Post: #76

I don't agree with the 401K part because companies expect loyalty and it will come at your expense. One reason for that is present value of money is worth more than future value of money. I've heard people claim it's free money but like I said it's really not free. There's always the possibility the company can go bankrupt, get taken over, or something of that nature happens and they essentially used you. I just don't like the dependence on other people.

Anybody can do this:

1) Don't broadcast your wealth. I laugh at people that buy luxury cars, watches, the latest Jordans, etc. Chances are high those people are broke. Even if I do buy clothes I go to Nordstrom so I can exchange items. Clothing is a DEPRECIATING asset!
2) Understand opportunity costs. If you're making millions a year chances are high you will need people to do menial tasks for you. By saving pennies you're losing on dollars. In my case, even though I'm not extremely wealthy, I do not have time to wash my car. I spend $10 at the car wash and get it spanking clean. Now I have time to write and draw.
3) Know how to game your credit card. I personally use it to collect on rewards and essentially get an interest free loan for a year. I then pay off the debt with devalued money (Present value is worth more than future value!).
4) Dollar sum cost. Right now I periodically invest money into cryptos. Once the stock market crashes, I'll buy up stocks for cheap. Even something as little as $20 a week in a realistic investment (not lottery tickets) is a start.

Post: #77

(07-19-2018 10:02 PM)ChicagoFire Wrote:  I don't agree with the 401K part because companies expect loyalty and it will come at your expense. One reason for that is present value of money is worth more than future value of money. I've heard people claim it's free money but like I said it's really not free. There's always the possibility the company can go bankrupt, get taken over, or something of that nature happens and they essentially used you. I just don't like the dependence on other people.

Anybody can do this:

1) Don't broadcast your wealth. I laugh at people that buy luxury cars, watches, the latest Jordans, etc. Chances are high those people are broke. Even if I do buy clothes I go to Nordstrom so I can exchange items. Clothing is a DEPRECIATING asset!
2) Understand opportunity costs. If you're making millions a year chances are high you will need people to do menial tasks for you. By saving pennies you're losing on dollars. In my case, even though I'm not extremely wealthy, I do not have time to wash my car. I spend $10 at the car wash and get it spanking clean. Now I have time to write and draw.
3) Know how to game your credit card. I personally use it to collect on rewards and essentially get an interest free loan for a year. I then pay off the debt with devalued money (Present value is worth more than future value!).
4) Dollar sum cost. Right now I periodically invest money into cryptos. Once the stock market crashes, I'll buy up stocks for cheap. Even something as little as $20 a week in a realistic investment (not lottery tickets) is a start.

This is wrong - the 401k is your money. The free money is in the form of the tax benefits and the company match (if you have one). The tax benefits are extremely powerful and the money can grow tax free. This is a no brainer.

Post: #78

1) Save a fixed amount each month and stick to it. Itemizing every last expense will make you miserable. Not too high, not too low. The sweet spot is giving yourself room to breathe but still making progress financially. I personally see little upside in completely cutting out restaurants or coffee. Whatever fits my budget is OK.
2) Cancel recurring monthly subscriptions. 4 or 5 of these can really add up over the course of a year. (I do have Netflix but it's factored into the expenses of a side business)
3) 12 months of living expenses in cash. Every month you add gives a real peace of mind.
4) Resist the temptation to go flashy on dates. I'm guilty of this at times, (as I suspect a lot of fellow players are) so I've learned to stick to drinks dates or coffee. It honestly makes little difference to getting laid. I'd rather spend a bit more money on a date once I know the girl is quality. When a girl offers to split (or pay!) the bill, accept it.
5) Sleep on big purchases. Never buy something over $1,000 on the spot. You should think it over and be rational.

Post: #79

1. Math in small numbers. Example. If you're by yourself. Uber trip costs $5, Subway costs $2. Every one rationalizes this cost like "Well...its only a few bucks more". Nope, it's actually 150% more. Same as $50 instead of $20. You'll start saving a lot when you understand this.

2. Buy a house. This can change depending on life situation and job. Owning a house can also trap you as well.

3. If you need to finance something. Do it with the lowest interest rate and the shortest term possible. Remember you can always pay down your balance early

4. Luxury Cars. Already been said but its really a total waste of money. More then any other depreciating asset so it's worth pointing out again.

Post: #80

Spend money on experiences, not things.

Earn more, don't scrimp and save.

Buy and pay off a humble house asap - no rent or mortgage is the way to get rich and have security.

Work for yourself, not some other bastard.

Post: #81

Real Estate: A young single guy should buy a duplex, live in half rent the other half. Maybe in a metro area you would buy a 2bdrm condo and take on a roommate. There is no perfect time, you gotta dive into it.

Stocks: There is a book - Random walk down wall street. Be humble, buy ETFs and a few selected stock pics if you must. Buy investments to hold, don't try and beat the market buying and selling. Forgetting about it is the best thing you can do. I see so many guys getting into this stuff (as I was in my late 20s) and the effort on their investment doesn't pay off. Kick ass at your job and work OT.

Cars: Buy a respectable used car with cash, maintain it well, drive it long. The longer you keep it, the better next ride you can get on your next one. Cars help with chicks, but they don't really close them.

Women: Get a prenup, don't get divorced don't move in. Realize that any money you spend on them, there is no guarantee of you getting anything out of it. Sometimes buying a drink can grease the wheels, but don't buy drinks for chicks that aren't already talking to you.

Taxes: I view everything through a tax and disposable income view. Imagine I make $50/hour. I Want to grab some dinner for $30, seems pretty cheap, I make more than that in an hour. Not true.... Figure that you make 50, pay 20 in income and other taxes, then you pay another 10 on your monthly bills ….You actually only make $20 an hour in real cash, not the 50 you thought.

Book recommendation: Millionaire next door. Its an older book from 96 when a millionaire was still somebody with cheddar. At the end of the day, the truly rich people live next door to you, they live middle class normal lives, they don't buy all the expensive shit. For example, Most high end watches, cars, shoes are bought by posers, not millionaires.

Post: #82

1. Don't spend more than you earn
2. Earn more than you spend
3. Spend on earning more (invest).