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  1. #21
    Senior Member Azure Nomad's Avatar
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    Re: Financial Independence..! How do you plan it?

    Quote Originally Posted by Unboxxed View Post
    I read an article this week in my hometown newspaper (USA) about the psychology behind why people rent-to-own when they know they are paying much more than if they saved up the money first.

    In the article was this surprising statement:



    Forty-four percent. Doesn't that blow your mind? It does mine.

    Are you part of that 44 percent? If you are, I want you to work on that, buddy!

    If you live outside of the USA, are you in that same situation? If you are, I want you to work on it, too!
    I am not part of the 44% as it has been many years now that have had savings far surpassing the measly $400. But the next hurdle I am trying to clear is saving expenses for a year. I am close to turning that corner by paying down debt and I am using the snowball method which actually does work if you stick to a strict budget plan.

    As others have said making money is part of the equation but often times that is limited to what work you can find. However, saving money is a full time job all the time.

  2. #22
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    Re: Financial Independence..! How do you plan it?

    I use YNAB, but any budgeting tool, can help you get a realistic outlook on your financial status. What if you kept the same outflows but received no inflows for, say, 6 months?

  3. #23
    Senior Member MGTOWFOREVER's Avatar
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    Re: Financial Independence..! How do you plan it?

    Get Rid of all bullshit expenses! That case of beer and bottle of vodka every Friday? Bye Bye! Those 8$ every day pack of smokes? Fuck off! Eating out? Time to prepare food at home thats healthier and way cheaper. I am not saying to completely deprive yourself of things you like/love but you'll need to get rid of them in time. I quit drinking and smoking. It's only been a few days but I noticed I already saved over $50! Also buy things cheap or used. I buy almost everything from household items like silverware to clothes to electronics used. Why pay more for something just because it comes in a box you are going to throw out anyway? But at the end of the week.....Treat yourself. Go out and have some wings with beer.

  4. #24
    Senior Member MGTOWFOREVER's Avatar
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    Re: Financial Independence..! How do you plan it?

    I would like to add some advice to the above for my brothers.

    When you see a store that has a meat, vegetable, canned food or any good sale hit it up. The money you save from giving up un-needed expenses will pay off in this area. One of my local grocers has a meat sale twice a year and I always stock up. My freezer gets so full. Same with the vegetable sales. Spare ribs with a side salad , breaded chicken with mushrooms in Alfredo sauce, Pigs in the blanket, Chili, etc. All because you stocked up on meat and vegetables. Let the idiots think they are saving money by wasting $3 on two hot pockets that don't have any nutritional value and you will feel even more hungry in an hour. Always take care of your body my brothers.

  5. #25
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    Re: Financial Independence..! How do you plan it?

    Quote Originally Posted by genie View Post
    So.. We get a job. Our life goes normal. Wake up in the morning, come back home, watch TV and sleep. Wait for the Salary every month end. Boss might take an advantage as he know that you're dependent on monthly salary. If you loose the job, everything crashes to ground. How do you plan to be independent of all these? I want to know, how I can keep myself UP even though I hit the ground. I started studying Economics. Trying to understand investing. Not sure how it might pave a way for me. I want to take your suggestions.
    Buy some Crypto currencies, wait 5-10 years. You never know.

  6. #26

    Re: Financial Independence..! How do you plan it?

    Quote Originally Posted by genie View Post
    Thank you all for your valuable suggestions. All your suggestions are totally new and are some really basic steps to save money. Really wonderful..! I totally agree - Debts are not be carried on your back anytime. This is my first target as I'm neck deep($70,000 -- Lol..) in educational loan. However, saving money like Nomad suggested, increase savings by time is good way to preserve and stay in safe position. It's very true that just because we can afford t doesn't mean that we need it.

    When I reach home, I keep learning some courses and also I started studying investing(Very vast subject). That's pretty much I do. From all the suggestions I sure got very good picture on saving money progressively as the time passes and discipline on spending. Although I'm a foreigner to USA, assuming that I may stay longer(Not sure of my long term plans), is it good choice of taking a step further by investing on own house on mortgage? I know that'll eat away lot of monthly salary, but not sure how much advantage I can make on the house investment. I see many people buying homes on mortgage. I make 50k/yr and joined my job very recently. I want to cut down as much as I can on any expense so that I can repay my loan asap. Also, I'm allowed to have only one active source of income and any other income I may look into must be passive(Reason why I'm looking into investment)! Any suggestions on any other passive income sources are greatly helpful.
    I can tell your head is in the right place, you are going to be doing very well for yourself in a few years time, just keep doing what you're doing.

