[TheCaptainPower]

The older I have become, I am AMAZED the how fucking broke that most of the world is. I live in NYC, and most of the people still do not have any type of meaningful savings.

Actually in NYC we just passed the 1.5 million mark for food stamps, and maybe one day we can catch up to California!

When I graduated College I had $250 to my name, and I remember I somehow managed to go down to Wildwood NJ with a couple guys for Memorial Day and drink 40's. I have never been so broke since, and I NEVER want to return.

I graduated right before 9/11, and It was close to impossible to get a "Good" job. So what did I do?

I worked at a catering hall. $400 q week off the books for about a year. I eventually got a office job paying $30K a year, and I kept the valeting job on the weekends for extra $$.

2 years later by busting my ass with shitty jobs, I had saved around $30 thousand dollars. And you know what? That made me wealthier than about 90% of the entire world.

So my advice to anyone under 30, "WORK". I can't speak about other major cities, but it is almost impossible to not find work in NYC.

$30k saved up from washing dishes or waiting tables, is the same as $30K saved from selling diamonds.

And once you have that nest egg you open up your life to many different options.

A) You can live abroad
B) You can afford to drink
C) You won't starve
D) You can afford an abortion...

I'm 33 years old, and I am now earning $350-450 a month just off interest/dividends/ and lending club.

12 years ago I used to work myself to the BONE for that much money...

[WesternCancer]

Good advice, but you also have to not spend like an idiot and plan to get a job that isn't just work for work sake.

I have 10k in the bank and am working on getting a job (interview last week and now they just asked for some references) and I still have more lifestyle freedom than most of my friends who work full time. They blow hundreds every week on booze and weed while I blow maybe $100/month on various purchases (used books an article of clothing etc). I just dropped $70 on a pair of chuck taylors because my other pair ripped in half while my friend blew 150 on a pair of sunglasses that he didn't need. I made a bunch of friends back home in the second year of university and most of them had been working since they got out of highschool. One guy was making $20/hr doing construction and said he wanted to move to alberta but didn't have the cash. Another guy had to move back in with his parents because he couldn't pay the bills on $10/hr full time (rent was $300 a month). The second guy was big into videogames and blew his cash on that. Its good to have things that make you happy, but you have to use them to make you happy. I've been meaning to buy a new guitar, but I really don't play it enough to justify the purchase, many of my friends would go out and drop 1000 to get one.

If I asked my friends if they could move to a different city, or go traveling they couldn't if they wanted to. They're stuck with new car purchases, expensive leases, credit card debt and mountains of stuff.

Hell even my parents are pretty broke. They make a lot and have no debts, but they just blow it on useless crap.

[RichieP]

Good post! And I would imagine $30k in the bank is more net worth than 90% of people in NYC have, let alone people the world. It's probably more than 99.99% of the people in the world have!

Western Cancer is onto something though. It's not that most people don't logically GET your advice... it's just that they don't follow it. Western people live a splurge-and-denial lifestyle (me included for many years) - overspending on stuff they dont really need, and avoiding really looking at and tracking their finances. Personally, you coulda posted this 5 years ago, and I woulda agreed... I just wouldn't have acted in line with that. It took a few financial hard knocks to actually change my behavior; I had to learn the hard way.

We're really just not trained to be adults who manage our resources/finances in an adult way, if you think about it. I think for some people it takes something like going broke once to wake you up and burn through some of the social conditioning. Some people never get there.

[TheCaptainPower]

@ Western Cancer Did you list Roosh as a reference?? haha...

@Richie P I agree. 10% of the world has 90% of the wealth. But the majority of people don't have jack shit, that's why I recommend people should bank some quick $$ to stay ahead of the pack...

[WesternCancer]

I was actually thinking of it because I only had 2 other references ahhahaha. All the people interviewing me were chicks though so it probably wouldn't have gone over too well.

[Brodiaga]

What's the best way to earn money off interest these days? It seems that the interest rates are so low that it's not worth trying, or am I wrong?

[TheCaptainPower]

For me, its dividends from etf's, I bought a 3% CD a while back, and lendingclub.com.

