Always be Positive and Inspired.
Winners will sniff out a Loser and they won't back you if you are Negative and Dull.
Winners will sniff out a Loser and they won't back you if you are Negative and Dull.
What are your 3-5 simple Personal Finance Tips that everyone should know
You cannot outsave low income
Quote: (01-23-2018 05:16 PM)SamuelBRoberts Wrote:
I always think I should put money in investments but I'm too scared to do it.
I was the exact same way about 4 years back. One suggestion would be to perhaps look into ETFs (I believe it is VTI) corresponding to Vanguard's Total Stock Market Index Fund (VTSAX, VTSMX).
The potential advantages of these ETFs (my opinion) are the low expense ratios, that you're diversified, and the price point to get started. Fidelity and others have their ETFs/index funds too, so pick what you are comfortable with. Try bogleheads.org for advice.
Another one I just thought of: Do NOT loan money to friends or family. There is an extremely high chance they will default and you'll lose the relationship as well as the money. When you loan money to people you know, they don't feel as obligated to pay it back as if it were the bank. I've seen it happen many times. Don't do it. Help people that are struggling by teaching them how to clean up their credit and go to the bank for a loan if they really need the money, or ideally, teach them to live within their means. If you absolutely must give money to people, give it as a gift and don't expect repayment. You can even give away money if you're so loaded and claim a tax deduction: https://www.bankrate.com/financing/taxes...tax-rules/
If you loaned money to someone in the past, but they defaulted on the loan, you can often claim the portion of your losses on your taxes. Consult with a CPA to see if your defunct loan(s) qualify.
If you loaned money to someone in the past, but they defaulted on the loan, you can often claim the portion of your losses on your taxes. Consult with a CPA to see if your defunct loan(s) qualify.
John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List
Try not to become a man of success but rather to become a man of value. -Albert Einstein
Quote: (01-24-2018 12:54 PM)mcw78912 Wrote:
Quote: (01-23-2018 05:16 PM)SamuelBRoberts Wrote:
I always think I should put money in investments but I'm too scared to do it.
I was the exact same way about 4 years back. One suggestion would be to perhaps look into ETFs (I believe it is VTI) corresponding to Vanguard's Total Stock Market Index Fund (VTSAX, VTSMX).
The potential advantages of these ETFs (my opinion) are the low expense ratios, that you're diversified, and the price point to get started. Fidelity and others have their ETFs/index funds too, so pick what you are comfortable with. Try bogleheads.org for advice.
For those of you who want lower cost ways to invest, I highly recommend Charles Schwab. Their expense rates are lower than even Vanguard: https://www.schwab.com/public/schwab/inv...compare_us
If you're doing equities, it is only $4.95 per trade. Schwab also has quite a few office branches around the United States, so if you want to take it a step further and get an in-person advisor, they offer that as an option.
John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List
Try not to become a man of success but rather to become a man of value. -Albert Einstein
Quote: (01-24-2018 02:39 PM)John Michael Kane Wrote:
Quote: (01-24-2018 12:54 PM)mcw78912 Wrote:
Quote: (01-23-2018 05:16 PM)SamuelBRoberts Wrote:
I always think I should put money in investments but I'm too scared to do it.
I was the exact same way about 4 years back. One suggestion would be to perhaps look into ETFs (I believe it is VTI) corresponding to Vanguard's Total Stock Market Index Fund (VTSAX, VTSMX).
The potential advantages of these ETFs (my opinion) are the low expense ratios, that you're diversified, and the price point to get started. Fidelity and others have their ETFs/index funds too, so pick what you are comfortable with. Try bogleheads.org for advice.
For those of you who want lower cost ways to invest, I highly recommend Charles Schwab. Their expense rates are lower than even Vanguard: https://www.schwab.com/public/schwab/inv...compare_us
If you're doing equities, it is only $4.95 per trade. Schwab also has quite a few office branches around the United States, so if you want to take it a step further and get an in-person advisor, they offer that as an option.
Schwab's free checking account is awesome, too.
Free ATM use anywhere in the world. They even pay back the fees.
No more $10 strip club ATM fees.
Determine what budgetary categories you care about, and which are irrelevant.
If you really care about something, spend money on it. I like having quality groceries, going out, and taking Ubers (no DUI for me). I spend money there.
If you don't care, don't spend. I could give fuck all about my apartment, car, or clothes. So I spend nickels on all of the above.
It's important to make that distinction based on what YOU want, not your friends.
If you really care about something, spend money on it. I like having quality groceries, going out, and taking Ubers (no DUI for me). I spend money there.
If you don't care, don't spend. I could give fuck all about my apartment, car, or clothes. So I spend nickels on all of the above.
It's important to make that distinction based on what YOU want, not your friends.
Quote: (01-24-2018 07:37 AM)bacon Wrote:
- Dont have kids you can't afford.
- Get a prenup before you get married.
........
