Rebuilding your wealth as fast as possible

THX1138-22 · 2024-10-16T13:41:09+00:00

I think it makes sense to buy a house. When you look at inflation over the past few years, the biggest area of price increases, has been in the area of rent. As we get older, and need to live on a fixed income, it could destroy our finances if our apartment rent goes up. in some areas, there’s been almost a 30 to 40% increase in rent. If we were 65, living on Social Security and an annuity, and our rent were to go up 30%, we would have to move to a smaller apartment. By owning a home, you have control over your house and cost and have at least that level of stability. I do agree that it makes sense to avoid condos or places where you might be subject to a HOA, because those charges can get insane.

Exactly65536 · 2024-10-15T15:40:36+00:00

Collecting bottles is a waste of time and energy.

Being very frugal (to the extent that you restrict your diet) is a waste of you.

Blitz-paying a mortgage only makes sense if its interest rate is higher than investment returns.

There is no rebuilding, there's just building. From the point where you landed after the divorce. What's lost, lost, it's better to accept it.

Greenkayak614 · 2024-10-15T15:13:06+00:00

Consider renting not buying. There's a lot of research out there that shows that renting can be a better option in some markets. In the expensive city that I live in, I can get wee more living space if I rent condos are selling for $1200 a square foot

No-Marsupial1823 · 2024-10-15T11:20:55+00:00

Why worry so much? Just pay your mortgage and live good. We don’t know how much time we have left on earth. While you’re slaving and denying yourself things to pay off 500k in 5 years what if you die a year later? God forbid. But you would have lived your last years miserable and denying yourself of life’s pleasures for a condo you can’t take with you. I’d say get the condo, get a nice vehicle, work hard and enjoy your life. Spend time with kids, have several women that you may date. Travel. Enjoy my friend we only live once

sehns · 2024-10-15T03:21:37+00:00

Yeah let's buy another house so the next woman can take it from you. You didn't learn from the first lesson did ya

fiddsy · 2024-10-15T02:38:53+00:00

If this is a legit question..

1 - live as frugal as possible

2 - invest every spare cent I have

3 - diversity those investments in stocks, crypto, silver and gold.

4 - start a side hustle / business that you can do in conjunction with your primary income.

Id avoid property, its not a fast way to build wealth.

david10277 · 2024-10-14T23:39:13+00:00

Why would you buy another house ?

So let's see first need 80K downpayment Then monthly payments for the next 25yrs

Seriously...why would you want to repeat that agian..I had a house which was sold during my divorce..and the kids stayed with me vs mom.

You need to stop and rethink your life and what you want. Your 50 yrs old. Stop thinking what ur kids want or need. They just need to be happy and have a comfortable place to sleep when there with you. Your still thinking like a husband- your not a husband anymore or a spouse- your a single guy with kids.. think like that..

I sold mine and I rent ..put some aside for your kids and enjoy your life U have about 20yrs left here before your exit. Enjoy it why are you still chasing this dream that house ownership is gonna get you somewhere at your age. It just keeps you in the hamster wheel.

Your buying a house for what exactly? For mortgage insurance, maintenance, propert tax and to be stuck living there for another 25yrs paying off a mortgage.

Start a business, invest in one, create passive income to live free. Your going to put yourself into another financial committment for what purpose ?

Owning a house is the biggest lie sold by the banks. To keep you working forever to pay off your mortgage . I know many people who worked there whole life to do that and 2yrs later passed away..

Me ...I sold my home and ONLY looking to buy something in DR - or Mexico ' cash no mortgage..stay there when I want and give it to the kids when I pass.. I have the freedom to travel, stay where I want for how long I want..when I want.

Show your kids what living life is.all about...

yes2matt · 2024-10-14T20:54:45+00:00

Why you would pay HOA dues? There are no hoa free properties that would suit? For the typical dues around here you could hire the landscaping, roof maintenance and maybe a monthly housecleaner

6-demon-bag808 · 2024-10-14T18:56:59+00:00

If you're good with numbers, I would recommend learning to trade. My business was teaching people how to do it. Not soliciting, I sold my share of the business. I would recommend Option Alpha. People view the market as "gambling," it's only that way for amateurs. Professionals never lose money long-term. Using a 70-delta strategy and beta-neutral strategy will never lose over time

probebeta · 2024-10-14T18:11:47+00:00

I used to believe that buying property is a way to build wealth. While that certainly helps because some money is going to principal of your mortgage, considering closing costs when buying and selling, transfer tax, realtors, penalties for breaking mortgage, you're not really making much if you plan to sell and buy something else within 5 years. You could get a 10% return on just putting money on s&p500 and not deal with all the headache. I'd treat property as diversification of assets and nof so much as a way to build capital.

Building wealth is done through making MORE money, active income + multiple streams of income, say a side business that you've been doing in the past that generated extra income, maybe you got involved in some crypto stuff, maybe you did short term rentals business, buy a house and rent one floor, provide some service outside your day job.

Pmoneywhazzup · 2024-10-14T17:50:13+00:00

Take a couple of years off from dating while you regain your perspective on women after divorce. Good for you mental health - and great for your wallet.

Electrical_Media_367 · 2024-10-14T17:40:27+00:00

First off, your premise is bullshit. No one ever benefits from spending time with their mother. Women are universally, biologically, sociopaths. It’s not a safe place for children to be. Kids raised by single mothers have a massively higher risk of ending up in prison or homeless than children raised by single fathers. Children of single fathers do better than those raised in 2 parent households.

