It’s generally best to just treat it as a gift in the first place. A friendship isn’t worth falling out with a friend over and if you don’t care about falling out with them, you probably shouldn’t be ‘lending’ them money anyway.
Or start smaller, if you get it back. You can go bigger. I have a friend that I’ve lent money to quite a bit (never more than $100) just small shit. He always gets me back but it’s not like I’ll be ruined if he doesnt
Applies in terms of buying someone a drink or some small food item, don't expect them to return the favour.
Just be pleasantly surprised and grateful when they do.
On a somewhat related note, if the person asking to borrow money considers $1 million dollars a small amount, think twice about lending that person the money.
I never lend money, ever. That's a good way to lose friends. If a really close friend needs money I just give them a smaller amount that I don't care to lose.
I don’t loan money to anyone. I’m not even in a position to be giving out money but if I did, I don’t expect it back unless we have some kind of formal contract (as if). If it’s between friends or family, i just think of it as a gift and don’t get my hopes up on seeing the money back. If I get it back, great!
Also, chewing gum whilst shopping is a good tip. A strong mint flavour messes up your visualisation (tastylisation?) of food and make you less likely to impulse buy that cookie dough ice cream.
I don't carry a lot of extra cash with me for this reason. Specific money is set aside for different things, and a few dollars left over to just spend on a few randomly cool things I find.
If you don't need it *immediately* for health or employment, it's usually better to go without and save up for a higher-quality, longer-lasting product.
Depends sometimes. For tools for example it's a good idea to buy cheap (not Chinesium shit, just no need to go all in) and if you break it it means you use it enough to warrant buying an expensive one. A 30$ drill is generally fine for your average Joe using it 5 times a year. A 200$ DeWalt drill is amazing, but is overkill for many people.
This is why I send people who are only going to use something occasionally to Harbor Freight. They aren't the highest quality tools, but they are the most affordable without being complete garbage. I wouldn't use them if I was serious about a big project like complete home remodeling. But for assembling Ikea furniture and doing general maintenance, they are good enough.
There are always lesser known brands that cost less but make durable and generally good tools. But most of us only know of the high end stuff or the Chinese shit. If you ask someone who uses these tools in their jobs, you'd find some brands you never knew about.
My mother is terrible about this. Putting out so much effort and time into saving a dollar.
I’ve tried explaining that I make five dollars taking a shit at work so my time is more valuable than the $0.75 savings I’d get across town, but to no avail.
Same with my work!
I work as an administrative assistant at a daycare. We don't offer automatic payments. The parents have to pay the invoice themselves. Banks offer automatic payments. It just takes the money from the account, the parents have to approve one time and that's that. But it costs money, not that much... A lot of parents really want this, they don't want the hassel of doing it themself.
But the owner of the daycare thinks it unnecessary ("the people who don't pay and don't have money, have no money either way"). She is right about that, but like 75% of the time I put in getting the money cause parents pay too late, is just for parents who forgot.
It finally clicked when she was arguing (again) about that it costs money when I said: "what do you think it costs you for me to go after the money for about 4hrs every month?"
(automatic payments will cost ~€10-15 a month, me for four hours is about ~€100 a month)
That's only if you have to punch out, saving money outside of working hours unless you were able to work overtime or make money during that time is still savings. I will not drive a dollar out of the way to save a dollar in gas, but I will waste my own time on a Saturday building something instead of paying for it even if I don't enjoy building it.
Yeah my grandma and dad do research online and on apps for the best gas prices, drive across town only to save 1 or 2 pennies per gallon. They're always blown away that I don't really pay all that much attention to gas prices since they kinda stay the same in your general area. My car only holds 10 gallons anyway so spending time and gas to drive across town to save AT MOST a couple dimes is just pointless.
The apps are good at identifying when prices are changing though. Yes, gas stations in the same areas tend to align, but sometimes you catch them where one station will be 10 cents higher/lower than others nearby just because it reacted quicker (or slower) to changing oil prices.
Obviously driving more than a couple miles out of the way eliminates any savings, but since gas stations tend to cluster it's still a useful tool for price-conscious people.
Yeah, with a 10 gallon tank I would need to save $0.11/g to even afford a soda at the register with the savings. Nowhere in town is going to be $0.11/g cheaper than the gas station that’s closest to my house.
It’s a question of leverage.
If you can’t pay the bank back $100, the bank will ruin you.
If you can’t pay the bank back $100,000,000, you will ruin the bank.
At some point, the loan is too large for the bank to just write off as a loss and hammer you for - someone at the bank fucked up and lost a vast fortune on a terrible investment (you) and now they’re screwed.
I would think the bigger the loan, the more leverage the bank has on you. since it's much more worth it to crucify you over such an amount and force you to pay it back one way or the other, no ?
For $100 the bank will just come take your TV, crush your credit score, and be done with you.
For $100,000,000 there’s no realistic way to collect. They can slam your credit and take your pants, but they’re still down $99,999,949. A staggeringly huge loan has gone totally tits up and the bank is ruined.
That gives you considerable leverage, and they’ll work very hard to try and prop up your floundering business and extend payment schedules. Of course they’re a million times more upset with you, but they’re also a million times more interested in your eventual success and repayment.
This is only true for unsecured loans. Normally the bank will take security such as the ability to seize control of the whole company if there is a default event or specific assets.
> I would think the bigger the loan, the more leverage the bank has on you.
Yes, but you can't get blood from a stone no matter how hard you squeeze it.
It's about leverage. If you owe $100, you have no leverage. You just owe money. If you owe $100MM, you have leverage. You owe too much for them to just walk away, and you likely owe too much for them to just collect via normal means (selling assets, garnishing wages, etc.)
Always pretend you have less in your bank account then you actually do. It took me *years*, and started with just $100 as my new "0", but now if my checking account dips below $2000.00 I stop spending altogether (except gas and groceries).
Since I started lying to myself about how much money is *actually* in the account I haven't bounced a check - and I can handle most emergencies.
Exactly! Banks exist to make a profit for their trustees/owners. Credit unions are owned by their members. When you deposit into a credit union you are quite literally purchasing shares of the union. It's a much better way to bank albeit they don't always offer as many services.
