Lots of garbage on this board so I figured some of y'all would wanna take a break from all piss and shit and crypto memes and talk about an actual useful topic!
Feel free to post your personal finance questions here and get them answered by other personal finance-savvy anons
Bump
I need to have another form of income. Rip
Or maybe you just need a better form of primary income, user
Ok how to do that :^)
Learn more marketable/in-demand skills
Network and change jobs if you've been at yours for more than a year and haven't gotten any raises
Take on more responsibilities at work to beef up your resume
>0% food, water, shelter, tendies (live in moms basement)
>5% books, electronics, train pass
>95% investments
Based and redpilled.
You should consider paying mommy a little rent to make the arrangement sustainable long term. And hug her regularly.
Do you have any money in savings user? You should keep that separate from investments, so you'll have it for emergencies.
The hardest part about having your financial shit together is making sacrifices and having discipline. Simple but hard.
Is it dumb if I spend 60% of my takehome pay on rent to live in a luxury apartment downtown and maybe get a gf?
Gf’s are way overrated user. My ex was such a drain on my wallet
You'd better make sure you get your name on that deed for when mommy dies, or else you could be fucked.
>thinking being a rentcuck is impressive
Rent a cheap place and use the extra savings to save for a downpayment in a few years and own a place instead. That'll be more impressive than cucking yourself with a "luxury apartment"
You should be accumulating assets instead of chasing the skirt. Try to find a frugal, smart gf who wants to accumulate assets with you. And never get married. You don't want to get divorce-raped. Love ends eventually.
>making sacrifices and having discipline
Elaborate please
>rent a “cheap” place
>mfw rent is more expensive than a damn mortgage around here unless you live out of a flood zone trap house rental
>mfw no face
I feel you my dude. That's why the goal should be to accumulate enough savings to be able to buy something as soon as possible.
To have your financial shit together means you have to have income and invest a big portion of it.
Working hard 40 hours a week or more is unpleasant and painful. Doing it requires discipline. You also have to sacrifice your free time and comfort to do it.
Not spending all your income is equally hard for most people. People are bad at delaying gratification. Some of my friends are only capable of saving like 10% of their income. Better than nothing I guess. Better than being in debt for sure! Not spending money right now but later takes discipline and sacrifice. You sacrifice today for future.
Investing money takes real discipline because the stock market is really volatile. It is hard for people to watch their life savings melt and they start selling when they should be buying. Investing is a really emotional pursuit. The key is to have a rational plan and obey the plan even when times are hard. This takes discipline.
Discipline predicts success in life better than IQ. IQ cannot be changed much, but everyone can train their self-discipline.
>accumulating assets
recomendations plz
TY for the response
>Investing is a really emotional pursuit
Absolutely this. I "lost" over 5k during the past 3 months (before the 5% jump) and as a first time investor it was real fucking tough to swallow. Just gotta remember you're in it for the long haul and October - December 2018 will be one tiny insignificant blip 20 years from now. Just don't invest any money you plan to use anytime soon and ignore the day to day bullshit and think long term.
And you're right about having discipline. I don't have the highest salary. I make 10-20k less than many of my friends. But I still end up saving more money than them because they blow it all on dumb shit. I bet I'm the only one out of my friends who's maxing ALL of the available tax-advantaged retirement accounts.
Basically save and invest your money instead of spending it on dumb shit like luxury apartments and things that depreciate instantly like new fancy cars
>Some of my friends are only capable of saving like 10% of their income
Just curious, what do your friends spend money on? The only things in life I enjoy are training, vidya, and internet so my cost of living is very low.
How, I already have a 6 figure portfolio and a stable career.
>invest your money
What are good ways to invest money that will generate cash flow? I can think of stocks, bonds, and real estate, but what else?
There are a few types of assets that everyone can accumulate.
Assets that produce income: real estate, company shares (stock), bonds (loans to government or companies)
Assets that retain value during a crash/depression: gold, cash, short term bonds
Everyone should start asset accumulation by building an emergency fund (cash) of at least 6 months of living expenses. After that income producing assets which protect against inflation should be the main goal. Government bonds pay shit right now, under the rate of inflation (before and after taxes) so I would recommend buying stocks that are not in a clear valuation bubble. International diversification is key.
One way to do this is buy stock ETFs that have shares in thousands of different companies like: Wilshire 5000 Total Market Index (TMWX) and Vanguard Total International Stock Index Fund ETF.