This interests me, because I've heard pre-nups are not worth much these days, and lawyers are useless because they're eager to litigate and rack up fees--also you have feminist activist liberal judges that don't give a shit about what the written law is, and just make up the rules as they go on... Would it possibly be better to vet really well the person you're marrying for red flags, and just resigning yourself to the fact you'll get divorced raped if she divorces you. Alternatively hide your money before getting married in corps or offshore, don't get married just have a long term partner, or live somewhere where she won't get half through the courts? Or maybe just marry a rich girl who's willing to marry for love, the D, in spite of her parents threatening her? I mean that does happen sometimes...
Don't spend money you don't have. Spend less than you earn. Credit is evil.
Be careful saving up a large amount of backbreaking years work... because they can be taken off you.
When the divorce court takes 20 years of your hard work off you, it's like being forced into retrospective slavery.
Be careful saving up a large amount of backbreaking years work... because they can be taken off you.
When the divorce court takes 20 years of your hard work off you, it's like being forced into retrospective slavery.
Mine would be along the lines of the following...
1. Learn how/when to use a credit card. Credit cards are for wealthy people to take advantage of, if you don't fit this category, you shouldn't have one. If you can't repay any purchase before a cent of interest is charged, you're using it wrong. Credit cards are a super powerful tool if used correctly and basically financial cancer if not.
2. Get a good tax adviser in your life. If you've got a friend or it's yourself, that's a bonus, but be willing to pay for one and run any decision that rates above tiny through them. Long term you can save millions from good tax advice. I'd highly recommend getting yourself to at least an intermediate understanding of how the system works in your country as a bare minimum as well. It's the old knowing what to ask is half the battle.
3. Invest 50%+ of your income. If you can't afford this then you're living beyond your means and this doesn't matter if you're a minimum wage guy or a rock star. The more the merrier on this but you should be aiming for at least this. Fix your expenses first if you're not managing this as that side is generally where most people with a decent job are getting it wrong. The increasing income side is harder to do generally but is the next step.
4. Have an investment strategy. Game plan what your risk level is, what your shelf life is and many other important factors and come up with a strategy. For example I invest 70% of my investment income (as in the above point 3 income that I have to invest) into blue chip or indexed investments. This capital is for the most part protected and produces compounding returns, of which I re-invest all of them. I invest the other 30% into more speculative plays seeking higher rates of return, to do this with any consistency requires market knowledge, patience and a lot of research.
5. Always be up-skilling. This is essentially that you should always be doing things that will allow you to earn a higher income. This goes hand in hand with point 3, the more you grow your income the more you can invest and the faster you will start to see the magic of compounding returns. This doesn't have to relate to your occupation, adding another income stream via a skill is just as good as a promotion if the returns are the same.
6. Do your research. There is no reason to pay more than necessary for expenses like telephone, internet, bank fees, utilities and the like. For example in Australia, you'll pay roughly 3-4x as much for a phone contract with the mainstream providers, there are a ton of low cost re-sellers of those same networks that are available if you just look for them.
7. Diversify. Don't have all your eggs in one basket. This can be investment classes, it can be country of investment or a bunch of other things but involve this in your strategy formation.
8. Budget if you need it. This is really a self control and discipline issue, if you struggle then budget. I always found a good way for those with a steady income flow is to siphon off most of their income right after it hits the main account. Have 50% automatically transfer to your investment account. Have the rent and utilities/bills go straight to another account that has no card to access it. Have the food money go into another account if you really need to. Then you'll only have the small discretionary leftover amount in your main spending account to actually spend. It's amazing how many people actually need to do things like this in order to not spend all their money. If you're disciplined enough to not need it, that's a bonus.
9. Monetise your free time. If wealth is your goal, then your free time is your short cut. Find a shitty job and do it for an extra 20 hours a week. it's not a long term thing, maybe even just a summer job or similar. An extra 5k a year compounds rapidly into a substantial investment.
1. Learn how/when to use a credit card. Credit cards are for wealthy people to take advantage of, if you don't fit this category, you shouldn't have one. If you can't repay any purchase before a cent of interest is charged, you're using it wrong. Credit cards are a super powerful tool if used correctly and basically financial cancer if not.
2. Get a good tax adviser in your life. If you've got a friend or it's yourself, that's a bonus, but be willing to pay for one and run any decision that rates above tiny through them. Long term you can save millions from good tax advice. I'd highly recommend getting yourself to at least an intermediate understanding of how the system works in your country as a bare minimum as well. It's the old knowing what to ask is half the battle.
3. Invest 50%+ of your income. If you can't afford this then you're living beyond your means and this doesn't matter if you're a minimum wage guy or a rock star. The more the merrier on this but you should be aiming for at least this. Fix your expenses first if you're not managing this as that side is generally where most people with a decent job are getting it wrong. The increasing income side is harder to do generally but is the next step.
4. Have an investment strategy. Game plan what your risk level is, what your shelf life is and many other important factors and come up with a strategy. For example I invest 70% of my investment income (as in the above point 3 income that I have to invest) into blue chip or indexed investments. This capital is for the most part protected and produces compounding returns, of which I re-invest all of them. I invest the other 30% into more speculative plays seeking higher rates of return, to do this with any consistency requires market knowledge, patience and a lot of research.
