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TheAccidentOf85
[–]TheAccidentOf85[S] 80 points81 points82 points 8 years ago (58 children) | Copy Link
My next goal is to save and invest $50,000 by the end of this year. Need to play catch up on retirement funds.
[+][deleted] 8 years ago (31 children) | Copy Link
[deleted]
[–]TheAccidentOf85[S] 6 points7 points8 points 8 years ago (28 children) | Copy Link
I have thinkorswim currently, but probably will open an Interactive Brokers account, better for options and futures trading.
[+][deleted] 8 years ago (27 children) | Copy Link
[–]TheAccidentOf85[S] 4 points5 points6 points 8 years ago (22 children) | Copy Link
I work in hedge funds, so basically part of my career. I wouldnt recommend for the layman. Index funds and a few stocks your interested in work for the every day Joe.
[–]EconomistMagazine0 points1 point2 points 8 years ago (21 children) | Copy Link
What would you recommend for someone saving for a house in 5-10yrs? I only made 8% last year... Hopefully it doesn't drop too much during this form turn but I feel I left gains in the table.
[–]TheAccidentOf85[S] 3 points4 points5 points 8 years ago (18 children) | Copy Link
Depends on your age and risk appetite. If you only made 8% last year as the market boomed you are probably being too risk averse. Each time the market dips this year, as in last week, it'll dip again, just think of that as stocks being on sale. Buy a little bit of SPY which is just the S&P 500 fund, so you get a broad diversification into many companies. If you are in 20s or early 30s, I'd probably be about 80% stocks and 20% bonds... stomach the downturns and just think of it as stocks being on sale and buy more. If you are late 30s early 40s, a 60/40 stock bond split may be appropriate and I'd hold that all the way to retirement, at retirement, maybe 20/80...depends as each situation is unique. But this advice is just a starting point.
[–]AllForTheGains1 point2 points3 points 8 years ago (16 children) | Copy Link
Why 80% stocks and 20% bonds? What's your reasoning to this?
[–]Watchingcluturefade4 points5 points6 points 8 years ago (15 children) | Copy Link
Stocks are more volatile yet can yield much higher rewards, bonds are fairly flat and low yield (reward) yet incredibly low risk as well. He is basically saying to take on more risk when you are young.
Bonds are lower return but MUCH lower risk. Which is why he stated the change in ratio's as you get older.
[–]AllForTheGains1 point2 points3 points 8 years ago (14 children) | Copy Link
I see...What about an etf fund?
[–]Watchingcluturefade2 points 8 years ago [recovered] | Copy Link
Sure, they basically are the same thing we are talking about. An ETF is just a "basket" of stuff put into one fund that invests across them all.
For example, you can buy a "Market ETF" fund that is basically just buying the stock market itself, whatever the market does, your balance does.
Likewise, you can buy ETF's that hold partial equities (stocks), bonds, heck I think some even have real estate in them.
A lot of ETF's are not purchasable by you and I "normal peons". If you do not want to do the crazy amount of research required to get good returns like the OP, I would recommend going out and interviewing a dozen or so financial advisers and letting them help you chose which ones would suite your goals the best. In the long run, the charges they ask are definitely worth it in the long run.
There are honestly thousands of different ETF's you can get into depending on how much risk you are willing to take on
[–]AllForTheGains1 point 8 years ago [recovered] | Copy Link
What book do you recommend to learn more about this?
I would start with something non technical. Something like "Snowball" is a good read about Warren Buffet's life and how he created his strategy of ..... crap I forget what he called it, something about Cigar Butt's?
Anyways, I would recommend starting there, gives you a good bit of info about how stocks and companies are related (they literally ARE the same thing) and how someone like Warren was able to use business strategies to build an empire.
From there you can go on to more technical books about how the market itself actually works. My first read in this area was "Stock Market Wizards" closely followed by the same author's book of "Hedge Fund Market Wizards".
The market itself is actually fairly simple, the hardest thing to understand is also the most volatile, the "human factor".
I know guys that make money trading on politics, this is especially true in the high risk high reward world of "currency trading" which is MASSIVELY affected by global politics. When a crazy event happens in politics, watch the market almost always dive because people get scared, if you buy then you will almost always be able to catch it on the upswing.
Understanding the VIX (volatility Index) and then comparing it to the stock market as a whole over time, as well as world events in that same time period, is actually a fascinating way to study human psychology and how it affects the market.
Thx for all this info man, I really appreciate it.
[–]jim234234red2 points 8 years ago [recovered] | Copy Link
Most people over on /r/financialindependence just split their money into two Vanguard funds - the US growth and the international growth fund. When you're older, start putting money into their bond fund too for safety.
That's it. Low fees and you don't sell. Just keep adding every week and reinvest dividends and capital gains.
