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the financial help thread

duster731

duster731

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Since there are a lot of experiance poeple on here that can provide tips and help to those that are suffering or having hard times right now money wise ld like to make this thread so that way we can ask questions,tips, etc on how to manage are money and save to be succesfull in life..


Many of us struggle with savings and handling are money, are priorities are all messed up and we spend are hard earned money as soon as we recieve it.. so with your guys help what are the best tips we can use to build are future with worry free financial wise.

What I've learned is save save save.... 20% savings 80% live off of get dept free first and life off of the 80% and the 20% is for your retirement. It's about consistensy not quantity

How did some of you guys become so succesfull or have a lot of money, what are the key factors you would pass on to young guns so we can build are future the right way..

Thanks for sharing in advance
 
The biggest burden and way to financial ruin is debt. I had over 25K in unsecured debt (credit cards) just 3 yrs ago, been paying it all off over this time, and it's been painful, no settlements, just lower interest rate to 9%, got 4 months to go, and the $590.00 per month will be OVER, and, no more credit and cards for me, ever!
 
I put 10% of my pay into the 401k. I'll be able to retire before I die. Most companies will match some of your contribution, so if you don't take advantage of it you are missing free money! To get started, next time you get a raise, take that percentage and put it in your 401k. Say you get a 3% raise - sign up for a 3% 401k contribution. Your paycheck will be the same and you'll be started towards your nest egg witout feeling it in your takehome. If you start a new job, sign up immediately if you can.

Think about what you buy. If you see something that is expensive and you gotta have it, sleep on it before you buy it. The next day you my realize you really don't need it.

Buy used. Used cars, used car parts, used stuff on Craigslist. Just not condoms! ;-)

Pay cash when you can. Never, never, NEVER fall for the rent-to-own scam. Yeah, the weekly payment seems doable, but at the end of the rental period you will have paid twice as much or more than if you had paid cash or financed it at a low rate.

Credit cards are like alcoholic beverages - some people can handle them, some can't. I have a few, but have paid them off in full every month for over ten years. If your balance keeps going up instead of down, if you can only afford to pay the minimum, you are heading for trouble if you are not already there.

I used to take $200 cash out of the ATM and put it in my wallet and then when it ran out got more. I had no idea where most of it went, mostly impulse buys. Once I got married I now carry a lot less cash $40 max) and so don't spend it on junk.

Hope that helps!
 
Eat beans and tators and more beans and tators and on friday night you get some fried bologna with some fried cornbread tell you what.
 
What Greg said. Don't buy the biggest house or the newest car. Pay yourself first. Have auto withdraw into a 401K or similar account. Sit tight on it and don't freak out with the market up and downs. Cash is dangerous. Use debit cards and U can track your spending.
Watch out for wives who want to pull money out of 401k accounts to pay for a 2 week vacation to Italy when U only have money for a week on NC beaches.

Join a Christmas club and vacation club account at bank or credit union. That way U can have a small amount set aside each pay and have money ready to spend on Christmas presents and that vacation every year. Even if U don't save enough to cover the full vacation U have less debt to cover when U get back home.

Don't forget college education funds for the kids. It adds up over 18 yrs. If they don't go to college spend the money on a classic car or 2 weeks in a villa in Tuscany. LOL
 
A few observations I made, and advice I listened to, while plugging along in life.

Do something few others know how to do and you won't have to worry much about work.

Don't spend more than you make.

As you approach retirement age you don't want a mortgage or extravagant bills. Retiring means doing less and doing less usually means less income. The luxury of doing a job that you want to do as opposed to doing one you have to do is priceless.

Any time you have to borrow money to get something (house, car) it will always cost you more in the end than paying cash.

No one can do something for you cheaper than you can do yourself.

The gov't, bankers, real estate agents and sales people are not your friends. They are only interested in taking your money. Too much we can't control so just try to be smart.

When buying a house don't max out on the mortgage obligations. Go with the longer term and lower payments and get a lower price house if necessary - or don't buy one. If you make a ton of money just double up on your payments and pay it off early if you can (make sure your loan will allow that). If the $hit hits the fan then ask yourself if you can afford to keep your house making the minimum payments while working at McDonalds. Renters don't pay property taxes or mortgages. More BS!!! Unless you are renting a house from a landlord below his cost you can bet you are paying every cent of his mortgage and taxes. If the mortgage payment is at or less than renting the same house then it's OK to buy a house.

The deal you make when buying a house will cost you X% over 30 yrs. This is a guaranteed number because you signed a contract. Savings account interest income is not guaranteed.

