T Nation

Personal Finance Thread


#21

I did Google it lol. It’s a very simple concept. Them making money overall and making money off you aren’t the same thing though. Unless you’re the fed, you can’t make a profit on your actions AND them make a profit on your actions.

Yeah but then I said bookmarkers. I’m just slow today


#22

I never said they make a profit out of my actions. I said that they make a profit ultimately. Since there are far less people doing this than there are who bet “normally,” they can afford to lose a bit of money to arbitrage betters, because fixing the system as to prevent us from doing it (one of the possible solution would be abolishing welcome bonuses, which often are very easily exploited and turned into safe profit) would cause them to lose millions of clients, which in turn would indeed damage them far more.


#23

I don’t speak Italian at all, but can be yelled at in it pretty well.

Grew up with several Italian friends/families.


#24

The most significant change I made, and which led me out of debt quickly, was to save any money I had remaining when I received my next paycheck.


#25

This might be biased but—having listened to folks yelling in different languages, I believe the Italian yelling to be one of the funniest sounding of all.

English speaking people just aren’t good at it. We should give you all cussing lessons lol

@raoh1990 what do you think


#26

My plan is very simple that I learned from my grandfather who only had a 6th grade education(still the smartest man I ever knew). He called it the 80/10/10 rule.
Live off 80%of your earnings, save 10% in cash, invest 10% in stocks of solid companies. It took me while to have the discipline to follow this but I have for over 30 years now and I’m glad I did. My grandfather died years ago but I have passed his advice on to my children and grand children.


#27

Sounds like similar advice to “The Richest Man in Babylon”. He was a wise man.


#28

I agree! And the best variation is the Irpino dialect…


#29

I don’t have time, and I may not have anything to say, really, but I’m so excited about this thread! I love money and budget stuff, and don’t really have an outlet to talk about it. It’s like working out - people get weird and defensive when you’re on-task and they’re not, and it’s awkward to ask about others’ money stuff in a conversation. “Soooooo, nice outfit. How do you manage saving vs spending?” lol


#30

Interesting thread. Samul is talking about arbing. Its a short term profit before his accounts will get closed down. The search for new accounts has a very limited lifespan. Besides all that its a very boring way to punt. I would say I have a masters in gambling but have paid for four degrees with my ‘learning’ costs. I had a soccer punting system I developed that returned a healthy profit in a season but it was boring to operate so I quit it. I love the horses but alas the value these days has almost dried up.

Anyhow, some of my maxims, generally speaking, are

Never forward trade your earnings.
Have the buying price be good so even a mediocre sale brings profit. Never rely on making a good sale.
Value is what the market underestimates. Understand the timing and be a contrarian.
Your credit is more important than money
If you don’t have an edge then the other person does so back out


#31

Can you go into this further? What do you mean?


#32

Dont buy a $5 starbucks coffee everyday before work


#33

Sure, its both financial and reputation.

Say you want to buy a property, lets say you want to develop a site and put 30 houses on it. You have say £50k in cash saved. To buy the site you’ll need to borrow £250k from a funder. Once done you will need to get planning permission etc. You should get the architect working at risk to get outline permission on the basis once it becomes a job he gets to complete the project and get paid.

You will tender the job to contractors, develop a cost plan and seek further funding. You build it out, make your £1.5m supposing you are getting £50k per property profit. The world is happy.

At each point along this line for this to happen you need a good reputation and you need to prove your creditworthiness. If you can’t then the funders wont deal with you, the architect wont deal with you, the contractors wont tender for you etc. Its the credit that turns your £50k into £1.5m.

Its a simplified example but I’m sure you get the gist. It never ceases to amaze me how many people fuck up their credit by thinking they have had one over on someone for a pittance which affects the paths they can choose for the rest of their days. Look after your credit, its more important than money.


#34

This is alright advice for those that plan to leverage their available credit to make money one day.

The vast vast majority of the planet does not ever do that, so I can’t imagine worse advice for those people.

Definitely not a bad mantra for people operating with multiple commas though


#35

So basically “living paycheck to paycheck” deliberately while squirreling away savings? Really interesting (no pun intended).


#36

Ha. Exactly. Often times, I would I end the pay period with $50-100 left over. Instead of spending it or intentionally increasing my rationing, I would save it.


#37

Some financial writer called this concept “manufactured scarcity”. Figure out your budget for your family for the month ($4k for example) that you know you can live on.

Then ever dollar that comes in above that goes immediately to savings/debt payoff/IRA in a way that makes it hard to get to unless it’s a true emergency. Like a separate bank so you can’t make easy balance transfers.

If you only have that $4k to play with then that’s all you’ll spend 95% of the time.


#38

Protect your family’s income(s) with life insurance. Don’t buy a whole life product.


#39

I’m young. 19. Currently making about $1,600 USD a month. I have always had a job (or two) since I was 12 years old. Not sure how much I have saved honestly…it’s secure in the bank but I don’t check on it often.

Haven’t saved very much the past year or so, but my plan for 2019 is to save 50% of everything I earn (not feasible for everyone, I know that, but it works for me right now); give 30% to my mom as “rent” money (she hasn’t asked for this, but I’m an “adult,” living in her house, eating her food, using her utilities, etc. so I want to help her out); tithe 10%; and use the other 10% as my pocket money - eating out, new clothes, etc.

I don’t have a car or a cell phone, so I don’t really have much monthly payments I need to make, besides $120 a month (total) for the 4 children living in various third world countries that I sponsor through Compassion International.

I took this year off from school, and will start college next fall (August 2019). I will not have to pay anything, for my bachelors or masters. I’ve already received enough scholarships that I actually anticipate receiving some extra money that I can just use on a car or computer or something else that’s “for school.” Not sure yet if I plan to go on to further schooling (chiropractic school) but that’ll probably be at least partly paid for, if not entirely.

Anyway, sorry for all that, but I figured it may be helpful to know my background. As a young person just starting out in life, what are people’s recommendations? Begin learning how to invest or anything? Vague question, I know, but I’m curious to hear people’s answers.

Hope this isn’t too different from the original question.


#40

A lot of the FIRE (financial independence retire early) folks recommend this. It’s great for young folks and for people (like me) who got a late start on retirement savings.

Wish I’d had half a financial clue growing up - a lot of making up to do in my 50s!