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FinanceMoney (self.TheRedPill)

submitted by [deleted]

It’s not how much money you make, it’s how you spend it.

I think a basic financial primer like this would benefit many of the younger guys out there, and there doesn't seem to be many post with financial flair. Make note, i am not a financial adviser (or professional writer for that matter)i’m just a 30 year old guy living in Middle America that has had some good success through experience, research, planning and some financially smart parental influence (i grew up lower middle class, my parents are now comfortably retired at 60). I'm sure there's tons of you doing way better bringing in your millions or what not, if so post some advice for everyone else.

Everyone has different circumstances, living conditions, opportunities and goals when it comes to finances. The key is to make the most of your situation and try to continually improve it, or change it to a situation where you can improve. While this post isn’t all encompassing take what you feel will be useful from it.

Live Below Your Means

One of the most common issue is see is people living at or above their means. Trying to keep up with the Jones or demonstrating conspicuous consumption and living paycheck to paycheck will finally fall through when something happens, (and it will) whether it be a job layoff, injury, change of living situation etc. When events like these happen they tend to have a domino effect on your financial situation, and the further you get behind the harder it is to get ahead. Living below your means will allow you to save cash to invest, payoff debt, or enjoy life.

You need to remember how the world works. EVERYONE is after your money. They want to take your cash and put it in their pocket. This is easily demonstrated by the advertising industry, these people pay hundreds of BILLIONS of dollars for you to give them your money. And it has only gotten worse with the onset of digital advertising, data collection and target adds.

Some simple examples of ways to start reducing costs.

  • Have a budget. Know what comes in every month, what goes out and where it goes to.

  • Screen each purchase and reduce impulse buying. Do you REALLY need it right this second? If not shop around online and get it cheaper. Capitalism and competition is great, take advantage of it.

  • Fixed expenses- Reducing fixed expenses even by a small amount saves a lot in the long term. Shop around Cell phone plans, Cut the cord on your cable TV and hack a firestick, install LED bulbs to reduce your electric bill. Take some time to shop around for insurance every 2 years.

  • Buy in bulk things that you know you will use. This is an advantage the poor usually don’t have on a shoestring budget but leads to substantial saving on items that are a need. (toiletries, food, motor oil etc)

  • Buy Generic. Not everything but a lot of things are the same the same as brand names. and usually made by the same manufacture in the same facility. They just slap a different label on it. a big one is OTC medications, next time you’re out take a look at a brand name and generic of the same meds. Their ingredients are exactly the same down to the milligram. Now not everything generic is the same (i can’t stand generic cereal) but you get the point.

Credit

Build your credit. Many of things you want in life are probably expensive, no one is going to to loan you money if your credit is bad or non existent. Not only will good credit increase the probability of getting a loan, but you’ll get much better interest rates which can lead to substantial savings. If you are already drowning in credit card debt, student loans, car payments etc. don’t fret. Budget accordingly to pay them off and when it’s done your credit will likely be in good shape if not excellent. There are many resources online for how to build credit, many come naturally through life such as purchasing vehicles, houses, credit cards and other loans. ALWAYS make at least the minimum payment on your notes, read up and understand how compound interest works and know what you are getting into before making any large purchase.

  • Credit card are only bad if you are irresponsible, if you utilize them correctly they can be a great asset. Everyone should have 1 or 2 and the longer the account was open the better. Don’t let your spending get out of control.

  • Understand how interest rates, loan terms, and any special “introductory offers work”

  • Always at least make the minimum payment on your notes. Even if it doesn’t put a dent in the principle.

  • Check your credit score annually for free to see if there are any items on there that shouldn’t be.

  • If you have a particularly bad note that seems impossible to deal with, contact the debtor directly, many times a payment plan can be worked out. They would rather get what they can then risk you going bankrupt and leaving them high and dry. This works well with Medical bills and student loans (though you can’t go bankrupt on student loans)

Maximize Earned Income ( this is geared towards someone’s standard 9-5 job.)

Make as much as you can while maintaining whatever balance you enjoy in life and always try to maximize your income. Many people get comfortable in their positions and never bother to look elsewhere. I look at the job market in my industry every few months just to see what’s out there or what’s in demand and submit my resume (which should be regularly updated every few months) when i see a good potential prospect. I’ve have had offers from other companies that were more than my current salary, i would discuss with my management that i received an offer from a competitor but would consider staying if my current salary was match or adjusted. Don’t be afraid to ask for an increase in your wage or salary either, just be sure to have justification for the increase when they ask “why?” (and not just “i’ve been here for 5 years”). If you can produce value for your employer and they know it they will be more inclined to want to keep you. If anyone off the street can do the same quality of work for less pay, you will probably be SOL. If you’re stuck in a dead end job with no room for advancement, get out. You are spinning your wheels. Get educated and acquire more marketable skills, this doesn’t necessarily mean college. Learn a trade, get some training certificates, or get some experience in work that requires some actual skill or aptitude. We are no longer in a manufacturing society, robots have taken over. Hard labor just doesn’t pay when a machine can do it much cheaper. Get some Skills.