Its not easy : (

[TheKantian]

Do you have any student loans?

[TheCaptainPower]

$20K left...

[Mr. Cameltoe]

In my opinion it's one of the biggest mistakes you can make in your 20s - working too much only for the sake of money. You basically spend the best years of your life grinding away for a measly 30k.

You should rather spend all this time and effort working on yourself and trying to figure out how to really make money when you hit your late 20s. A millionaire recently told me that you can and should do mistakes before you turn 30. I'm not saying you should go on a spending spree and rake up a hilarious amount of debt, but rather spend the money on life-improving experiences and changes as well as self-education.

[Alpharius]

Become Wealthier Than 90% Of The World In 24 Months

I suggest being born American. Boom! Rich two year olds everywhere you look!

[Beyond Borders]

(06-10-2013 06:25 AM)Osiris Wrote:  

Become Wealthier Than 90% Of The World In 24 Months

I suggest being born American. Boom! Rich two year olds everywhere you look!

Interesting theory. Not sure why you made that American-centric...What about Swedes? What about any other developed nation in the world?

[Alpharius]

Ok, let's change it to just being born in a developed country (with the possible exception of the southern US).

[Que enspastic]

(06-09-2013 05:21 PM)TheCaptainPower Wrote:  

D) You can afford an abortion...

work as a dishwasher, save cash for abortions

[jimukr104]

If you are in NYC ,there are actual credit unions that pay over2% on CDs. Mine pays 3%. I also suggest vanguard total market index funds.
Hate tO say it but if your going to study major in something that leads to jobs. Ex. Nursing ,acc

[pitt]

I am glad i didn't have to sacrifice my 20s. Seriously, sacrificing your 20s to have 30k in the bank by the time you are 33?

I am glad, i am travelling hardcore throughout my 20s while graduating and having few months experience for a decent job.

Become happier than 90% of the world is my advice. Be free, fuck super attractive women, live in a happier society, get your money on the side. I don't know whats coming in my 30s but i wouldn't change a thing to what i have done so far in my 20s (im 27).

Nothing beats how happy you feel,i am sure you also need money. But the older i get, the less money i need. (before i used to dream of having more than 100 million dollars, now i will be happy if i hit 60k per year while being free from work).

[germanico]

Great post Captain. Inspiring too.

Ive been broke with less than $10 to my name a couple of times. When I was starting my business, I had enough saved for a couple of months rent and services.

I had little money left, so I had to eat oatmeal and rice because those where the 2 cheapest items in the supermarket. But I was determined and held on for the 3 months that it took me to find my first customer.

I now hate oatmeal. But I eat it every once in a while to remind me that sacrifices need to be made.

Work hard, party hard.

(06-09-2013 05:21 PM)TheCaptainPower Wrote:  

D) You can afford an abortion...

[T5_Income]

350-400 off dividends is almost enough to pay your rent in BKK.

How much do you need invested to generate that !? 100k ?

[Screwston]

Getting a 2nd job on the weekends is rough. I don't think I could last long doing it just because I need to take a break from work to do my own shit. Maybe you could get a bullshit weekend job and quit when you've had enough. Keep doing this and never touch the money from the jobs.

[Atilla]

There’s a bit of a straw man argument going on around here. He’s not saying there’s an option to either become wealthy and spend your entire 20s working versus staying broke and traveling the world fucking hot girls all the time. There’s an area in between that will bring much greater long-term happiness that I think you should all consider.

-Cut back on and eliminate things you can live without so you can have more money for what you are passionate for. Even seemingly minor spending habits can make the difference of over $1000 over the course of a year.

-Based on your own preferences, set up a budget. Decide for yourself how much money will be allocated to your retirement, savings, investments, emergency fund, play money fund, traveling fund, etc.

-Take your play money fund seriously and toss a few extra bucks in there every now and then. $20 each week will land you at $1040 in a year. That can be several trips to Vegas… or one really fucking good one.

-Keep the vast majority of your wealth in conservative investments, like index funds. By putting $10/week into funds returning 8% annually, in 40 years you will have $134k, $20.8k being principle.