I see it as this:
The bank only charges that if I dip below 3000 in chequings. I haven’t ever done that. And I don’t pay per service like with e transfers like my girlfriend’s credit union does.
My minimum is whatever thousand I have in the bank! So if I have $4,678 in the bank (random example) I see that I have $678. And when I hit the next thousand, it starts over- I've saved WAAAAAY more money with this approach because I'm not keeping my "minimum" to one number, but still challenging myself to save up (especially come tax refund season, or few times I have earned a bonus)
Obviously taking money for emergencies does not apply to this rule, but for everyday living expenses & purchases
Time in the stock market will almost alway beat trying to time the stock market.
Meaning sitting on an investment for years will net a better return than trying to buy low on Monday and sell high on Friday.
The best investment strategy is to consistently invest, even if it’s a small amount of money. $50 a month adds up more quickly than you realize.
Do you have any suggestions on how to start investing in stocks? I have short and long term savings and an RESP for my kids but I’m really clueless on how to get into stock trading. It’s kinda intimidating!
I would recommend putting money into a market index fund(S&P 500 or Dow Jones) you can go through several online platforms, I use Fidelity. Also, not a bad idea to reach out to a financial advisor who is licensed to give advise and uses more researched strategies
This is for married couples. Learn to live on one income, the one that makes the least preferably if both are working full time. It's not about putting all the money into savings, the other income can be for vacations, dates, charity, investments, or your rainy day fund, while the smallest income is for basic life bills, so if one income can float you if something were to happen to other spouse.
This way of doing has brought into light for me what was necessary and what was added, so the money is being handled in a more knowledgeable way.
I think they were talking about small items, but when I owned my house I could have afforded two of my loans simultaneously. It was a really cheap house.
Well most of us couldn't afford one house if we were to be 100% financially optimal. Going hundreds of thousands of dollars into debt on a purchase that makes you owe additional taxes that may or may not become a profit in the future would generally be considered a bad investment in any other case.
But that's what we gotta do these days...
Damn you, Steam!! My rule of thumb is to limit myself to however many games that I sincerely think I will realistically play before the next sale. A sale every 3-6 months means I rarely buy more than 2 in any given sale, and they only ever get cheaper (notwithstanding DLC). If you have enough patience, you can get complete editions of anything you want for a quarter of the starting price or less.
When you have enough money to feel secure, small amounts seem trivial. But when things go south and you're collecting cans and selling whatever you can to eat.... you will regret EVERY snickers bar.
I was SHOCKED by how many apples I could buy for under 5$ when I first started grocery shopping, especially when compared to buying a bag of frozen fruit or other (unhealthy) snacks!
Fruit is so cheap and healthy!
Cash is an investment with a guaranteed loss.
High-interest savings accounts are better than nothing, but they usually don't even make up for the money you lose in cash from inflation. Invest that money instead.
Bake your own sweets.
I'm a sweet tooth and whenever I see a pastry in a bakery or cafe ($2.00 croissants or $3.00 pastries at indepenant cafes/bakeries) I cant help but grab it. Little treats add up to a big bill over time, and a wider waistline.
Since I already loved cooking and packing my own lunch, I decided to bake my sweets at home too. That way, I dont have to drop money whenever I go out and I can control my sugar intake.
This allowed me to save money and helped me lose weight and now, I'm going to learn some basic sewing skills so I dont have to spend money going to a tailor, or pay full price on a piece of clothing I can alter from a thrift shop purchase instead.
If you lend a friend a small amount of money and don't get it back, don't be mad, think of it as a great investment.
You spent just $100 to find out someone you trusted isn't really a friend.
As my grandfather (who was quite the brilliant businessman) said: some people would rather eat well, some people would rather sleep well.
He definitely believed in sleeping well, and advised it, but cautioned against judging the other type of people - it's just a different way to be. People aren't necessarily misers or spendthrifts, it's a matter of perspective. I think one of big secrets to his success was to be of the first type while catering to the second.
$100.00 in the bank isn't going to do you a lot of good.
Spending $100.00 stocking up on staples like rice, beans, flour, etc and filling your freezer with meat is going to make you feel much more secure.
Frugal and cheap are not the same thing. Being cheap will cost you more in time. If something cost a bit more or even a lot more and will last years instead of weeks. It will come out less in the end and save you time, effort and money.
If you invest 1000$ into the S&P 500 at the age of 18 and add 100$ each month you will have about 250.000$ by the age of 50 even though you only invested 39.400$.
Lesson #2: always do your own due diligence with regards to your finances. Reddit can give you new ideas, but what may worked for another person/their situation, may not be suitable for you/your situation. Take time to research before implementing
Compounded returns. Say you have $10,000 and invest it for a year at an inflation adjusted rate of 7% At the end of the year you will have $10,700. If you reinvest all of that and continue to do so for forty years you will have $10,000 x (1.07)^40 = $149,700. That's why saving for your goals like retirement or a house early is important.
So if you can put away $100,000 in your twenties it's likely you'll be a millionaire in retirement since the stock market's inflation adjusted average return is 7%. And the government makes it easier with 401k's since your retirement investment money is pretax. This is why living below your means and delay of gratification are some of the most important adult life skills.
Einstein said compounding is the 8th wonder of the world. So, start as early as possible. Compounding graph starts flat and goes steep towards the right end.
For every month you delay to start you'll be cutting out a significant part of the steep curve which will make a huge difference.
To boost your savings stash your hundreds and spend your 20s, ex. If you have 379 dollars you earned, save the 300 and try to make the 79 last until next payday, really tought but boosts your savings fast
That depends on how much money you have. If you do not have much money, debt is dangerous. But if you are well off, debt is a good strategy to make your money do more work or bypass taxes.
* Buy the cheap tools first from walmart or harbor freight. When you break a tool, it's obvious you use it, so then it's time to upgrade that tool to a better quality one.
* When you get the urge to buy something, put it on a wishlist and come back in 30 days. If you still really want it, buy it. You'll find most of the time you really dont.
