Money tips...

[mizanation]

anyone have any money tips?

here are a few that have helped me...

* create a company of which you have sole ownership. preferably an LLC, depending on your situation. (this only helps you if you do work outside your regular job or are self-employed).

* get a good accountant. not an expensive one, a good one.

* completely separate personal money from business money (different bank accounts, no transferring between accounts).

* expense as many business expenses as you can legally--ask your accountant for non-obvious expenses.

* for at least a few months, keep track of every single dollar you spend. you will find that you are wasting more money than you think. cut down on wasted money. do this from time to time to streamline your spending.

* start making passive income, even if it's a small amount of money a month. gradually add more passive sources of income. before you know it, you'll have a steady stream of money coming in that you don't have to work hard for.

* bring a lunch to work. you'll be spending 3 bucks a day instead of 10.

* drink at your friend's bar. even if you tip 'em a lot, it'll still cost less than paying full price.

* don't pay for anything that you can barter for with your skills. for instance, instead of paying a hair stylist for cuts, make a website for her and get free service. you'll get the experience of making a website, free cuts and plenty of work referrals. just an example, but you get the idea.


would like to hear anyone else's tips!

 

[skalogre]

Automate as many bill-payment instances as possible. Cannot forget to do something if it is done for you automatically. Use some sort of software that can download transactions off your financial institution's site. That means you can have off-line access to your transactions in an emergency. Any sort of important financial documents you have should be somewhere safe, like in a fire-marsupialant safe. Extra bonus tips if you scan and store them in electronic format somewhere secure, preferably in a different physical location from your paper originals. ALWAYS have some percentage of your income going towards some sort of savings account. Ideally, you should have an emergency fund and a long-term savings fund. Preferably something FDIC insured (NOT a money market account or such rubbish). Regarding above point and the first I mentioned, if you use direct deposit from your employer (which I highly recommend btw) have it where the DD is portioned between your general use account and your savings account by your employer. Makes it easier to budget and you can also, that way, resist the temptation to use the portion that was meant for your savings. P.s. not a financial consultant, just work close to that industry

 

[flylot74]

Pay yourself first! Save, and do it now! Even 5% is better than nothing. The most powerfull force on earth is the phenomena of compound interest! Don't wait until it's to late to save for retirment. Do it NOW!

The stupidest thing I ever heard was someone telling my wife that she couldn't afford to save in her 401K! How can one afford not to?

 

[mizanation]

nice tips, ska. here are some more that your post reminded me of.

* max out your 401k for employer matching. this is effectively doubling your money.

* in addition to ska's tip about automating bill paying, use your bank's online checking as much as possible for non-automatic bills. it keeps a record of all your checks online for you, which is easier and less error/disaster prone than writing things down.

* be very careful who you lend money to. never lend money without having a signed contract. even still, be prepared to lose every dollar you lent.

* be careful who you start a business with. never share ownership of a company unless you absolutely have to.

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

 

[gamelan]

stop reading all clothing related fora at SF (esp. Buying and Selling...sorry sellers). it's probably obvious but there was a great study i read about where spenders influence others to spend and there's no better example of that than right here on the SF. proud to say that except for a recent Yoox order which i can still return, my clothing expenses since April 3rd have been the $11 i spent on a tie!

put money in 401(k) (esp. since our company announced a 100% match up to 15% of your salary!!!). once your money is there, invest it and don't leave it in a crappy money market account. use an index fund if you don't want to bother with it. and make sure that your contribution is automatically reinvested.

listen to my father for investing advice (CGMFX baby!!!). seriously, do your homework. could just be a lucky year but Heebner's got a decent track record.

pay off all credit card bills.

don't put stuff on credit unless:
-you can pay it off in a month
-it's a car (and this one people will debate)
-it's a home
-it's a medical expense
-you're trying to build a credit history

curb your alcohol expenses.

don't leave your money in a bank checking account that is probably earning 0%. i use emigrantdirect.com as a temp holding account.

i'm sure there are a slew of others...

-Jeff

 

[GQgeek]

Originally Posted by gamelan

stop reading all clothing related fora at SF (esp. Buying and Selling...sorry sellers). it's probably obvious but there was a great study i read about where spenders influence others to spend and there's no better example of that than right here on the SF.

Damned Portnoy... The Devil really does wear EG. 2 Pairs in 2 weeks a couple weeks ago.

 

[Edward Appleby]

Originally Posted by gamelan

stop reading all clothing related fora at SF (esp. Buying and Selling...sorry sellers). it's probably obvious but there was a great study i read about where spenders influence others to spend and there's no better example of that than right here on the SF. proud to say that except for a recent Yoox order which i can still return, my clothing expenses since April 3rd have been the $11 i spent on a tie!


It's arguable, though, that you could get a lot more enjoyment out of a handmade shirt today than out of an extra day or two of retirement when you barely have any idea of what's going on...

 

[brimley]

Anybody else use Yodlee? I'm a big fan. Very slick online account management.

 

[EL72]

Limit your spending on hookers and booze to 10% of your net income.

 

[HomerJ]

Don't lend money to friends or family.

If you're buddy is short $10 that's not what I'm talking about.

 

[Piobaire]

Originally Posted by mizanation

* bring a lunch to work. you'll be spending 3 bucks a day instead of 10.


Be high enough up the org chart that you either have an expense account for paying for lunch or the company kitchen/cafeteria does not charge you. You'll go from spending three bucks a day to enjoying good lunches for free.

Originally Posted by mizanation

* drink at your friend's bar. even if you tip 'em a lot, it'll still cost less than paying full price.

Again, expense account. Or own or become partial owner in a bar. Not only will you pay much less, if you are an owner, the female wait staff is usually pretty easy to score on.


If you have a hobby, become an expert in it. Know when you see an arbitrage situation and capitalize off it.

 

[romafan]

Buy low, sell high.....

 

[Piobaire]

Plastics.

 

[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).

 

[metkirk]

Ramen