I've tried to pick stocks and even options on occasion, and I always do worse than if I had just left it all in the Vanguard funds.
I will be able to retire in a few years before 40, should I choose. And I only started saving in my late 20s.
Congrats man. When you say older, how old are we talking? I'm currently 28 years old. What do you do for a living?
[–]Watchingcluturefade1 point 8 years ago [recovered] | Copy Link
NP, feel free to send me a PM if you ever have any questions. The stock market isn't the whole "scary manipulative bullshit" that a lot on the Left would have you believe. Now, high frequency trading and algorithisms are something you will learn in your studies that seem to be only for those in the actual field of trading, so it seems a little unfair to us normal folk, but that is a different story.
My final advice would be learn all you can so you can have a competent conversation with your advisor on how you want your money to be positioned.
thanks man!
[–]Watchingcluturefade0 points1 point2 points 8 years ago* (0 children) | Copy Link
Well said, I stopped doing my own investing as my company grew and I simply didn't have the time required to actually research each stock you buy. But I have told my adviser since I first got him at 27 to go 10/10 as to "risk", as risky yet (hopefully) rewarding as could possibly be.
35 Years Old now, no kids, and still feel this is the time to be as risky as possible IMO, although like you said yourself, I am starting to get to the age where that may need to change, we'll see....
He got me just below 29% in 2017. when you compare that to the market itself which did around 25 overall, I was quite happy with it.
EDIT Like you said in your post, if you got 8% from Jan 1, 2017 through Jan 1, 2018, you lost out BIG TIME on a massive bull market.
[–]Watchingcluturefade0 points1 point2 points 8 years ago (1 child) | Copy Link
Your entire portfolio only went up 8% from 1/11/17 to 1/1/18? Honestly that is really poor performance ....
If you would have just invested in the overall market ETF you would have done something around 25%.
[–]swampboxers 0 points1 point2 points 8 years ago (0 children) | Copy Link
Yep, if to risk adverse one can "safely go broke" in saving for retirement.
[–]justforpornokayguys1 point2 points3 points 8 years ago (3 children) | Copy Link
That's not really true. There's no commission fee but robinhood charges more than ticker price.
[+][deleted] 8 years ago (2 children) | Copy Link
[–]justforpornokayguys0 points1 point2 points 8 years ago (1 child) | Copy Link
maybe it is just when you sell, i know theres a secret robinhood upcharge somewhere. they gotta make their buck too. I started on RH around Nov 2016, on the list for Options and Crypto but if they don't roll it out soon I'll look elsewhere
[–]Eyes_Of_The_Dragon2 points 8 years ago [recovered] | Copy Link
I just made some small purchases and noticed that it was a few cents above what I thought I was buying at. Never really noticed before. I wonder if it's a fee or if those stocks were just that volatile. I don't mind a few cents as a fee if they're upfront about it.
[–]AllForTheGains0 points1 point2 points 8 years ago (1 child) | Copy Link
did you have to pay any fees for vanguard?
Not yet. They don't charge fees for buying their own funds, but there is a $3,000 minimum.
[–]aenigme1 point2 points3 points 8 years ago (0 children) | Copy Link
\m/
[–]master_haku91 1 point2 points3 points 8 years ago (0 children) | Copy Link
I am sincerely impressed
[–]AnticipatedStrafer1 point2 points3 points 8 years ago (22 children) | Copy Link
just curious, how can you save THAT much per year. Where do you live (country) and how are the prices there?
where I live, average salary is 700 EUR and people live basically from hand to mouth.
[–]TheAccidentOf85[S] 5 points6 points7 points 8 years ago (0 children) | Copy Link
I live in Connecticut in the USA, suburb of NYC. I work in finance. I make a generous salary but I have worked hard to get to this position with much invested in education and certifications. I'm now an entrepreneur so as my business succeeds, savings will become even easier. I'm at a very exciting inflection point in my life, and fortunate to have all the opportunities that I have had, I recognize not everyone enjoys the privileges and opportunities I have had in my life, but that does not mean you can't achieve your goals and achieve success. Always strive to be better and achieve.
[–]p3t3rfyl31 point2 points3 points 8 years ago (0 children) | Copy Link
STEM
[–]DWShimoda1 point2 points3 points 8 years ago* (19 children) | Copy Link
just curious, how can you save THAT much per year. Where do you live (country) and how are the prices there? where I live, average salary is 700 EUR and people live basically from hand to mouth.
Granted, if you're only MAKING (post tax) $25,000 a year, then you're not likely to be able to pay down $25,000 in debt in 14 months like OP did; but if you can configure your life to be increasingly frugal/minimalist, then very likely even on that $25k a year (or whatever the EURO equivalent is), you OUGHT to be able to sock away 10% to 25% of that in some form or another.
