Managing money

[Aclion]

Never use credit cards, they are a huge drain on income.
If you have credit card debt, pay it off and cut up the cards. It is like earning 23 percent. And ignore the fake come-ons with low introductory rates.
Do not save money. When I started my law practice in 74 rates were great. Now they are pathetic.
Do invest in a diversified fund, one that accepts small regular contributions. We did well with Investors Diversified Services. Now I use American Funds.
Invest in learning, not stuff. Stuff depreciates but learning always has value,

Give to worthy causes. Your conscience is also a good investment.

This is good advice, with the caveat that having a credit card, and paying it off each month is an excellent way to build a good credit history, which helps a lot when buying a car, renting an apartment or getting a mortgage.

[Saiwania]

Income vs already outstanding debt. The more debt you already have, the less you can get additionally. Simple.

This doesn't protect lenders from a default as much as the case would be with credit scores. It is no wonder that more business is being done within the US than in other places, if the rules are all backwards overseas. If someone wants credit or a loan, it shouldn't be too hard for someone to use a secured card and build up enough credit to qualify for a regular card and so on, until their score is high enough to qualify for nearly everything within their income range.

[Pope Joan]

People who are fixated upon "becoming rich" become easy prey for specious "experts" who have their finger in the pie

Eschew credit cards, keep your debts low, get cash value life insurance (against which you can borrow)

Invest a little each month in a safe reliable managed mutual fund. I do not know if it is allowed to mention mine by name, but if you telegram me I will name it for you. Anecdotal evidence, of course

group plan health insurance

[Happsborough]

My financial literacy class has taught me some:

-Try not to borrow. Save up for things you want/need, and if you HAVE to borrow, make as large a down payment as possible and try to avoid long-term payment plans (i.e. 15 year mortgage rather than 30-year)
-Save and invest before you spend. Be sure to give as well- if you give, you shall receive.
-Make liberal use of compound interest, it can give you huge edge.
-Invest long-term. Short-term things are a bad idea and a great way to go broke.
-Always keep an emergency fund! It's very important to financial security.
-Don't blindly invest, get informed before making such important decisions.

[Jack Thomas Lang]

Really good advice Neu Leonstein. In fact, lowering your fees is probably the #1 way you can take control of your finances. It applies to banks, loans, superfunds, index funds, mortgages, etc. It's usually a sure fire way of saving money that would normally be spent on fees. The reality is, financial advisors and stockbrokers struggle to create returns that justify their fees.

The Barefoot Investor also proposes a very nifty little saving strategy that I like. Basically, 60% of your monthly payment goes to daily expenditures. 10% for 'splurge' (hobbies and whatnot), 10% for long-term saving and 20% for financial emergencies. Obviously, the numbers can be jiggled around a bit, but as a general rule of thumb its hard to go wrong. And $1,000 worth of savings in a completely separate high-interest bank account, which grows over time and acts as a sort of security.

Also, if you need professional advice, consider a government service rather than a private one. They're often free and reliable.

[Unstoppable Empire of Doom]

Pay down debt. All other advice in this thread is superfluous.

[Jack Thomas Lang]

Pay down debt. All other advice in this thread is superfluous.

No it's not, the fact that you think so exposes your ignorance.

Just ask retirees who struggle to pay for heating with their pensions and poorly-managed (more often than not, not managed at all) supers. They don't have debts, but they're not in an enviable position.

[Turbofolkia]

There's nothing inherently wrong with debt, as long as you can service it. Obviously I am not condoning people who live beyond their means. But for those who are capable of doing maths and are in control of their financial planning, debt is simply another instrument in managing your finances. It can even help you grow your finances if you know what you're doing.

[Saiwania]

There's nothing inherently wrong with debt, as long as you can service it. Obviously I am not condoning people who live beyond their means. But for those who are capable of doing maths and are in control of their financial planning, debt is simply another instrument in managing your finances. It can even help you grow your finances if you know what you're doing.

The problem with debt is that it can beget more debt, so its double sided- rather than only upside. People just aren't able to service debt like a government can because eventually people aren't willing to give them more money or loans unless its predatory in nature and will just set them back further. This credit based society bullshit is why Americans have too much credit card/student loan/other kinds of debt, the economy would be far healthier if we had Japan's propensity for savings and investment as one example.