5. Always be up-skilling. This is essentially that you should always be doing things that will allow you to earn a higher income. This goes hand in hand with point 3, the more you grow your income the more you can invest and the faster you will start to see the magic of compounding returns. This doesn't have to relate to your occupation, adding another income stream via a skill is just as good as a promotion if the returns are the same.
6. Do your research. There is no reason to pay more than necessary for expenses like telephone, internet, bank fees, utilities and the like. For example in Australia, you'll pay roughly 3-4x as much for a phone contract with the mainstream providers, there are a ton of low cost re-sellers of those same networks that are available if you just look for them.
7. Diversify. Don't have all your eggs in one basket. This can be investment classes, it can be country of investment or a bunch of other things but involve this in your strategy formation.
8. Budget if you need it. This is really a self control and discipline issue, if you struggle then budget. I always found a good way for those with a steady income flow is to siphon off most of their income right after it hits the main account. Have 50% automatically transfer to your investment account. Have the rent and utilities/bills go straight to another account that has no card to access it. Have the food money go into another account if you really need to. Then you'll only have the small discretionary leftover amount in your main spending account to actually spend. It's amazing how many people actually need to do things like this in order to not spend all their money. If you're disciplined enough to not need it, that's a bonus.
9. Monetise your free time. If wealth is your goal, then your free time is your short cut. Find a shitty job and do it for an extra 20 hours a week. it's not a long term thing, maybe even just a summer job or similar. An extra 5k a year compounds rapidly into a substantial investment.
Quote: (01-24-2018 03:01 PM)redbeard Wrote:
Quote: (01-24-2018 02:39 PM)John Michael Kane Wrote:
Quote: (01-24-2018 12:54 PM)mcw78912 Wrote:
Quote: (01-23-2018 05:16 PM)SamuelBRoberts Wrote:
I always think I should put money in investments but I'm too scared to do it.
I was the exact same way about 4 years back. One suggestion would be to perhaps look into ETFs (I believe it is VTI) corresponding to Vanguard's Total Stock Market Index Fund (VTSAX, VTSMX).
The potential advantages of these ETFs (my opinion) are the low expense ratios, that you're diversified, and the price point to get started. Fidelity and others have their ETFs/index funds too, so pick what you are comfortable with. Try bogleheads.org for advice.
For those of you who want lower cost ways to invest, I highly recommend Charles Schwab. Their expense rates are lower than even Vanguard: https://www.schwab.com/public/schwab/inv...compare_us
If you're doing equities, it is only $4.95 per trade. Schwab also has quite a few office branches around the United States, so if you want to take it a step further and get an in-person advisor, they offer that as an option.
Schwab's free checking account is awesome, too.
Free ATM use anywhere in the world. They even pay back the fees.
No more $10 strip club ATM fees.
Was in Vegas a few years back for a Bach party. We hit up a few strip clubs and at some point I ran out if cash and had to use the atm. I shit you not the ATM fee was $20! I went ahead with it anyway because cmon man you gotta buy the groom to be some private dances.
Sure enough at the end of the month, I checked my statement and Schwab reimbursed the fee. I was impressed they are true to their word...
Anyone who's dead broke is bound to connect with at least 2 or 3 posters on this one! This thread's making me as giddy as I was back in my lurker days of 2011! Forgot who but one of you mofos posted about having a line of credit with a 250k limit... and a $0 balance on it!
Got a hard time even fathoming this being possible... just like I couldn't believe you could Raw Dog Smash on the first night back in 2011. I lived & Breed Pick Up for a while... and was able to Raw Hard. I now want to be this Rich too!
This Right Here is My No Fap. I'm Ready Now! Big thanks for all you guys posting these tips. It almost feel like Cheating at life being a member here and having access to you Winners in the Game of life
Got a hard time even fathoming this being possible... just like I couldn't believe you could Raw Dog Smash on the first night back in 2011. I lived & Breed Pick Up for a while... and was able to Raw Hard. I now want to be this Rich too!
This Right Here is My No Fap. I'm Ready Now! Big thanks for all you guys posting these tips. It almost feel like Cheating at life being a member here and having access to you Winners in the Game of life
Quote: (01-24-2018 05:08 AM)John Michael Kane Wrote:
You asked for 5, I'll raise and spot you 10 answers.
1. Have a damn plan. Seriously. You need to write out a financial plan and review it on a weekly and monthly basis. A monthly basis to get the high-level stuff, weekly to check in on your investments, spending habits and income. What gets tracked, gets measured. What gets measured gets a chance to make changes in what is not going right, and to keep up what is headed in the right direction.
2. Keep your spending in check. The less you have, the more you need to not waste. Review all your existing bills. Do you have a neighbor you're friendly with? Split the internet bill and share the WIFI. Have family members or friends that you're tight with? Get on a family plan for your cell phone and reduce your monthly cost. Kill subscription services you aren't using. Haven't watched a Netflix movie in weeks? Cancel it and get a library card to rent DVD's. Don't spend on things that you don't use or derive value from.
