Money tips...

[mizanation]

Originally Posted by Piobaire

You'll go from spending three bucks a day to enjoying good lunches for free.

there's no such thing as a free lunch...

 

[Augusto86]

When does it stop being acceptable to live from paycheck to paycheck?

I'm 21 and have a year of university left, and I rarely have more than $500 in the bank, with usually $100 or so due in bills/debts at the end of the month?

I work two jobs, but I'm not building savings. I figure this is OK since it's hard to save much on ~$150/week. Am I way off base?

 

[dkzzzz]

Read SEC filings and invest in stocks that Warren Buffet buys.
If you like Purple Lable clothing -buy RL stock.
If your county goes to war buy defence industry stocks.
If oil prices jump buy oil stocks.
If you heard of Mastercard or Visa IPO, prepare to buy their stock.
If you think Ipod is cool buy Apple stock.
If you see every idiot painting his walls red and orange invest in paint manufacturer.
And it goes on and on.

 

[Piobaire]

Originally Posted by mizanation

there's no such thing as a free lunch...

LOL, good point. Okay, you'll be enjoying lunch that someone else pays for then

 

[mizanation]

haha, yeah.

i was thinking that sometimes the cost of making it to the upper ends of the org chart are not worth it for an expensed lunch. also, at the upper ends of the org chart, i'm probably not worried about the cost of a lunch--more like the cost of yachts and mansions... of course, my org chart has a pretty high ceiling.

but you're right on exploiting the perks of business expenses:

* if possible, take advantage of business travel for vacations. if your company has an office in a remote area, create a reason for you to go there. basically, you'll get a business class flight, stay at a four star hotel and have free food, cab rides and entertainment--all for free.

 

[romafan]

Originally Posted by Thomas

Not directly related but...

Learn to turn your own wrenches. If you've got car maintenance/repairs, or home maintenance/repairs, doing it yourself can save a bundle and some serious heartache. Especially, do your own tune-ups (and don't skimp on mileage or materials). It all boils down to protecting your investment(s).

This can cut both ways. If you really don't know what you're doing (despite best efforts to the contrary) you can end up costing yourself a bundle and some serious heartache in terms of time & $ by trying to be mr. fixit. If you're not mechanically inclined, leave it to the pros & find someone good who you can trust.

 

[Thomas]

Originally Posted by romafan

This can cut both ways. If you really don't know what you're doing (despite best efforts to the contrary) you can end up costing yourself a bundle and some serious heartache in terms of time & $ by trying to be mr. fixit. If you're not mechanically inclined, leave it to the pros & find someone good who you can trust.

That is true, and perhaps I should have included this gem:

Originally Posted by mizanation

* keep in touch with old friends and associates. remind yourself to call or email them at least every month or so.

One of my neighbors is a mechanic by trade. I help him with carpentry projects/computer issues, and keep good bourbon at the house, and he bails me out of sticky car situations. Not that I've had many, but he specializes in car A/C systems and that is incredibly nice help to have at hand.

 

[Quirk]

Originally Posted by skalogre

Automate as many bill-payment instances as possible. Cannot forget to do something if it is done for you automatically.
But at the same time, be sure to look at your billing statements and bank statements each month to confront the reality that you are spending real income. I've used automated bill pay for years, and it's fantastic, but when you're not forced to reconcile your checkbook ledger a few times a month, it's also dangerously easy to live in the illusion that you have barely any expenses at all,and can end up spending too much of your (non-invested) disposable income.

 

[skalogre]

Originally Posted by Quirk

But at the same time, be sure to look at your billing statements and bank statements each month to confront the reality that you are spending real income. I've used automated bill pay for years, and it's fantastic, but when you're not forced to reconcile your checkbook ledger a few times a month, it's also dangerously easy to live in the illusion that you have barely any expenses at all,and can end up spending too much of your (non-invested) disposable income.

That is where off-line software like Quicken, Gnucash etc can be useful. Allows you to monitor income and expenses and watch your balance sheet.

+1 for Yodlee btw, incredibly useful.

 

[mizanation]

about turning your own wrenches... some things i'm very glad to know. i spent some time doing construction and i've been able to take low-cost but unliveable apartments and turn them into nice places with my skills and experience.

with cars, though, unless you have a very old car, knowing basic mechanic skills won't save you money--unless it's something simple like changing the oil or air filter. these days, cars are so hard to self-service that it's better and cheaper leaving it to a pro.

on the other hand, knowing about the procedures involved will make sure you won't get screwed by a pro. if you ever do use a contractor for repairs or something, having experience will keep them from overcharging you or feeding you some b.s.

sometimes learning a skill is fun. take cooking. it can be very useful, can help you save money and can impress a girl. it's a fun skill to have, so definitely do it. knowing how to cook will help you understand restaurant food better. it will also show you that you can make restaurant quality food for a fraction of the price:

* learn how to cook.

 

[Ace Rimmer]

If one is just getting started, read a copy of George Clason's "The Richest Man in Babylon". I really wish I had found this book when I was 16 instead of 26.

Also, if one is savvy enough and is willing to take the risk, never accelerate payments on tax-advantaged debt (e.g. home mortgage); investing the difference will make you richer in the long run.

 

[Connemara]

Originally Posted by Augusto86

When does it stop being acceptable to live from paycheck to paycheck? I'm 21 and have a year of university left, and I rarely have more than $500 in the bank, with usually $100 or so due in bills/debts at the end of the month? I work two jobs, but I'm not building savings. I figure this is OK since it's hard to save much on ~$150/week. Am I way off base?
At 19, I feel rich when I have $500 in my checking. I probably have about $200 right now. I have no money to save either. I'm sort of relying on my stock holdings/mutual funds at this point in my life.

 

[JBZ]

Originally Posted by mizanation

* create a corporation of which you have sole ownership. preferably an LLC, depending on your situation.


I'm no financial expert, but I'm not sure what the point of doing this is, in and of itself.

Also, corporations and LLC's (limited liability companies) are different legal entities.

 

[mizanation]

Originally Posted by JBZ

I'm no financial expert, but I'm not sure what the point of doing this is, in and of itself.

Also, corporations and LLC's (limited liability companies) are different legal entities.

it's not useful unless you do freelance work, real estate investing, or some other kind of outside the job work.

i meant "form a company," not a corporation. i will edit this in the original post.

 

[JBZ]

Originally Posted by mizanation

it's not useful unless you do freelance work, real estate investing, or some other kind of outside the job work.

i meant "form a company," not a corporation. i will edit this in the original post.

Ah, makes sense now. Sorry about being so pedantic, but I get paid to be.