Only after a recession it seems, is when Americans get serious about paying off debt. In boom times its only spend spend spend, even if its only enabled through borrowing with interest. Buying on margin was partially why there was a Great Depression to begin with. The US economy was too credit based and built on lies and false numbers.

[Turbofolkia]

There's nothing inherently wrong with debt, as long as you can service it. Obviously I am not condoning people who live beyond their means. But for those who are capable of doing maths and are in control of their financial planning, debt is simply another instrument in managing your finances. It can even help you grow your finances if you know what you're doing.

The problem with debt is that it can beget more debt, so its double sided- rather than only upside. People just aren't able to service debt like a government can because eventually people aren't willing to give them more money or loans unless its predatory in nature and will just set them back further. This credit based society bullshit is why Americans have too much credit card/student loan/other kinds of debt, the economy would be far healthier if we had Japan's propensity for savings and investment as one example. Only after a recession it seems, is when Americans get serious about paying off debt. In boom times its only spend spend spend.

I mean, yeah. At the end of the day, it is probably wiser to avoid debt altogether than try to dig yourself out of a debt mountain. But good debt does exist, but for that to exist, you need to know how to leverage your assets, manage your debt to income ratios, and find opportunities for above average returns on your capital. I know someone who amasses frequent flyer points because he pays his kids' school fees on his credit card and then immediately pays off the full balance.

Another example, taking out a mortgage. While you will probably be paying more each month than if you just rented, if you know what you are doing, you will eventually own the home or will have significant equity and monetary appreciation if you sell it.

I know things like payday loans are designed to exploit people who don't know better (and thought maths was stupid). I am not endorsing that kind of debt at all.

[Unstoppable Empire of Doom]

Pay down debt. All other advice in this thread is superfluous.

No it's not, the fact that you think so exposes your ignorance.

Just ask retirees who struggle to pay for heating with their pensions and poorly-managed (more often than not, not managed at all) supers. They don't have debts, but they're not in an enviable position.

Your ignorant self can tell that to an elderly person that doesn't even have a home to heat. Your debt typically comes at interest rates that far surpass the capital gains to be made in the sort of cautious investing that most can afford. Pay off debt first and use the money saved to invest. Not the other way around.

[Jack Thomas Lang]

Your ignorant self can tell that to an elderly person that doesn't even have a home to heat. Your debt typically comes at interest rates that far surpass the capital gains to be made in the sort of cautious investing that most can afford. Pay off debt first and use the money saved to invest. Not the other way around.

Paying off debt now to invest later is certainly not a hard and fast rule. Financial experts can often advise the opposite. Also, I find it intriguing that you've changed tack from pay debt (and everything else is superfluous), to pay debt and invest. Perhaps your claim that all other advice was superfluous was... wrong?

[The Blaatschapen]

Your ignorant self can tell that to an elderly person that doesn't even have a home to heat. Your debt typically comes at interest rates that far surpass the capital gains to be made in the sort of cautious investing that most can afford. Pay off debt first and use the money saved to invest. Not the other way around.

Paying off debt now to invest later is certainly not a hard and fast rule. Financial experts can often advise the opposite. Also, I find it intriguing that you've changed tack from pay debt (and everything else is superfluous), to pay debt and invest. Perhaps your claim that all other advice was superfluous was... wrong?

My study debt, for example, has certain rules applied to it. It's a fairly low interest rate, and the deadline to pay back is fixed. Though the amount I have to pay back is not. That is dependent on my income. I can pay back extra on it, voluntarily, but it just might happen that there will be 10 000 euro unpaid at the end, which I then just don't have to pay. So my current goal is to work less, and money I have left over at the end of the month, is not going to pay the debt, but rather it's being invested.

Perverse incentives of the system and I'm using them. The only downside is that it's harder to buy a house in NL. But I stopped living there, so I don't care

[Rojava Free State]

Here's an effective strategy. Be minimalistic.

If you get rich, don't buy a mansion or five cars. Matter of fact don't even tell anyone.
Keep your clothing limited to like maybe 10 shirts, 10 pants, 5 jackets and three hats and four shoes.
Don't go on vacation every damn month.
Bike to locations near your house. You wanna save some gas money