I paid my mortgage off in about 12 yrs but it's wasn't a big mortgage to start with - well, for out here anyway. I also got in a niche business and got pretty darn good at it so that was the recipe to paying it off early. Sure I could have had some cool over priced HEMI cars and a house with land but then I would owe everyone and I didn't want to do that. That would be like renting all that stuff from the bank and I try to avoid that game.
 
Getting married can be expensive (unless she's working :D) and then having kids are probably the most expensive propositions on the face of the earth! If you get married, make SURE you are compatible. Look at her mom very hard!! I'm serious. Chances are high she will be very much like her when she gets older. Take some psychology in school and it will help you a lot. Heck, you can learn plenty just with the same books without going to school. If you are already married, make sure you never get a divorce! THINK before doing stuff and ask questions from others who have been down the same road before. The more info you have before doing something, the better the chances are for good results. If you invest in the stock market, learn about it first!!! If you turn over your money for some financial investment company to invest for you, you are taking a huge chance. Also, in a up market, any money can make money but in markets like we have now, you better know what's going on. I look at it like this....how many strangers would you trust to use your car? This post is more about hanging onto the money you have than it is about making it. There's lots of ways to make it but even more ways to lose it! Big difference between spending and losing it...and wasting it. My youngest had her heart set on going to an Ivy league college and dumb *** me thought I could swing it. The economy nailed my *** and now I'm in major debt for the first time in my life and being 60 and retired, that sucks! And after 2 1/2 years, she dropped out in the 1st semester of her junior year! Learn how to say NO!
 
Wow, great idea for a thread.
Ok, Most of my life I was broke, and made lots of stupid decisions because I saw no light at the end of the tunnel. So, I consequently pissed a lot of money away because I thought there would be no reason to save.
Rule No. 1. Don't lose hope. Despite the economic climate, do not lose your discipline.
Not sure if I agree with previous advice on mortgages, but not bad. If you can afford it right now, refinance or buy at today's rates for as much as you can safely afford. Money is the cheapest it has been and it seems to be for a while. right now, the WORLD is counting on YOU (Americans) to borrow money and pay it back so the financial system can bail itself out. They are giving out really cheap money to make that happen. Just make sure you lock in a rate that you can afford.
2. I would stay out of the stock market. I tried to do this a few years ago and got burned. Thought it would be fun. Not much more than gambling. Made 1400 in one day but lost 3 times that over one week. STAY OUT. Unless you know what you are doing (which almost no one does) There's a reason people jump out of windows when it goes bad.
Right now, i'd stay away from gold, seems to be at it's peak and with the overwhelming sentiment against printing more money, i'd say that gold prices will fall in the next 2-4 years.
What I see as good investments right now. Apartment buildings (since less people can buy a house now) and hard assets, houses, and land which will go up in value if inflation hits.
BTW, Mopars are a good investment. Prices have come down and if the economy turns around you could be sitting on some safe money. Plus, you could never sell and always have a cool car.
 
Ill just back up what all said about the credit cards, Its the complete truth and can catch up to someone very fast. Other then that my grandfather always told me that when someone gives you a cash gift for birthdays or whatever, and when you get a raise at work, save it, you lived before without it and it adds up more then we think. Pack a lunch for work, cheaper then vending machines...
 
The stock market is the only casino that allows you to come in loaded for bear! Every (legal) tool to help you make a good 'bet' is allowed. Now it's a gamble if you go in without all the knowledge possible.....and that's what many do. I doubled my money the first year I 'played' but that's not something that's common but some do a lot better than that. It's all about how much you know and not being greedy.

And as for getting a divorce....been there done that and jumped into the fire again anyways! lol
 
There is a reason that the sayings "nothing is free" and "they don't call it work cuz it's fun" get tossed around a lot. I work full time and run a small business on the side and when I fall short in a month I work my *** off to make sure I never fall behind...you want to get ahead? then do what you need to do to make it happen. Have a positive attitude and believe in your self then go do it and do it good and you will find having money wasn't ever really the problem.
 
bigmanjbmopar said:
There is a reason that the sayings "nothing is free" and "they don't call it work cuz it's fun" get tossed around a lot. I work full time and run a small business on the side and when I fall short in a month I work my *** off to make sure I never fall behind...you want to get ahead? then do what you need to do to make it happen. Have a positive attitude and believe in your self then go do it and do it good and you will find having money wasn't ever really the problem.
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I agree. The hard part is the learning and the prep work and then keeping at it. There's only so much you can learn from a book in running a business and experience is a large part of it but the more you know before hand, the better off you'll be...
 
