NT: Official Personal Finances Thread

[omariwestafari]

300k sitting in the bank or under my pillow + 4k coming in clean every month? (mind you the 4k is bare minimum, not going to sit around and watch my money go to zero)...

If I can get to that point where i have that much money on hand and can make 4k + without working from my investments, then why in the world would I want more?

Sorry, some of you guys have been sold the american dream and you fell for it....working like a robot for 30+ years and saving a few millions, and you croak and die... lol if thats you idea of smart money management then good for you guys...me? I want to get to a comfortable place as fast as possible (35 years old), make less but live my life without having to be up for a 9-5 (which I am doing now..)..

best way to achieve success and wealth is to be making money when you are not working...some people just don't have the capacity to do that or the balls to pull the trigger on a venture...

finally the only reason why I wouldn't buy a house is because I wouldn't be dumb enough to drop 5-600k on a house cash...I don't do interest/usury, because I am muslim and its against our faith.


if it wasn't against my faith or my personal beliefs I'd be in it as well...but you have to draw the line somewhere when it comes to personal value/integrity and money..

Talk is cheap

I love america

And ima live the american dream

Shoutout to OBAMA [emoji]133674693112[/emoji][emoji]133674693112[/emoji][emoji]133674693112[/emoji][emoji]133674693112[/emoji][emoji]133674693112[/emoji][emoji]133674693112[/emoji]

 

[mplsdunk]

I was referring to dude saying you're gonna be calling investors and banks daddy.

He's just a rapper.

hahahaha got it.

sorry, im old and lame. i dont know bout that kinda stuff.

i dont pretend to be anything im not. im a salary man with dreams of wealth but nothing concrete thats headed me on that path. i've worked in lending for 10 years now which has given me a sliver of insight into how the world of finance works. NO ONE plays with straight cash. My company has a line of credit where we borrow at X and lend at 10X. The bank we borrow from (a major US financial institution who runs commercials that ask "whats in your wallet") isnt even lending their own money to us. They probably borrow from a bigger bank at Y and lend to us at 2Y. That bigger bank probably borrows from the federal reserve.

According to our boy @millenial, dudes like Jamie Dimon probably call Janet Yellen "daddy" errrrrr "momma"

Straight cash gets laughed at and is frowned upon. Just yesterday a guy thanked me and my boy for using a credit card on a big purchase because the last guy before us paid 40k in cash in s backpack.

Yeah I'm not trying to be anything I'm not. I've seen several friends open their own thing in the last few years. Helped a bunch of them out now it's me and my boy's turn. Then I can hopefully get some big loans in the next 5 years once I have a nice income under my belt. I'm just always trying to learn as much as possible when it involves making money.

 

[fontaine]

child...

i dont even know why i bother debating this with you. we arent talkin bout dudes like ben baller or dame dash. we talkin bout dudes like ray dalio or george soros, who by your definition all call someone else "daddy" cause they've leveraged debt to build their wealth.

read a book. seriously.

He lives off his baby mombs bro

 

[natch johnson]

Please don't do this, kids. Allocating all of your funds to one company is a bad idea.

If I knew what I know 10 years ago, I would've opened up a Vanguard account account and set up some variant of a "lazy portfolio."

http://www.bogleheads.org/wiki/Lazy_portfolios

Zero commission & low expense ratios using Vanguard's ETFs/mutual funds.

It's damn good advice to the majority of people that will never invest in anything besides a home their entire life.

 

[fontaine]

Profit. He has like 35 nice houses. Does it all through a management company.

that's waddup... PM sent

 

[agentorange]

I'm trying to make money with my money, b. Invest,stock, whatever. I Need this paper. Someone school me

Same.

 

[blackdynamite]

I'm 22 and make like 2.2k after taxes...I try to save, but I need to pay for stuff

 

[sneaksoy]

Wassup fellas. First off, I work in finance and what @Mojodmonky1 is on point. I won't get into too many specifics but the cost of funds are extremely low right now, why wouldn't you borrow at 1-2% interest when you can use that money to generate 7-10% returns?

To stay on topic to the thread title, I'm 22 and bringing in around $4k a month after tax. This is entry level for my career/company. I graduated a year early from college with no debt due to hoops and academic scholarships and I was able to save about $2k a month (plus ~$800 a month towards a 401k and Roth IRA, with my employer contributing an additional ~$300 a month). In just under a year I was able to save enough to put 20% down on a house. My monthly mortgage would make some of you big city guys cringe lol. One of my good buddies got a job in the area as well so I'll be renting him a room for $300/month which covers a solid portion of my monthly mortgage payment and is still a huge bargain for him. I also ref soccer on the side and that's anywhere from $400-800 a month depending how many games I want to do.