Starting your own business is also a great way to earn income. Though you need to understand the difference between being “self-employed” and being a business owner. Owning your own business has a higher risk/ reward than conventional employment. While conventional employment gives you some comfort in a steady paycheck and work/life balance. Personally, i have both a day job and a side business (real estate investment, management and maintenance) but as the business grows i have been slowly transitioning out of my 9-5.

While many people are motivated by money, it is important to remember a quality life should have a good work/life balance. If you love your work, and don’t mind putting in 65hr/week consistently to make some big bucks go for it, however don’t actually sacrifice living to try to make a good living.

  • Keep your resume updated and always be on the lookout for new opportunities

  • Always look to acquire new skills, certifications, licenses etc. this will make you look more valuable to current and potential future employers. Some employers will even pay for further education.

  • If you are in a skilless job, get some skills and leave. Every employee is expendable, the unskilled ones moreso.

  • Ask for a raise if you feel you earned one, worst they can say is no.

  • Machiavellian principles can get you a head, it can be ruthless out there.

  • Start your own business. This is the most common way for regular people to become very rich. However not everyone is cut out to be an entrepreneur. Many times, businesses will fail and you’ll be worse off than before, however you’ll have learned what doesn’t work.

Cash

Once you’ve practice the points previous paragraphs you’ll start noticing your cash flow is increasing. This is usually where people either go on to become millionaires, or end up back where they started. Many times when people start having more free cash they end up spending it, which seems natural. however this is where a lot of people trip up on their financial journey and it takes them back to living paycheck to paycheck except now they have a bunch of junk they bought. The old adage “Its always better to have your money work for you than for you to work for your money” is how a majority of millionaires are made. And to be honest, in my younger days not many people reasonably thought being a millionaire was very feasible. Now with increased salaries and higher inflation, more people are becoming millionaires now than ever before, though the value of the dollar isn’t necessarily what it used to be. The best thing you can do with your free cash is to invest it or leverage in assets that will make it grow. This can include mutual funds, stocks, IRA’s, 401K’s, Real estate, business partnerships, startups, home businesses and perhaps even crypto currencies (though i don’t really consider CC’s investing , more of a gamble, i’m sure i’ll get some flak for that statement)

  • When you start noticing you have have more free cash available, reward yourself for your hard work but don’t let it start burning a hole in your pocket.

  • Always have some some liquid reserves, sometimes you may need cash on short notice

  • Cash can be leveraged to increase its value, if you followed the previous steps and have your Credit and Income at good levels, cash is the last piece of the pie before you can really start seeing results.

Passive Income

This is where things get fun. Passive income is money made off investments, or simply put, your money making money. There are multiple streams of passive income. They require some upfront footwork but can be a steady income stream with little to no effort on your part. I won’t go through every form of passive income do your own research, but i can honestly say that i currently make as much money passively as i do at my job. And it’s much nicer to get 10k check every month for making a few phone calls than to work 50 hours a week for the same amount just to ha


[–]1Metalageddon 151 points152 points  (4 children)

I highly recommend bachelor pad economics to a guy starting out. Especially if you're young. Clarey didn't say anything I wasn't aware of loosely, but it turned my bro and 2 friends around completely.

Great post OP

Also a few tips

  • savings and investment cash come out of the budget BEFORE spending money/cash in hand.

  • you do not, I repeat, DO NOT stack spending money. You set a limit. You refill it every time you get your check, but don't let it go over your allotment. If you have 500 a month spending and end up with 250 left over, next month you shouldn't have 750. You only refill to 500. Put the rest to better use. Trust me, the human mind will FIND reasons to use excess. Don't build that habit.

  • once you hit a lifestyle increase, ask yourself, "do I need this." Usually the answer is no. Let the extra cash go straight to making you more money. Classes, certifications, investment, etc. If you're already happy don't increase your spending needlessly.

For example, I tripled/quadrupled my income in about 3 months when business took off. I still live in the same place. It's got nicer stuff, but I don't need the extra to be happy. Draw happiness from experiences, not items. Experiences and people are largely free. Items tend to depreciate.

Good luck!

[–]beginner_ 10 points11 points  (0 children)

It's got nicer stuff, but I don't need the extra to be happy. Draw happiness from experiences, not items. Experiences and people are largely free. Items tend to depreciate.

The most important point. Having a huge mansions and sports cars does not make you happy. Having money will make you more free in how to spend you time and that will make you happy if you spent the time wisely (and no watching TV or gaming isn't wise and won't lead to happiness).