100k in savings, 70k in 401k 30k in crypto. .How do I make it and quit my shitty job? Should I cash out 401k and go all in ETH?
I would like to add that if you want to chase higher returns from investing by picking individual stocks you should read 5 books about how to value companies first.
I don't invest to generate cash flow. I invest to accumulate and grow my wealthy and my goal is to have a $1 million+ portfolio in 15-20 years from now due to compounding interest and re-invested dividends.
In a few years I plan on purchasing a 2-3 bedroom condo and renting out the other 1-2 rooms. Once my mortgage is paid off that will be my investment to generate cash flow.
As far as cash flow goes I just rely on my job income for now with some churning on the side.
Never go all in on anything. You need to diversify to reduce risk. Digital currencies are highly speculative and volatile assets, not a good idea especially to put all your money there.
What do you use for your short/medium term savings (1-5 year money)? A basic online savings account?
Ty both for the responses.
Bonds are also a good hedge in a stock market crash right?
Yeah, two year t-bonds are an especially good investment right now with the flat yield curve.
They basically buy a more luxurious version of everything than they should. A bigger house, a fancier car, ready/convenient food from restaurants and the store. I make my food myself from the basic ingredients. One wastes money on prostitutes. There are a shit-ton of ways to get rid of your money. I probably can't even imagine all the ways they are getting rid of it.
Don't get me wrong, I have nothing against the luxuries of life. But it is not a smart thing to waste most of your income on them when you are young and poor. Accumulate wealth first and then spend money on fun stuff. This is the way.
Personally I enjoy things that make me better somehow. Investing, reading books with useful knowledge, exercise, talking about interesting and useful stuff with others (10% memes, 90% useful knowledge).
Im on vanguard. Should I reinvest or use it to collect dividends?
Not financially independent = reinvest
Financially independent = collect
Yo anons.
I'm Quite intelligent, good at maths, social anxiety, university student that doesn't go/need to go to college. (too afraid)
No job or any (active) income
I have a student loan at 800 EUR each month. interest is almost 0
what would you do?
[PIC UNRELATED]
[I'M CAUCASIAN]
Market crashes up until now have been deflationary, so government bonds should do the job. But long term I wouldn't hold them myself. Sell them at the stock market bottom and buy stocks with the money. This is what I would do if I had them in my portfolio.
If we somehow get high inflation during a crash then long term gov bonds will get devastated. Probably not going to happen but who knows what the future brings.
Reinvest if your focus is accumulating a large portfolio in the future. Collect them if you want some extra pocket change in the short term.
How does 80% VTSAX and 20% VBTLX sound for long term holding?
Not him but I have one friend who literally spends over $250/month on weed and shit for his Juul. He has a pretty high income too, it's fucking sad.
sell consumer electronics devices? fix computers/phones/...? that's what I would do if I was in your position.
I save more than 60% of my income (been poor for a long time, so I don't need a lot of money: rent is relatively cheap, I live a simple life and don't buy any luxuries), but I could be making a lot more money if I left my country (chile, south america) for, say, canada (I've been offered a job there) or the US, though I don't even have a degree, but I fear I'll be treated like shit there, won't get used to the climate and/or the people, and will probably get depressed and sad.
I also don't have any investments, other than a small % of that savings that I moved to buy btc, and then lost some 15% of that...
I want to help my family and myself by buying a house (would pay half, mom + subsidies would pay the rest), but they are so fucking stupid, I feel like I can't trust them with any money. plus houses are fucking expensive right now.
wtf should I do with my money? I'm dumb as rocks when it comes to investing, and I doubt I can trust anyone with the money. I have some ideas for a startup, but they are just that, ideas.
I only have short and long term savings. 6 months in pure cash with 0% return and the rest is in stocks. I probably could squeeze a little more return from my cash savings but it is just such a small sum of money. My expenses are REALLY low which is why 6 months worth is almost nothing.
I don't have medium term savings because I am confident in my ability to get and hold a job (or create a business if need be), I can count on dividend income a little because my portfolio is not small anymore and I have close family I can count on in the case of apocalypse. My ability to adapt to any situation gives me confidence.
How do you get job offers overseas?
high demand field, got offers from people I met on IRC. I've been talking with them for years, so they know me, more or less.
I have no idea how you could achieve this but you need to protect your long-term savings against inflation somehow. A house could do it.