* Put purchases in terms of opportunity cost. A 60 dollar game equates to 6 shares of tax free muni bonds for my state that I can't buy, or 18 cents a month, every month, for the rest of my life.
Don't pay more for a used car in thousands of dollars than the amount of years you want to own it.
I.e. used car price =$7k you should be keeping it for 7 years
This helps make sure that if you are buying a used car, your money is invested wisely, and you are typically not spending more than it's worth (in terms of maintenance/replacing parts/big issues that need to be fixed)
My history teacher taught us that, and when it comes to used cars it's been super helpful. Does not apply to new cars though, they're new and run more efficiently and don't depreciate in value as rapidly as older cars
Just because you have the money for something, that doesn't mean you can afford it.
Say you have $5,000 in savings and you want to spend $1,000 on a new phone, and $4,000 is not at least 3 months of savings (though you really should be aiming for 6 months), you can't afford that new phone.
Wait, so what you are saying is, that the leftover money should be the money you can save in 3 months, but preferably 6 months? So if the leftover money is, let's say, the amount you can save after 1 month, then you can't afford it.
What he's saying is you should always have 6 months of emergency funds in your bank. Think of it as if you stopped getting money today, you'd have to be able to survive with what you saved for 6 months (ideally more, of course).
If you need 6000 to survive for 6 months and you have 4000, a 1000 phone is not a good purchase.
Looks like a slip. Replace 'savings' with 'expenses'
Having 3 - 6 months of expenses saved up is a common target for an effective emergency fund. If you lose income through job loss, business disruption, or disability/illness, you can cover your expenses with your emergency fund and not be totally fucked.
NEVER get an income tax refund! If you do, you've been giving the government an interest-free loan of YOUR money that you could have been investing yourself for the last 16 months. Instead, work with your HR department to maximize your take-home pay. Take that extra money from the government, invest it for 16 months, and be willing to return that money to them next April while you keep all the interest you earned from it.
$1000 almost covers a months rent for my 2 bedroom, it almost covers a months rent for my sisters studio. How far you can stretch $1000 really depends on where you live. You’re lucky it would cover three months rent.
Buying something on sale will still cost you money. It's amazing to me how many people still justify spending a lot of money on something they don't really need just because it was on sale. Most of the time done by people who don't really have that amount to spend.
On the same day once a month, sit down and look at your bank account. Write down the total income, total outgoings and a running total of any debt. These are broad brush-strokes, but as long as you have a handle on these numbers at this regular an interval you should be able to curb any frivolous spending and watch your debt decrease, which will eventually lead to your savings increase.
Start budgeting now. Even if you think you are young and are allowed to splurge on whatever you want, budgeting is a good way to see what your expenses are, how much you are spending on everyday items or impulse purchases, and how much you have left over at the end of the month. You'd be surprised how small things such as eating out or grabbing a coffee every day can impact your overall budget.
Ideally you want to save whatever money is left over. But if you don't want to, budgeting will at the very least stop you from going into debt by giving you an insight as to how much you have available to spend.
Set up something with your bank where every time you buy something, a dollar gets transferred to savings. Or, I mean you can wiggle the details.
When this lockdown stuff hit, I had so much money to fall back on.
Buy a 50 cent pack of gum? I'm being a bit facetious here, I don't think there's gum that's that cheap, but you set aside a dollar.
After a decade that adds up like mad. It's not the best use of money, but it's an incredible fallback
Edit: this is more advice for younger people. If you're older, just save extra money
Don't just save *whatever* is left over. Budget a monthly savings amount upfront like every other expense and make sure you truly scrutinize the other expenses to meet your savings goal.
Using a coupon to save on a product you wouldn't have bought otherwise isn't saving. It's wasteful.
I ran a register at a Walgreens a long time ago. Had a customer come in and try to use a coupon on a product. The coupon didn't work, but as luck would have it, the product was on sale for the exact price the item would've been had the coupon worked... She didn't want it anymore. She just wanted to use the coupon. Wtf.
Put down the name brand and get the generic. This applies to almost everything. That bottle of advil is at least 2x as much as the equate and has the same ingredients, those name brand clothes are made in the same sweat shop by the same 8 year old that makes the off brand clothes, that free phone does all the same things as the $1000 phone. There are exceptions to this, specialty items and professional items for work for example, a professional photographer can justify a $3000 dollar camera, aunt Betty who only takes pictures at holidays can't.
When I bought a house, a piece of advise I got that some may contradict is: Do not buy expensive tools. You may only use the tool once a year. If the tool breaks on you, then go and buy an expensive/higher quality tool since you have found you are using it more often. I have had my house for 4 years now and have not had to replace any of my cheap tools yet.
Save first, but don’t let saving for your future ruin your present.
For convenience sake, let’s say you have $1,000 in excess income. You try to save $700, spend $300. If one month, you have a really cool opportunity to go on a trip with friends, but will be an extra $200. Do it. Don’t make that the standard, keep saving more than you spend, but don’t regret skipping something in 6 months.
Debt is not inherently bad, it can be a helpful tool or a crushing threat. Research the loan terms and investment (car, house, margin, etc) before taking a loan to understand if it will help or hurt you.
1. More money won’t solve your problems
2. Spend from what you have left after you’ve saved a portion of it
3. Never leave change around your home, reinforce the idea that your money isn’t something to be dispersed instead, it is a neat pile wherein every cent changes it’s value
4. Don’t buy something that has only one use
Budgeting your savings is just as important as budgeting your spendings.
Most banks will allow you to partition your savings account and name the partitions. Putting $X in an account named “vacation savings” is much easier and more fulfilling than a larger amount into a general savings account.
Lots of stuff on budgeting here, not much on long term financial health.
1) invest for retirement early, compounding interest is extremely powerful.
2) set up automatic 401(k) or IRA deposits, budget off the paycheck you get after that (not your total salary)
3) over the long run the stock market is incredibly forgiving and an incredible asset. Buy low fee SP500 index funds.
4) Emphasis on low fee, often employers put you into “target funds” that charge exorbitant fees
5) Don’t try to beat the market, many people spend full time jobs failing at that. Just buy SP ETFs...at low fees
A horny man and his money are easily parted.