[–]Timthetiny 1 point2 points  (0 children)

He doesn't strike me as a very bright bulb honestly

[–]h4nkz 0 points1 point  (0 children)

Would you recommend bachelor pad economics to men from other countries than the US too? I'm from germany and our system works a little different, but I'm very interested in reading it. Not sure if it's worth the 20€ though

[–]2 Senior Endorsed Contributorvengefully_yours 25 points26 points  (4 children)

Big thing not addressed.

Do not get married.

In a divorce all that equity, investments, and passive income either gets split in half or given to her with no regard for any input by her. She gets rewarded for your diligence and ability, you're punished for your industrious efforts.

You put a kid in her belly and the state hits you with 50%-70% of your gross,, and guess what happens to that extra you were saving for when you're my age. It's fucking gone man. I finally paid off the first ex cunt in 2015. Everything coming in goes to rebuilding my life, because the state kept me broke from 01 to 15. With that extra money coming in rather than going to her and I pay the taxes on it, I'd be in a completely different place coming up on 49. When your means is artificially limited to $300 a month, you can't put anything away.

While I was married to that cunt, she kept me broke by spending it faster than I could make it. She lasted a year after I took her name of the account so she couldn't spend it all in two days. She claimed abuse because I didn't hand over the money to her on payday. As if she was ever capable of handling money. We tried that and she fucked it up horribly. She didn't only waste my earnings, she wasted my time with her bullshit. From arguments and starting shit, to begging me to take a semester of school which turned into 4 years.

20 years of her sucking up resources both while married and divorced. $250k she got from me. It's hard to earn more when you have an albatross around your neck fucking up everything you work for. You have zero incentive to earn more when the state simply adjust your payments upward with every increase keeping you an indentured servant.

At least you get to fuck the bitch some, but otherwise it's as bad as a loan shark, except the extortion and being indentured is not only legal, its ruthlessly enforced by the state.

Don't be me. Rebuilding again at 50, there isn't enough time left in my life to do it again. I'll shoot myself before I ever get married again, it's the faster way to the same result at this point.

[–][deleted]  (2 children)

[deleted]

    [–][deleted]  (1 child)

    [deleted]

      [–]dontbethatguynow 1 point2 points  (0 children)

      Thats not true. There are advantage but they are usually only realized in a marriage where there is a high earner and a low earner. If both are high earners the advantages start to dissipate.

      [–]circlingldn 0 points1 point  (0 children)

      Put your assets in your mothers and fathers names

      Or better yet marry a well of woman

      [–]Iord_perfumes 89 points90 points  (18 children)

      Someone here said it many moons ago -- "Money is the life of the mind."

      Depressed? How are your finances? Anxious? How are your finances? Angry? How are your finances?

      Money is security in this world. Money will make you happy. Do not confuse that with "buying shit will make you happy". A Porsche in your driveway will not bring you happiness. But sitting on a bank will.

      Don't believe me, I don't care.

      [–][deleted] 36 points37 points  (2 children)

      I wrote that post a long time ago. Can't believe someone remembers it! Money indeed is the life of the mind.

      Get your money right. Stop chasing tail. That shit will fuck your mind up.

      [–]NiceTryDisaster 1 point2 points  (1 child)

      Got a link to that post or comment?

      [–][deleted] 2 points3 points  (0 children)

      It wasn't particularly popular, and I go on deletion rampages fairly often. The premise is pretty simple and my argument is that money can buy you experiences and tools to create them.

      [–]cambucaz 8 points9 points  (12 children)

      Money gives you autonomy and freedom is liberating. You can only really sustain that living within your means by following the lessons outlined above.

      [–][deleted]  (10 children)

      [deleted]

        [–]mustanggt90210 8 points9 points  (9 children)

        "The one place you'll never find a motorcycle, is outside of a therapist office"

        [–]Arabian_Wolf 0 points1 point  (5 children)

        Ah, wisdom.

        Time to buy that Kawasaki.

        [–]halfback910 1 point2 points  (4 children)

        A nice Yamaha perhaps.

        [–]Arabian_Wolf 0 points1 point  (2 children)

        Or Suzuki.

        Gonna choice primarily a japanese bike based on the dealership service quality and network.

        [–]halfback910 1 point2 points  (1 child)

        A fine selection of fiscally responsible motorcycles.

        To quote a great man, "I don't need my wheels to get me laid. My dick does that."

        [–]Arabian_Wolf 0 points1 point  (0 children)

        Yup.

        I’m not into this “Harley” thing.

        But Ducati has special place in my heart.

        [–]Endorsed Contributorex_addict_bro 0 points1 point  (0 children)

        I found that book by Guy Kawasaki, but unable to find the one you mention.

        [–]seands 0 points1 point  (1 child)

        Ya but you will outside a hospital nomsayin?