3. Don't buy a new car unless you are loaded, or have a very specific business need for one. If you have a business, sometimes buying a new vehicle makes sense from a write-off standpoint. It almost never makes sense to buy a brand new car as a consumer. Instead, buy one only a few years old. Already 25% depreciation (and thus your savings), but still tons of life left.
4. Never pay full price for anything. Use cash back websites like http://www.ebates.com, http://www.befrugal.com and others to reduce the cost of purchases through cash back. Still, don't buy things you don't need. Always negotiate on bigger ticket items. You always have the power of the walkaway in any deal if the price isn't right. Learn from Trump on this. Walk away if it is a bad deal.
5. Get your credit to be top-tier ASAP. It will save you countless thousands in the long run. Get great cashback credit cards (4%-5% cash back for gas with Costco, PenFed, etc.), an everyday 2% cashback like Citi Double Cash, etc. Make sure all of your bills are set to auto-pay off cashback credit cards. You're going to pay anyway, so get the rewards. Every six months, ask for a credit line increase on each of your cards, but not if they will hit you with a hard inquiry. Call to find out.
6. Get a personal line of credit, just in case of emergencies or some other unexpected expense. Leverage matters and the best way to have more leverage to get out of trouble (or invest) is to have more access to capital. I've built up $200k worth of available credit that I rarely charge things to. It is always there if I need it. Remember, leverage gives you options.
7. Just like a car, don't buy more house than you can afford. If you haven't been on a strict budget for yourself for a long time before buying a house, becoming a home-owner will be a rude surprise. Buy at least 10% less house (or cheaper!) than you can afford. You WILL have unexpected expenses. Keep your monthly payment manageable, even if you were to lose your job for six months, you should be able to still make payments on a crappy job and/or from your rainy day fund.
8. Don't dump all your investment cash in highly volatile instruments like Bitcoin. Portion out a growth strategy and a stability strategy. Mix it up. Diversity in risk matters. Use dollar cost averaging when investing. Study, study, study, then study some more. Then study. Then invest.
9. Don't be afraid to live with roommates or parents as long as possible. Stack that cash to make the largest down payment on a house possible. A friend of mine has a $350k mortgage that is being paid for each month by 3 roommates. He's basically living in his own house with zero rent bill, while building equity in an expensive part of California. He'll be able to pay off his mortgage early at this rate. While we're speaking of mortgages, learn about how evil amortization schedules are for you, the borrower. Your first several years of a loan are the most expensive. Pay down that extra principal as fast as possible and build equity. You can always borrow against your house if you need funds later on. A 30-year mortgage turns out to cost you twice or three times what the house costs you if you pay it on the original schedule.
10. Last but not least, get a money mentor. Find a wealthy dude who likes sharing his knowledge, and become his confidant and friend. Help him solve his business needs and in exchange, show curiosity and ask questions. Most of what I learned about building wealth you don't find on CNN Money or CNBC. You talk with old money that knows the score. If you're old and wealthy, it is because you're smart enough to outlast the rest. Find a teacher and take notes, then put it into practice.
Bonus, here's even more:
11. Don't go to college if you're not in STEM, or you don't have a full-ride scholarship. The math doesn't square. If you're going to drop $100k of your own money in debt, go open up a business. Being your own boss is a great thing if you're smart and disciplined. If you're not an entrepreneur type, join a trade school and make money with your hands.
12. Sell things you don't need. Besides the regained money from Craigslist, amazon, ebay, etc., you'll clean up your house and be a lot more focused. Making money is largely about focus. Find your niche and focus like a hawk. When you have less crap and distractions, you can achieve your goals a lot easier. Turn off your cell phone during financial planning stages. Use Evernote to spell out your financial future and how to attain it.
13. Sites like http://www.personalcapital.com and http://www.mint.com are great budget and wealth tracking tools. Stay on top of things.
14. Don't hang around people will poor money management skills that show no desire to improve. Part of making money is being around people that don't waste it. If all your friends are club rats that blow money on bottle service, pretending to be rich, but carrying $30k worth of credit card debt....guess what...you'll probably be in debt too you hang out with this crowd. The golf course is a great place to meet real money. Network there and skip the club.
15. Give value to other people. Just like what I and other posters did, share your knowledge. Other altruistic people will be willing to give back. Surround yourselves with a circle of givers, as they can help fund your ventures, or just give great advice so you can grow in knowledge and wealth.
^^ I very strongly second all of this.
For those of you that are bad with money and want to get better, read the above over and over again until you rewire yourself to internalize the mindset espoused.
Every day, or even several times a day if you have to.
The advice above could make the difference between living a 9 to 5 life or a life of financial freedom.
Would rep again if I could.
Quote: (01-24-2018 07:51 PM)bootyhuntah Wrote:
Was in Vegas a few years back for a Bach party. We hit up a few strip clubs and at some point I ran out if cash and had to use the atm. I shit you not the ATM fee was $20! I went ahead with it anyway because cmon man you gotta buy the groom to be some private dances.
Sure enough at the end of the month, I checked my statement and Schwab reimbursed the fee. I was impressed they are true to their word...
