What are your financial goals? What financial advice would you give your younger self? Feel free to share

[iloverachel]

My financial goals in the short term - Save $20,000, pay off all University debts, find a source of passive income
Long term - Diversified portfolio in stocks and bonds, invest in real estate and property, multiple income streams, not live paycheck to paycheck


Navigating a tough economy requires careful planning and adjustments to your spending habits. Here's a breakdown of strategies to help you save money:




1. Budgeting and Tracking:

• Create a budget:
  • Start by tracking your income and expenses. Use budgeting apps, spreadsheets, or even a simple notebook.
    
    
    
  • Distinguish between essential expenses (housing, food, utilities) and discretionary spending (entertainment, dining out).
    
• Track your spending:
  • Monitor where your money goes. This helps identify areas where you can cut back.
    
    
  • 
    
  • 
    Review your bank and credit card statements regularly.
    

2. Reducing Expenses:

• Cut back on non-essential spending:
  • Limit dining out, entertainment, and impulse purchases.
  • Cancel unused subscriptions and memberships.
    
• Lower grocery costs:
  • Plan meals, make a shopping list, and stick to it.
  • Buy generic brands and shop for sales.
    
    
  • Reduce food waste by using leftovers.
    
• Reduce utility bills:
  • Conserve energy by turning off lights, unplugging appliances, and adjusting your thermostat.
    
    
  • Look for ways to reduce water consumption.
• Transportation:
  • Consider carpooling, using public transportation, or biking.
  • If possible, reduce unnecessary car trips.
• Review subscriptions:
• Many people have multiple streaming services and other subscriptions that they rarely use. Review these and cancel the ones that are not necessary.
  

3. Managing Debt:

• Pay down high-interest debt:
  • Focus on paying off credit card debt and other high-interest loans.
  • Consider debt consolidation if it makes sense for your situation.
    
• Avoid taking on new debt:
  • Limit the use of credit cards and avoid unnecessary loans.

4. Increasing Income:

• Look for ways to increase your income:
  • Consider a side hustle, freelance work, or part-time job.
  • Explore opportunities to increase your income at your current job.
• Sell unused items:
  • Declutter your home and sell items you no longer need.
    

5. Building an Emergency Fund:

• Save regularly:
  • Even small amounts can add up over time.
    
    
  • Automate your savings by setting up automatic transfers to a savings account.
    
• Aim for 3-6 months of living expenses:
  • This will provide a financial cushion in case of unexpected expenses or job loss.
    

6. Smart Shopping:

• Comparison shop:
  • Before making a purchase, compare prices online and in stores.
    
• Look for deals and discounts:
  • Use coupons, promo codes, and cashback apps.
    
• Buy in bulk (when appropriate):
  • For non-perishable items, buying in bulk can save you money.
    

Key Takeaways:

• Consistency is key. Small changes can make a big difference over time.
  
  
  
• Be patient. It takes time to build savings and reduce debt.
• Stay informed about your finances and make adjustments as needed.
  

By implementing these strategies, you can improve your financial situation and navigate the challenges of a tough economy.

 

[rightwinger]

I would advise save to be comfortable.

Take advantage of your 401k and a Roth is a good alternative
A house is a good lifetime investment. You have to live somewhere, you might as well own it

I am retired and have more money now than I actually need to live. I would advise not sacrificing too much to save for retirement. Enjoy life….. when you die you will remember the experiences you had not the stuff you owned.

 

[sparky]

I've never had any manner of traditional fiscal security

banks turned me down decades ago , my existence since has had little to do with them, nor the stock market, bonds ,loans , etc

why would I need them now?

~S~

 

[Rodimus]

My financial goals in the short term - Save $20,000, pay off all University debts, find a source of passive income
Long term - Diversified portfolio in stocks and bonds, invest in real estate and property, multiple income streams, not live paycheck to paycheck


Navigating a tough economy requires careful planning and adjustments to your spending habits. Here's a breakdown of strategies to help you save money:




1. Budgeting and Tracking:

• Create a budget:
  • Start by tracking your income and expenses. Use budgeting apps, spreadsheets, or even a simple notebook.
    
    
    
  • Distinguish between essential expenses (housing, food, utilities) and discretionary spending (entertainment, dining out).
• Track your spending:
  • Monitor where your money goes. This helps identify areas where you can cut back.
    
    
  • 
    
  • View attachment 1087317Review your bank and credit card statements regularly.

2. Reducing Expenses:

• Cut back on non-essential spending:
  • Limit dining out, entertainment, and impulse purchases.
  • Cancel unused subscriptions and memberships.
• Lower grocery costs:
  • Plan meals, make a shopping list, and stick to it.
  • Buy generic brands and shop for sales.
    
    
  • Reduce food waste by using leftovers.
• Reduce utility bills:
  • Conserve energy by turning off lights, unplugging appliances, and adjusting your thermostat.
    
    
  • Look for ways to reduce water consumption.
• Transportation:
  • Consider carpooling, using public transportation, or biking.
  • If possible, reduce unnecessary car trips.
• Review subscriptions:
• Many people have multiple streaming services and other subscriptions that they rarely use. Review these and cancel the ones that are not necessary.

