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It's pretty hard not to become a millionaire if you start young
Damn. I took it off my watchlist when it stopped bouncing around and just started the slow march down.
It's pretty hard not to become a millionaire if you start young
I try to explain my mom this but she's all about "debt free" and such.
If you have 100k and 95k of manageable debt... best to make payments and invest your big money in real things like house flipping, maybe a rental property and a few stocks on the side. But most people prefer to pay off debt that's why they're stuck in the middle class.
lawl... if you live to 60?
Because that's the uber slooooooooooooooow way. Ramsey is selfmade rich but he dislikes compe ion and he gets paid to give lectures that... keep people in the middle class. Sure you can play the ultra conservative route like that but you'll never make money and be young enough to enjoy it, without being saddled with things like kids in school, grandkids, health issues, rapidly dying off family members, etc... and that's if you don't die before then, if you do you just lost all of it.
If you want to be wealthy and young... you have to go by this priority guide:
1) Cash on hand (in the bank or whatever... not saying just hide a wad of bills under your bed, that's silly)
2) Cash flow (becomes slightly more important than #1 in event of recession)
Distant 3rd) equity
..............
Eventually) pay off debts.
Do it your way. I don't GAF. I'm jus saying how I'm doing it.
There's no way to be rich when you're young unless you're an entrepreneur, an athlete, famous, or you inherit it.
For the rest of us, I was trying to give practical advice.
All I know is I'm under 50 and I have no house payment, no car payments, about 400K in my 401k, and 200k in savings.
Correct. But if you live in a house with no house payments, and have 200k in savings... you should be able to turn that into a million in a couple years or less, of course you've got to have the risk taker/entrepreneur gene and not everyone has it.
The hardest part about being a young entrepreneur, is getting the first... I dunno... 50-60k in capital? Because if you have that you can turn it into a million with around five years or so of smart investing (maybe less, maybe more depending on the market, economy and things)... whereas if you're broke living paycheck to paycheck with little or no reserves, it's hard to make it big as an entrepreneur right away because you don't have enough to invest and you aren't going to qualify for loans very easily.
I'm a low risk person, since I have a wife, two kids, and a mum to look after. You seem like a young chap. Take all the risk you want.
Agreed and now is the time to take risk, before you have kids and , that drives a lot of guys in their early 30s and into mediocrity. Like, I had the ambition to be rich but the kids came and now I'll settle for steady but middle-class and save for my kids' education (a giant rip off, but whatever). I'm glad you are happy and where you want to me, but , that ain't me.
And I noticed you said "mum"... are you British?
No worries mate. Everyone is different.
I mean, cool bruh.
Aussie?
It's a huge lie under both, obviously.
TNDM is finally making a run. Should hopefully go over $1 as the shorts get squeezed.
WTF are you talking about? Most of the middle class is deeply in debt and probably won't pay it all off in their working lifetimes. Placing a priority on paying off debt is not what keeps people in middle class, spending all their goddamn money on stupid is.
... being fleeced by the oligarchy keeps people from advancing and from retiring comfortably. Oligarchy's BigFinance division aggressively sells "debt".
Sure it does, but there is something to be said for personal responsibility. Nobody forces you to finance a sofa, or put your McDonald's lunch on a credit card, or spend 100k on a generic business degree, or buy a new cell phone every year, or roll in negative equity on a new car, or any of the other stupid people do on a daily basis.
Food for thought.
Well that too for sure... definitely correct on this one. This ranges from way too much mindless entertainment to student loans that fund liberal arts degrees. It didn't hurt that I got free college essentially because I was HS valedictorian, but there's also the factor that I love my 2013 Samsung Galaxy Exhibit and don't want to give it up.
But unless you won some kind of genetic lottery, you don't get rich without assuming some debt... even the top 500 companies in the world all have a debt to income ratio with both debt and income in the millions-plus, hopefully income is a lot higher and those companies are also great at deducting as many little expenses as they can so they barely pay taxes.
Ceiling for anyone who lives a purely W2 life is upper middle class... and that isn't usually reached until upper 40s or later.
My cell phones...
- 2002 UT Starcom flip phone (a hand-me-down from my mom before I started HS)... service company was Pocket but they're defunct now
- 2010 Samsung blackberry imposter, designed for CricKet. Not in service anymore but I still keep it in my drawer to read old text messages from girls.
- 2013 Samsung Galaxy Exhibit smartphone, designed for MetroPCS (current phone)
And I hated it when I had to go from one to the other.
It's a microcosm of why I'm going to be rich.
you leave out decades of wealth-sucking health insurance, and the cost of actual medical/dental care, the cost of housing (buy or rent).
Those are the big items that last decades and mostly aren't optional.
Then there's cable TV, Internet, mobile phone tiness and expense compared to other industrial countries.
It's not over-consumption that holds the lower 80% back, it's necessary consumption.
And the oligarchy/private-equity is buying up water, sewage, road systems, old people's homes, etc, and it's not to reduce consumer prices.
People can only control what they can control. But to just throw your hands up and buy a house you cannot afford, or pay for an expensive cable package (which isn't a necessary consumption at all) just because "that's what it costs" is one reason why prices keep increasing. That supply/demand thing.
Healthcare is a big one though.
Jesus, X. X
auto deferment on my student loans are done... so thats about to be real. general question is how aggressively should i be trying to knock it down at this stage?
financial situation is just a little hard to pin down since i just got married. if you were to take our current pay, our household income is sitting around 50k annually (after taxes), though that's projecting with my current law clerk level pay. assuming i pass the bar next month, that would scale up to closer to about 75k (assuming i stay at the same firm, just because the work is easy/stable). we currently have a pretty sweet living arrangement where we're getting away with paying 800/month rent including utilities and internet. cars are paid off, so monthly expenses are fairly minimal. the issue is that she's gonna be applying to med school this june, and will start school some time during the summer of 2018, at which point we'll be on one income while accruing more loans. not to mention that might end up moving us to another state, which means i need to take another bar exam (fml) and we lose out on the current cheap living arrangement.
i'm currently looking at a balance of 180k on mine which includes all of law school and my last year of undergrad. should i do the whole dave ramsey thing and just aggressively pay it off and dont worry about saving/investing at this point?
on a side note, there has been about 15k of interest that has accrued during my deferral period, which will be added to the principal unless paid within about a month. we have about 40k liquid right now. should i dump the 15k to prevent that capitalization? just feel pretty wary doing that since thats a significant % of what we've got in the bank
thoughts?
Square has been slowly going up up up
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