How to divide your income ? Or any financial advice for a 21 year old about to graduate MGTOW ? Life advice also appreciated.

cant-stand_ya · 2021-05-27T08:50:05+00:00

My number 1 rule: No spending money you don’t have.

If you follow this, rest will fall in place. The fact that you’re concerned about your finances is a good indication. Lot of early 20s dudes have a serious lack of financial awareness.

rb5775 · 2021-05-27T12:01:00+00:00

ALWAYS have back up cash that no one knows about. Kept in a place that is very difficult for them to find. A relatives house or your office or locker at work.

I once split from my wife with just $5 in dimes. It was a rough couple of weeks. :)

cz_masterrace · 2021-05-27T15:30:25+00:00

Don't upgrade your life as you receive promotions and raises. Also, when you do get your annual merit increase or a promotion/raise - increase your retirement contribution by a percent or two each year- in a decade or so you'll be maxing out and you won't ever know it or feel it because it will have been so gradual.

Live like a college student for as long as you can especially while starting out. Build an emergency fund and then quickly get that money working for you in the markets or other investments. Time is on your side and you can retire young and wealthy if you take advantage of that early.

Avoid putting yourself in debt and be weary of any expense that comes in the form of monthly payments. They seem attractive but can quickly add up and eat at your budget.

UrImaginaryFrend · 2021-05-27T08:30:20+00:00

Depends where you are in the world, But keep it simple

Dave Ramsey's principles are good in the US and can generally be amended for other countries

Key thing is to spend less than you earn and invest the rest

Find something you enjoy investing in - for me it's property

No_Point_8751 · 2021-05-27T09:13:46+00:00

Read fastlane and if you want to invest look at the big short movie and then look up at the dude that predicted the subprime crisis and made money on it (their name are in the film but I forget them every fucking time)

FuryTheUnseen · 2021-05-30T15:17:02+00:00

Take care of your teeth OBSESSIVELY. You'll save so much money! Schedule appts with a dentist a week after your birthday and whatever holiday 6 months after. You'll thank me in 15 years.
Reading suggestions "Rich Dad, Poor Dad" by Robert Kyosaki, The 48 Laws of Power, No Hero by Mark Owen, and Total Money Makeover.
If you can't buy it 5 times, you can't afford it. There's no shame in saying "I can't afford that right now".

Terminarch · 2021-05-27T10:19:22+00:00

How to divide your income? Get a girlfriend lol

[deleted] · 2021-05-27T10:41:31+00:00

[deleted]

CockAFuckityFuck · 2021-05-27T10:57:55+00:00

Super savers are a category unto themselves. Basically anyone saving 60% or more of their income falls under this category. It isn't easy but it's also more of a mindset that you need to have to be successful. This usually requires a fair bit of sacrifice as you will likely be driving an older model car, live in a modest home etc etc.

King_Yautja · 2021-05-27T11:26:05+00:00

No debt (mortgage excepted).

Have 4-6 months worth of living expenses in cash.

Never spend what you do not have.

Invest. Invest. Invest. Compound interest is borderline magic but it takes time to work. At 21, time is on your side.

People who work 8-10 extra hours per week make 50% more money on average.

[deleted] · 2021-05-27T20:22:15+00:00

[deleted]

MGTOWch · 2021-05-27T08:53:38+00:00

If you want to divide it by two easily you can divorce...

RedditMadeMeReddit · 2021-05-27T17:18:52+00:00

Not a financial advisor, but it's important to save money and invest it well. I'm sick of seeing athletes making millions of dollars every year they're signed, but they're buying jewelry and cars instead of putting their money into mutual funds (or similar investments). Of course, it also hurts to see them lose half of their money in the divorce (even Bill Gates and Elon Musk couldn't keep their wives happy enough to decide against taking the money and walking).

For perspective, if you were to put $500,000 into a mutual fund that averages a 6% return every year, you would have a return of about $30,000 per year before accounting for taxes and inflation. That's plenty of money for a bachelor to live off. If you were to achieve an 8% return on your investment, you would have roughly $40,000 coming in each year. If you're able to pay off a house somewhere cheap, all you would need to pay for are property taxes and basic living expenses. If you wanted to keep up with inflation, take half for yourself and reinvest the other half of your dividend each year.