Overall I live a pretty simple life and work well over 40 hours a week but as a young single dude with career aspirations, I have zero complaints. The feeling of saving and investing money has replaced the feeling I used to get from spending money on shoes haha. I plan on building equity through this house and then holding it as a rental property once I move in 6-7 years. I may not be making a windfall but I know if I have patience and can continue to be happy living simply, I'll give myself a lot of opportunities later on in life by having financial freedom.

 

[based mod]

Please don't do this, kids. Allocating all of your funds to one company is a bad idea.

If I knew what I know 10 years ago, I would've opened up a Vanguard account account and set up some variant of a "lazy portfolio."

http://www.bogleheads.org/wiki/Lazy_portfolios

Zero commission & low expense ratios using Vanguard's ETFs/mutual funds.

It's damn good advice to the majority of people that will never invest in anything besides a home their entire life.

Why are you trying to defend/justify it? You're encouraging others to partake in a dangerous practice. Ever heard the saying "don't put all your eggs in one basket"? Diversification mother ******.

 

[CVO_RN95]

I'm only 19 and make about $1,600 after taxes. I save $0 which I should probably start. After working a lot I was able to buy a new car, so that was a great feeling. I just hate that I ran up some of my CC debt. I feel like I'm pretty responsible where I'll dedicated one paycheck to paying my CC's back.

 

[zapatohead408]

Staying in here to learn more about real Estate. I'd like to have over 60K in my account by 2019 when I'm 24 and finishing my apprenticeship. Maybe having that one year as a journeyman (assuming times are good) and saving a solid 40K that year so I can buy a house with a comfortable down payment.

 

[capital sb]

Yal in here making excuses "that's not the average American " , "regular people only buy one house" lol. You don't have to be a mogul to own multiple properties nor do you have to make 6 figures to do so. Just like sneaksoy said right now rates are so low they are giving away cheap money. I'm not even going to explain how to get started, because there are people on here that have been investing for years that can tell you their experiences.

 

[chewie]

I bring home about 5,600 monthly after taxes. Wife and i are trying some new **** as of April 1st. We are trying to live 100% off her income alone, and save my entire check for 6 months. She makes about half of what i make, so its been pretty strict. No shoes (she's worse than me), no out to eat, no movies...NOTHING.

53 days in and I'm dying lol. But the potential of what we can do to our savings account is keeping us motivated to stay the path.

 

[copped]

@copped - you seem like you got good business sense and that hustlers mentality which is hard to teach. looks like youre on the right track. i know you mentioned that interest is against your faith and i can appreciate someone sticking to their guns for their faith, but objectively speaking interest isnt a bad thing. you never want to put your money up. put other peoples money up. its about mitigating risk. if you have to pay a few points to use someone elses money, so be it. as long as you can still clear a profit, the points you pay are worth more than worth it.

the path to wealth is not stacking cash. the path to wealth is leveraging debt.

you are absolutely right...and i agree with you...interest rates are low as hell...and it makes a lot of sense to borrow at 1-2% and buy a house put 20% down...rent it out...and sit on it for 5-6 years...then sell it and buy two or sell it an buy another one...and keep going until 10-15 years down the line you can sell 1 of or all of your properties and come out 5-600k out ++...

i know the drill..i know how it works....but in Islam, and in the Qur'an it says taking interest is like taking up arms against God..

sometimes you have to look at the bigger picture as to why its not something to promote....it may work for you and I, but the idea of interest is really bad...and if you do your research you will see that the negatives as a whole outweigh the lil miniscule profits that you'll make...

taking interest and lending money on interest is put in place to keep those in power in power, and those without, without...

its hard for a lot of people to understand this line of thinking because the whole economy runs on interest---almost everything you do does....

i find the challenge of creating wealth without borrowing or lending interest a lot more rewarding.

 

[jones23me]

Makes sense ^^^

 

[akuratl02]

Wassup fellas. First off, I work in finance and what @Mojodmonky1 is on point. I won't get into too many specifics but the cost of funds are extremely low right now, why wouldn't you borrow at 1-2% interest when you can use that money to generate 7-10% returns?

To stay on topic to the thread title, I'm 22 and bringing in around $4k a month after tax. This is entry level for my career/company. I graduated a year early from college with no debt due to hoops and academic scholarships and I was able to save about $2k a month (plus ~$800 a month towards a 401k and Roth IRA, with my employer contributing an additional ~$300 a month). In just under a year I was able to save enough to put 20% down on a house. My monthly mortgage would make some of you big city guys cringe lol. One of my good buddies got a job in the area as well so I'll be renting him a room for $300/month which covers a solid portion of my monthly mortgage payment and is still a huge bargain for him. I also ref soccer on the side and that's anywhere from $400-800 a month depending how many games I want to do.

