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Any good financial advice here? by Ebenezer Heffingwurk - Wed, 13 Sep 2017 22:07:27 EST ID:aGe2xIrZ No.38383 Ignore Report Quick Reply
File: 1505354847607.jpg -(89158B / 87.07KB, 640x799) Thumbnail displayed, click image for full size. 89158
Alright, so i'm 23 and i feel that i'm getting a decent grasp on my life now. However, I do need help from some more experienced folks about my money.

I'm a bartender, and I make money. Ridiculous money. Holy shit, get into bartending if you are reading this. Anyways, I work downtown at a borderline Michelin Star restaurant. I'm starting to make enough money to pay my rent (700$ incl. utilities, flat, nearly every month) and my car payment (450$) while still having something left over to jerk off with.

I've never had it like this before, and it's making me rethink my finances and looking towards the future. However, this car, I feel, is fucking choking me. So there's the background - here's my situation:

I have about 9000$ left on my car, an 09' Altima, and it has 116k miles on it. My credit is terrible and I can't refinance, I don't think. I could give up the car, and take 12$ Lyfts back and forth from my job, costing me 24$ each shift. I work full time, so that'd be about 100$ a week. Or I can keep paying for this car for another two years, losing out on 450$ a month I could be doing more fun things with at my age. I mean jesus christ I hardly ever have gone out lately due to money issues.
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Basil Fanman - Fri, 15 Sep 2017 06:24:35 EST ID:dtxI2lWs No.38384 Ignore Report Quick Reply
>>38383
Well I'm going to go ahead and assume you are negative equity on that car so you'll lose money selling it and still have a car payment and no car. Which really fucks your situation.

Given you say you are making awesome money, and full time that means you probably have at least 1500 going out in fixed expenses. So then you're probably making at least 200-300 over. If that is the case try and close the gap on the negative equity on the car. Once you've done that, save a little more over maybe like 2k cash in hand after you close the negative equity on the car. Sell it, then go and finance a small econobox car with higher mileage at a cheaper price. Dropping 2k down and spending no more than 7k so you finance less than 5k. You can get a really decent car for 7k right now. And you can always get financed. You just won't get a good rate. Always finance as short a term as possible. Money paid in interest is all lost and a scam. Plus if your job falls through you are that much closer to having paid off the term. Maybe though in your situation financing longer but paying higher may work depending on how reliable your job is. If it could go in the next year, finance longer but pay as much as possible now.

Down scaling "external" expenses that aren't living expenses. Once the financed toys like cars and jet skis and shit are out of the picture most people will run themselves broke over what I call convenience fees. As in they go broke every month pumping money into McDonalds and Starbucks. Eat at home. Eat cheap. Learn to cook. Don't go out. Don't buy impulse nickle and dime shit at the stores. Stay away from consumerist hell holes. Develop self-control. The idea here is the save as much as your paycheck as you can. Make it a game of raising the percentage of your check that you save every month as to how much you spend. You can get as extreme as you want.

Once you start saving money, invest. INVEST INVEST INVEST. That is the name of the game. If you start investing in your 20's rather than your 40's or 50's like most proles, you're gains will multiply far more in age as maturity to investments can happen twice for you unlike people in their 50's who need their shit to mature in less than 20 years. You've got 40-50 years before your investments absolutely must mature effectively giving you a double the advantage. Also investments stack overtime so while you've got theoretically double the time if you invest now, the amount of money you could turn over your investments could be 100x the principle investment. You start with 5 dollars and it appreciated 5% every year over the course of 40 years you'd have 35 dollars. Or a 600% increase over the base principle. To where as if you did the same but with only 20 years like most people you'd have 13 dollars. Or and increase of 165%. You see how half the time yields FAR LESS than half the appreciation percentage? Time is of the essence when investing. And the only way to retire is if you invest. So save money NOW. Bank interest rates are just absolute shit so put money into stocks while you are young and don't need to rely on certain profits. You could have well over half your investments in slightly riskier stocks. But buy stocks always that pay dividends. And reinvest those dividends, don't fuckin spend them. And buy stocks with P/E rations that are under 25-20 years. Solid companies that aren't some new gadget or trendy are smart choices. You can invest a few dollars in penny stocks or some "up and coming" company but not much. Stay away from stock news websites and the TV stock shows or whatever. They are all insider trading scams. Look at 10+ year charts on net profits, NET INCOME, dividend history, dividend yield, P/E ratio and history, and peer around for potential shake ups that may be coming like mergers, or stupid new business models. You can easily become a millionaire and don't hire financial planners or other stupid shit. Don't invest in real estate either. Too easy to get burned. It is easy to make out on that racket but way too easy to lose everything. You're young and green no offense so the real estate and flipping shit is a bad idea. Live in modest conditions so that you can live your older years not working to death.

I'll give you an example here of how money can grow itself.

>You invest 5k dollars annually into shit for the next 40 years. You make a 2% gain on everything which is a lower return but somewhat respectable and easily doable.
>At age 63 you have 320k dollars in the bank while only saving 200000.

>Let's do something more realistic that you could do.
>You invest 30% of your paycheck into riskier shit at a younger age and move it into safer shit in older age as you have less time and less ability to soak up losses or poor performing investments. You make 4.7% appreciation every year as a mean. I'll assume you make at least 2k a month after taxes. So still about 5k at the end of the year.
>Now you've invested still just 200000 and you've instead flipped 620k by age 63.

Here is another thing you can do. You can invest into 401k's which perform usually okay. But most companies match up to 2.5-3% And you don't pay taxes so that money is tax deferred if you don't draw until retirement. So you could put in 5% of your paycheck into 401k with no taxes taken on that so you're taking 5% of maybe 2500 a month rather than 2k after taxes which is a higher amount of money and the company will usually make that 5% into 7-8% for you. So before you even started on ameritrade or whatever, you have almost 200 every month going into an investment turning 5% average at least over a few decades. Now you have only spent 200 bucks from your paycheck in a month, before taxes mind you; and at 63 you will have 300k in your 401k. And that is if it performs historically very low. Add that to your charitable contribution of 20-30% of your post taxes paycheck and you could be sitting on 1 million dollars at retirement age and that is assuming you spent your entire life earning a measly 25k dollars. But the key thing here is time. It is on your side right now. Don't let it pass you by.
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Nathaniel Sidgenod - Fri, 15 Sep 2017 10:51:38 EST ID:aGe2xIrZ No.38385 Ignore Report Quick Reply
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>>38384
I really appreciate your thoughtful response man. I've decided to keep paying on the car, and it NEVER crossed my mind about closing the gap and then selling it. Seriously, I had no idea what I was signing on for when I got it - I was some fucking dumbass kid with no advisors.

I have been practicing self-control and i still have yet to hit a balance. I go out with friends about once a month, and I never spend over 40$ at bars. I don't buy any shit that I don't need. I can eat for a week on about 20$. As i'm getting older, I'm starting to kill some of my bad habits that hurt me on money - drugs, drinking, cigarettes. I've noticed that what makes me happy, at my absolute happiest and feeling all good and sunny and shit, is having plenty of money in the bank. It's unbelievable how good that makes me feel.

As for investments, I'm looking into them and still learning as much as I can. I'll get there - one step at a time.

Thanks again brother, goddamn I know it took you time to type the post and I appreciate it.
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Barnaby Puckledock - Fri, 22 Sep 2017 17:16:19 EST ID:dH1rswyq No.38390 Ignore Report Quick Reply
get a bike nigga, and get some whisky in a plastic bottle and put it in your pocket when you go to bars, then get a roommate, til you got like 10k in the bank.


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