Largest mistake most people make is a hamsterizing/rationalizing of their various (seemingly small) squanderous-spending, it usually goes something like the following:
I may as well get some joy out of daily living, after all it's not like eating some bag lunch to save $5 (or €5) a day -- as opposed spending $5 a day for some "fast food" -- would pay for a new car.
Well, yeah sure I'm paying $500 (or €500) a month for car payments & car insurance & etc -- but it's not like NOT doing that would pay for my "dream mansion" home.
Sure, I live in a "nice" roomy apartment -- and yeah I'm paying $1,000 (or €1,000) MORE a month to live there than it would probably cost me to live in some "pithole" cramped place -- but I mean it's not like saving that $1,000 (€1,000) would make me a multi-millionaire with a bunch of private jets or something.
See how that works? EVERY expense -- regardless of the amount -- is contra-posed to some much larger "extravagant" (and therefore "unreachable") goal -- all of those "it's not like" statements -- which then JUSTIFY the "indulgence" in the expense.
Fact of the matter is that the $5 (or €5) PER DAY waste DOES add up -- over the course of a month that's anywhere from $100 (or €100) to $150 (or €150) squandered (depending on if we're talking "4 weeks of 5 weekdays" or every day, all 30 days) -- and of course there is usually MORE than one such $5 (or €5) per day expense: $5 (or €5) for coffee & danish for breakfast, $5 to $10+ (or €5 to €10+) on lunch, another $5 to $10 to $20+ (or €5 to €10 to €20+) per day, or at least SOME days on something else (after work drinks, take-away dinners, movie ticket or rental, snacks, whatever). And over the course of a year (not to mention multiple years one after another), it's several then many THOUSANDS...
Most people blow FAR more on "trivial" things than they imagine.
Then there are the "monthly subscriptions" and/or "payment plans" -- getting locked into paying some (probably several) $50 to $100+ (or €50 to €100+) bills for the latest/greatest "must have" gadgetry (smartphone, etc), and/or entertainments (cable TV) -- which doesn't SEEM like a lot, but every $100 (or €100) per month is $1200 (or €1200) per year... and since many such contracts are for multiple years it often amounts to several thousands. (That's the whole point of those things -- and of course "credit" cards: if you had to pay the total UPFRONT, then almost no one would actually buy them; they would BALK at the expense. But break it down into "easy monthly payments" and it suddenly seems "trivial"...)
MOST of that stuff you could either do without -- or else you COULD (if you tried) find some functional equivalent/adequate (and likely much CHEAPER) option -- problem of course being that the CHEAPER option is probably less "trendy" (year old tech, not latest/greatest) and often requires you to have the money on hand (savings) & then pay it upfront (in advance: i.e. first month, first DAY of owning it is EXPENSIVE, the "free" time then follows).
Ergo people willingly sign up to pay $100 per month for 24 months -- i.e. $2400+ total (if not more) -- and believe it to be a BARGAIN (especially if/when they get the "First month FREE")... especially when compared to paying $500 or $1000 right at the start.
BTW, ever stop to realize though that even though at the START of that 24 month contract the item might be the "latest/greatest" -- by the mid-way point in the payments the thing is likely to be non-trendy (i.e. year old tech like the above), and by the END of the contract (when it's actually paid for) will definitely be non-trendy (2+ year old tech, etc)... but unless you're willing to go even DEEPER in debt, you're "locked in" -- and soon enough in the same boat as the person who bought the "less trendy" (but cheaper, probably 1/2 the cost) stuff.
In fact, that person -- not having to make "payments" -- can probably afford to go out and buy NEWER stuff (maybe not the latest/greatest, but still NEWER than what the "payment" people are stuck with).
[–]Watchingcluturefade1 point2 points3 points 8 years ago (18 children) | Copy Link
Amen, lot of good info in here, but the biggest take away is the "rationalizing various squanderous-spending".
Don't let your own hamster allow you to buy more of something than you should.
[–]DWShimoda0 points1 point2 points 8 years ago* (17 children) | Copy Link
It really is amazing -- at least once you know to "listen" for it -- just how often you will hear various people (of ALL income levels) actually USE that "formulaic" excuse.
And there is ALWAYS something "bigger" that can be fit into the formula -- so just about ANY (and all) spending can be rationalized through it.
IMO the worst aspect of it -- is how people end up then with essentially ZERO "cash on hand" (that is NO savings, NO "emergency fund") -- which of course is what then forces them to rely upon "credit"; and which makes the whole "buy now, pay later (gradually/incrementally)" so not only attractive to them, but addictive and even necessary.
EDIT: And there's a sort of corollary to that as well; they invariably make it out as if it's an "all or none" thing. That is as if by saying "watch your small daily spending" you're insisting that they can NEVER "indulge" in a fast food lunch, that they can NEVER (EVER) go for some $5 Starbucks coffee, etc.