Overall I live a pretty simple life and work well over 40 hours a week but as a young single dude with career aspirations, I have zero complaints. The feeling of saving and investing money has replaced the feeling I used to get from spending money on shoes haha. I plan on building equity through this house and then holding it as a rental property once I move in 6-7 years. I may not be making a windfall but I know if I have patience and can continue to be happy living simply, I'll give myself a lot of opportunities later on in life by having financial freedom.

Good **** young man .... What City are you in?

 

[fontaine]

Yal in here making excuses "that's not the average American " , "regular people only buy one house" lol. You don't have to be a mogul to own multiple properties nor do you have to make 6 figures to do so. Just like sneaksoy said right now rates are so low they are giving away cheap money. I'm not even going to explain how to get started, because there are people on here that have been investing for years that can tell you their experiences.

rates are extremely low but you still have to be a qualified buyer

Why do you think rates are so low? Because banks credit restrictions are so tight.

Have you talked to anybody that's bought a house tenderly versus pre 07?

They're asking for waaaaaay more **** than they used to.


Gone are the days of a 22 year old walking into a bank with less than 10% down and walking away with a house.

Ask the homey sneaksoy if he would've been able to cop that crib without the massive down payment



Like someone stated earlier though... it's now than one way to skin a cat...

I like this thread... lots of good talk in here.

 

[capital sb]

@Fontaine  I am 22 years old purchasing a home with only 3.5% down , so those days do still exist. Only thing that doesn't exist are 0% down loans and not really enforcing the DTI requirements. 

 

[da hen]

socking away 18% a month

 

[crazydav0]

Currently saving 26.3% of my Gross pay. This does not include savings to 401k or my HSA, nor does it include my bonus. i wish i could save more but it is what it is. 

 

[mrse7en]

You can get away with a lower dp if you have a good income and depending how much the house is/you need to borrow. In big cities housing is crazy expensive these days, with 3.5% dp it may be possible, but mortgage is only going to give you 4-5x your gross salary. So if your not making a ton or don't have a significant others income to combine then it most likely ain't happening.

 

[sneaksoy]

I bring home about 5,600 monthly after taxes. Wife and i are trying some new **** as of April 1st. We are trying to live 100% off her income alone, and save my entire check for 6 months. She makes about half of what i make, so its been pretty strict. No shoes (she's worse than me), no out to eat, no movies...NOTHING.

53 days in and I'm dying lol. But the potential of what we can do to our savings account is keeping us motivated to stay the path.

This right here. A little sacrifice and discipline in the short term and you will set yourself up great for the long term in a year you can take that $65k and make some serious money investing it.

Good **** young man .... What City are you in?

Cedar Rapids While it ain't NY/LA/SF/etc, the costs of living are really affordable and I'm basically a 4-5 hour drive from Chicago, Minneapolis, Milwaukee, St. Louis, Kansas City, Omaha. I love it here personally, only downfall is the winters can be tough.

fontaine - I actually was told I could get a loan with

 

[fontaine]

This right here. A little sacrifice and discipline in the short term and you will set yourself up great for the long term in a year you can take that $65k and make some serious money investing it.
Cedar Rapids While it ain't NY/LA/SF/etc, the costs of living are really affordable and I'm basically a 4-5 hour drive from Chicago, Minneapolis, Milwaukee, St. Louis, Kansas City, Omaha. I love it here personally, only downfall is the winters can be tough.

fontaine - I actually was told I could get a loan with @Fontaine
 I am 22 years old purchasing a home with only 3.5% down , so those days do still exist. Only thing that doesn't exist are 0% down loans and not really enforcing the DTI requirements. 

A home purchase with only 3.5% down?

With I'm sure is a pretty short credit history?

Yep... bubbling up again. (no offense)

What's your pmi? And are you the only income in the home?

If you can secure a 150k home with $4.5k, then gone ahead and do dat.

 

[capital sb]

@Fontaine  nice jab but its a 330K home 3.5% down 42% DTI

. I am the only person on the loan so only my income is factored in calculations. Thanks to Maryland's great first home buyer program I will be receiving 25K in closing cost assistance (15K Seller , 10K CDA) and 2.75% interest rate. I was going to wait until January to purchase, but I was offered an opportunity I couldn't pass up.

Will refi to a conventional loan with no pmi before interest rates go back up. I've been establishing credit for only 4 years , so yeah short compared to the average. Can't change my age, so nothing I can do about that.

No offense taken I'm sure the market will crash again everything is a cycle. Not my concern.

Oh and 0% down loans do still exist I forgot that Navy Federal and NASA federal offer them lol.

 

[timcity2000]

after taxes, insurance and my 14% 401k contributions, i bring home ~$4200 / month

probably spend about ~$3000 of that (half of it on mortgage / utilities)