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A lot of people are against credit cards which is understandable. But I use them almost exclusively and pay them in full every month.
As long as I don't go over whatever I have in cash, these credit cards help me in building credit score as well as provide a layer of protection should some person or site try to over charge me later.
It's not for everyone, but it worked for me.
While not always too significant, many credit cards also offer points or cash back. I do the same as you (use my credit card for practically everything and always pay it off), and can use whatever points I get to make small mortgage prepayments, buy gift cards, etc.
This is what I do. I don’t use a debit card, but instead use a “credit condom” so that if someone steals my cc and uses it, I’m not liable. I also pay in full so I don’t have to carry cash and keep a healthy / active credit history.
My credit score is about as good as it can get, and I have no problems buying anything big ticket.
It's a tie between getting rid of my car and learning to stop "trading". Cars are just the worst in terms of finances, and you can save bank if you're able to move somewhere walkable. Only buy stocks you're happy to hold for five years or more. A good test is "if the price crashes, would I be excited to buy more?"
Coincidentally, having cars as a hobby has been the worst financial decision of my life lol.
Hobbies aren't supposed to be about whether they're a good financial consideration, they're about passion, self fulfillment and looking after yourself.
This is of course true, but sometimes what you're getting out of a hobby is not worth the resources you put in.
I think, at least for non-savvy people, that buying individual stocks is not a great idea anyway. If you’re investing to have long term capital gains something like the MSCI World ETF would probably be the better choice. If you invested in that specific index fund in 2016 you’d have doubled your money by now, even during this economic downturn. Sure, you can make more money in a shorter time day trading but that shit is damn near a full time job and more risky unless you heavily diversify your portfolio (which you should do anyway).
Another poster mentioned stocks of the company he works for. My company for example distributes a good amount of their yearly profits to their employees. Meaning that once a year you can choose between a couple hundred bucks one-time payout or get a bunch of company stocks for a heavily discounted price, but they’re trade-locked for two years. At the beginning of 2020 I chose the stock option and the shares got bought right at the beginning of the covid dip. When 2022 rolled around I had essentially quintupled my initial investment in the discounted stocks. So that’s another great tip, provided you company offers similar plans.
Counterpoint to company stock is, if the company has trouble, your stock is likely to plummet at the same time as you lose your job. Definitely go for discounted shares/options, but consider dumping them (ie, diversifying) as soon as you can.
Media piracy.
If I wanted to watch a show, I'd have to pay 80€/month, because every streaming site only has one or two seasons.
I'm just done with corporate greed, fuck big companies, piracy is a service problem.
I took a lower-paying job that I was more competent to do.
Due to lower stress levels, somehow I spend less money and my finances are way better. For the record we’re talking about making $110k then vs making $45k now.
My finances are in better shape. I have cognitive surplus at the end of the day, and I think maybe that’s translating to less escape-seeking.
Also, this year I made a new year’s resolution: I am going to have $5k in the bank, come hell or high water. I’ve lived my whole life without a buffer and life without a buffer sucks so hard.
Just having that goal — $5k in the bank — has changed my whole relationship to money. I haven’t even hit the $5k. I’m at $3k and even that feels amazing. It doesn’t matter if my paycheck is late. I can just pay my rent. Moving into a new apartment and the agent was like “are you prepared to pay a deposit and first month today?” and I was like “yup”.
In the past I’d always answer like “Well my next paycheck is on such and such date and can I maybe pay you half then, then the other half two weeks after that?” I was always relying on the flexibility and mercy of financial gatekeepers.
I’m amazed how such a small amount of money (compared to the total flow) being held onto has changed my perception of myself. I feel like a “legit” person now. I feel like a stakeholder in society. I feel like an adult, instead of a boy in a man’s body. I don’t even know when my paydays are any more.
And my income didn’t really increase between the time I had no buffer and the time I did. I just made the resolution, and then started putting money away.
I think your experience that your finances are better on $45k than $110k is quite mysterious and could do with some further elucidation
Leaving my wife, She destroyed my credit and finances.In less then 2 years I have fixed both.
I have two:
I did both decades ago, now I am set to retire early without worrying about paying big college bills for the kids
Multigenerational living, on a farm. Most everything we eat or use comes from our property, our neighbors, or my husbands family’s property.
I’m very well cognizant this is not an option for a lot of people, and I know how lucky I am to not have to spend money on bills most people have… it’s a big reason why I try to pay it forward in many ways, as often as I can.
That said, I grew up in abject poverty… so I’m playing catch up, even now.
Such is reality.
Consistently investing in mutual funds for last 7 years (Systematic Investment Plan)
Bonus: not caring about what others think of my clothes, car, jewellery or gadgets.
not caring about what others think of my clothes, car, jewellery or gadgets.
That really goes a long way.