Which of course is NOT what is being talked about. There is a world of difference between regular (habitual & "mindless") spending and the occasional "what the heck" splurge. Because there IS a "kernel" of truth in the hamsterizing/rationalizing formula -- no SINGLE instance of small-dollar "indulgence" spending is going to make a BIG difference -- it's the aggregate/accumulated amounts of such repeated things.
And the only way to TRULY see how much of that one engages in, is to TRACK all of your spending (for a month, a quarter, a year or more)... and then TOTAL it up. THEN -- and often only then -- do people see just how much they've squandered (i.e. "Holy shit! You mean I've spent almost $2,000 at like Starbucks & McDonald's this past year... that doesn't even seem POSSIBLE!?!?" -- sorry Joe, the records are here and that IS what it actually totals up to.)
[–]Watchingcluturefade1 point2 points3 points 8 years ago (16 children) | Copy Link
Very well said, I have noticed that so many 25-30 year old women especially fall into this trap because of their need to have brand name crap.
My weakness is my cars, but even still, I will NEVER buy brand new and always set a price limit when it is time to buy a new car and NEVER go over that limit. I personally get financing through a bank, then walk into the dealership with the check itself and say "You can take this or leave it".
People don't realize how much of a waste of money a brand new car is. My newest car stickers at $114,000 off the showroom floor. I found one four states away with 8,000 ish miles on it and he was willing to take my check of $80k. Good excuse for a weekend trip and a GREAT 700 mile drive back!
Not only do you put them in a place of "Take the deal or say no" (hint, they will almost always take the deal) but you make it so you do not have the ability to overspend what your limit is.
This can be used for any vice you have, mine just happens to be cars.
[–]DWShimoda0 points1 point2 points 8 years ago* (15 children) | Copy Link
Cue my all time FAVORITE article on that exact subject:
And yeah, you're probably going to have to look up WTF "Louboutins" are -- and no it's not the name of some mixed-drink cocktail -- it's far more ridiculous than that.
Likewise, not being a erudite "Cosmopolitan" NewYorker... I also had to look up what "Seamless" was (and no it 's NOT a brand of pantyhose).
Also... "gourmet mac and cheese" ?????? Just SHOOT the dumb bitch already, I mean just how fucking LAZY can you get? (But of course -- cue the "it's not like" formula -- and compared to Loubatins a $20 mac & cheese delivery seems "reasonable." TADA!)
Ayup. But, the biggest LOSS/COST is (ironically enough) NOT the financing/interest -- instead it's actually "depreciation." And that is particularly true of "brand new" vehicles -- 10% to 20% or more depreciation (loss/cost) in value pretty much the instant you drive it off the lot.
Second biggest cost is fuel -- and that's often ironically made far WORSE when someone buys a newer (more fuel "efficient") vehicle -- why worse? Because they drive MORE miles, make more trips (getting the "value" out of that extra fuel efficiency you see)... of course they're also accelerating the depreciation even further. (Oops!) Not to mention, increasing wear & tear (tires die from mileage, not time) AND most likely speeding up when they will need to REPLACE said vehicle as well (put 20,000 miles on it in a year, and it gets to the "sell/trade it" 100,000 mile mark in 5 years or less, put only 10,000 miles or less on per year and it would take 10+ years to reach that point). Which means going trough the whole major DEPRECIATION loss all over again.
P.S. See the "edit" addendum on the prior comment.
[–]Watchingcluturefade0 points1 point2 points 8 years ago (14 children) | Copy Link
No worries, I edit almost all of my posts, just small stuff that after I post it and see go "oops, that's a little off".
But yeah, fascinating articles and sadly I do know all too well about those stupid red shoes women think are so damn valuable. But hey, that's what cars are to me so I guess who am I to judge?
The depreciation off the lot thing is so ridiculously easy to avoid, people that buy brand new cars are idiots to me. As to fuel and tire wear and all that, I definitely DO rationalize that cost because I truly just LOVE cars and actually LOVE to drive.
I drive my cars VERY hard and have a ton of fun doing so. Yup, that is me rationalizing! lol, we all have our vices, this is the one I have and is acceptable to me.
[–]DWShimoda0 points1 point2 points 8 years ago (13 children) | Copy Link
The depreciation off the lot thing is so ridiculously easy to avoid, people that buy brand new cars are idiots to me.
Per example an older (already financially secure) person or couple, who will almost certainly keep/own the vehicle for (at least) the full 7 year / 70,000 mile "warranty" and will (most likely) be putting minimal miles on it, treating it gently, taking it in for all of the regular maintenance, etc. -- in short, creating what will later be called a "cream puff" car (i.e. low mileage, super clean, as in grandma literally only drove it to church & the grocery store & back... once or twice a week).