        [–]mustanggt90210 0 points1 point  (0 children)

        Not to poke holes in the meaning of what you're saying, but most riders that end up injured don't ride their bikes to the hospital lol

        [–]Merwebb 1 point2 points  (0 children)

        Can confirm. Anxious as fuck.

        [–]Alexinfinite01 0 points1 point  (0 children)

        Absolutely. In a capitalist society money is basically everything so be smart about it

        [–]MarkJohnPaul 16 points17 points  (1 child)

        Never utilize more than 50% of your limit on your cards. If proportion of balances to limits are too high your credit will drop. Average credit score is 683. That's a 5/10. Don't be a 5/10

        NEVER put yourself in a position where you're only paying minimums on your cards. Those high interest only payments will fuck your day up. Credit cards aren't your money - they're borrowed money. The only thing you should use one for is to enhance your credit.

        Read Rich Dad Poor Dad.

        Ask yourself how much money you need to get what you want. Be realistic. Afterwards, do your best to get it.

        Having financial freedom will change your fucking life. Shit car? Get a new one and whip that bitch with joy. Shit style? New wardrobe. Shit appearance? New teeth, new eyes, new smell. Boring life? Spice that shit up with some sick travel destinations.

        We live in a world dominated by money. People don't give a fuck if you're black, white, short, tall, whatever. If you got the cash, it's yours.

        Go make your fucking money -

        [–][deleted] 11 points12 points  (0 children)

        People still give a fuck if your black, white. tbqh

        [–]AnjaJutta 28 points29 points  (8 children)

        10K USD every month out of a few phonecalls? A drug dealer has to work more for this money.

        [–]Pilliam66 49 points50 points  (3 children)

        Drug dealers work pretty hard. It's a myth that it's easy money

        [–]BetaBitchBoy69 5 points6 points  (1 child)

        lmao trapping is pretty easy, really depends though! Swim was making $3500-$5000/day sitting on a couch in his apartment and leaving to drive 25 mins to reup every couple days! This isn’t a legit/life long profession/ career though...scumbags attract scumbags.

        [–]123876a2 6 points7 points  (0 children)

        Being a good drug dealer is hard. Staying ahead of your enemies and the cops.

        Not getting caught is the hard part.

        [–][deleted]  (3 children)

        [deleted]

          [–]Elatla 1 point2 points  (2 children)

          Can you go into a bit more detail about your passive income business? I'm still trying to decide what to do to get passive income

          [–]1OneRedYear 4 points5 points  (0 children)

          Nobody will go into detail about their passive income business. Well they will but in only one of two ways. 1. The product. They will tell you about their product and what they sell. 2. The process. They will tell you how they sold their product. But only an idiot will tell you both because then he's just told the world his entire game plan and the snakes will come in and shit all over his market. My advice, figure out your product and read as much as you can about the process.

          [–]PhaedrusHunt 36 points37 points  (7 children)

          Good post. Getting my finances lined out is my major goal for 2018. The Millionaire Next Door and The Richest Man in Babylon were game changers for me. The implementation I s the tricky part.

          [–][deleted]  (6 children)

          [deleted]

            [–]PhaedrusHunt 30 points31 points  (5 children)

            I'm 39, so I have some ground to catch up on. Divorce rape did not help. But there is a reason divorces are so expensive: they're worth it.

            [–][deleted]  (4 children)

            [deleted]

              [–][deleted] 8 points9 points  (2 children)

              There's still satisfaction in accomplishing your goals, even when a woman destroys it all. I reached a level of wealth I set out to reach yet know my wife could destroy it all. Right now, I want to focus on wealth creation from scratch, effectively being able to build wealth from nothing - such as renting out RVs owned by other people (sounds corny but people get rich from this).

              [–]PhaedrusHunt 4 points5 points  (1 child)

              Lol my business definitely has some of that in it. I built a house from the ground up and it was one of the most highly rated Airbnbs in Austin. Ex testified I had done $5-10 k worth of work on it. Sometimes women lie

              [–]Lavlamp 3 points4 points  (0 children)

              Fucked up part is that inside her head, she had actually convinced herself what she was saying was true.

              [–]PhaedrusHunt 6 points7 points  (0 children)

              What a cunt. My ex and I were pretty close to a cool million in assets-- mostly tied up in two houses.

              [–]EntrepreneurToBee 6 points7 points  (10 children)

              Do you have any advice to younger people (18-22) that still live with their parents? Can't get a proper job because of college, only something part-time, even that would be stressful because i still need other shit to get done. So i don't really have a capital for investing as you are recommending in the post.

              [–][deleted]  (7 children)

              [deleted]

                [–]RestoreMySentience 0 points1 point  (6 children)

                I graduate in 1 year i'll be 21 starting at 50k salary. Going to live at home for a while is that smart? I have literally no expenses and save 95% of my income currently, gonna start helpin out mom though.