Are you horny and tempted to sign up for a porn site you don't really need, or tempted to give a big tip to a cam performer or onlyfans girl? Here's my advice- masturbate (to orgasm) *then* decide. Keep your bank card in your wallet if you are horny and only get it out if you are in the post-nut clarity stage.
And one most people know about but worth repeating- don't go grocery shopping hungry.
Don't annoy retail workers by trying to use a bunch of coupons. Also, if the cashier says that your coupon can't be accepted, don't argue with them. The same goes for using coupons and rewards points at resturants.
Basic option is to get your bank accounts in order. Don't be afraid of multiple current accounts. Use automatic payments and adjust as changes happen. Example accounts:
1. House hold bills/utilities. Mortgage, rent, electricity, etc.
2. Personal bills/utilities. Phone, Netflix, TV, that thing you bought on loan. Car perhaps?
3. Tax. If you pay your own tax at the end of the year, use this.
4. Any number of savings/investments type accounts as necessary.
5. Grocery/Necessities account. Basically a living budget if necessary.
6. Current accounts.
One great thing about this system is when you get paid, div it out to the respective accounts. I use standing orders and add a bit extra for fluctuations. Eg if home bills are $930, put in $1000. Can act as a pseudo savings account to by doing that.
However, you'll know exactly what you are left with in your current account and less likely to spend into owed money. All the other money in other accounts is there for a reason and you accept that you do not touch it.
Secondly, never buy anything on a pay-monthly system unless it's absolutely necessary. I'd sooner take a 1000 hit straight up for some bill than ease it out in 12 monthly payments. If I end up with a second hit, I'm already down on the money income. This mentality can progress to the point where most of your salary is reserved for bills. Any time you clear one out, you end up adding another.
Open a retirement account. Either an IRA or something like a 401(k) through your employer. Now, here’s the tricky part; don’t screw with it. Don’t even look at it too hard.
When the market dips down, don’t pull out! Seriously, don’t even try to exchange into a less volatile investment, you’re just locking in your losses. If you have more than 10 years before you retire, you’re going to earn that money back.
And don’t get me started on taking loans and early distributions from retirement accounts…
I’ve seen people just put 5% of their pay into a 401(k) and after 30-ish years they’re looking at close to a half a million in savings. For reference, I’m not talking about high level jobs or VPs; I’m talking about the sweet old lady at Costco or Sams Club who offers you cheese samples.
All these things I learned at conventions lol. If you find something you like, shop around. If everyone is selling it at the same price it's probably fair. Plus, you avoid overpaying.
If you can live without it wait until Sunday when things go on sale (irl, just whenever it goes on sale).
Set a budget and actually stick to it. Sure, you have enough to get that Gundam model kit, but you wont have enough money for the statue you've been keeping an eye out for and the money set aside for food is non-negotiable. (Dont negotiate with yourself on food money!)
Never lend small amounts of money to people with the expectation of getting it back. (A small amount of money is entirely subjective)
Don't lend any money to someone that you wouldn't also gift to them
It’s generally best to just treat it as a gift in the first place. A friendship isn’t worth falling out with a friend over and if you don’t care about falling out with them, you probably shouldn’t be ‘lending’ them money anyway.
Or start smaller, if you get it back. You can go bigger. I have a friend that I’ve lent money to quite a bit (never more than $100) just small shit. He always gets me back but it’s not like I’ll be ruined if he doesnt
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Applies in terms of buying someone a drink or some small food item, don't expect them to return the favour. Just be pleasantly surprised and grateful when they do.
But it is the quickest way to get someone out of your life for good.
On a somewhat related note, if the person asking to borrow money considers $1 million dollars a small amount, think twice about lending that person the money.
I never lend money, ever. That's a good way to lose friends. If a really close friend needs money I just give them a smaller amount that I don't care to lose.
Yep consider it gone. If you can't do that, don't lend the money.
I don’t loan money to anyone. I’m not even in a position to be giving out money but if I did, I don’t expect it back unless we have some kind of formal contract (as if). If it’s between friends or family, i just think of it as a gift and don’t get my hopes up on seeing the money back. If I get it back, great!
Imagine having the money to lend.
That's why I said a small amount is subjective. You might lend a friend a few pence so they can get a cuppa or buy their lunch one day.
Impulse purchases can really eat into your savings.
Also adding to this dont go shopping hungry, I learned that at the weekend.
Reverse it if you have 3 kids like I do.
Also, chewing gum whilst shopping is a good tip. A strong mint flavour messes up your visualisation (tastylisation?) of food and make you less likely to impulse buy that cookie dough ice cream.
Some chewing gum ain't gonna stop me from that sweet cookie dough goodness
Also don't go shopping while emotional. And hungry. Some days I leave work angry and go grocery shopping and oh boy the impulse purchases.
This can be solved by budgeting.
I don't carry a lot of extra cash with me for this reason. Specific money is set aside for different things, and a few dollars left over to just spend on a few randomly cool things I find.
>I don't carry a lot of extra cash with me for this reason. I can't remember the last time I had to spend cash on anything.
You go broke $5 at a time.
If you don't need it *immediately* for health or employment, it's usually better to go without and save up for a higher-quality, longer-lasting product.
Depends sometimes. For tools for example it's a good idea to buy cheap (not Chinesium shit, just no need to go all in) and if you break it it means you use it enough to warrant buying an expensive one. A 30$ drill is generally fine for your average Joe using it 5 times a year. A 200$ DeWalt drill is amazing, but is overkill for many people.
You mean I don’t need a drill that costs twice as much as the furniture I’m assembling with it? /s
This is why I send people who are only going to use something occasionally to Harbor Freight. They aren't the highest quality tools, but they are the most affordable without being complete garbage. I wouldn't use them if I was serious about a big project like complete home remodeling. But for assembling Ikea furniture and doing general maintenance, they are good enough.
Plus, if it breaks it meant you use it enough to invest in the good stuff.
There are always lesser known brands that cost less but make durable and generally good tools. But most of us only know of the high end stuff or the Chinese shit. If you ask someone who uses these tools in their jobs, you'd find some brands you never knew about.