THAT scenario is actually "sensible" -- both from the viewpoint of reliability, minimal owner headaches or concerns, AND minimizing/reducing the likelihood of them being (massively) "ripped off" by shall we say "less than entirely honest" auto-repair shops (because presumably they elderly owner(s) are NOT going to be capable of much "DIY" repair or even maintenance anymore).
Also very likely that not only will the depreciation loss be less, but chances are they bought with trade-in and cash (no interest or financing), and their age, driving record and minimal mileage probably means insurance costs (despite FULL coverage) will be relatively* low as well.
* In comparison/contrast to say what a teen or twenty-something guy would likely be paying; even for the exact same vehicle.
[–]Watchingcluturefade0 points1 point2 points 8 years ago (12 children) | Copy Link
I guess I will just have to respectfully disagree, that same couple could find the same car with around or less than 10,000 miles for 20% less.
Either way though, we pretty much agree, the way people rationalize things is pretty bad, especially women and clothing
[–]DWShimoda1 point 8 years ago [recovered] | Copy Link
Yeah, but -- again given the scenario of financial stability AND nearing end of life -- that difference is probably trivial.
Most likely they're purchasing a very BASIC vehicle as well -- by comparison, no matter how "savvy" you believe your negotiated-purchase of expensive/exotic cars may be... you're most definitely squandering a LOT more (add on the "opportunity cost" of that cash NOT being invested, and so losing multiple decades of potential gains/returns... and I'd have to ask again: who's the fool?)
I think that "Grandma" (and/or "Grandpa") is entitled to a "brand new" vehicle... if they want.
lol So you are calling me a fool because of my admitted vice that I love and spend money on cars?
Then you go to say there will be a difference but it will be "trivial", so you agree, it is stupid to buy a new car, thank you, debate closed.
Also, pretty disappointing that a guy on this website would use such a straw man argument, remember, we were debating the intelligence of buying a car new as opposed to one that has 7-15,000 mile on it.
So far I have found most men on here willing to have discussions without getting emotional enough to attack someone personally. Congrats on being the first I have seen, how very feminine of you.
My 2017 tax files reported I made $414,921.73 exactly, an $80,000 car is MORE than frugal enough for me at this point. Hell, I could easily buy it brand new but doing so is stupid, hence the point that I made in the beginning.
Hate using the numbers, but if you are going to try to throw some insult at me then feel free to call me a fool however you would like, I'll be at the bank, since I am such a fool I am sure you are doing better right?
Your childish attack on me by changing the subject to my decision of what car to buy only shows that you lost the argument, congrats.
Suggest you see it LESS as an "attack" and more as "humor between friends" (taking the piss so to speak).
Here's some context.
Fair enough, although your context is horrible for "guy talk".
Someone says "Yeah you're a fuckin idiot that you spend money on you and those ridiculous cars ya damn retard"
Is much different from being proven wrong in a debate, changing the subject and then asking in a sarcastic tone: "Who is the fool?".
The implications are not banter at all like Gran Turino video you posted, they are flagrant acts of disrespect.
Those are the types of words that usually end up in a fist fight with men I have hung out with.
But perhaps just a mixup of cultures, hope you have a great day.
And a good piss!
LOL... junior, grow the fuck up already.
[–]Watchingcluturefade0 points 8 years ago [recovered] | Copy Link
Haha, I was right it is a female, Triggered much?
You need to pull your head out of your ass there kiddo.
Sweetheart, it'll be ok. A good cry and I am sure you will be fine. You lost an argument, badly and blatantly for everyone to see, then you tried to change the subject, then you got emotional, then you resorted to name calling.
Could there be ANY more feminist or cuckery behavior than what you just showed us? Embarrassed yet?
[–]_Insidious_1 point 8 years ago [recovered] | Copy Link
All ive gotta say boys. Save up on weekdays.. make your breakfast (coffee) lunch and dinner.. go hard on the weekends. Make sure you arent hung over all day just half a day at max. Get a roommate and cut all expenses. Buy a reliable car like a toyota low mileage pay cash. Pay student loans and debts off before their 10 year max. Ex 5 years. Live with friends and parents as long as possible. Dont spend too much drinking on the weekend. Get ripped on a budget dont blow your load on broads. If your a baller and can afford more than my advice go for it. Make sure you save at least HALF. Even if you're making 400k a year. You'll thank yourself later for it, especially if you have genetics to make it lomger in life ( look at grandparents).
Totally agree, this entire argument devolved from me stating that buying a new car is a waste of money. After trying to provide an example where the opposite may be true, she proved herself in her own example how it is indeed true.
But life is all about how much you save, not how much you make.
What da fuck you be smoking? Mus be some guuuud shit, 'cause damn.