So, it’s imperative that the children live with you. 50% is the bare minimum. 100% is optimal.

Get the house that will provide the most comfortable life for them, and give them the best tools, and access to education, they need to succeed. Focus on college savings and retirement contributions. Spend time teaching your kids important skills.

Worry about wealth later. There are more important things in life.

Expert-Raccoon6097 · 2024-10-14T17:01:44+00:00

I chased money in my younger days. Complete waste of time for me as money changed nothing. Now I invest in my physical and mental health....life is so much better on all levels. I should have done this rather than chasing $$$.

techrmd3 · 2024-10-14T16:53:31+00:00

here is what I recommend (it's worked out well for men who have taken this advice)

after a divorce you have your assets cut in half (most men being wise about such things give the more liquid assets to their ex and keep retirement funds mostly intact)

So even if a man has a great deal in tax advantaged funds... he does not have that much "cash cash"

Plus he has to pay a portion of his income directly to ex usually for child support and/or alimony.

ALL of this compounds early right after divorce. Now either a man can try to continue on like he was when married (and go into debt) OR he can chose to limit his lifestyle and save for the rest of his life.

Advice is this:

For the first 3-5 years after divorce is FINAL... act and spend like you are in your 20s again and every dollar is precious to spend on things.

This restricts spending, restricts your consumption so that your income more than pays for YOU + the EX payments. At 3-5 years you can re-assess and decide if you want to "buy a house", "buy a vacation place", go on that Europe trip etc etc

What I see time an again is Men who are suddenly divorced and have less income HALF Assets AND lose all the family tax deductions THEN they go on a spending spree because WHoo HOO! they cracked their 401k for money to settle with wife or sold a house.

THEN after buying a new house in same expensive area, going on Disney trips with kids, buying new furniture for new house, getting new Mid Life crisis expensive car... all of the sudden BOOM, reorganization or loss of job or less bonus than normal... they are bankrupt due to not restricting spending early on.

Remember. REMEMBER! you are losing ALL of those nice family tax deductions now!!! Every dollar you now earn IS going to be taxed at a higher rate than when you were married.

The EX gets to deduct everything... they claim the kids, also they get an income stream via child support / alimony which in most cases is not taxed... but Dad was sure taxed to earn it!!!

So remember DO NOT make any major financial decisions for 3-5 years ESPECIALLY buying a house!

sehns · 2024-10-14T16:34:17+00:00

So what happens if the RE market crashes in 1 year and you're now underwater $150k on it?

CrazySanta7 · 2024-10-14T16:10:21+00:00

Buy a 4 unit piece of property. Live in one of the units and collect rent on the other 3. You can do refi once rates get lower. You can potentially (depends on state) do a cash out refi to do repairs or buy another property. Rinse and repeat. Don't be afraid of debt. Debt is not your enemy, holding cash is.

vwaldoguy · 2024-10-14T16:01:10+00:00

You do recover, but there are a lot of factors that control that. Like do you have to pay child support, pay alimony, how much debt you have, etc. In my case, I'm 6 years post divorce, and I'm doing well. I'm frugal by nature, and I'm a saver. It does get better.

riverflowlife2 · 2024-10-14T15:45:38+00:00

Rent is never better than buying a house, every dollar spent on rent is gone forever. A house meanwhile can be sold, usually at a profit. A condo is a better choice than rent but not guaranteed to return a profit.

Objective-Fan-5464 · 2024-10-14T15:41:15+00:00

You don't grow wealth by investing in liabilities. You grow wealth through leverage in both labor and money. Either way, you need to hustle

Here is what I mean (and these are very basic example and hypothetical)

Money leverage: Say you have $50k for a down payment on a new house. You could use it buy a home to live in and pay for everything. Or, you could get a mortgage, buy that condo, and rent it out at 25% over your mortgage. In 5 years, you have saved on taxes, someone else paid the mortgage, and you have equity in the home. Over the 5 years, you may have bought a few more properties to add to your portfolio.
People leverage: Say you are a brilliant engineer with a good reputation. You start your own company and after 6 months of struggling get a first lucrative contract. You can't do it along (and shouldn't). You hire people to do the work that you review and sign-off but your focus is to grow the business and employees handle the delivery and execution.

The point isn't that you should get into real estate or start a business but that to truly grow wealth, you need to figure out how to get money and people to work for you.

This_Train340i · 2024-10-14T15:40:34+00:00

Not sure even that level of extreme frugality can offset the destruction of the dollar and the insidious theft of purchasing power via inflation.

TXJohn83 · 2024-10-14T15:28:36+00:00

Rent is cheaper than buying in the current market. If you don't have kids what is to stop you from moving into a one bedroom apartment and saving cash?

Title	Rebuilding your wealth as fast as possible
Author	Embarrassed_Ship1519
Upvotes	35
Comments	60
Date	October 14, 2024 3:23 PM UTC (1 year ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/1g3ie9g/rebuilding_your_wealth_as_fast_as_possible/
Archive Link	https://theredarchive.com/r/Divorce_Men/rebuilding-your-wealth-as-fast-as-possible.1532891 https://theredarchive.com/post/1532891

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