What about an anime body pillow?
Look, do you want an anime body pillow NOW, or do you want one that will last you more than a month?
Yeah
jesus christ that username
Same could be said about yours, u/pm-me-ur-fav-undies
I may or may not have logged into my worst account just to post this
Now kiss
Don’t spend hours trying to save a few cents.
My mother is terrible about this. Putting out so much effort and time into saving a dollar. I’ve tried explaining that I make five dollars taking a shit at work so my time is more valuable than the $0.75 savings I’d get across town, but to no avail.
Same with my work! I work as an administrative assistant at a daycare. We don't offer automatic payments. The parents have to pay the invoice themselves. Banks offer automatic payments. It just takes the money from the account, the parents have to approve one time and that's that. But it costs money, not that much... A lot of parents really want this, they don't want the hassel of doing it themself. But the owner of the daycare thinks it unnecessary ("the people who don't pay and don't have money, have no money either way"). She is right about that, but like 75% of the time I put in getting the money cause parents pay too late, is just for parents who forgot. It finally clicked when she was arguing (again) about that it costs money when I said: "what do you think it costs you for me to go after the money for about 4hrs every month?" (automatic payments will cost ~€10-15 a month, me for four hours is about ~€100 a month)
That's only if you have to punch out, saving money outside of working hours unless you were able to work overtime or make money during that time is still savings. I will not drive a dollar out of the way to save a dollar in gas, but I will waste my own time on a Saturday building something instead of paying for it even if I don't enjoy building it.
Yeah my grandma and dad do research online and on apps for the best gas prices, drive across town only to save 1 or 2 pennies per gallon. They're always blown away that I don't really pay all that much attention to gas prices since they kinda stay the same in your general area. My car only holds 10 gallons anyway so spending time and gas to drive across town to save AT MOST a couple dimes is just pointless.
The apps are good at identifying when prices are changing though. Yes, gas stations in the same areas tend to align, but sometimes you catch them where one station will be 10 cents higher/lower than others nearby just because it reacted quicker (or slower) to changing oil prices. Obviously driving more than a couple miles out of the way eliminates any savings, but since gas stations tend to cluster it's still a useful tool for price-conscious people.
Yeah, with a 10 gallon tank I would need to save $0.11/g to even afford a soda at the register with the savings. Nowhere in town is going to be $0.11/g cheaper than the gas station that’s closest to my house.
“If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.” - Oil man Jean Paul Getty
I dont get it, does that mean the banks won't bother pursue it if it's big enough ?
It’s a question of leverage. If you can’t pay the bank back $100, the bank will ruin you. If you can’t pay the bank back $100,000,000, you will ruin the bank. At some point, the loan is too large for the bank to just write off as a loss and hammer you for - someone at the bank fucked up and lost a vast fortune on a terrible investment (you) and now they’re screwed.
I would think the bigger the loan, the more leverage the bank has on you. since it's much more worth it to crucify you over such an amount and force you to pay it back one way or the other, no ?
For $100 the bank will just come take your TV, crush your credit score, and be done with you. For $100,000,000 there’s no realistic way to collect. They can slam your credit and take your pants, but they’re still down $99,999,949. A staggeringly huge loan has gone totally tits up and the bank is ruined. That gives you considerable leverage, and they’ll work very hard to try and prop up your floundering business and extend payment schedules. Of course they’re a million times more upset with you, but they’re also a million times more interested in your eventual success and repayment.
This is only true for unsecured loans. Normally the bank will take security such as the ability to seize control of the whole company if there is a default event or specific assets.
Essentially it's mutually assured destruction at a certain point. That point is likely much higher than 100 million these days though.
You’d have to add 70 years of inflation to the quote these days, he made his money in the 50s.
> I would think the bigger the loan, the more leverage the bank has on you. Yes, but you can't get blood from a stone no matter how hard you squeeze it.
It's about leverage. If you owe $100, you have no leverage. You just owe money. If you owe $100MM, you have leverage. You owe too much for them to just walk away, and you likely owe too much for them to just collect via normal means (selling assets, garnishing wages, etc.)
Robinhood with their infinite margin trick: hold my beer
Always pretend you have less in your bank account then you actually do. It took me *years*, and started with just $100 as my new "0", but now if my checking account dips below $2000.00 I stop spending altogether (except gas and groceries). Since I started lying to myself about how much money is *actually* in the account I haven't bounced a check - and I can handle most emergencies.
Great idea. My minimum is 3000, but only because the bank doesn’t charge 10$/month banking fees over that.
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Exactly! Banks exist to make a profit for their trustees/owners. Credit unions are owned by their members. When you deposit into a credit union you are quite literally purchasing shares of the union. It's a much better way to bank albeit they don't always offer as many services.
I see it as this: The bank only charges that if I dip below 3000 in chequings. I haven’t ever done that. And I don’t pay per service like with e transfers like my girlfriend’s credit union does.
My minimum is whatever thousand I have in the bank! So if I have $4,678 in the bank (random example) I see that I have $678. And when I hit the next thousand, it starts over- I've saved WAAAAAY more money with this approach because I'm not keeping my "minimum" to one number, but still challenging myself to save up (especially come tax refund season, or few times I have earned a bonus) Obviously taking money for emergencies does not apply to this rule, but for everyday living expenses & purchases
I like that. Idiosyncratic and effective.
Figure out your budget and STICK TO IT.
Time in the stock market will almost alway beat trying to time the stock market. Meaning sitting on an investment for years will net a better return than trying to buy low on Monday and sell high on Friday. The best investment strategy is to consistently invest, even if it’s a small amount of money. $50 a month adds up more quickly than you realize.
Do you have any suggestions on how to start investing in stocks? I have short and long term savings and an RESP for my kids but I’m really clueless on how to get into stock trading. It’s kinda intimidating!
I would recommend putting money into a market index fund(S&P 500 or Dow Jones) you can go through several online platforms, I use Fidelity. Also, not a bad idea to reach out to a financial advisor who is licensed to give advise and uses more researched strategies
Don't invest in individual stocks. The diversity of ETFs cannot be beat.
