Quick Gems about Personal Finance

[Turbulent]

Major key ,

lending money to people that are close to you just makes things a whole lot more difficult.

How you gonna give 300 to your friend and when you want your money back they're gonna feel like "but we're friends tho "

you can't mix business with pleasure

That's why i never lend money to friends. I just give them the money. If they insist it's a loan, cool but i consider that money gone and never sweat them about it. If they never give it back, at least theyll never borrow from me again.

Goes without saying i never "lend" an amount i can't afford to give

 

[BushidoBrown]

Download An app called Mint. Breaks your spending down to the penny.


Save 5% each check for a rainy day. Be it savings, stock market, or 401K. I can't save for shyt so it all goes to my 401K. I have roughly $25,000 in there...not great, but I'm doing better than most people I know my age.

Openfolio is good if u invest. it tracks your portfolio performance against people of similar standing as u as well as the S&P 500

Acorns invests money for you. You can pick how much and when you want to add money to your account. $1/month management fee.

If the company you work for gives you the option, invest your 401k savings. diversify it among small cap large cap mid cap funds etc (again, if ur company offers this option)

 

[mamba]

Openfolio is good if u invest. it tracks your portfolio performance against people of similar standing as u as well as the S&P 500

Acorns invests money for you. You can pick how much and when you want to add money to your account. $1/month management fee.

If the company you work for gives you the option, invest your 401k savings. diversify it among small cap large cap mid cap funds etc (again, if ur company offers this option)

I agree with the 401k piece. So many people miss out on free money via the company match.

 

[Splash]

Need alerts on this one

 

[Blessings]

great thread

 

[ATownD19]

Use the envelop technique to budgeting.

1. Have multiple envelopes stashed away with a set amount of cash in each for your expenses i.e. (Gas, Groceries, Food, Entertainment, etc)

2. This helps to minimize impulse spending. When you physically hand out cash you psychology feel yourself losing something which will keep you aware of your spending habits. Using cards makes it very easy to lose money.

 

[sayyestothis]

Save.

Use leverage...debt isn't bad if used correctly. There's a reason why the rich get richer.

Utilize your 401k and challenge yourself to max them out.

If doing private investing PLEASE educate yourself thoroughly or talk to a Financial Advisor (use finra. Org) to background check such individual.

 

[dark_magic]

Use leverage...debt isn't bad if used correctly. There's a reason why the rich get richer.

^ This

If doing private investing PLEASE educate yourself thoroughly or talk to a Financial Advisor (use finra. Org) to background check such individual.

Great advice. I will definitely keep this in mind.

 

[mamba]

2. This helps to minimize impulse spending. When you physically hand out cash you psychology feel yourself losing something which will keep you aware of your spending habits. Using cards makes it very easy to lose money.

This is true.

You can easily spend a lot of money if you never have to physically touch it.

 

[dark_magic]

Study accountancy (accounting)!

Accountancy is the language of money.

Finance is the art of money management.

Your "report card" in the real world is your personal financial statement. That tip is courtesy of "Rich Dad, Poor Dad" by Robert T. Kiyosaki.

 

[97Pac]

Four years later this thread still has a lot of good information in it.

It blows my mind when I see family members in their 50s and 60s still being reckless with money knowing retirement is around the corner.

 

[No Homo]

Four years later this thread still has a lot of good information in it.

It blows my mind when I see family member sin their 50s and 60s still being reckless with money knowing retirement is around the corner.

Education and discipline.

 

[dark_magic]

The ultimate level of personal finance is learning how to raise, structure, and manage capital.

 

[97Pac]

Talked to my grandmother yesterday and my family seems to think my credit is bad because I refuse to buy a new car. Their minds can't comprehend someone being content with a 10 year old vehicle thats paid off.

Coming from a family where everyone is financially illiterate its difficult to explain things to them. They don't understand the concept of saving or investing. People who have filed bankruptcy several times will try and give me (terrible) financial advice.

 

[winb83]

I get my paycheck and the direct deposit splits it into 5 different accounts.
One checking for my car payment
One checking for a duplicate car payment I pay myself
One checking for my rent
One savings for a home
One cash management account for general spend

All my bills are auto-pay to credit cards or for my rent and car payment auto-pay to checking accounts.
I have a US Bank Cash+ for Utilities so I get 5% back on that
Netflix, Audible, YouTube Premium, and Hulu are on my Amex BCP so I get 6% back on those
Everything else goes on my Citi Double Cash for 2% cash back.

My plan is to build a big enough buffer to just set all my cards to auto-pay the statement amount. Right now the Citi Double Cash is set to that and the other are set to pay at least the minimum due. That way I never get a late payment.

My goal is by May to have all my finances completely automated. I'm also at that point going to set my investment accounts to all automatically pull a set monthly amount from my general spend account.