![[Image: 43e69b8ca6f8049e7c453d78a59dda772298a7e1...6780a9.jpg]](http://s2.quickmeme.com/img/43/43e69b8ca6f8049e7c453d78a59dda772298a7e17915b6ae72a253fd936780a9.jpg)
As with any thread offering financial advice...make sure to budget for entertainment and generally enjoying life. I've had months where I've got extra cash due to an extra pay cycle, a good month on airbnb, or a good bonus. Investing and paying down the mortgage principal is great and all, but you gotta enjoy life along the way. Just make sure it's something meaningful that brings real joy and creates memories, like a trip abroad, a motorcycle, a musical instrument, etc...
Thank you for the kudos Spaniard.
Here's a few more things I've come to realize over the years:
16. Your time should be valuable. If you're working a really crappy paying job, why aren't you applying for other jobs, starting a business, or investing your free cash? Grow your own personal worth by making sure nobody is more invested in you, THAN YOU. There's zero excuses to work a crappy, low-paying job. Let your dissatisfaction with your current situation drive your hunger.
17. Don't invest in things you don't understand, at least on a cursory level. If it sounds too good to be true, it probably is. Avoid get-rich-quick schemes. Some of the real money is to be made doing "unsexy" work. Your job or business may not be glamorous, but if you enjoy it and it pays decently, then don't fall for pie in the sky nonsense. Keep in mind that the power of compounding only really works if it IS NOT INTERRUPTED. Don't pull cash out of your 401k prior to retirement, for any reason. Don't pull cash out of your IRA. You will pay a 10% tax penalty, not to mention all the unrealized future gains you're now giving up. Don't do it!
18. Stay healthy through exercise, good sleep and good food. Your body, if treated well, is your vehicle for wealth. Treat it like crap with alcohol, smokes or drugs, and it will cost you a fortune down the road in medical complications. If you have addictions, seek help. Ain't no shame in admitting you have a problem. It takes a brave man to come clean. If you're overweigh, invest in a personal trainer or group fitness class that will keep you accountable, or find a workout buddy. What good is wealth if your body is a wreck, and you're miserable? Also, avoid injuries. I just helped friends move a Baby Grand piano. It is probably 500+ lbs. I said to my friends, I'm not helping move it unless we have at least four strong men. Sounds like overkill? You try moving an awkwardly shaped object, tearing your spine to shreds or breaking a toe because "you only needed two men to move 500 lbs". Don't be a braggart, avoid preventable injuries and illnesses!
19. I'll second the previous poster who mentioned buying the book "The Millionaire Next Door". Find a stable woman that is capable of being a good wife for networking and growing your social circle. Wealth people are stable people. Ditch the hot mess woman and find a legit "ride or die" wifey type.
20. If you're going to buy life insurance, you'll always get better rates while healthy and young. Even if you get a small Whole Life policy, it can build cash value over time which you can borrow against, or build the death benefit that you can give to a wife, kids, extended family or charity. A small Whole Life policy is a good way to commit to stashing cash, with the added insurance benefits, if you need them.
21. If you live in a state like California, where there are tons of illegal aliens driving around without car insurance, make sure YOUR car insurance has great coverage. I live in a nice area, but there are tons of illegal assholes just an hour south of me that drive the main stretch of highway. Every night on the news there's another DUI with an illegal, almost without fail. You aren't collecting life-long insurance payments from Illegal Pedro, cuz he'll skip court and leave you with the bill. Get great auto insurance coverage and avoid driving in areas where there are lots of drunks/illegals, as your risk of getting hurt or killed goes way up.
22. Get yourself a secured mailbox with a strong keyed mechanism, something like this: http://amzn.to/2DHeBwa Identity theft is on the rise, don't make it easy for the crooks. Make sure all of your mail is delivered to a locked mailbox, no exceptions. Always setup direct deposit and ACH bank transfers instead of receiving checks whenever possible. Buy a cross-cut document shredder to destroy old bills with account numbers on them, or if you're an eco-terrorist like me, burn them in the fireplace. Ain't nobody putting together my ashes. Protect your information. For all important documents that you have signed up for online statements, make sure you download a PDF copy each month to your hardrive. Make sure your computer drive is backed up regularly to an external drive in case the internal one fails. Make sure you also buy a document scanner to keep records of all important documents. In case of an insurance claim, warranty issue, lawsuit or IRS audit, it will save your bacon. Be prepared, scan it. Buy yourself a fire safe or gun safe with a fireproof seal. Store your excess cash, credit cards, checks, passports, DSLR camera, etc. inside of it. Make sure you let your homeowner's insurance or renter's insurance has a full list of declarations as to what you wish to claim in case anything were to be stolen or destroyed by fire or flood. Part of building wealth is making sure you don't lose what you already have. Prepare, examine your plans and make adjustments.