3. Managing Debt:

• Pay down high-interest debt:
  • Focus on paying off credit card debt and other high-interest loans.
  • Consider debt consolidation if it makes sense for your situation.
• Avoid taking on new debt:
  • Limit the use of credit cards and avoid unnecessary loans.

4. Increasing Income:

• Look for ways to increase your income:
  • Consider a side hustle, freelance work, or part-time job.
  • Explore opportunities to increase your income at your current job.
• Sell unused items:
  • Declutter your home and sell items you no longer need.

5. Building an Emergency Fund:

• Save regularly:
  • Even small amounts can add up over time.
    
    
  • Automate your savings by setting up automatic transfers to a savings account.
• Aim for 3-6 months of living expenses:
  • This will provide a financial cushion in case of unexpected expenses or job loss.

6. Smart Shopping:

• Comparison shop:
  • Before making a purchase, compare prices online and in stores.
• Look for deals and discounts:
  • Use coupons, promo codes, and cashback apps.
• Buy in bulk (when appropriate):
  • For non-perishable items, buying in bulk can save you money.

Key Takeaways:

• Consistency is key. Small changes can make a big difference over time.
  
  
  
• Be patient. It takes time to build savings and reduce debt.
• Stay informed about your finances and make adjustments as needed.

By implementing these strategies, you can improve your financial situation and navigate the challenges of a tough economy.

I would advise people to put away some money to buy lottery tickets when the jackpot grows to a Billion Dollars or close to that. If you are meant to win, you will win the lottery no matter the odds. the stock market slowly takes your money one by one, so I do not recommend that scam. cryptocurrency is a scam, so I would not invest in crypto. I would recommend investing in gold.

 

[Rodimus]

I would advise save to be comfortable.

Take advantage of your 401k and a Roth is a good alternative
A house is a good lifetime investment. You have to live somewhere, you might as well own it

I am retired and have more money now than I actually need to live. I would advise not sacrificing too much to save for retirement. Enjoy life….. when you die you will remember the experiences you had not the stuff you owned.

that's no longer true, according to CBS News. you used to be able to buy a house and make a profit selling it at a higher price. you now have to pay taxes on that profit and May owe money to the government and be in debt after selling your house.

 

[Rodimus]

I would advise save to be comfortable.

Take advantage of your 401k and a Roth is a good alternative
A house is a good lifetime investment. You have to live somewhere, you might as well own it

I am retired and have more money now than I actually need to live. I would advise not sacrificing too much to save for retirement. Enjoy life….. when you die you will remember the experiences you had not the stuff you owned.

401k and Roth IRA and IRAs are bad. pensions are much better but employers do not offer traditional pensions anymore.

 

[Rodimus]

I've never had any manner of traditional fiscal security

banks turned me down decades ago , my existence since has had little to do with them, nor the stock market, bonds ,loans , etc

why would I need them now?

~S~

invest in gold if you can. government bonds are okay if you are willing to wait a decade or two to cash in.

 

[rightwinger]

401k and Roth IRA and IRAs are bad. pensions are much better but employers do not offer traditional pensions anymore.

I have a pension that pays 2/3 of my salary
Best thing ever
But good luck getting one today

In the absence of a pension, 401k is great
Problem with 401k is it is great getting that tax deduction when you pay in. But when you draw out you pay taxes on what you paid in and what it earns

 

[rightwinger]

that's no longer true, according to CBS News. you used to be able to buy a house and make a profit selling it at a higher price. you now have to pay taxes on that profit and May owe money to the government and be in debt after selling your house.

If you keep your house for a full thirty years, you will make more than double what you paid. My house is worth four times what I paid. You get a one time tax exemption on that profit.

Like I said, you have to pay to live somewhere anyway. might as well pay yourself

 

[WorldWatcher]

that's no longer true, according to CBS News. you used to be able to buy a house and make a profit selling it at a higher price. you now have to pay taxes on that profit and May owe money to the government and be in debt after selling your house.

Two things.

#1 There a $250,000 (Single) and $500,000 (Marrid Joint Owners) tax excemption for the sale of a primary residence (owned for 2 years). For the the average middle class you don't pay taxes on the sale of a home.

#2 I believe he was talking about the financial security of owning your home in retirement. If you buy young, and own your home in retirement your housing costs are mostly "Fixed" AND you aren't paying rent. The insurance and property taxes on our home run about $500 per month ($6000 per year). Renting a home of this size/lot would run $2500+ per month ($30,000+ per year). Renting a decent 3 bedroom (using two as a bedroom and one as a den) runs around $2000 per month ($24,000 per year). (These numbers of course vary by cost of living for different areas.)

The point being that if you own your home in retirement you have stability in your housing costs. If you rent you are paying higher amounts AND subject to landlord increases which can have a severe impact on your retirement budget.

WW

 

[WorldWatcher]

401k and Roth IRA and IRAs are bad. pensions are much better but employers do not offer traditional pensions anymore.

401K's and Roth IRA aren't "bad".

For us Roth's really weren't a "thing" and by the time you are later in life the read advantage of a Roth deminishes. If you are younger Roth's can be a great way to save for retirement.