                [–][deleted]  (5 children)

                [deleted]

                  [–]Endorsed ContributorThotwrecker 6 points7 points  (0 children)

                  Are you in college aiming towards a well paying major? If you're on track into a worthwhile field, and your parents are footing the bill, then your best bet is to just take advantage of the free ride.

                  If you cant live in the dorms or split housing for some bros, and the only option is to live with your parents, suck it up.

                  Don't worry about managing your non-existent money (beyond basic frugality - you don't need starbucks everyday when you're not generating any money.)

                  You are investing in yourself now. By building up your future earning potential. Sophomore year (so junior year summer) and junior year (senior summer) you should be trying to get good internships leading to a career. IE don't fuck around and do some hippie shit, go network your ass off and start figuring out how to intern in tech or finance, or whatever field you plan to get into.

                  For example if you are a chem major, it's not looking great - but if you intern at genentech, you have a much better chance than other chem majors at landing a well paying job out of college.

                  My company pays our swe interns around 40+ / hr plus free housing and perks, its really a good gig.

                  Typically if an internship isn't exclusive and isn't paying you well, it's fucking trash, don't do it unless its the only alternative. Anything worthwhile will pay at least 20 / hr, and will be competitive.

                  While you are in college, your goal is to maximize how much money you will bring in for the next 10 years (and beyond of course, but really having a 5 or 10 year plan is a good goal for you).

                  Don't worry about investing yet - when you get your first real job at 22 after college, that's when its time to learn about 401ks, roth vs traditional, mutual funds, and all that. (I mean, if it interests you now, learn about it now, but right now you should focus on learning the skills to graduate to a six figure income.)

                  Focus on learning social skills in college. Really, even in tech, if you aren't the outlier brilliant guy who will always merit top dollar because he's that smart, you will get WAYYYYY more mileage out of knowing how to network. In college, you must build social skills too - and you can literally practice it every day all day on everyone. Just learn how to befriend everyone, charm everyone, collect people, and make them want to help you.

                  Beyond that, stay fit. If you get into some career paths (ie consulting) it'll be tough not to fuck up your body with constant travelling, drinking, eating out, and so on. Not impossible, just harder. Right now take advantage of your youth and free time to keep your body in tip top shape.

                  Beyond that, use condoms, don't catch a rape charge because you did some dumb shit with a drunk girl where you both were tipsy.

                  [–]EdmondDaunts 1 point2 points  (0 children)

                  Off the top of my head being well into my 40s

                  Eat your greens every day

                  Lift

                  Learn how to code

                  Learn how to write and present

                  Spend below your means

                  Invest asymmetrically

                  [–]Senior EndorsedMattyAnon 6 points7 points  (0 children)

                  Live Below Your Means

                  Save yourself 3 months complete expenses in cash (6 months in your 30's, 12 months in your 40's because change is bigger and harder later in life).

                  This float lets you fucking relax, not have to worry about getting fired, and having the option to move somewhere else to get a better job or other opportunity. It's easier to cultivate IDGAF if you're not staring down the barrel of homelessness.

                  Owning your own business has a higher risk/ reward than conventional employment.

                  Mattyanon's Ironclad Rule of Business

                  Don't get in deeper than you can get out. Keep your business affairs separate from your personal affairs. Don't get into debt, mortgage your house. Always have the option to ditch the business and walk away debt free. ALWAYS. No exceptions.

                  Mattyanon's second rule of business

                  Fail fast or succeed fast, avoid situations which linger for decades and go nowhere. Only take on things that succeed quickly (awesome) or fail quickly (no biggie, because of the rule above).

                  [–]Iord_perfumes 8 points9 points  (0 children)

                  I'll upvote anything advocating for fiscal conservatism. Good on you.

                  [–]Gozsayin 3 points4 points  (0 children)

                  Thanks man I'm 22 yrs been out of college for 3 years and I wish I read this post right before I left school at 19. This is pretty much when I first started working full timem. Before this I was in a constant state of survival never really having more than 20 dollars in my pocket(no type of allowance system in my house) to suddenly having cash Rollin through my fingertips.The effect was maddening, I still remember having 1000 dollars in my pocket and just feeling uncomfortable because I didn't know what to do will so much money so I splurged. Fast forward 3 years later and suddenly I have student loans calling my phone with no saved funds after working 2 jobs for 2 years. Now I've been buckling down for about a year and have seen so many pluses come into my life it's unreal (such as a higher credit score/working on a new car for next month/my own apartment/ and a sense of security). By next year I hoping I can start my own business. In short the younger u start the better.

                  [–]HS-Thompson 41 points42 points  (9 children)

                  This is middle class plugged-in bullshit. Your first sentence is fucking garbage. Of course it's about how much you make, and how much you own. You can't consume your way into wealth.