Watch the small expenses too. A $1.50 cup of coffee on the way to work each day will add up to $30 a month on just 5 work days/4 work week month. Other small expenses like that will take out of your pocket and you'll never realize how much you spend on small worthless items. When you get a $5 bill in change, take it out of your wallet and put it back somewhere, a small box, something, and you'll be amazed at how fast it will build up and how little you will miss it.
 
Persistance and hard work. Those two things will get you everywhere. I worked hard in my early years when everyone else was hanging at home and hitting the junior colleges. After 10 years in the trade I went back to school to nail down a better job, best decision ever. Thought and insight are two things that will make you a lot of money. A quick buck is never quick and is very rarely worth a buck. Most of all dare to dream. I have had a hand full of ideas of how to make good money. Some worked well and others didn't, but you can't say I didn't try. Its also a great idea to find a successful mentor to help you along the way. Oh and what those guys said, all rock solid advice.
 
credit

Donny said:
The biggest burden and way to financial ruin is debt. I had over 25K in unsecured debt (credit cards) just 3 yrs ago, been paying it all off over this time, and it's been painful, no settlements, just lower interest rate to 9%, got 4 months to go, and the $590.00 per month will be OVER, and, no more credit and cards for me, ever!
Click to expand...

donny you are doing the right thing getting it down and under control, i agree completely. but to say never again is wrong. as things progress with your business stuff you will need credit to take advantage of things. example. in the mid 70's i was an owner/operator long haul trucker, reason for divorce. i went bankrupt through the procedings and swore never again with the credit. around the mid 80's started up in business again, wholesale meat dist. and it was ruff but doable. as business grew using my suppliers money it was a slow process and a lot of holding back peter to pay paul.
the pace picked up more and more and i needed credit but didn't have any. re-divorce.

long story short. got it going again slowly and all of a sudden my buying prices went down considerably due to paying to bills on time. out grew my surroundings and needed bigger and started looking. found my current building, 15000 sq. ft., 15 yrs old at the time and up for sale power of sale for 315,000.00$. bank said no and i had very little time because it was a steal. called a customer of mine who sold his grocery store and put it to him and he agreed a 8% open mortage. paid the building off 4 yrs ago and wouldn't sell it now for 900,000.00$. i have 2 class A tennants plus my business paying 120,000.$ a yr. in rents, net-net. this plus some other things make for a tidy retirement.

the moral of the story is you will always need credit to take advantage of certain things at certain times. treat it with respect it will make you money. but you have nothing without the equity to back it up. today my net worth is considerable but i still have to sign personal for my business line of credit but it gets me interest rates of 1/4% over prime, roughly 3% to 4%. go buy a new delivery truck and the bank will want 6-7% and the leasing comp. will be 7-9% on 150,000.00$. now just write a chq on your line and it is 3-4%. money makes money.

work hard, respect your credit and treat your employees as you would want to be treated. its not a secret, its common sense.

p.s.; donny i am not picking on you i just don't agree. i have been there, done that. rick
 
I'll chime in for what it is worth. First off, in a marriage. If two have a hard time agreeing, spending will top the list. The vision of saving for the future will never occurr. I have two married step children. 30ish.Both college degrees, good jobs. One will have their house paid off in a matter of months. The other just bought bigger and will be in debt forever. Guess which one seems to have problems in the marriage. He wants this, she wants that. Not content with each other.
The way cost of living is today, medical insurance, etc. There are some great post on here from some folks that have lived and learned. Appreciate that.

Hell, I am suppose to live in the county with the 2nd highest unemployment rate in the state of TN and you still have to wait in line to get a seat at most restaurants.
Lastly, thank God for a good wife. We make around 100,000 a year and she constantly reminds me that we need to eat the left overs.
 
tn66satellite said:
I'll chime in for what it is worth. First off, in a marriage. If two have a hard time agreeing, spending will top the list. The vision of saving for the future will never occurr. I have two married step children. 30ish.Both college degrees, good jobs. One will have their house paid off in a matter of months. The other just bought bigger and will be in debt forever. Guess which one seems to have problems in the marriage. He wants this, she wants that. Not content with each other.
The way cost of living is today, medical insurance, etc. There are some great post on here from some folks that have lived and learned. Appreciate that.

Hell, I am suppose to live in the county with the 2nd highest unemployment rate in the state of TN and you still have to wait in line to get a seat at most restaurants.
Lastly, thank God for a good wife. We make around 100,000 a year and she constantly reminds me that we need to eat the left overs.
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AMEN! A penny saved is a penny earned...
 
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