Like I said
[–]Crovex2500 points1 point2 points 8 years ago (0 children) | Copy Link
Good for you! Paying down my credit card debt was one of the smartest and most satisfying endeavors of my life. I'm glad to see you pay yours down as well. Plus, in desperation your card company will probably raise your credit limit. Always handy in a real emergency.
[–]canfidel24 points25 points26 points 8 years ago (0 children) | Copy Link
The only way from here on is forward. Well done you!
[–]williamwilliam2 17 points18 points19 points 8 years ago (4 children) | Copy Link
I saw a study somewhere that 5 years after a divorce, the ex-husband is typically in better shape financially than the ex-wife. Not every couple, obviously, but on average.
[+][deleted] 8 years ago (3 children) | Copy Link
[–]TheAccidentOf85[S] 21 points22 points23 points 8 years ago (2 children) | Copy Link
I’m not only better than her financially, I’m a better person than she will ever be.
[–]HashClassic0 points1 point2 points 8 years ago (0 children) | Copy Link
Good job
[–]cam-seller0 points1 point2 points 8 years ago (0 children) | Copy Link
Same
[–]xtsv0 points1 point2 points 8 years ago (0 children) | Copy Link
Just buy KCS it is crypto AND it pays dividends. Win-win.
[–]randomroxks6 points7 points8 points 8 years ago (7 children) | Copy Link
I can use some help. How did you do that?
[–]TheAccidentOf85[S] 3 points4 points5 points 8 years ago (2 children) | Copy Link
So how did I do it. Well my budgeting as I laid out. Then I needed to reduce my living cost. Post divorce I was hovering around $15K in debt and it was not reducing all through 2016. I live in the north east so rent is high. So I decided to buy a home 6 months after selling my marital home, solely as an investment decision. Working up savinggs for a down payment and then some repairs and furnishing worked my debt up to over $26K in Jan 2017. My monthly mortgage payment was slightly higher than my rental payments. I then rented out two of my extra bedrooms to a couple younr professional guys, there is always a risk of bad roommates, but they have been great. And the rental income I collect has slashed my monthly living cost by 2/3.
Next I got a new job. I was doing alright already but in a job with no growth. I was approached by a previous employer to start up a new firm with another colleague, I negotiated into my contract participation in the growth of the firm. Downside would be the firm fails and I’d be looking for a new job in a year. Upside was financial freedom. It seemed like a good trade. A bump in pay right off the bat, and have already had a 20% raise in pay by the end of 2017.
[–]DWShimoda0 points1 point2 points 8 years ago (0 children) | Copy Link
[–]stewenson1 point 8 years ago [recovered] | Copy Link
Awesome, my rule is not to spend more in a month than you earn. Simple as that. I have two bank accounts and the third is my business account. I can withdraw money from it more or less once a year so I am just stockpiling there. The first of my personal accounts is where money are but in order to constrain myself in spending, I just sent every month exact amount of money I want to spend and if I overspent it I will just not eat :) If my main source of income was the first one which is bottomless, I would lost control over spending.
[–]Watchingcluturefade0 points1 point2 points 8 years ago (3 children) | Copy Link
The OP answered pretty much spot on below, only thing I will add is to have automatic withdrawals into an account that is difficult to get to. A HUGE chunk of what I make goes directly to a financial adviser, to get any of my money takes about a week.
This helps hold back any "impulse" buying and makes you just live off what you have.
[–]randomroxks0 points1 point2 points 8 years ago (2 children) | Copy Link
I know, in my case, I don't even get that much in hand in the first place.
Well, looks like you know where to start then. Find a job/way/action/plan that increases your monthly take in.
The rest all starts with that
[–]randomroxks0 points1 point2 points 8 years ago (0 children) | Copy Link
Yep. That is the key
[–]RadicalAsceticMonk3 points4 points5 points 8 years ago (4 children) | Copy Link
Nice. That's responsible usage of credit. Congrats!
[–]TheAccidentOf85[S] 4 points5 points6 points 8 years ago (3 children) | Copy Link
Got it all paid off before the 0% teaser rate ended as well! Not a single penny paid for interest.
[–]RadicalAsceticMonk8 points9 points10 points 8 years ago (1 child) | Copy Link
Oy gevalt, that's a merchant's saddest day, for he made no easy shekels out of you. Bad goy!
[–]DWShimoda1 point2 points3 points 8 years ago (0 children) | Copy Link
Don't you bet on that -- every use of a credit card is profitable to the processing company (X%, usually around 3%, but upwards to 5% or even 7% or higher) -- interest on carried balances is just gravy (and also has the problem of the risk of non-payment & write-off losses ... unsecured debt is a BITCH to actually collect 100% on even the original balance -- most times when shit gets "factored off" o some "debt collector" it's for LESS than the original amount owed).
[–]EconomistMagazine2 points3 points4 points 8 years ago (0 children) | Copy Link
No interest = Best part!