23. If you're thinking about starting a business, make sure you do tons of market research first before blowing through your cash. Does the market really need what you want to sell? Get on Kickstarter and other crowdfunding platforms. If the interest is there, let them pay you to fund your venture. Never throw your own cash down the drain on an unproven model. Whenever possible, the best leverage is using OPM = Other Peoples' Money
24. Don't waste time, which wastes money. Get Wunderlist downloaded on your phone. I have an "Out and About" list I keep for whenever I leave the home. I don't leave the house unless I can check off at least three items. Dry cleaner, tank up for gas, buy groceries, see a friend, go to the Post Office, etc. Line up your trips to make sense with your commute. So much gas money and time in running errands are nonsensical. Drive for efficiency.
25. Realize that every dollar that you tie up (buying stuff, paying bills, investing) is a dollar that can't be used for something else. Make sure that you pay attention to your returns, whether they are investments or cost of your current debt, and figure out when it makes sense to save and pay down debt, and when it makes sense to spend. Run projections both ways. Always pay off your highest interest rate credit cards and loans first. Always. I forgot to mention it earlier, but if you haven't read my datasheet on Mastering Credit, click on the link in my sig.
That's it for now, I'll post more later. Stay curious gentlmen.
Here's a few more things I've come to realize over the years:
16. Your time should be valuable. If you're working a really crappy paying job, why aren't you applying for other jobs, starting a business, or investing your free cash? Grow your own personal worth by making sure nobody is more invested in you, THAN YOU. There's zero excuses to work a crappy, low-paying job. Let your dissatisfaction with your current situation drive your hunger.
17. Don't invest in things you don't understand, at least on a cursory level. If it sounds too good to be true, it probably is. Avoid get-rich-quick schemes. Some of the real money is to be made doing "unsexy" work. Your job or business may not be glamorous, but if you enjoy it and it pays decently, then don't fall for pie in the sky nonsense. Keep in mind that the power of compounding only really works if it IS NOT INTERRUPTED. Don't pull cash out of your 401k prior to retirement, for any reason. Don't pull cash out of your IRA. You will pay a 10% tax penalty, not to mention all the unrealized future gains you're now giving up. Don't do it!
18. Stay healthy through exercise, good sleep and good food. Your body, if treated well, is your vehicle for wealth. Treat it like crap with alcohol, smokes or drugs, and it will cost you a fortune down the road in medical complications. If you have addictions, seek help. Ain't no shame in admitting you have a problem. It takes a brave man to come clean. If you're overweigh, invest in a personal trainer or group fitness class that will keep you accountable, or find a workout buddy. What good is wealth if your body is a wreck, and you're miserable? Also, avoid injuries. I just helped friends move a Baby Grand piano. It is probably 500+ lbs. I said to my friends, I'm not helping move it unless we have at least four strong men. Sounds like overkill? You try moving an awkwardly shaped object, tearing your spine to shreds or breaking a toe because "you only needed two men to move 500 lbs". Don't be a braggart, avoid preventable injuries and illnesses!
19. I'll second the previous poster who mentioned buying the book "The Millionaire Next Door". Find a stable woman that is capable of being a good wife for networking and growing your social circle. Wealth people are stable people. Ditch the hot mess woman and find a legit "ride or die" wifey type.
20. If you're going to buy life insurance, you'll always get better rates while healthy and young. Even if you get a small Whole Life policy, it can build cash value over time which you can borrow against, or build the death benefit that you can give to a wife, kids, extended family or charity. A small Whole Life policy is a good way to commit to stashing cash, with the added insurance benefits, if you need them.
21. If you live in a state like California, where there are tons of illegal aliens driving around without car insurance, make sure YOUR car insurance has great coverage. I live in a nice area, but there are tons of illegal assholes just an hour south of me that drive the main stretch of highway. Every night on the news there's another DUI with an illegal, almost without fail. You aren't collecting life-long insurance payments from Illegal Pedro, cuz he'll skip court and leave you with the bill. Get great auto insurance coverage and avoid driving in areas where there are lots of drunks/illegals, as your risk of getting hurt or killed goes way up.
22. Get yourself a secured mailbox with a strong keyed mechanism, something like this: http://amzn.to/2DHeBwa Identity theft is on the rise, don't make it easy for the crooks. Make sure all of your mail is delivered to a locked mailbox, no exceptions. Always setup direct deposit and ACH bank transfers instead of receiving checks whenever possible. Buy a cross-cut document shredder to destroy old bills with account numbers on them, or if you're an eco-terrorist like me, burn them in the fireplace. Ain't nobody putting together my ashes. Protect your information. For all important documents that you have signed up for online statements, make sure you download a PDF copy each month to your hardrive. Make sure your computer drive is backed up regularly to an external drive in case the internal one fails. Make sure you also buy a document scanner to keep records of all important documents. In case of an insurance claim, warranty issue, lawsuit or IRS audit, it will save your bacon. Be prepared, scan it. Buy yourself a fire safe or gun safe with a fireproof seal. Store your excess cash, credit cards, checks, passports, DSLR camera, etc. inside of it. Make sure you let your homeowner's insurance or renter's insurance has a full list of declarations as to what you wish to claim in case anything were to be stolen or destroyed by fire or flood. Part of building wealth is making sure you don't lose what you already have. Prepare, examine your plans and make adjustments.