    Personally, I was about $175k in debt when I graduated about 2 years ago, with basically no savings. Fast forward to now, my debt is down to about $130 and I've accumulated savings and investments, I've basically increased my net worth by over $75k. Now my net worth is only a negative FIVE figure instead of SIX figure sum! I am still loaded down with debt, but on my current trajectory I will have my loans paid off within the next 3 years (before I turn 35) AND I will have some financial assets that are earning interest for me. Additionally, I will be able to retire around age 40, if I choose to.

    The first thing you want to do is start building your savings. A good rule of thumb is to figure out your monthly expenses, multiply your average monthly expenses by 6, and keep at least that much in your savings. This is your six month emergency fund. These funds won't be earning any interest, but they will protect you if you lose your job or have unexpected expenses come up, which they certainly will. You'll be able to hedge against future uncertainties by being prepared this way.

    Paying down debt should be a high priority. If you borrowed money to go to school, I'm guessing you are paying around 6-8% interest on your loan, which for you equates to roughly $5250 per year, give or take about a grand. That's a lot of cake! Getting your loan paid down will decrease your interest and eventually will make a noticeable improvement on your finances. It is up to you to find a good balance, but you should definitely be making some excess payments so you can minimize the amount of interest you pay. Here is a link you can use, play around with the numbers and see how much you can save:

    https://www.calculator.net/loan-calculator.html?

    Also, you can refinance you loans for a lower interest rate. I refinanced earlier this year and got my interest down from over 6% to 5.25%. That may not sound like a lot, but I am saving over $100 per month on interest now, and will save thousands over the course of my loan repayment period.

    Investing is something you should definitely start thinking about, but only after you've built up your savings and start to get caught up on your debt. I only started investing about six months ago. I invest in Vanguard 500 index funds. Vanguard is an investor owned company with very low fees (almost 0) which makes a huge difference, since those fees would cut into your ROI by about 1 or 2%. The best time to invest is when the market is DOWN. I invested right after a crash, and now after only six months my investments are worth almost 10% more than I paid for them, which is much better than the market average. But if you have the extra cash and can afford to keep putting money into the market, that's even better...but it's probably a good idea to take care of your debt first before you start investing that heavily.

    If you keep investing patiently over time, starting as early as you can, you can make multiple times what you put in, and eventually the interest your investments generate will be enough to retire on. The market average (going back over a hundred years) is pretty consistent, around 7% growth per year. If you are investing during a period of economic growth and prosperity, such as during the 90's, you can easily see double or even triple that growth on your investments. You can make a fortune doing that...I've known several people who made about a million dollars during the 90's through their investing activities.

    Last but not least, learn to manage your personal finances wisely and efficiently. I track all of my expenses in an excel spreadsheet, so I can see where all my money is going, and by doing that I've been able to cut waste and decrease my overall expenses by thousands per year. You might be surprised when you see where all your money is going! Learn to set a budget for yourself and stick to it, then you'll be able to extrapolate and plan for the future. As long as you are tracking your expenses somewhere and know where your money is going every month, you'll have a huge advantage.

    Overall, becoming successful and planning for your future is one of the most satisfying feeling there is. And of course by being MGTOW, you don't have to worry about a woman sucking hundreds of thousands of dollars from you through divorce, unwanted pregnancies, legal costs, career-killing false accusations, etc. Your success is virtually guaranteed. Just keep doing what you're doing, and enjoy being rich and free when you are older!

  7. #27
    Member May 7 2020's Avatar
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    Re: Financial Independence..! How do you plan it?

    fade to grey
    Last edited by May 7 2020; October 1, 2018 at 5:42 AM.
    We fade to grey.

  8. #28
    Senior Member ChauvinistPig's Avatar
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    Re: Financial Independence..! How do you plan it?

    Always live under your means. I used to be mocked by co-workers that made 1/4 of what I made for driving a pick-up truck worth new 1/4 of their pick-ups. A corporate acquisition came a' knockin. I was kicked out on my ass in the worst job market since the 1930s with a skinflint's wet dream for a severance package. I survived and still have my home.

    Many of them lost their jobs too, I'm sure I drive the better truck now the same old beater woman repeller.

    One word of caution. Just because you plan for something does not mean life will not ever throw you a curve ball. I was on track to be retired by 55 to 60. It was all planned out on spreadsheets with pretty charts and modest growth assumptions.

    I'll now work until I drop dead.
    Microsoft SUCKS! http://www.microsoftsucks.org/ They suck more than they've ever sucked before.

  9. #29
    Senior Member Azure Nomad's Avatar
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    Re: Financial Independence..! How do you plan it?

    Quote Originally Posted by ChauvinistPig View Post
    Always live under your means. I used to be mocked by co-workers that made 1/4 of what I made for driving a pick-up truck worth new 1/4 of their pick-ups. A corporate acquisition came a' knockin. I was kicked out on my ass in the worst job market since the 1930s with a skinflint's wet dream for a severance package. I survived and still have my home.

    Many of them lost their jobs too, I'm sure I drive the better truck now the same old beater woman repeller.