Of course the difference is 401Ks are tax deferred, you pay taxes when you take the money out. The original logic was that you would pay less in taxes based on lower income in retirement because of lower tax bracket. For us it's not really working out as we are staying in the same tax bracket in retirement as we were when working.

For our kids we're advising them to seriously look at Roth's, true taxes are paid now, but in retirement withdrawls are tax free (for income tax purposes) both on the original investment and the growth in dividends.

WW

 

[WorldWatcher]

If you keep your house for a full thirty years, you will make more than double what you paid. My house is worth four times what I paid. You get a one time tax exemption on that profit.

Like I said, you have to pay to live somewhere anyway. might as well pay yourself

We've been in our home since 1999.

3 Bdr + Den, 2 car garage, larger lot. Great place to raise a family.

We're retiring this year and talking about downsizing to a smaller place (easier to maintain and less hassel) in a senior community. The sale of the current house will:

• Allow us to pay cash on the smaller place, no mortgage.
• Pay the moving expenses for the actual move.
• Pay realtor and processing fees for the sale.
• Not pay Capital Gains because of the Home Sale tax exception.
• Still put 6 figures in our pocket.

After the move we wills till be the owners and not paying rent and have a smaller easier place to maintain.

WW

 

[rightwinger]

Another advantage of owning a home is you make profit on the value of the house not what you invested

If you put $100,000 down on a $400,000 house and the value goes up 10 percent in a year

You make ten percent of the $400,000 ($40,000 )
Not ten percent of your $100,000 investment ($10,000)

 

[iamwhatiseem]

I am 60
By 65 - no mortgage, actually no debt at all
$75k in total liquid assets.
Live on SS, pension and draw from investments when we want to take a big vacation etc.
We can live off of SS and pension without drawing any money from investments.
The reason the total liquid assets is low, is I put the lionshare of monies in investments and 401k, 403s.
We carried about $25k in savings for years, only in the last couple years have we worked on building up liquid cash. We got $55k now. At this rate we'll hit $75k by 62ish. So it will probably be more like $100k

 

[WorldWatcher]

I am 60
By 65 - no mortgage, actually no debt at all
$75k in total liquid assets.
Live on SS, pension and draw from investments when we want to take a big vacation etc.
We can live off of SS and pension without drawing any money from investments.
The reason the total liquid assets is low, is I put the lionshare of monies in investments and 401k, 403s.
We carried about $25k in savings for years, only in the last couple years have we worked on building up liquid cash. We got $55k now. At this rate we'll hit $75k by 62ish. So it will probably be more like $100k

Word of advice.

We also have alternative revenue streams such that our income will go down by 28% (Gross) but an increase by 45% for Disposable. Disposable in retirement is higher because we will stop making contributions listed below.

The advice is CAREFULLY map out your retirement "Care Costs" in this I include Health, Dental, Vision, Pharmacy and Long Term Care Insurance.

Sticker shock will result.

WW


NOTE:
Gross = Sum of Salary
Disposable = Gross - 401/403/Credit Union IRA/Mandatory Pension Contribution

 

[odanny]

I'm in spend mode, my long term financial goal is to die broke.

 

[iamwhatiseem]

Word of advice.

We also have alternative revenue streams such that our income will go down by 28% (Gross) but an increase by 45% for Disposable. Disposable in retirement is higher because we will stop making contributions listed below.

The advice is CAREFULLY map out your retirement "Care Costs" in this I include Health, Dental, Vision, Pharmacy and Long Term Care Insurance.

Sticker shock will result.

WW


NOTE:
Gross = Sum of Salary
Disposable = Gross - 401/403/Credit Union IRA/Mandatory Pension Contribution

One of the benefits we have is I worked for 26 years in the media industry and have a full pension from that. It was moved into a trust about a year ago. It's value if you figure the monthly benefit, and I live to an expected age of around 90 with my family background - comes to approx. $800,000. So in other words it would be the equivalent of having that much in a 401k. With that and SS, our income reduction is only about 15% less than now. However, we will have no house payment. So adding that back in, we will have more money to keep then than now.
Health costs will be higher. but not to the same as house and car payments, which by plan we won't have then either.

 

[MarathonMike]

I am retired and have more money now than I actually need to live. I would advise not sacrificing too much to save for retirement. Enjoy life….. when you die you will remember the experiences you had not the stuff you owned.

I'm in the same situation you are in, but I would say this advice is potentially dangerous. You already have a younger generation that seems focused on experiences and work-life balance. I would at least re-word it to say something like "fight for every dollar but don't sacrifice the big life experiences." One example: do you really need to start your day with a 6 dollar Starbucks?

 

[toobfreak]

What financial advice would you give your younger self?​

Buy fewer Cohibas and Davidoffs.

 

[odanny]

One example: do you really need to start your day with a 6 dollar Starbucks?

No one needs to start their day with that, but let's remember that is not sending anyone to the poor house, nor is it derailing their long term savings goals.

One could just as easily reprogram their mind to making this their one "splurge' option of their day, cutting out other wasteful spending. Poor Starbucks should be attacked for selling those frappe/latte's loaded with a crazy amount of sugar.