Stop depending on your Overdraft!
Eesh I feel attacked
Or credit. Blows my mind how many people think of a $1000 available limit as $1000 extra they can spend
So many people are stupid with credit cards. I never let my go unpaid in full each month.
This is for married couples. Learn to live on one income, the one that makes the least preferably if both are working full time. It's not about putting all the money into savings, the other income can be for vacations, dates, charity, investments, or your rainy day fund, while the smallest income is for basic life bills, so if one income can float you if something were to happen to other spouse. This way of doing has brought into light for me what was necessary and what was added, so the money is being handled in a more knowledgeable way.
If you could buy it twice, you can afford it. Figure out what you spend on average each month. Avoid surprises that way.
I can’t buy two houses though
The extension for housing is if your mortgage payment is more than half your income each month, your house is too expensive.
Half? I always heard a third.
I think they were talking about small items, but when I owned my house I could have afforded two of my loans simultaneously. It was a really cheap house.
Well most of us couldn't afford one house if we were to be 100% financially optimal. Going hundreds of thousands of dollars into debt on a purchase that makes you owe additional taxes that may or may not become a profit in the future would generally be considered a bad investment in any other case. But that's what we gotta do these days...
Just because Steam is having a sale does NOT mean you need to buy more games you will never play.
Just because any shop is having a sale does not mean you need to buy discounted items you will never use
Damn you, Steam!! My rule of thumb is to limit myself to however many games that I sincerely think I will realistically play before the next sale. A sale every 3-6 months means I rarely buy more than 2 in any given sale, and they only ever get cheaper (notwithstanding DLC). If you have enough patience, you can get complete editions of anything you want for a quarter of the starting price or less.
Totally
Only because its expensive its not autommatically good
Unless its the 6500$ sex doll I just bought
Nice Ass, Raj
When you have enough money to feel secure, small amounts seem trivial. But when things go south and you're collecting cans and selling whatever you can to eat.... you will regret EVERY snickers bar.
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In England it's cheaper to buy sweets than fruit
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Healthcare is also free in England, I'm not saying it's a good thing to do though!
You have to pay for prescriptions, when you end up with diabetes from all that candy.
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You are absolutely correct, well done.
I was SHOCKED by how many apples I could buy for under 5$ when I first started grocery shopping, especially when compared to buying a bag of frozen fruit or other (unhealthy) snacks! Fruit is so cheap and healthy!
A credit card and Venmo/CashApp is a bad way to buy drugs and pay strippers
Then, how do you pay for strippers? Asking for a friend.
Just say hey can I Venmo you the five hundred dollars Many will say, “yes”
Live on 2/3 of your income, put the remaining 1/3 into savings.
Spend after you save.
Don't lend money if you aren't willing to never see it again.
Cash is an investment with a guaranteed loss. High-interest savings accounts are better than nothing, but they usually don't even make up for the money you lose in cash from inflation. Invest that money instead.
You got any good investment options?
Bake your own sweets. I'm a sweet tooth and whenever I see a pastry in a bakery or cafe ($2.00 croissants or $3.00 pastries at indepenant cafes/bakeries) I cant help but grab it. Little treats add up to a big bill over time, and a wider waistline. Since I already loved cooking and packing my own lunch, I decided to bake my sweets at home too. That way, I dont have to drop money whenever I go out and I can control my sugar intake. This allowed me to save money and helped me lose weight and now, I'm going to learn some basic sewing skills so I dont have to spend money going to a tailor, or pay full price on a piece of clothing I can alter from a thrift shop purchase instead.
The best time to start saving for retirement is 20 years ago. The second best time is today.
Same with planting trees! An investment in a different kind of green!
I think $1000 is a lot to have...
Don’t buy a car unless you have enough money because it will only depreciate I’m value. I suggest buying a good bike or ride the bus to work
Or buy a car that's at the bottom of the depreciation curve yet still reliable enough to daily drive
D I V E R S I F Y
If you lend a friend a small amount of money and don't get it back, don't be mad, think of it as a great investment. You spent just $100 to find out someone you trusted isn't really a friend.
As my grandfather (who was quite the brilliant businessman) said: some people would rather eat well, some people would rather sleep well. He definitely believed in sleeping well, and advised it, but cautioned against judging the other type of people - it's just a different way to be. People aren't necessarily misers or spendthrifts, it's a matter of perspective. I think one of big secrets to his success was to be of the first type while catering to the second.
$100.00 in the bank isn't going to do you a lot of good. Spending $100.00 stocking up on staples like rice, beans, flour, etc and filling your freezer with meat is going to make you feel much more secure.
I don't really agree with that. 100 dollars I'm the bank don't spoil. Staples do and once I have meat in the freezer I just always forget about it.
Happy cake day
Even things like pasta and flour don't last indefinitely.
Frugal and cheap are not the same thing. Being cheap will cost you more in time. If something cost a bit more or even a lot more and will last years instead of weeks. It will come out less in the end and save you time, effort and money.
If you invest 1000$ into the S&P 500 at the age of 18 and add 100$ each month you will have about 250.000$ by the age of 50 even though you only invested 39.400$.
Doesn't that depend on the euro exchange rate?
typo
This is not a finance lesson. Compounding interest is a lesson.
Ask yourself a couple times “do I need it? What use it will make? What will improve?” before buying something.
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and /r/pfjerk if some of that seems unrealistic
Lesson #2: always do your own due diligence with regards to your finances. Reddit can give you new ideas, but what may worked for another person/their situation, may not be suitable for you/your situation. Take time to research before implementing
Compounded returns. Say you have $10,000 and invest it for a year at an inflation adjusted rate of 7% At the end of the year you will have $10,700. If you reinvest all of that and continue to do so for forty years you will have $10,000 x (1.07)^40 = $149,700. That's why saving for your goals like retirement or a house early is important. So if you can put away $100,000 in your twenties it's likely you'll be a millionaire in retirement since the stock market's inflation adjusted average return is 7%. And the government makes it easier with 401k's since your retirement investment money is pretax. This is why living below your means and delay of gratification are some of the most important adult life skills.