23. If you're thinking about starting a business, make sure you do tons of market research first before blowing through your cash. Does the market really need what you want to sell? Get on Kickstarter and other crowdfunding platforms. If the interest is there, let them pay you to fund your venture. Never throw your own cash down the drain on an unproven model. Whenever possible, the best leverage is using OPM = Other Peoples' Money
24. Don't waste time, which wastes money. Get Wunderlist downloaded on your phone. I have an "Out and About" list I keep for whenever I leave the home. I don't leave the house unless I can check off at least three items. Dry cleaner, tank up for gas, buy groceries, see a friend, go to the Post Office, etc. Line up your trips to make sense with your commute. So much gas money and time in running errands are nonsensical. Drive for efficiency.
25. Realize that every dollar that you tie up (buying stuff, paying bills, investing) is a dollar that can't be used for something else. Make sure that you pay attention to your returns, whether they are investments or cost of your current debt, and figure out when it makes sense to save and pay down debt, and when it makes sense to spend. Run projections both ways. Always pay off your highest interest rate credit cards and loans first. Always. I forgot to mention it earlier, but if you haven't read my datasheet on Mastering Credit, click on the link in my sig.
That's it for now, I'll post more later. Stay curious gentlmen.
John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List
Try not to become a man of success but rather to become a man of value. -Albert Einstein
Quote:Quote:
Suits said:(1) If you die with debt, you don't have to pay it. This is a great way to beat the tax man too.
Great point, but with a caveat. In the Community Proper States (look up the term), a spouse can often be found liable for debts incurred by the other spouse, even after they've passed away! I strongly recommend avoiding getting married in a Community Property State for that reason.
I'd also recommend reading up on Suits various posts regarding starting a business and maintaining it. There's a lot of savvy there in understanding a market need and filling it. Very helpful for anyone who is thinking to venture out on their own.
John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List
Try not to become a man of success but rather to become a man of value. -Albert Einstein
Quote: (01-24-2018 04:24 AM)Australia Sucks Wrote:
-Do not own a credit card and pay for all expenses with cash/savings (I.e. no personal or consumer debt)
-Take a decent amount of risks (not stupid/crazy risks though) when you invest. The biggest risk of all in the long term is not taking enough risk.
-Borrow (a sensible amount) money to invest. No point playing it so safe that you only get rich when you are too old to enjoy the money. An average wage earner needs to leverage up to an extent if they want to get Rich before old age.
For those reading this thread, I would be careful of listening to contradictory and/or black and white style advice like the above, esp. from those who act as if they are an oracle on many different areas, markets, etc.
In many countries, credit cards are an important tool for establishing good credit history. Think about what would happen when you need a credit report to rent a condo or apply for a mortgage for a house and you've been paying cash your whole life.
There is no harm in credit cards as long as you remain disciplined and understand that they are a tool. Even on this very forum, we have men enjoying many travel/spending perks as a result of properly managing credit cards and taking advantage of point systems.
To advise someone to "leverage up" while taking matters in to their own hands can actually be one of those "stupid/crazy risks". Many people suffer from various biases when investing and often lack a fundamental understanding of what they're buying or finance/economics in general. If you take out more debt in the hopes of higher profits, this can backfire if do not have a large amount of time to dedicate to learning, managing, etc. Even professional fund managers often avoid margin or excessive debt becuase everyone is wrong at some point and you don't want to end up in an even worse position.
There are exceptions to the above, but this thread is meant for simple tips and assumes that not everyone wants to dedicate tons of time to playing portfolio manager.
Credit cards (and credit more broadly) make sense to the degree you're a responsible person with a plan. Credit is like a sharp knife. It is a great tool in your kitchen if you need to cut meat, but if you're not careful, the meat you slice might be your own finger. If you have a gambling problem, are reckless with money, etc., you will get in trouble with credit. Great credit has easily paid me $20k in credit card rewards over the years in sign-up bonuses, cashback, points, etc. I don't ever pay interest, because I either pay it off, or balance transfer it out at 0% if I want to free up cash flow for 12-18 months on a good offer. Once again, it all gets back to having a game plan. You should never do any major (or minor) financial choices without having a very specific stated reason as to why you're doing them. Think, then plan, then act.
John Michael Kane's Datasheets: Master The Credit Game: Save & Make Money By Being Credit Savvy
Boycott these companies that hate men: King's Wiki Boycott List
Try not to become a man of success but rather to become a man of value. -Albert Einstein
Spend less than you earn. Never fund consumption with debt. Don't take money advice from broke people.
Quote: (01-23-2018 07:46 PM)Steelex Wrote:
1. Do everything you can to maximize your income. If you're not making 100k+ a year, you're not really trying very hard or you've chosen a really shitty field.
2. At the end of the day, busting your ass and working hard will pay off. The benefit may not always be immediate, but you'll develope an edge that other people don't. This will translate into a higher yield career.
3. Quit eating out. It's a waste of money.
4. Quit drinking. It's a waste of money.
5. Don't finance vehicles if you can help it. It's a crappy investment all the way around.
6. Don't do credit cards. The whole point of a credit card is to make money off of you, how the fuck could that work in your favor???
