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Fair enough and I don't disagree. My point was it's easy to say things like that from a strong position, where moving backwards financially is improbable, when it may not be the best path for others.AuxBatOn wrote: ↑Tue Jul 03, 2018 10:00 pmI always lived that way. Even before I made north of 100K I find balance in life is key to sanity...
ahramin wrote: ↑Tue Jul 03, 2018 8:31 pmNow that I can help you with. I start by frying an onion and a few carrots and celery sticks in olive oil. As soon as they are browned then throw in your leftover bones and add just enough boiling water to cover everything. Boil an hour then cool overnight. Skim the fat off the top, strain the rest and use that day or freeze for later.
rookiepilot, are you talking 5-10 of one's total portfolio invested in precious metals?Gold is interesting here to me, as a small percentage, because it's washed out and there isn't that much interest. Small means 5-10% in my view.
Not that this applies to you, but whenever I have heard this in the past, it's from someone leveraged to the max, making minimum payments on their boat, truck and ATV. Eventually they get old and the tank is empty. Their kids won't help because they learned their money management skills from their parents. Then those of us who were frugal with our money, earning passive income see our taxes go up because we need to "Save our Seniors".
I don’t advocate spending beyond your means but spend within, save a little and have fun throughout life.Bede wrote: ↑Wed Jul 04, 2018 5:46 amNot that this applies to you, but whenever I have heard this in the past, it's from someone leveraged to the max, making minimum payments on their boat, truck and ATV. Eventually they get old and the tank is empty. Their kids won't help because they learned their money management skills from their parents. Then those of us who were frugal with our money, earning passive income see our taxes go up because we need to "Save our Seniors".
Sorry if this sounds like an attack on you- it wasn't meant to be directed at you personally.
Correct. And money isn't everything by far. I pursued financial security so it Wouldn't be everything. Money is a tool, nothing more. I wanted to be in a position where that tool worked for me, and not me a slave to it.
At the most. I want to get paid, (through dividends) so I like other types of defensive investments for this. One area I like is US health care, cause it's counter to the economy and the demand is endless in an aging society. As an example.
Exactly. It's toxic death that keeps people in bondage. Go cash for everything except a house if one can.
Agree with the above. Money is a language, and it can be learned. Sadly, Complex is right, but I took a shot. Maybe one or 2 will get it that didn't before.complexintentions wrote: ↑Wed Jul 04, 2018 7:13 am It's a nice thought of rookiepilot to offer free financial advice, but the problem is - those who would actually listen are probably already aware of what he speaks of, and the rest won't change their habits or thinking anyway, they're too busy trying to figure out how to get more credit to buy more useless shit. But for what it's worth:
- Agree, strongly: avoid debt. It may in some circumstances be defensible, but in the vast majority of situations it's just a millstone around your neck.
- If you are one of the few who actually invest (by this I don't mean gamble, or plow a ton of debt into a house and call it "investing"), keep ruthless watch on your fees. Most Canadians invest in shitty mutual funds with the highest MER's in the world and have zero clue how much that is costing them over the course of their investment life. Math is hard, after all.
- Paying for advice CAN actually be a good idea, BUT! only if your net worth makes it worthwhile. As stated the absolute vast majority of "advisors" are simply salespeople with dubious knowledge and negligible financial education. Truly professional advisors will have heavy recognized credentials, experience, reputation - and won't necessarily be cheap. If they are genuine, they will, however, over time bring you far more wealth than you have compensated them with. The 22 year old flogging mutual funds at TD is not who you take advice from - even though it's "free".
- Above all, educate yourself. Money is akin to a language. A minority are fluent in it, but most people are pathetically illiterate. Learn it yourself, or hire someone who speaks it expertly. Actually, either way, learn the basics yourself. Unless you enjoy being poor.
Pro tip: being good at flying airplanes doesn't automatically mean you're a good investor.
Actually I think many of those trying to figure out how to get more credit simply have never had the opportunity to stop 5 minutes and do the math. When my wife had extra money lying around she usually let it pile up until it got over three or four thousand and then would put a couple thousand on her condo mortgage. She didn't have any kind of plan, just thought it was a good idea. So I sat down in front of a spreadsheet with her and showed her that while less than half of her regular mortgage payments went towards the principle, on the extra payments 100% went towards the principle. Suddenly she got a lot more serious about extra payments. She simply had no idea because no one had ever explained it to her.complexintentions wrote: ↑Wed Jul 04, 2018 7:13 amIt's a nice thought of rookiepilot to offer free financial advice, but the problem is - those who would actually listen are probably already aware of what he speaks of, and the rest won't change their habits or thinking anyway, they're too busy trying to figure out how to get more credit to buy more useless shit.
. Under many circumstances for many people I think a 35 year mortgage is fine, but there is no way I would ever borrow money for a car.Great thread Rookie, very useful. I couldn't agree more with the post quoted, thanks for input.rookiepilot wrote: ↑Wed Jul 04, 2018 9:01 am A,
The reason is no one has a motivated interest in teaching these principles. The banks make a fortune off of CC interest payments. The whole economy is based on expansion of consumer debt. No one will ever discourage this.
It's a travesty this is not a required high school course. (Money management principles)
15 year mortgage, (yes that was mine once) 3 year car loan max.
If I can't hack it on that, I don't want it, should be a benchmark.
I suggest everyone should calculate total interest paid on different loan terms. It's shocking on a mortgage. This should be required disclosure on loan documents, but the industry fights disclosure tooth and nail. Look at the fight over disclosing mutual fund fees.
This is key: The cost of money.ahramin wrote: ↑Wed Jul 04, 2018 8:54 amActually I think many of those trying to figure out how to get more credit simply have never had the opportunity to stop 5 minutes and do the math. When my wife had extra money lying around she usually let it pile up until it got over three or four thousand and then would put a couple thousand on her condo mortgage. She didn't have any kind of plan, just thought it was a good idea. So I sat down in front of a spreadsheet with her and showed her that while less than half of her regular mortgage payments went towards the principle, on the extra payments 100% went towards the principle. Suddenly she got a lot more serious about extra payments. She simply had no idea because no one had ever explained it to her.complexintentions wrote: ↑Wed Jul 04, 2018 7:13 amIt's a nice thought of rookiepilot to offer free financial advice, but the problem is - those who would actually listen are probably already aware of what he speaks of, and the rest won't change their habits or thinking anyway, they're too busy trying to figure out how to get more credit to buy more useless shit.
Same thing with my friend who bought a new car on credit. She didn't want to spend more than $20 000 and was really happy to get a new Mazda 3 for under that. Her monthly payment was 262 for 84 months. She already had those two numbers, but when I multiplied them together and got $22 000, she said that couldn't be right because they told her the purchase price with everything included was 19 something.
Or the guy NPR interviewed who borrowed $500 bucks and paid $50 a month to roll the loan over for several years because it was cheaper than paying back the $500.
Think about kids who see ATM machines and think that the way to get money is to go to the machine and it gives you some. Everybody explains to those kids that you have to work to make money to put into the bank before the ATM will give it to you, but how many go their whole lives without anyone explaining the difference between a low monthly payment and a low purchase price? We'd have a lot less debt out there if we simply educated our kids on simple things like putting aside ten to twenty percent of all money coming in directly into savings as well as more complicated basics like compound interest.
This is key: The cost of money.
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