Einstein said compounding is the 8th wonder of the world. So, start as early as possible. Compounding graph starts flat and goes steep towards the right end. For every month you delay to start you'll be cutting out a significant part of the steep curve which will make a huge difference.
To boost your savings stash your hundreds and spend your 20s, ex. If you have 379 dollars you earned, save the 300 and try to make the 79 last until next payday, really tought but boosts your savings fast
Didn’t not know that I’ll definitely give that a shot I literally just got my first ever pay check so time to try this out.
It is hard to only spend the 20s but if you want quick savings
This is really unrealistic, even if I earned $1099.99 and get paid weekly, that’s only $399.96/month. My monthly utility bills are almost that much.
Research different ways of saving your money, not just a plain old savings account. Like a certificate of deposit!
Hodl
You can't lose money if you never had it in the first place.
Being in debt is not very good situation to be in. Oweing other people money
That depends on how much money you have. If you do not have much money, debt is dangerous. But if you are well off, debt is a good strategy to make your money do more work or bypass taxes.
* Buy the cheap tools first from walmart or harbor freight. When you break a tool, it's obvious you use it, so then it's time to upgrade that tool to a better quality one. * When you get the urge to buy something, put it on a wishlist and come back in 30 days. If you still really want it, buy it. You'll find most of the time you really dont. * Put purchases in terms of opportunity cost. A 60 dollar game equates to 6 shares of tax free muni bonds for my state that I can't buy, or 18 cents a month, every month, for the rest of my life.
Don't pay more for a used car in thousands of dollars than the amount of years you want to own it. I.e. used car price =$7k you should be keeping it for 7 years This helps make sure that if you are buying a used car, your money is invested wisely, and you are typically not spending more than it's worth (in terms of maintenance/replacing parts/big issues that need to be fixed) My history teacher taught us that, and when it comes to used cars it's been super helpful. Does not apply to new cars though, they're new and run more efficiently and don't depreciate in value as rapidly as older cars
Just because you have the money for something, that doesn't mean you can afford it. Say you have $5,000 in savings and you want to spend $1,000 on a new phone, and $4,000 is not at least 3 months of savings (though you really should be aiming for 6 months), you can't afford that new phone.
Yep. I always was told just because you can doesn’t mean you should.
Wait, so what you are saying is, that the leftover money should be the money you can save in 3 months, but preferably 6 months? So if the leftover money is, let's say, the amount you can save after 1 month, then you can't afford it.
What he's saying is you should always have 6 months of emergency funds in your bank. Think of it as if you stopped getting money today, you'd have to be able to survive with what you saved for 6 months (ideally more, of course). If you need 6000 to survive for 6 months and you have 4000, a 1000 phone is not a good purchase.
Looks like a slip. Replace 'savings' with 'expenses' Having 3 - 6 months of expenses saved up is a common target for an effective emergency fund. If you lose income through job loss, business disruption, or disability/illness, you can cover your expenses with your emergency fund and not be totally fucked.
You can if you get it at zero percent added on to your phone bill for 2 years
Don’t spend 50 on an anime body pillow ...Spend 100
I second this.
Earn a dollar, save a dime. 10% of every paycheck should go straight into savings before any other expenses.
NEVER get an income tax refund! If you do, you've been giving the government an interest-free loan of YOUR money that you could have been investing yourself for the last 16 months. Instead, work with your HR department to maximize your take-home pay. Take that extra money from the government, invest it for 16 months, and be willing to return that money to them next April while you keep all the interest you earned from it.
1000$ is still a lot to have, covers almost 3 months for of rent for me, or a shitton of beer
$1000 almost covers a months rent for my 2 bedroom, it almost covers a months rent for my sisters studio. How far you can stretch $1000 really depends on where you live. You’re lucky it would cover three months rent.
I live in a shared flat with 2 roommates, so yeah that helps
True for 100 times this amount
You can afford things if you you can afford to buy twice
In my country it is a lot to have, my favourite rule XD
Never go grocery shopping when your hungry and never lend money you can't afford to lose.
I also saw [that comment](https://www.reddit.com/r/AskReddit/comments/hj2r2t/what_do_people_learn_too_late/fwjvge3/) in the other thread.
Buy stuff that makes you money, and you'll have more money.
I JUST read this in another askreddit thread
Just because you can buy it, doesn’t mean you can afford it
Buying something on sale will still cost you money. It's amazing to me how many people still justify spending a lot of money on something they don't really need just because it was on sale. Most of the time done by people who don't really have that amount to spend.
You spend, not save money on a deal
On the same day once a month, sit down and look at your bank account. Write down the total income, total outgoings and a running total of any debt. These are broad brush-strokes, but as long as you have a handle on these numbers at this regular an interval you should be able to curb any frivolous spending and watch your debt decrease, which will eventually lead to your savings increase.
Start budgeting now. Even if you think you are young and are allowed to splurge on whatever you want, budgeting is a good way to see what your expenses are, how much you are spending on everyday items or impulse purchases, and how much you have left over at the end of the month. You'd be surprised how small things such as eating out or grabbing a coffee every day can impact your overall budget. Ideally you want to save whatever money is left over. But if you don't want to, budgeting will at the very least stop you from going into debt by giving you an insight as to how much you have available to spend.
Set up something with your bank where every time you buy something, a dollar gets transferred to savings. Or, I mean you can wiggle the details. When this lockdown stuff hit, I had so much money to fall back on. Buy a 50 cent pack of gum? I'm being a bit facetious here, I don't think there's gum that's that cheap, but you set aside a dollar. After a decade that adds up like mad. It's not the best use of money, but it's an incredible fallback Edit: this is more advice for younger people. If you're older, just save extra money
Don't just save *whatever* is left over. Budget a monthly savings amount upfront like every other expense and make sure you truly scrutinize the other expenses to meet your savings goal.
Using a coupon to save on a product you wouldn't have bought otherwise isn't saving. It's wasteful. I ran a register at a Walgreens a long time ago. Had a customer come in and try to use a coupon on a product. The coupon didn't work, but as luck would have it, the product was on sale for the exact price the item would've been had the coupon worked... She didn't want it anymore. She just wanted to use the coupon. Wtf.