                  As someone who is actually rich and hangs around people who are ludicrously rich let me give some simpler advice:

                  1) Get your hands on the means of production. Own businesses and assets and productive capital. That's the core strategy. If you don't have meaningful equity you're a fucking slave. There are no exceptions to this rule.

                  2) Make sure you are connected to the people that actually run the fucking world. When you're in that category everyone helps each other get richer and stay rich. The fucking system is rigged, be among the people it's rigged in favor of.

                  [–][deleted] 6 points7 points  (0 children)

                  Fucking gold nugs right here.

                  [–]F_Dingo 1 point2 points  (2 children)

                  Get your hands on the means of production.

                  hands down this is the best piece of information in this entire thread. We live in a capitalist society which means if you want to get anywhere then you need to own some capital that gets the $$$. Sure you can get "rich" by working for someone else but you won't have anything that you own and works for YOU.

                  [–][deleted]  (1 child)

                  [deleted]

                    [–][deleted]  (1 child)

                    [deleted]

                      [–]meridian_blue 8 points9 points  (0 children)

                      You are right in that a 100k job won't make you a millionaire, but it is very possible to become a millionaire through a successful business. And you don't need some sort of magic 'million dollar idea'. Identify a need and execute it well and you can generate a business that can make over 250k. Save it, reinvest it, and you can become wealthy. The problem is the average person doesn't do this. They stick to a comfortable paycheck and never have the opportunity to achieve real wealth

                      [–]howdoistopobsessing 0 points1 point  (0 children)

                      means of production

                      How long does this take? Are you talking about ten years (or however long) of buying dividend stocks? How did/do you do it?

                      [–]majorketone 3 points4 points  (0 children)

                      Live Below Your Means

                      The easiest way to become a millionaire is to not spend a million dollars

                      [–][deleted] 4 points5 points  (0 children)

                      Those who job hop every 2 years earn 50% more than their peers.

                      [–]skippydammit 6 points7 points  (0 children)

                      Definitely read "The Richest Man In Babylon"!

                      available in PDF here:

                      http://www.ccsales.com/the_richest_man_in_babylon.pdf

                      [–]RedPill_Swinger 2 points3 points  (0 children)

                      True. I am responsible for all the business of an OTC's manufacturer and can confirm everything.

                      [–]KarmaKill23 3 points4 points  (4 children)

                      Nitpick here but it could wreck the post so want to be sure:

                      Always make the minimum payment on your notes. Even if it doesn’t put a dent in the principle.

                      By this you mean the statement balance not the full outstanding balance. Right? This is post is too well written for you to mean the actual minimum requested payment.

                      [–][deleted]  (3 children)

                      [deleted]

                        [–]KarmaKill23 2 points3 points  (2 children)

                        Which, if the reader is following the other points in your guide, they should be able to do lol.

                        [–]RedPilledGodEmperor 0 points1 point  (1 child)

                        Ideally, you should pay off the full statement balance, which is the number shown on your bill/statement. That way, you don't pay ANY interest. That's what I do and my credit score is fantastic.

                        [–]KarmaKill23 0 points1 point  (0 children)

                        Same - I guess my overall point was you should put the emphasis on paying the full statement balance. OP seems to put the focus on the worst case scenario, but we all seem to be on the same page so no worries.

                        [–]askmrcia 5 points6 points  (1 child)

                        Now not everything generic is the same (i can’t stand generic cereal) but you get the point.

                        So glad you pointed this out. I remember back during one of my MBA classes, this exact topic came up. My professor at the time tried to persuade the class that you can barely tell the difference between generic brands and name brand products.

                        I was like hold the fuck up. Those generic cereal brands often taste like shit. As much as people want to say its cheaper and you can get more if you buy those big bagged generic cereal; they taste like complete horseshit.

                        I know this isn't the subject of your post, but I had to point it out. Because a lot of generic brands aren't as good when it comes to the name brand stuff.

                        Now when it comes to clothes (to an extent) and medicine, yes, you no doubt have a point.

                        Now to get back on point. Overall great post. The only thing I will add and wish more people on reddit (not just here) will add is exactly where to go for investments and even playing the stock market.

                        What I mean by that statement is someone like op says "go invest in mutual funds, IRAs, ect..." And I respond "ok..... but where do I go exactly to do that?"

                        Ofcourse now I figured it out myself, but I think more people should go into details on where exactly to go for that type of stuff.

                        Also you missed the biggest tip for any young guy when it comes to money. DO NOT GET MARRIED.

                        Ok it was a redpill joke... kind of. Couldn't resist.

                        [–]antariusz 1 point2 points  (0 children)

                        There ARE ways of flaunting wealth that are better than other. People buy brand new Ford/Kias/Toyotas.

                        Instead, buy a 2 year old Audi/BMW/Mercedes, drive it for 8 years, you haven’t paid that much more than the person that drove their Kia for 10 brand new off the lot.

