T Nation

Personal Finance Thread


#1

@pfury @h_factor

Just wanted a place to talk about everyone’s methods/plans/tips/tricks/goals. Doesn’t matter if you’re just trying to payoff your credit card or buying your 400th rental property.


#2

Small business idea I plan to enact one day. My metro is ranked one of the top places in the country to flip homes and/or own rental properties, but we only have a single local rental property management company that I’m aware of.

I think my richer suburbs have an insane amount of untapped capital that the average ‘rich guy’ avoids because of the Hassel of having tenants.

I want to copycat some of the bigger guys model and run a low(ish) headcount place that efficiently manages investment properties, down to working with local realtors etc.


#3

I’d recommend looking at BiggerPockets podcasts. They’ve interviewed a few successful ones.

I had the pleasure of interviewing 15 property management firms in 2018. They all told me in confidence that the margins on that side of the business are razor slim and they almost always had a real estate brokerage and development arm of the business as well (three pronged attack). Volume is the important thing. Get as many doors as possible.

Your idea sounds a lot like turn-keying.

Wouldn’t hurt to get your RE and contractor licenses as well. Or hire those skills.


#4

I’m a sucker for financial podcasts/audiobooks. Keep the good ones coming.

Yeah that’s what I’ve read. I’m hoping that the company being a piggyback on diluting the costs that I’ll have with my own properties (regardless of whether or not I start the company) will give me a bit more wiggle room.

Not necessary looking to make it a billion dollar business, but every little bit helps.

Yup that’s the goal. Not necessarily ‘slum lord’ status, but my time doing foreclosed home inspections really opened my eyes to the value people leave laying around.

I’ll get my RE license eventually, but probably pass on the contractor. I’m way too prone to shortcuts and workarounds. Not totally sure I’d trust myself to not cut the wrong corners


#5

Solid thread idea.

The only decent tip I can think of sharing is to automate bare minimum savings by not spending any five-dollar bills. Whenever you get a $5 back as change, set it aside because it’s immediately out of circulation. (I fold it up and stick it in the corner of my wallet, then put it in an envelope in the safe at home.)

Saw it on a “life hack” site and tried it all last year, ended up saving enough to pretty much pay for Christmas, which translates to less credit card debt. Maybe it’s kindergartener-ish and there are more efficient ways to do it, like I’ve read some folks save their 5s but then deposit every $100 into a basic savings account instead of having “dead” cash just sitting around without interest. But as-is it’s no-brainer, minimal effort, and easy to stick to.


#6

I actually love things like this for people like my family/friends/etc.

Most of it boils down to nickle and diming yourself in a way that doesn’t cause any pain. Very little difference between a concept like this and 401k paycheck deductions.


#7

Teach your children the power of compounding interest so they can have it work for them instead of against them.


#8

So mine… and I totally stole this from Kiosaki: Do an income statement and balance sheet every month.

I pay all my bills from one spreadsheet with all the logins on one tab and I record the confirmation numbers in case anyone says I didn’t pay.

On the left side I can see all the monthly bills, payroll and misc spending for the month.

On the right side I list all my assets house/cars/cash/investments and then all my liabilities: mortgage/college loans etc… with their current balances and interest rates.

Then below that is the net worth/equity number. Kiosaki brings up that 99% of employees aren’t tracking that number and focus solely on income.

The saying ‘what gets measured gets managed’ comes to mind. Being rich literally means having a higher net worth, so you should pay attention to that number.

After setup this takes me 10 minutes to do per month and I can immediately see whether the month got me closer or further from my goals.


#9

As an 18 y/o, I’m still in my last year of high school and here in my country it’s hard to get a job at my age.

That being said, I do my best to earn some money whenever I have a chance to. I save almost all of the money my dad and grandma give me each day, which might not be much but given that I have virtually no expenses as my parents provide me with everything I need, that has added up during the last years.

At the end of last summer, I was contacted by a local music school and hired to build a website for them. It was my first proper “job,” and it helped me earn a few hundreds. I’ve also submitted my resume to an IT company who reached out to my school, and if everything goes well I might have a shot.

Lastly, for the last couple of months I’ve been making a decent amount of money with matched betting. This is based on placing soccer bets in specific ways such to guarantee a profit. This is totally legal and you don’t even need to know the sport. I don’t like soccer and I’d never engaged in sport betting before. That said, I have been able to make around €2k in just over three months by spending no more than 15 minutes a day after I learned how this works. You won’t make a consistent living out of this, but it’s worth looking into if you want to earn a bit more cash.


#10

Unsolicited advice. If this was sustainable and long term, in the age of the internet, it would break the planet.

The house always get paid from somewhere


#11

Well, I’ve just learned from Jeff Bezos how to instantly lose $67 billion.

So don’t do what he just did.


#12

Sure thing. Part of this is understanding that the amount of money that can be made from this practice is limited and, like I said, you’re unlikely to ever make a living out of this.

That being said, go look it up. You’ll see that the bookmarkers do in fact still make a profit ultimately. We’re just exploiting the system in a smart way.


#13

Matter can neither be created nor destroyed.

That “profit” you speak of has to come from somewhere. You make money, bookmakers make money…sorry, does not compute.


#14

That’s why you ''match" bets on two different bookmarkers for a given game. You’re telling me the money on my PayPal account isn’t real? :stuck_out_tongue_closed_eyes:

Again, go look it up and things will start to make sense. Otherwise, I’d suggest people abstain from judging what they don’t know how works.


#15

It’s called betting arbitrage. If two bookies have a different line on the same game you can bet on both outcomes. It’s like a butterfly option in finance.

@samul make sure you’re betting with upstanding bookies. Some Mafiosi may not appreciate your cleverness if you’re betting with the crooked nose crowd.


#16

I’ve been trading as a profession for decades. These stories abound.

I’m out. I was tempted to post in the bitcoin thread but abstained. Thought I’d just give it one post this time around.


#17

Arbitrage betting and trading aren’t even remotely related. I don’t know the latter and I wouldn’t even think about giving advice for it.

But I appreciate your good intentions.


#18

If this is the case, in the long run, the bookkeepers are ultimately not making a profit.

You can’t all make a profit lol

Edit: the shit is a bookmarker. Where is friday


#19

They do because there is far far less people doing what I am doing than playing “normally.” I’m not going to lecture you about how this works, because no one did that for me.

What I did when I was exposed to the idea, though, was look up the damn thing and learn how it works before I even said a word to dismiss it.

I’d like to point you to the resources I learned from myself, but unless you speak Italian that wouldn’t be of much help lol


#20

I mistyped bookmakers