I was able to get through undergrad and grad school with no interest paid. It cost money but I didn't pay extra just for the privilege.
[–]TryDoingSomethingNew2 points3 points4 points 8 years ago (7 children) | Copy Link
Good for you! I just paid off my first of 2 cards yesterday (I sold an expensive item on eBay to help, then a large portion of my paycheck).
One more balance paid off and I'll be debt-free. That's my goal.
And learn about alt crypto coin mining and other ways to make money online.
I'm sure it's greatly possible because I'm not married and not like so many people who think I'm "supposed to be" paying a huge mortgage etc. I live below my means.
[–]Watchingcluturefade2 points3 points4 points 8 years ago (6 children) | Copy Link
I have been lucky with my company growing and now make A LOT of money compared to the average person. But this wasn't always so, try not to use credit cards. A lot of people will tell you to buy EVERYTHING on one and pay it off every month, if you can do that sure it is a good plan, but IMO they are simply too easy to get yourself in trouble with.
Even with how much I have in assets, both in my real estate, equities and liquid assets, I only have a total credit limit of $14,000 simply because I don't use it.
Sure, people will make fun of you and say "you are wasting the points!", but I would rather use my debit card/cash and know for a fact what is going in and out vs being able to put yourself in a hole and pay 25+% interest on that hole.
[–]swampboxers 0 points1 point2 points 8 years ago (2 children) | Copy Link
Don't listen to PointsPeople. You are correct, not them. Just because they pay it off each month does not mean they are spending wisely. Nobody ever became a millionaire off of credit card points.
[–]Watchingcluturefade1 point2 points3 points 8 years ago (1 child) | Copy Link
Thank you for that, I am doing pretty well so I figured my decisions must have been somewhat right.
But the one most recently that really made me see I was ok was a girl that kept laughing and lecturing me about always using my debirt card for literally everything. She said:
"You only have ONE credit card?" What happens if you are in trouble and need money?"
I honetly didn't know what to say, I was like ... uh yeah, that's the exact reason I have ONE and not multiple.
Then she went on about how many points she adds up and blah blah balh, I asked her how much actual cash she thinks using her CC's give her at the end of the year, she said maybe $1,000 - $2,000 max.
I finally said that I was more interested in remaining safe and responsible than getting points worth $150 per month on the CHANCE that I will accrue points without over spending on a card.
Of course, my next question was, do you have any credit card debt?
She was slow to answer .... then sly and embarrassingly said "Yeah, it's around $18,000".
I couldn't help it, I actually burst into laughter and did the math in my head instantly.
"So your desire to go after points has you lighting $250 or so per month on fire simply so you can get these so sought after points?"
IF you do pay it off monthly, the points are great and that is honestly the best way to do it. I just know my weakness, with what I consider "little logistical stuff " like this I know my apathetic nature and am not willing to roll the dice, I just have ALL my bills on auto draft and will admit sometimes I forget about credit cards other than the auto draft which is minimum payment. So with all that said, I will stick to my way sweetie :)
Excellent! One thing that these people forget about is risk. These CC company's are not stupid. ALL they do is work every day to get more of your money. Some very disciplined people may be able to work it to their favor, but the vast majority will not, otherwise the CC company would not offer points at all. It's a very carefully designed trap and it's very effective.
[–]TryDoingSomethingNew0 points1 point2 points 8 years ago (2 children) | Copy Link
Yeah I knew better than to use the cards so I broke my own advice in doing so. And of course it takes extra work & effort to get them paid down or completely paid off.
I will say one thing though: I have seen some guys (entrepreneurs mainly) who use the points benefit of cards to get free trips & etc, but they pay the funds off immediately.
But that requires self-control and discipline that the average person doesn't have, I'd wager.
Totally agree, and to those people who make sure to be hyper aware of the cards and how to "play the game" definitely get to take advantage of such things. I just personally see myself as safer just using cash/debit instead of risking the 15-20% "tax"
[–]TryDoingSomethingNew0 points1 point2 points 8 years ago (0 children) | Copy Link
Yes I understand exactly what you mean.
[–]Thermotastic422 points3 points4 points 8 years ago (1 child) | Copy Link
I'm happy to not have a credit card or a car payment. The mortgage on my home is the only debt i have.
[–]Watchingcluturefade1 point2 points3 points 8 years ago (0 children) | Copy Link
Awesome job my friend! Not many people can say that. And your mortgage, while yes a debt, is an appreciating asset that is easily considered "good debt".
Keep on, keeping on
[–][deleted] 1 point2 points3 points 8 years ago (0 children) | Copy Link
Congrats- What you make is yours! You already have to give your wealth away to the govt, you don't have to split it 3 ways and get nothing in return.
[–]Anthlenv1 point2 points3 points 8 years ago (3 children) | Copy Link
I’m trying to do the same myself! Out of curiosity how much did you try to set aside each month? I don’t make as much as you I think but I’m around 18k in debt.