                        (Depending on how tight money is, even an extra 500 a year might break some people)

                        [–]SKRedPill 1 point2 points  (0 children)

                        Fortunately in my country, we have the luxury of using credit for only housing loans and at the most for a car. Of course, education's gotten like 100x costlier in the past 20 years. And then that MBA (Damn it, I could educate a whole town till undergrad with that money)

                        Any country that needs more debt than that IMHO is a poor one.

                        [–]wanderer779 2 points3 points  (0 children)

                        For those with no knowledge, here's some basic tips that apply to most people:

                        The best way to build wealth for most people is probably by investing in tax advantages accounts. These allow you to won two ways: One, you can contribute money before it is taxed. Two, your don't pay taxes on any of the income they produce. This means that your rate of return will be a few points higher in these accounts than they would be in a regular taxable investment account and that makes a big difference over 40 years.

                        I don't work but when I did I took full advantage these things. The common choices are IRAs and 401ks. The limits are about 6k for IRAs and around 18k for 401ks. Like I said I'm out of the game but those numbers are pretty close.

                        You also have HSAs which can be used to shield some money from taxes. I believe college plans can also be used, even if you dont have children. You may have to pay penalties for withdrawing it for expenses that dont qualify, but if you run the numbers you may find that the tax free compounding makes up for it.

                        There are also things you can do with trusts to avoid tax bills for you and your heirs. I'm not rich enough to worry about it for bow, but it probably doesn't hurt to educate yourself on them.

                        So yeah, max out your 401k, IRAs and any other tax advantagedaccounts you can put money in.

                        [–]alexclarkbarry 2 points3 points  (3 children)

                        I highly reccomend investing in Bitcoin during this dip, easiest money possible no matter your situation.

                        [–]mattizie 1 point2 points  (2 children)

                        I'm not so sure.

                        Its not like before where it was 90% of the CC market. Now the market cap is only 100B and ethereum is 70B. Bitcoin has been the biggest because it was first. But that doesn't mean it's the best, and it has problems. I'm splitting purchases between Bitcoin ethereum and neo.

                        [–]Arabian_Wolf 0 points1 point  (0 children)

                        Ethereum and NEO still has room to growth, for ethereum everyday there’s new ERC20 tokens (also exchanges that use it as currency, it’s very liquid), and NEO is catching up with their GAS and other NEO-based tokens.

                        XRP is a good, cheap and stable choice, it’s centralized and supported by big names in the finance world.

                        I’d only buy bitcoin if I had enough money to burn it in at least a full coin or two.

                        [–]bearlakeburton 0 points1 point  (4 children)

                        Doing what everyone else is doing will never be that valuable it's simple supply and demand. Be different look to the future and plan.

                        What is something you know to be true but no one else thinks is true. That is your path to success.

                        [–][deleted]  (3 children)

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                          [–]monadyne 0 points1 point  (2 children)

                          I see what bearlakeburton is talking about when he says: "What is something you know to be true but no one else thinks is true. That is your path to success." If you know something to be true when no one else does, that is the equivalent to "insider knowledge." You can then make an action based upon your knowledge, i.e., an investment of some type. When other people finally realize the truth of what you knew, the value will soar and your investment will pay off.

                          An example of this would be the iPad. Steve Jobs "knew" that consumers would want an information appliance that was smaller, lighter, and more easy to carry and to use than their laptop. He took action on that idea and built iPads, then presented them to the marketplace. He made a fortune. At that time (before the copycats showed up) he had all the supply.

                          [–]bearlakeburton 0 points1 point  (0 children)

                          Its actualy an important quote from the book zero to 1 (sorta like the hole idea behind the book actually). The book is an incredible read with some amazing insight on how to make something that is valuable. It comes down to the fact that competition is the last thing you want when building a business and the less competition you have the better you will do (assuming it's actually a good idea) so the idea is to build something that only you think is a good idea because that will make is so you have the least amount of competition.

                          It's a great book and I think about the principles it talks about regularly.

                          [–]warren_marks 0 points1 point  (2 children)

                          Great post OP. One more thing to add on the investing side. ETFs are your best friend. Low cost investment vehicles that will compound your wealth over time, especially if they are in a tax advantage account. Choose ones with the lowest fees and diversify geographically.

                          [–][deleted]  (1 child)

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                            [–]BJJTallon 0 points1 point  (1 child)

                            Would investing in physical good and silver be a good decision as a teenager?

                            [–]archetypicalman 0 points1 point  (0 children)

                            This post needs to be pinned, or at least added to the sidebar. Mods, are you listening?

                            [–]sixtynineningbeavers 0 points1 point  (6 children)

                            Coming from afluency, I think power is more important. Just my two cents

                            [–][deleted]  (5 children)

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                              [–]sixtynineningbeavers -1 points0 points  (4 children)

                              Lol, don't be a dick. Acting like a beta bitch over here

                              [–][deleted]  (3 children)

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                                [–]sixtynineningbeavers -1 points0 points  (2 children)

                                Dont feel the need to argue about something that asinine. Did I hurt your feelings little boy?