    One word of caution. Just because you plan for something does not mean life will not ever throw you a curve ball. I was on track to be retired by 55 to 60. It was all planned out on spreadsheets with pretty charts and modest growth assumptions.

    I'll now work until I drop dead.
    If you figure out a way to work casually instead of full time it is actually worthwhile to consider. It keeps your mind sharp and allows you to avoid situations where inflation jumps and shocks those that live only on retirement funds.

    My plan is to always be working throughout my life but on my terms and the hours I desire. Consistently saving, investing and making money to me makes sense as it builds up over a period of time.

    And you are spot on that you can't plan on things working out perfectly from a spreadsheet. Life throws curveballs and you have to adjust, because that is the world we live in. For example, I should have cleared my debt by now but a lot of things came up. Still, I am on track but using a different approach now which I hope will help me turn that financial corner.

  10. #30
    Senior Member FrostByte's Avatar
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    Re: Financial Independence..! How do you plan it?

    Dollar cost averaging over time has been my saving grace.

  11. #31
    Senior Member Azure Nomad's Avatar
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    Re: Financial Independence..! How do you plan it?

    Quote Originally Posted by MGTOWFOREVER View Post
    I would like to add some advice to the above for my brothers.

    When you see a store that has a meat, vegetable, canned food or any good sale hit it up. The money you save from giving up un-needed expenses will pay off in this area. One of my local grocers has a meat sale twice a year and I always stock up. My freezer gets so full. Same with the vegetable sales. Spare ribs with a side salad , breaded chicken with mushrooms in Alfredo sauce, Pigs in the blanket, Chili, etc. All because you stocked up on meat and vegetables. Let the idiots think they are saving money by wasting $3 on two hot pockets that don't have any nutritional value and you will feel even more hungry in an hour. Always take care of your body my brothers.
    Yeah hot pockets is a guilty pleasure but not good in any way. For $3 you can actually buy a large bag of rice at a local farmers market which is far more better and nutritious over the long haul. If stored properly rice can hold up for a long period of time to make a solid meal 2-3 times a week as a compliment to a main dish.

  12. #32

    Re: Financial Independence..! How do you plan it?

    Independence... hm. Solve the smaller problem by solving the greater. What you are actually asking in terms of financial independence is "how can I become fully selfsufficient in life?"
    The answer is simple: A rural life. Grow and prepare your own food, store for the winter. Sell your surplus. Use solar power along with batteries or wind turbines for electricity to minimize any power bill (or even sell green power back to the grid), and be unaffected if an outage hits. This has the added advantage that in a shit-hits-the-fan situation, you can bunker down. As long as the land provides for you, you need no more. My basic idea of financial independence is to sever as many ties to society as possible, even going so far as to recycle your own body waste and filter your own water. You'll still need to deal with paying taxes, and I know I'd want to retain internet connectivity.

    It's a variant of the "recluse" lifestyle, though not as extreme. I've considered going for that, but I'm not sure it's feasable where I live. Just too population dense. Alternatives may be possible through hydroponics and rainwater capture, reducing the amount of land you need to successfully pull this off. It's something I plan to look into further. A selfcontained home would be my ideal home.

  13. #33
    Senior Member Azure Nomad's Avatar
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    Re: Financial Independence..! How do you plan it?

    The planning aspect of financial independence anyone can do. But doing it is the harder part which is why starting small and letting it snow ball is far more easier. This is what works for me because I am often conflicted if I should commit X amount of dollars in investment A when I think the money would be better served in in investment B. But if you start small you can slowly build confidence to eventually go all in with an investment once you learn the nuances of what you are short term and long term goals are.

  14. #34
    Senior Member Puggsy's Avatar
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    Re: Financial Independence..! How do you plan it?

    Yeah, nothing much to add to the suggestions. In no particular order, save money, don't spend unnecessarily, clear debt and learn. Although not easy, there are more remote possibilities. The internet is a relatively new resource to make money; it holds vast resources to build yourself in a chosen endeavour in order to find a job or freelance in the gig economy. However, don't get lost in the vast array of possibilities, just pick something you enjoy, learn a high value skill or find the latest trend. Everyone starts out slowly, you've got to follow through and stick with your choice.

    I'm exceptionally lucky that I live with my parents and have paid off uni debts. I don't pay rent or pay for utilities but I've used these few years wisely to scrimp and save what I can, because I realise that this free-ride situation will not last forever. This can't be said for a large chunk of people I know at work; they're literally living from pay-cheque to pay-cheque.

    There is also an old (but still relevant) book called the "Richest Man in Babylon" by George Clason. You can get it for free on google in pdf format, or its super cheap at the kindle store. I discovered it from one of Jim Rohn's talks on YouTube. Very useful starting point on how to build wealth (I can't post the link but just type the book title and "free pdf" into google if interested).


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