TL;DR Don't buy expensive cars and houses. Don't get divorced. Consider mutual funds.

krazyrobus1 · 2021-05-27T13:54:27+00:00

Aim for 50 30 20

50% to expenses and fun money 30% to debt 20% to savings/investments

Always look for marginal improvements every month and be disciplined. Eventually you can get rid of debt and then it can become

50% to expenses and fun money 50% to savings/investments

casra888 · 2021-05-27T13:26:33+00:00

INVEST !!!! Buy experiences and not things.

Crafty-Tackle · 2021-05-27T13:17:48+00:00

The money that you invest when you are young 20s-30s will grow over time, if you do not touch it. Do research on Morningstar as to which funds are doing well and invest whatever you can every money $50, $100, $200, whatever you can manage. But make sure that you do it every month. Try Electronically Traded Funds (ETFs) for ease of trading.

Mark_Landers_93 · 2021-05-27T10:54:59+00:00

I follow some simples rules. I have all of this on an excel that does all the calculations for me so I can keep an eye where the things are going.

Save 20% of your income for a safety fund. Use this only in emergency situation (health, unemployment, etc)

Use 50% of your income on the stuff you really need. I’m talking about food, water, electricity and house. You can other things that you see as really essential for your life

Use 30% of your income on things you like. I’m talking about hobbies, entertainment, etc

All the funds you don’t use on point 2 and point 3, save them to a third fund. Use this to save money for more expensive stuff you would like to do in the future like traveling, getting a fancy car or computer or whatever is your thing.

These are my rules but remember you always have to add some flexibility to them.

Kaptain0blivious · 2021-05-27T10:32:20+00:00

Here's the basics:

Figure out your financial obligations, needs, and wants.
Plan your financial future. This could be as simple as next week, or as complex as planning retirement. I would recommend starting with simple until you get the basics down.
Create a breakdown of all your financial obligations, and basic needs into a budget. Excel is fantastic for this. There are also websites which will help you with this such as PersonalCapital (which I use), Mint, etc.
If your employer provides it, put the maximum retirement contributions you can into your retirement plan. Here in the US that's generally a 401k, 403b, etc. Here in the US we also usually get a match. Mine is 4.5% maximum. So for example, I contribute the maximum to get 4.5% employer match, which is a total of around 9% of my gross pay (401k non-ROTH, this is a US thing).
Excess cash flow (that is everything that is not going to bills, debt, food, shelter, etc.) should have some portion going into savings. Try to get 6-12 months of your personal expenses into a cash emergency fund. For me this is $14,000 which is my minimum obligations for 1 year (rent, groceries, utilities, insurance, etc.). This is to cover any unexpected shortfalls in your financial condition such as job loss, health related issues, car shits the bed, etc.
Excess cash flows after saving for emergency should be spent on your fun & happiness.
Based on your plan in #1 and # #2, any left over put into another retirement income source such as a non-employer based plan and/or brokerage account. Use this to continue to grow your investments for either retirement or other long-term purchases (such as a house). If you have short term cash needs (such as you want to buy a newer, nicer car for example) then save the excess in a cash account until you have what you need.

This should cover the basics. Do not neglect #1 and #2. Keep a consistent budget that you update regularly if using Excel or a budgeting software/website.

If you want a goal to aim for, try and save about 30-40% of your gross income into various savings vehicles such as retirement accounts, cash savings, and brokerage accounts. You may not be able to hit this target right away and that's fine. This will increase your nest egg over time, give you financial breathing room, and set you up for a fantastic future.

Finally, and this may be the most important, never stagnate in life. Always be looking for something better and more important for you to focus on in your career. It's important to strive to increase your income, but more importantly, it's important to strive to increase your enjoyment & satisfaction from life. If you focus and push yourself, you can have both.

All the best.

Title	How to divide your income ? Or any financial advice for a 21 year old about to graduate MGTOW ? Life advice also appreciated.
Author	Heavenonearth12
Upvotes	1
Comments	31
Date	May 27, 2021 8:22 AM UTC (5 years ago)
Subreddit	Posted in /r/MGTOW2
Original Link	https://old.reddit.com/r/MGTOW2/comments/nm2rhb/how_to_divide_your_income_or_any_financial_advice/
Archive Link	https://theredarchive.com/r/MGTOW2/how-to-divide-your-income-or-any-financial-advice.799508 https://theredarchive.com/post/799508

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