                                [–][deleted]  (1 child)

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                                  [–]sixtynineningbeavers -1 points0 points  (0 children)

                                  "Feel special," yeah kinda like you trying to feel better about yourself by posting basic shit about budgeting. Fuck outta here scrub. What about my point is unclear to you?

                                  [–][deleted]  (3 children)

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                                  [–]bitcoin1188 0 points1 point  (0 children)

                                  No, u are destined for slavery. Rich people spend 10k on breakfast every month

                                  [–][deleted]  (1 child)

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                                    [–]BurnoutRS 0 points1 point  (1 child)

                                    One of the most important lessons i ever learned about finance was from watching the other drug dealers at my highschool. I had friends who would get drugs on spot and then sell them off to make enough money to pay the spot off while smoking their profits.

                                    I saved my allowance and bought my inventory outright. I reinvested my profits which meant I spent less time resupplying and more time selling. You buy an ounce at 150 and sell it for 280. Thats 130 profit. That means you can almost buy two ounces next time. Keep moving up until your buying lbs. The price break increases your profit.

                                    The best part, I tried to help some of these kids out all those years ago. Tried to explain how all it takes is about a month of work to move up to buying lbs and by that point you can smoke half your inventory and still have enough to break even. did any of them listen? No, and they still get ounces on spot to this day

                                    [–]Adam1394 -1 points0 points  (1 child)

                                    Learn the friglin' languages.

                                    Most of you guys have big advantage which is being rised as native English speakers.

                                    Add Spanish, and German/French and you're set.

                                    PLUS it opens foreign chicks market, win-win.

                                    [–]Blahsighblah -2 points-1 points  (12 children)

                                    Get into Cryptos. Once you buy you become a bank and are forced to act like one. In a couple of months your whole viewpoint on money will change.

                                    No bullshit, it's the quickest way to learn how money works. Don't even need to invest a lot, maybe 500-1000 max.

                                    [–]kemchik 2 points3 points  (7 children)

                                    and die with them when the price going down like yesterday

                                    [–]Blahsighblah -3 points-2 points  (6 children)

                                    Did you check stock market and Forex Market? 4 trillion wiped out in 8 days. Cryptos only 200million. People like you are so ignorant. The only opportunity you will ever have to not be a financial slave to the institutions and you want it to die. Ironic.

                                    [–]kemchik 0 points1 point  (5 children)

                                    Did I write that we should invest in stock and forex market? I say that those shit is almost the same with casino just with cooler name.

                                    [–]Blahsighblah 0 points1 point  (4 children)

                                    ahhh do you know where bonds, mutal funds, 401k, IRAS, ETFs are traded?

                                    Do know crypto exchange is one component of a huge industry being built around it?

                                    Anyone not involved in crypto or at least TECH is setting themselves up for your failure in the next 10 years.

                                    Don't spread BS if you don't even have a basic understanding of the financial system.

                                    [–]kemchik 0 points1 point  (2 children)

                                    how much do you make every year? what asset do you have?

                                    [–]Blahsighblah 0 points1 point  (1 child)

                                    Assets: Cryptokittens and Ethercraft items.

                                    [–]kemchik 1 point2 points  (0 children)

                                    Cryptokittens

                                    all right, pretty much nothing then. Have fun out there

                                    [–]F_Dingo 2 points3 points  (2 children)

                                    Get into Cryptos.

                                    If you like balls to the wall extreme risk then go for it. I like risky shit but cryptos are a non-starter because the industry hasn't sorted itself out yet (outrageous fees and slow transaction times) and the fact that its not tied to anything like a regular investment is. With crypto i'm buying in to how people feel about something that does not exist. At least with stock I'm buying a piece of the future earnings of a real company.

                                    [–][deleted] 1 point2 points  (0 children)

                                    I’ve got $2500 in cryptos.

                                    No risk no reward.....

                                    [–]Blahsighblah 1 point2 points  (0 children)

                                    Not true. Do not believe the media bought schills and bank institutional lies. Smart money gets in first. Don't be dumb money. The whole tech industry is behind cryptos and The SEC supports the development of crypto currencies & block chain. Senator Mark Wareen of Virginia estimates it to be a 20 trillion dollar market. Who's this guy? He's developed and vested into creating the cellphone market before the boom. This created his wealth. He is one of the richest senators in congress.

                                    [–][deleted] -1 points0 points  (1 child)

                                    It’s not how much money you make, it’s how you spend it.

                                    This is absolute bullshit. Of course you should consume less than you produce. But no consumption strategy is going to make you wealthy. Production strategy makes you wealthy. Get your hustle on.

                                    [–][deleted]  (1 child)

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