I’m 27, and in the past 6 months, my net worth has grown from $40k to $60k with the same part-time job and no change in spending, despite living solo in a panty-dropping pad.

I’m not a total cheapskate, I spend roughly $1600-$1800 each month, but I get the full 401(K) match (which is very small), max out my IRA, throw in a few bucks into a taxed brokerage account, and the rest is for fun.

[Derpface200]

Remember everyone, the average inflation rate in the United States is ~3% per year. Due to the Federal Reserve's QE programs savings rates in conventional banks are hovering between 0.5 and 1 percent so you need something else.

Essentially, if the interest rate on your savings vehicle is below 3% annualized returns, YOU ARE LOSING MONEY.

The other thing to note is that returns on investment are based on risk, you can't win without gambling at least a little. I would recommend a money market mutual fund given that the US stock market has given 9-11% returns over the course of its existence in addition to the fact that its being managed by professionals. For those who understand intimately how investment works and have tens of thousands in spare capital there are plenty of other options that I am too poor to have had experience with.

[T5_Income]

US stock market is NOT even close to money market, completely different instruments with substantial risk differences. Index funds are great but are certainly not "conservative" the 50% correction in 08/09 is all one needs to review to understand that.

[jimukr104]

(06-10-2013 04:37 PM)T5_Income Wrote:  

US stock market is NOT even close to money market, completely different instruments with substantial risk differences. Index funds are great but are certainly not "conservative" the 50% correction in 08/09 is all one needs to review to understand that.

It depends on the index fund. You can invest in Vanguard bond funds AS FOR 40% lost I suffered in 2008-9, I more than made it back. As I said index funds are great and will in the end get you are decent return. You just got to ride out the crashes. The market always will come back. Put money in there you don't need for the next 10-30 years and you will profit. Even the equity index funds are somewhat conservative since it put s most funds into established companies. Vanguard total stock market is a good fund. Also tto the postr who recommended managed funds..I would avoid that. Its been proven that un managed index funds beat out managed funds 80% of the time. Also the index fund has such low fees that you end up with more of a return. You guys should read up on bogleheads and learn some more.

[TheCaptainPower]

I didn't feel like I was wasting my time away at age 21, I had a ton of energy (Still do).

I was working as a valet parker and it wasn't that bad, you get to drive fancy cars and look at hot girls all day, and when the shift ended around 12:30 at night we would all go drinking together.

At some point you need to build up a nest egg, and the longer you wait the harder its going to get.

I thought going to graduate school at night after work was a bigger waste of time then working a 2nd job. It eventually paid off, but it was a fukin pain in the ass.

But my main point is, if you are fresh out of College, just bank money at all costs. (and lift weights)

$20-30K in your pocket will put you ahead of 3 billion people...

[Atilla]

(06-10-2013 04:37 PM)T5_Income Wrote:  

US stock market is NOT even close to money market, completely different instruments with substantial risk differences. Index funds are great but are certainly not "conservative" the 50% correction in 08/09 is all one needs to review to understand that.

I never said to throw all your money into index funds at once. If you’d have started dollar-cost-averaging at the peak of the S&P 500 in October 2007, you’d have profited substantially by now because you would have averaged in toward the lower half of the crash. That’s why disciplined investors shouldn’t fear bear markets or bad news.

If you did buy $10,000 of VTSMX lump-sum in June 2003, you’d have $22,076 right now. There are currently index funds with lower fees, but this one is very popular and available in many 401(k)s.

Like jimukr104 wrote, the overwhelming majority of growth stock mutual funds as well as individual stocks underperform the S&P 500 long-term.

I’m glad I didn’t listen to CNBC, Peter Schiff, and all the “market predictors” who so adamantly swore that issues involving Obama and Cyprus would send gold soaring and/or equities crashing. For all we know, this pullback in gold could continue for well over a year considering how it’s had so many buyers pumping the stock higher and holding for such a long time. It’s a possibility, but I have no clue because, like Schiff, I don’t have a crystal ball.

All I can tell you is that my wealth has grown tremendously since I began dollar-cost-averaging into these boring index funds.