Selling my car and getting an ebike. First few months were rough because I was used to having a car all the time for twenty years. The gas, insurance, registration and maintenance savings add up quick. My wife and I share a car, but I rarely drive it as I've gotten so used to the ebike now. We live in the suburbs, but are close to the light rail train line and bike paths so it made it relatively easy. Over the course of a year we'd typically spend $4000-$5000 on the second car so not having that is a lot of extra money
Buying some bitcoin when it was around 300 euros. A couple of years ago I needed surgery that wasn't available in my country so the national insurance only covered it around 50% in another country and that bitcoin basically saved my life.
Buying shares in a company I work at when it started up. I've had a 500% return in dividends over 7 years so far.
Putting all the money and labor into one horse is generally not a good financial advice. Glad it worked out for you.
Not owning a car is probably the single most significant saving most people can make, a moped/e-bike will pay itself off within the year from gas costs alone, and public transport in europe at least is usually slightly less than that for a year ticket.
I wish it was possible not to own a car in the US. But our infrastructure is built so poorly that it is actually impossible.
Am a devops engineer. Started working in my home country (in Europe) making 1.2k€ a month. It wasn't the money I wanted, so last year changed my linkedin location to the Netherlands. Offers just poured in. Now I make 4k (liquid) a month being a JUNIOR devops engineer. Insane how just changing linkedin locations changed my life so much
Very simply: consistent budgeting. We (my wife and I) go envelope-style and budget/plan or money every paycheck. I swear it's magic that turns money into more money.
It's also let us systematically pay off all our non-mortgage debt and save/invest a large amount over the last decade. Now we have enough that we don't worry about money anymore.
The single most important thing I've ever done for my finances was learning to budget so I could have a plan and manage my money on purpose.
I bought a little town house 12 years ago. I didn't really want to. My wife talked me into it. I was worried that I'd never pay it off. With the cost of housing now I couldn't possibly afford to buy. I have a house, and a nice nest egg for retirement one day. Thanks wife!
A $2300 Toyota three years ago. It’s probably saved me about 15K in car payments. It’s old and ugly but I’m so much further ahead because of it.
I'd strongly recommend you continuing to make a "car payment" to yourself.
I bought an electric car.
Now when I drive by the gas station I couldn't care less how much gas costs!
I've never tasted such freedom.
Living in place with incredibly cheap and accessible public transport (365€/ year for the whole city; 1090€/year for the whole country), while not owning a car.
Put at least 10% (including match) of your salary in my low load market index 401k.
Start with your first job. You will never miss it.
“The best time to plant a tree is 30 years ago. The second best time is now.”
Stop trying to beat the market. Invest in a cheap global index fund and just keep buying.
I dumped most of my life savings into buying stocks after COVID happened. I had just started investing and took a massive hit in March of 2020. Rather than pulling my money, I waited a month for the market to stop falling. Then I put a lot of money into US oil, and a few Casino/resort stocks.
I didn't have a ton of money, but those investments have more than doubled. I still can't fully pay of my house, but im getting close.
I went for a 5 year mortgage rather than a 2 year at my last renewal. With how much rates have increased by recently, I think this will have saved me about £15k by the end of the 5 years.
Become self-employed with a practice. Reliable income that depends on how much work I’m willing to put in and no one can fire me.
The only caveat being… if I get seriously ill, there’s nobody to cover me unless I’m willing to pay someone a small fortune.
Definitely the house we bought. Bought just before COVID. There was a bloody ton of houses on the market. Got my house for 70,000 under asking with them paying for half the cost of a new roof(inspector said it was fine for a few more years but we tossed it in to see if they'd bite).
Haven't done anything to the house other than paint and the new roof, we stand to profit well over 100,000 now. Considering, we're potentially moving to the city I grew up in to raise a few tykes, it will come in handy.
Learning about FIRE -> investing in ETFs.
I was counseled about finances three times in my life and two times I lost money in the low thousands because they sold me ok things way too expensive.
One time the financial counseling was sound, but the house was crap and I lost thousands for that.
Luckily I was always budgeting, so these things never ruined me.
The best advice I have, don’t trust your financial advisors, particularly those who emphasize the importance of trust.
Take the time to understand what you are investing in and the cost structure. This can take months and don’t let yourself get pressured. Do not trust the advisor! Be skeptical and ask all the questions. If they get impatient they have nothing good to sell and rely on the customers inexperience. Very similar things are sold for vastly different prices, and you need to understand that. Particularly for security the cost can easily ruin an otherwise good product.
I buy my rolling papers in bulk, boxes of 24. Each pack costs around £1 instead of £2. I get those Connoisseur Packs with the included roach cards. Saves me a lot of money, as I do smoke a lot of spliffs if I'm honest.
another genius revelation from jaden smith
Bought a house near the ocean in California. Simply unfair what the returns have been compared to elsewhere. I’m benefiting from a crisis.