7. Be really careful about buying a house.
8. You can't outsave a shitty income.
You must be a real blast at parties.
I'm the King of Beijing!
1) Cars are fucking cool so get a fast one or several fast ones
2) Buy land, God isn't making any more of it
3) Just make a whole lot of money so it all comes together
Aloha!
2) Buy land, God isn't making any more of it
3) Just make a whole lot of money so it all comes together
Aloha!
- Have side businesses/hustles to keep you sharp and also stimulate entrepreneurism and creative financial thinking. I've been doing this since selling chocolate/candy out of my backpack in elementary school and it's always served me well.
- Charlie Munger said to work like a dog and scrimp and save until you have $100k in the bank. Then the dividend yield on that stack will start to work for you. He said that decades ago, but the sentiment still seems to ring true... maybe kick it up to $150k nowadays to account for inflation.
- Speaking of inflation, keep lifestyle inflation in check when you make more money. Most people reward themselves by buying fancy shit when they get a promotion or increase their sales, but you're just maintaining the same expenditure/income ratio or even worse back-tracking. Figure out what's best for you - historically I would allow myself a 10% bump up for every 100% increase in my side hustle income.
- All of the successful Jewish friends I have seem to employ a "generally frugal, selectively extravagant" mentality to spending that I've tried to emulate. Some people thought I was a cheapskate because I would always pack lunch to my last office job or still drive the same car from 11 years ago. What they didn't know was that those savings allowed me to expand on other areas of my life like buying guilt-free rounds for friends at our local watering holes, taking my parents out for fine dining, going on an additional annual vacation with the girlfriend: you know, people I actually give a shit about.
- Work ethic and drive to become successful is really important, even temporarily at the cost of other aspects in your life. Personally, I've had two such stints where I made a lot of money over the course of a few years but had to sacrifice a lot in health (weight gain), relationships (never hanging out with friends) and taking on a lot of stress related issues. But the rewards have paid off - the first venture made me enough seed capital to invest in a business with my family. And with that currently in escrow now, I'll exit with enough money and investments to sustain my lifestyle indefinitely without ever having to "work" again.
Ronnie Coleman said it best: https://www.youtube.com/watch?v=4UlgXIL0-3g
- Charlie Munger said to work like a dog and scrimp and save until you have $100k in the bank. Then the dividend yield on that stack will start to work for you. He said that decades ago, but the sentiment still seems to ring true... maybe kick it up to $150k nowadays to account for inflation.
- Speaking of inflation, keep lifestyle inflation in check when you make more money. Most people reward themselves by buying fancy shit when they get a promotion or increase their sales, but you're just maintaining the same expenditure/income ratio or even worse back-tracking. Figure out what's best for you - historically I would allow myself a 10% bump up for every 100% increase in my side hustle income.
- All of the successful Jewish friends I have seem to employ a "generally frugal, selectively extravagant" mentality to spending that I've tried to emulate. Some people thought I was a cheapskate because I would always pack lunch to my last office job or still drive the same car from 11 years ago. What they didn't know was that those savings allowed me to expand on other areas of my life like buying guilt-free rounds for friends at our local watering holes, taking my parents out for fine dining, going on an additional annual vacation with the girlfriend: you know, people I actually give a shit about.
- Work ethic and drive to become successful is really important, even temporarily at the cost of other aspects in your life. Personally, I've had two such stints where I made a lot of money over the course of a few years but had to sacrifice a lot in health (weight gain), relationships (never hanging out with friends) and taking on a lot of stress related issues. But the rewards have paid off - the first venture made me enough seed capital to invest in a business with my family. And with that currently in escrow now, I'll exit with enough money and investments to sustain my lifestyle indefinitely without ever having to "work" again.
Ronnie Coleman said it best: https://www.youtube.com/watch?v=4UlgXIL0-3g
- Make a simple spreadsheet that shows your net worth*. Visit it regularly and update the figures.
- Capitalism is more fun once you have capital.
- Price is what you pay; value is what you get.
- Read The Richest Man in Babylon.
- Mo' money, mo' bitches. No money, no honey.
* List all your assets and put a market value on them. Do the same with your debts. Net worth is your assets minus your debts.
Assets include physical things like houses, as well as liquid things like money in a bank account.
Yeah all this shit talking about cars being depreciating assets...duh.
Driving a sporty coupe with a manual transmission brings me a lot of joy on a daily basis. I love getting in my car every single time I drive it.
Money well spent.
Driving a sporty coupe with a manual transmission brings me a lot of joy on a daily basis. I love getting in my car every single time I drive it.
Money well spent.
Quote: (01-23-2018 05:06 PM)Heart Break Kid Wrote:
Why the number 25% for accommodation budget?
More than 25% makes it difficult to spend additional money on your quality of life and also save/invest.
If you're okay with spending less than 25%, more power to you. I'm not into living with my parents or long term roommates anymore, I also have a certain standard of living I expect and enjoy. 25% of my income towards my mortgage payment satisfies that.
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