The reason I am not sure what you should do is that I don't know how trustworthy the financial and legal systems are in south america. I hope you find a way.
Ah I see. I don't have much of an emergency fund either because of the same reasons you list, only about 6 months. Because of my family I'll never be in a situation where I'm really screwed.
I more use my "medium term savings" as a place to park my funds that I will use to make a down payment on a condo in a couple years. I don't want that money in the market because of volatility and I don't want to be forced to sell/liquidate any shares and potentially making a dumb move. So I park that money in a savings account paying ~2% interest. I also use that money to churn bank account bonuses and whatnot too. Was just wondering if there was something better I could do with it in the meantime until I'm ready to buy.
>I want to help my family and myself by buying a house
btw, if I do buy a house, I would have no savings left. from what I can see, an economic crisis is coming the next year or so, and I could take advantage of that. I feel like if I buy a house, I could miss a great opportunity to buy "the dip", i.e., cheap stuff (apartments, houses, stocks, ...)
Sounds good. I would allocate some of the stock portion to international (outside-US) stocks. Diversification is the only free lunch in investing.
If you want to protect your money against inflation you buy US treasury bonds, especially TIPS. I'd also recommend counter cyclical stocks like consumer staples and utilities.
Hmm...don't most US companies operate globally?
thanks m8s
btw, I'm thinking about buying AMD and holding for a few months. what do you think?
Yes. One issue is with how the company stock are valued. Outside-US stocks are valued more cheaply at the moment. US stock valuations are expensive at the moment. Only time will tell if this matters. And even though US stocks operate globally they still have a big chunk of their business in the US.
A good place to check stock market valuations: starcapital.de
Maybe this wont matter, maybe it will. By diversifying you ensure a good outcome for yourself. By global diversification you ensure that you don't have all your money in a bubble. It protects you against worst case scenarios.
AMD has gone up with speculation on tech stocks more generally since about 2016. It may be a bit overvalued as a result. If you disagree and think its value will increase as it snaps up marketshare next year just make sure it's just one small part of your larger portfolio, diversification is key to reducing those kind of risks.
YOLO
Invested all my life savings in crypto since I was 18. Now went all-in on Chainlink. Diversification is the safer way but if you can emotionally handle the risk, going all-in on a project with high potential could be an option as well.
Over the course of three years crypto I have a ROI of about 35%/year. I'm happy with that. Don't stress about the huge volatility but think long-term.
If you gamble long enough one day you will lose everything. Quit while you are ahead.
That's because you arent a normie. Hence you browse this site. Normies will spend money on literally everything.
Non us investments is a meme. Most have been flatline or gone negative. Vxus for instance hasn't really generated any value to holders. You are better off with total us, small us bonds, then qqq or spy.
Furthermore if usa crashes or goes bear the vast majority of outside us stock will too. Really no reason to hold them.
Every stock market has had both good and bad decades. Just because one market has been outperforming others doesn't mean it continues, mean reversion is a real thing. Better to diversify and avoid investing 100% in a potential bubble.
Even though vxus hasn't grown in price it has still paid dividends. You have to consider total return.
Check out long term nikkei index returns. macrotrends.net
This could happen to the S&P500. Just because something has grown in price doesn't mean it will continue. Japanese equities were in a huge bubble in 1990 and it took 20 years for the bubble to pop.
Avoid valuation bubbles, diversify, survive. And collect comfy dividends all the way.
I legitimately hope you get the super aids
At
Agreed about bubbles and stagnant markets. But there are tons of us companies and funds that pay dividends as well as appreciate in stock value much better than some international funds.
I'm a 30 yo with a humanities degree still single, still renting and barely making ends meet.
It's ogre, let me poopost in peace.
That's why it's a good idea to invest now instead of riding the bubble when everyone else is piling into EM. Lower prices now = higher expected returns in the future
Wait...Your a financial advisor and you don't own anything yet?
Valuation is the most important thing for future expected returns. I agree.
Why are threads like this allowed? This is a CRYPTO BOARD but somehow we got boomers who come here and think it's actually a business board where they can discuss their boomer strategies and wagecuckery
An outrage!
Why is it so much better to own instead of rent? It is evident that by renting u throw out the money, but u also get chained to a very long loan.
I know it is better to own, but I want to hear why from someone understanding finance better.
Anons? Please answer my question above.
I have never owned real estate so take my opinion with a grain of salt.