[–]TheAccidentOf85[S] 1 point2 points3 points 8 years ago (2 children) | Copy Link
If I could go back in time and shake some sense into my 22y/o self who was making $50k a year, I would have told him to set aside $1k per month. But the bars were just way too fun. So now I’m playing catch up to savings after the life happenstances cleared out what savings I did have. My goal now is to save $4K per month this year. So far ahead of schedule due to my tax refund, but still going to be a tough task. Just figure out a budget, what you have to spend money on each month (rent, utils, food, gas). The rest is for discretionary and savings, find the right balance of money to have some fun and not be a hermit, but still putting away a good chunk for your future retirement, future home purchase, future education expenses etc...
[–]Anthlenv1 point2 points3 points 8 years ago (1 child) | Copy Link
Kay thanks! Since I got rid of my last girlfriend I actually have spare money. Didn’t notice how much was being leeched off me >.< I just have to avoid spending it since I never really had disposable income haha. 3 months until my car is paid off too! Gonna be a good year I hope.
A really good book is "The Total Money Makeover". It saved my ass.
[–]2QuietDude1 point2 points3 points 8 years ago (1 child) | Copy Link
Nice job and no easy task
[–]Kestral 1 point2 points3 points 8 years ago (0 children) | Copy Link
Much easier without 110lbs of deadweight holding you down.
[–]Justintruedopee1 point2 points3 points 8 years ago (0 children) | Copy Link
Im in debt too since i put everything on crypto. Waiting for a new ath lol
[–]MGTOWstic1 point2 points3 points 8 years ago (0 children) | Copy Link
This data is BEAUTIFUL!
[–]SkyloRen66 1 point2 points3 points 8 years ago (0 children) | Copy Link
Good job!
Congratu-fucking-lations! Well done man, seriously, well done.
This is a major accomplishment that too many people do not respect and understand what you had to do to get to that spot. Well done on the self control and the will to enact your goal and get yourself to where you are.
I have no doubt that you will be able to save $50k now, with that work ethic nothing is impossible.
If you do not own a house I would recommend buying something as your next goal, whether or not real estate is a good investment as to investment purposes is another conversation.
But buying my house has ended up being the best long term investment ever because of the mere fact that rent keeps going up and up and up and up. My house now is worth 200k more than it was when I bought it, still have a mortgage of $2,600 but if you look up rentals around my area, my same house is renting for about $4,000 now.
Again, buying rental properties is hard work, can be or can't be a good investment, but that is another conversation. Owning the house you live in will save you what could be millions over the years.
But I digress.....
CONGRATULATIONS ON YOUR ACHIEVEMENT!!!!!
[–]iBatheInYourTears2 points 8 years ago [recovered] | Copy Link
Awesome man, awesome! I know eliminating debt, and more specifically credit card debt is the best feeling. Now you can focus on building a huge savings and investing portfolio.
[–]Johnny_Wins2 points 8 years ago [recovered] | Copy Link
Congratulations. Discipline above all else.
[–]GetrichonIMP0 points1 point2 points 8 years ago (0 children) | Copy Link
I did this with 30k this year on my visa. Was buying crypto with it and paid it off in december :D
[–]NewLife_20170 points1 point2 points 8 years ago (0 children) | Copy Link
Awesome man!
I have knocked off a massive amount already since 9/1 and will only have my car and house by April 1. This is with a sluggish start too!
Its amazing when you really look at what you need vs. want, plus cut out all the BS with women, how much extra you can really have! I will actually have money for new experiences instead of "stuff"
[–]TheAccidentOf85[S] 0 points1 point2 points 8 years ago (0 children) | Copy Link
If you are young you can afford to take risk. For me personally in my 20s I’d be even more stocks but I have a bigger risk appetite.
[–]Afab67 0 points1 point2 points 8 years ago (0 children) | Copy Link
Check you out! Well done!
[–]kaczan30 points1 point2 points 8 years ago (0 children) | Copy Link
This look like the graph of how much time I spend with women.
[–]mgtowliberdade0 points1 point2 points 8 years ago (0 children) | Copy Link
If you did that here, Brazil, this debt would be essentially unpayable, unless you got a loan.
Interest for rolling over payments on credit cards is 333% on average, in a 2.75% inflation country.
[–]thetrueassman0 points1 point2 points 8 years ago (0 children) | Copy Link
Awesome congrats man
[–]thathikingguy0 points1 point2 points 8 years ago (0 children) | Copy Link
Dude that’s awesome congrats
[–]_Insidious_ 0 points1 point2 points 8 years ago (0 children) | Copy Link
Congrats brother keep going!
© TheRedArchive 2026. All rights reserved.created by /u/dream-hunter
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