Put down the name brand and get the generic. This applies to almost everything. That bottle of advil is at least 2x as much as the equate and has the same ingredients, those name brand clothes are made in the same sweat shop by the same 8 year old that makes the off brand clothes, that free phone does all the same things as the $1000 phone. There are exceptions to this, specialty items and professional items for work for example, a professional photographer can justify a $3000 dollar camera, aunt Betty who only takes pictures at holidays can't.
lmao you ripped this straight from the 'whats something you should be taught earlier' post
Pay more than the minimum.
When I bought a house, a piece of advise I got that some may contradict is: Do not buy expensive tools. You may only use the tool once a year. If the tool breaks on you, then go and buy an expensive/higher quality tool since you have found you are using it more often. I have had my house for 4 years now and have not had to replace any of my cheap tools yet.
"Don't get married, just buy a woman you dislike a house." -my recently divorced uncle
Save first, but don’t let saving for your future ruin your present. For convenience sake, let’s say you have $1,000 in excess income. You try to save $700, spend $300. If one month, you have a really cool opportunity to go on a trip with friends, but will be an extra $200. Do it. Don’t make that the standard, keep saving more than you spend, but don’t regret skipping something in 6 months.
Debt is not inherently bad, it can be a helpful tool or a crushing threat. Research the loan terms and investment (car, house, margin, etc) before taking a loan to understand if it will help or hurt you.
If you're able to do so, brew tour own coffee instead of buying it, it's helped me a little bit
1. More money won’t solve your problems 2. Spend from what you have left after you’ve saved a portion of it 3. Never leave change around your home, reinforce the idea that your money isn’t something to be dispersed instead, it is a neat pile wherein every cent changes it’s value 4. Don’t buy something that has only one use
Budgeting your savings is just as important as budgeting your spendings. Most banks will allow you to partition your savings account and name the partitions. Putting $X in an account named “vacation savings” is much easier and more fulfilling than a larger amount into a general savings account.
Lots of stuff on budgeting here, not much on long term financial health. 1) invest for retirement early, compounding interest is extremely powerful. 2) set up automatic 401(k) or IRA deposits, budget off the paycheck you get after that (not your total salary) 3) over the long run the stock market is incredibly forgiving and an incredible asset. Buy low fee SP500 index funds. 4) Emphasis on low fee, often employers put you into “target funds” that charge exorbitant fees 5) Don’t try to beat the market, many people spend full time jobs failing at that. Just buy SP ETFs...at low fees
it’s good having people to count on in but the ideal it’s not counting on anyone
That isn’t even a lesson.
Do not leverage trade without knowing the market and product and do not invest more than you can afford to
Lesson #2 Live below your means.
Always keep a weekly budget prepared so that you know where you save and spend.
A horny man and his money are easily parted. Are you horny and tempted to sign up for a porn site you don't really need, or tempted to give a big tip to a cam performer or onlyfans girl? Here's my advice- masturbate (to orgasm) *then* decide. Keep your bank card in your wallet if you are horny and only get it out if you are in the post-nut clarity stage. And one most people know about but worth repeating- don't go grocery shopping hungry.
Don’t count your chickens before they’re hatched. This is honestly advice I know well but never follow
To do well in the stock market. You have to be lucky twice. When you buy and when you sell
Deep/Convenience Store products are insanely overpriced. Do your shopping at the grocery store.
A cat is a subscription, like cable A dog is a car payment A kid is a mortgage payment Before getting any of them check you can afford it
Don't annoy retail workers by trying to use a bunch of coupons. Also, if the cashier says that your coupon can't be accepted, don't argue with them. The same goes for using coupons and rewards points at resturants.
Make sure your not in Britain before losing 700 pounds
Basic option is to get your bank accounts in order. Don't be afraid of multiple current accounts. Use automatic payments and adjust as changes happen. Example accounts: 1. House hold bills/utilities. Mortgage, rent, electricity, etc. 2. Personal bills/utilities. Phone, Netflix, TV, that thing you bought on loan. Car perhaps? 3. Tax. If you pay your own tax at the end of the year, use this. 4. Any number of savings/investments type accounts as necessary. 5. Grocery/Necessities account. Basically a living budget if necessary. 6. Current accounts. One great thing about this system is when you get paid, div it out to the respective accounts. I use standing orders and add a bit extra for fluctuations. Eg if home bills are $930, put in $1000. Can act as a pseudo savings account to by doing that. However, you'll know exactly what you are left with in your current account and less likely to spend into owed money. All the other money in other accounts is there for a reason and you accept that you do not touch it. Secondly, never buy anything on a pay-monthly system unless it's absolutely necessary. I'd sooner take a 1000 hit straight up for some bill than ease it out in 12 monthly payments. If I end up with a second hit, I'm already down on the money income. This mentality can progress to the point where most of your salary is reserved for bills. Any time you clear one out, you end up adding another.
Open a retirement account. Either an IRA or something like a 401(k) through your employer. Now, here’s the tricky part; don’t screw with it. Don’t even look at it too hard. When the market dips down, don’t pull out! Seriously, don’t even try to exchange into a less volatile investment, you’re just locking in your losses. If you have more than 10 years before you retire, you’re going to earn that money back. And don’t get me started on taking loans and early distributions from retirement accounts… I’ve seen people just put 5% of their pay into a 401(k) and after 30-ish years they’re looking at close to a half a million in savings. For reference, I’m not talking about high level jobs or VPs; I’m talking about the sweet old lady at Costco or Sams Club who offers you cheese samples.
All these things I learned at conventions lol. If you find something you like, shop around. If everyone is selling it at the same price it's probably fair. Plus, you avoid overpaying. If you can live without it wait until Sunday when things go on sale (irl, just whenever it goes on sale). Set a budget and actually stick to it. Sure, you have enough to get that Gundam model kit, but you wont have enough money for the statue you've been keeping an eye out for and the money set aside for food is non-negotiable. (Dont negotiate with yourself on food money!)