Are You Managing Your Money?

Discussion in 'Self Improvement' started by hashalot, Jun 13, 2018.

  1. gordie

    gordie Fapstronaut

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    I actually got out of all my debt with the exception of public student loans-- and I probably would've done that too if it hadn't been for the interest rate and payment moratorium.

    When I mentioned about "luck" coming around for simply having your finances adjusted, I'll tell you a little bit of my story. I started out worse than broke because I paid my way through college, so I had private student loans, public student loans, medical and credit card debt. I just found it impossible to live below my means-- truly impossible; I am not materialistic to begin with, but this debt was from eating fast food and living in an almost condemned building. But once I got out of school I swore I'd never be in that position again, so I read that book and some Dave Ramsey, along with some investment strategy books.

    First, I paid off all my outstanding debts except the student loans, but at the exact same time I put away the 10% as Clason said and I still, to this day, haven't spent it. Any gift, any "boon," any money from a guy asking me to do a gig for him went into a separate savings account; I extracted my 10% and put any extra money not from my primary income in a second savings account that went towards debt. I kept building up until I was about 6 months safe from any kind of bad and unexpected financial situation, and (sort of) debt free. In other words, only 90% my primary income is what I adjust my standard of living to. 10% of any kind of income goes into a do-not-touch fund. 90% of any money from a secondary source goes into investment accounts, savings, the stock market, etc. I actually plan this out on excel.

    I ended up with about $13,000 dollars set aside, not including my "only 10% savings"-- we can call the 10% of my entire net earnings my "Do not touch" fund because only God himself or starvation could get me to touch that money.

    I did something some might consider stupid-- I started stockpicking, but only because I work in electronics and have inside knowledge about the industry. I bought a ton of semi-conductor stocks in 2020. I started making a lot of money off of them, and then I started margin investing at only 33% of my total stocks. I kind of trail all my gains with a margin that equals about 33% of all investments, or 50% of my actual stock market assets-- so at $10,000 that'd be $5,000 margin, $20,000 I'd take out $10,000 margin.

    I believe it was Warren Buffet who advised not exceeding a 33% margin.

    A few tips on stock picking though: I got lucky in my situation; I have no doubts on my investments. Some days, I am down $1,000, but I often don't even blink because I know about semi-conductors and I can see 99% of the scenarios with them, the other 1% being the sun explodes or World War 3 would cause my investments to tank (and the latter might even be questionable). But I wouldn't stock pick without insider knowledge. I'd instead put my money up with a financial advisor, even if its a robo-advisor or an investment account like Goldman Sachs Marcus offers.

    This has been some of my strategy. I do plan on paying off the student loans once the moratorium is lifted, but at 0% interest, payment requirements frozen, and a bull market I see no reason to.
     
  2. IGY

    IGY Fapstronaut
    NoFap Defender

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    Yes. All my money is paid into my bank account. My regular bills are paid on direct debit from my bank account and most of my purchases are paid on a debit card. I have never had nor will I have a credit card. Managing money is easy for me. I've never been in debt at any time in my life.
     
  3. wicket

    wicket Fapstronaut

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    First step for me I guess is sobriety or forgeddaboutit probly end up under a bridge if I am as lucky as a duck if I keep going like this.
     

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