It is all about how much money you have left after paying the maintenance cost of you living situation. If rent is higher than interest payments on mortgage + insurance + repairs that have to be made every decade (and other maintenance of the house) then it makes economical sense to buy the house.
If the costs of owning the house are higher than rent then you should rent. Many people forget that owning a house costs more than the interest on mortgage, houses have to be repaired periodically.
Owning a house has some risks. You lock yourself to a location so make sure you have a stable job there and don't have to move in the future. Interest rates also change over time which means your payments to the bank change. And this is why it is better to play safe when buying a house and not buy a too expensive one.
Hope this helps a little.
Generally buying a house should be more economical. If your area is not in a housing bubble that is.
If you have to change locations after buying a house you can always rent out the house.
Found this calculator while doing some googling: nytimes.com
Owning is better so long as:
1) You buy something in a well-desired area. Just in case you need to move you'll always be able to sell it/rent it out because demand is high.
2) You buy something that isn't a piece of shit/falling apart. Maintenance costs are where you can possibly start throwing money into a black hole. I personally plan on starting small and buying a 2/3 bedroom condo (that's all I'll be able to afford anyway) and see how that goes for a few years before I even think about buying a real full-sized house
Holy fuck. Look at that s_oy_boy in OP image. Absolutely disgusting. Where is the "Apple products 60%" section on that chart?
>Discipline predicts success in life better than IQ. IQ cannot be changed much, but everyone can train their self-discipline.
Not to be "that guy" but I went to college for this precise manner of thing and that's bullshit, namely because low IQ people are less able to access the kinds of things that you would call discipline
Your advice only applies to people with an IQ of 100+, below that it really is fucking useless trying to teach them
You're a daft idiot. I'm making $112k doing dev work and I live in a $400 comfy studio (midwest, where housing is actually affordable). I'm able to put almost 75% of yearly income post-taxes into investments. At current pace, I'll be able to soft retire at 33 with $1m saved and $50k/year interest to live off of.
>thinking about sooi all the time
Angry 5oyboy detected.
good goy, dont even think about escaping our system. keep diligently saving your cuckbucks goyy
Interesting and sad at the same time.
It works both ways.
If you are cucked by mortgage and lose mobility, they can abuse the fact you need to stay and cuck your salary.
This. I respilled my wife on crypto, now she's as much into it as me and we are accumulating together. She now keeps up with it and we have turned into a pretty solid team when it comes to finding good possible investment opportunities. Comfy.
>crypto
Yikes
>crypto
>Yikes
No u, you’re on a crypto board and yikesing about it. Yikes
What should i do anons? I own 350$, just started a minimum wage job. Really want to travel and see the world, 30yo boomer, been working whole my life. Also i have a house which is paid off. Can't rent out, because that would need about 25k investments.
I'm no expert but it sounds like you should focus on making yourself worth more money
Rough math says renting the house would pay for itself relatively quick if you went for it
yeah, doomed for wagecucking. Literally saved every penny over the last 12 years and crypto gains to pay of the mortgage. But it was literally every penny. Can't rent it out because it's unfinished, but i'll save up fast now, so wagecucking it is
WENA CULIAO
>Implying that debt is an compulsory or obvious always present outcome
This must have been done by an american
WENA PO SAPO CTM
Do I need to file taxes if I haven’t had a job in 3 years? What about with 50+ crypto transactions and 5k in losses?
If all you’ve done is lost money over the past 3 years and haven’t earned any income, the IRS probably doesn’t care about you.
They only care about people who have income they can steal.
>40% housing
holy fuck what kind of cuckoldry is this, I pay less than 10% living in the heart of a major city in the hipster part of town
People like to make themselves richer by living in places they really shouldn't be living in. Which city?
Fuck off boomer. Not everyone wants to invest in shiny rocks, the stock banker scam, or become a slumlord.
How do I escape wagecucking and the rat race by 40? I'm 20 and working min wage at the supermarket. I've accepted I'll have to do my time but I don't want a life sentence.
I want to enjoy some of my life before I'm old and crippled.
No sorry this board is reserved solely for gambling on internet meme money and losing. Carry on
at what age should you consider sleeping with your mom? asking for a friend
Get some form of formal education and get a better paying job. Doesn't have to be college. Learn or trade or something where people will actually value your skills.
Then from there live simply and frugally. Don't waste money on stupid shit and depreciating assets. Aim to save at least 60% of your income and invest at least 1/3 of your income in index funds