are going to be in a place for more than a year, BUY! In most cases, real estate is a solid investment over the long-term. I bought my own house while I was 19 and still in college. Yes, my step-father cosigned a loan with me, but I made every payment myself. I sold that house 11 years later and walked away with $100K.
2. Invest in stocks for the long-term early on in life. Don't wait until you are 40 to start thinking about retirement. There are plenty of online calculators that will show you the benefits of compounding interest over the long-term. Putting away $10000 when you are 20 is better than putting in $100000 when you are 40.
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You hit on the two best areas and I'll add my 2 cents worth.
1. Buying a house is a great way to aquire wealth but a little thought has to be given to the location you are buying in. I made $400K on a house I held for 15 years in Seattle but I think the run up in prices has got to slow down there. Prices in some areas have been depressed for over a decade.
Also, try to buy the cheapest house in an expensive neighborhood.
2. Invest 10% of your salary or more in common stock funds. If your company has a 401K with matching funds, jump on it. Don't become a stock trader unless you really know your stuff. The guys on Wall Street are more than happy to sit down at the table with a rookie in the game. I watched some guys cash in during the dot com boom but saw many more lose almost everything during the inevitable bust. Better to just buy quality and hold.
Also, start an IRA account and put in the tax deductable amount every year. This saved my butt and allowed me to retire at age 52 when I got laid off. There are legal ways to get the IRA money without penalty if you set up a withdrawal plan under the IRS guidlines.