It's just basic math, if you if you save and invest $500 every month it will compound into an INSANELY high amount, it just takes savings and discipline.
Serious Advice to Minimum Wage Cels who are trying to Make Something of Themselves
I actually own my house, but in theory this isn’t terrible advice.
Not a fan of beans, and I need meat, but I may start eating more rice.
I don’t shower too often, I suppose I’ll take them quicker and somewhat cool.
True, booze eats up money fast, milk is kinda expensive too, that needs to be more rare for me.
Yeah I don’t got a gym membership.
And since 2008, Bitcoin and Rockstar stock went up 20,000%. I'd much rather own these assets that yield me a ton.
Index Funds, buddy, diversify against bankruptcy. The S&P500 only goes up long run.
Houses can fall apart of a neighborhood can be destroyed.... but the S&P500 only goes up overtime.
I save way more than that, and you know what?
It doesn't work like that at all.
Landlord decides to increase rent? Too bad. It will eat into my savings until I can find another place. Found another place? Too bad I have to put a huge deposit that I'll never see again + costs of moving etc.
I get sick? Too bad. A 15 min Dr. Appointment + medicines costs me 2 months of savings.
Got scammed by a bank? Too bad. Lawyer's fees are like 1 year savings. I won the suit 5 years later? Good for me, I guess. I get the lawyer's fees back... not corrected for the 5 years inflation, which is like 70%.
Got laid off? Too bad. I'll have to live off my savings until I find another plantation.
And so on.
Did your parents build their company with savings from not using soap? Or did they get millions in credit from their well-connected friends? Asking for a friend.
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You don’t own your own place yet at 38?
Worked for me and my family
Ok and, what about pay increases (raises), what about getting new jobs that pay more, etc... they offset all this.
Never had these issues personally, i just work and do my job.
They saved wealth through generations, bought stock in Berkshire Hathaway, and let it compound.
OK. Your family is a case of inheritance + luck, like many others. That's cool.
I ponder...
were your parents to buy stock on ENRON or on Madoff's funds where would you all be right now? Saving money on shampoo to try an buy BRK.A? How many OLYMPIC POOLS of shampoo does it cost to buy a single bloc of BRK.A?
Roommates and rentals, lol. Have fun with that . Nothing but a nightmare.
That's why they saved up buying DIVERSIFIED assets not individual stocks that would go bankrupt.
If you earn 30k a year, and you save 5k a year, you can compound that quite heavily over your life. As you save the money, you can use that to buy cash-flows that generate you even more money.
You know how people end up in a debt spiral where the interest keeps compounding until they're drowning in debt? It's exactly that, but in reverse.
LOL, you'd slash your nuts off for that.
I'd rather experience eternal torture than be a property owner and live alone.
It's exactly the same thing, except the credit card interest is 550% a year, while the best investment for non-millionaires pays barely 1% above inflation.
I'd only have to save for 1000 years to match the one bad year I had to go into debt.
My first 5 years of savings were gone in a couple months when I got laid-off, evicted and had to relocate and buy new furniture, appliances etc.
The next 5 years were wiped off by COVID.
The next 1 year of savings were wiped out by illness.
That's 11 years right there.
How is that compounding working for me? Not at all. Were I rich, these events would barely make a dent on my monthly budget. Since I'm poor, ANY hiccup wipes out years of savings.
It's a matter of simple math. If you earn 1000x the cost of living, and saves/reinvests 900x the cost of living, spending a few months with doubled expenses and saving only 899x the cost of living won't break you.
But if it takes a wageslave such as myself 6 years to save 1 year of the cost of living, a couple months with double expenses wipes off an entire year of savings. And a personal crisis such as a layoff wipes several years of savings.
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It’s rough out there on a cel….
Return on investment is higher than interest rate on debt.
You could literally just borrow money and buy Berkshire stock, and you'd be better off and make money.
That's because inflation erodes the value of your debt. Your REAL INTEREST rate is the nominal interest rate - inflation.
OK.
Would you lend me 600k below inflation to buy a bloc of BRK.A? I'm all for business! Let's do business!!!
J
I’m from Canada too
No because i'd rather just buy BRK myself.
Q.E.D.
Because debt has a lower return than equities.
Could I? Would you lend me?
Oh, my bad. I wonder what went wrong with my entrepreneurial skills?
Who would've guessed?
I wonder how much soap must I save to buy a bloc of BRK now.
No but im not the FED so i can't print money, banks can borrow from the FED for cheap and will loan out for cheap because it's only for that reason they can borrow money, but sure buddy sure,
Of course banks have infinite money.
The question is: will they lend any to a wageslave?
Do you REALLY think I, a wageslave, can call my manager tomorrow and ask him for free money to buy BRK? Well.... I could ask, but he'd just laugh at my face.
Dude just pray you never go broke... because you have no concept of what life is really like down here. No concept. At all. It's funny and sad. Your posts seem like trolling, but I do believe it could be sincere.... some people are disconnected. And that's OK.
I don't know how to be a huntER-gatherER, so I pray I never need to. Likewise, you should also pray you never cease to collect your rents.
BRK.B is good at any price now. I’d wait tho because markets are wicked high. I only profit 50$ in last two days. Cashed out waiting for big dip.
Buffett locked-in at 15% guaranteed profits at many companies needed funding. I can’t afford Class A shares.
Buffett locked-in at 15% guaranteed profits at many companies needed funding. I can’t afford Class A shares.
Yeah, it's no different to gambling then.
That doesn't happen here in the UK. And if it does happen it's a much slower process. People moving into an area = increased demand = increased price, generally. Also, I'm not talking about buying one house lol. I'm talking about buying 30 houses in different areas.
Buying a house is no different from gambling, in fact it's a far worse gamble.
you can do that with stocks, buy 30 different stocks in different sectors, basically INDEX your portfolio.
How so? I bought my house and it didn’t feel like a gamble. Only reason I’m not on the street.
It isn't a gamble because demand for housing is inelastic. Unlike for every product you'd be investing in.
I wonder how old you are? I'm 26. I also wasted 12 years
The population is growing. Even if at a slower rate, it's still growing. People will always need somewhere to live. Buy house, rent it out. Give me evidence that buying real-estate is a gamble...
Even that is risky... good idea, but still not without it's risks
Because you're borrowing a massive sum of money to buy an asset that could tank.
I don't own a house, I rent, and im fine.
The population in the U.S grew through 2007-2009... housing prices still TANKED. Growing population does not mean house value will go up.
You diversify your risk away by buying index funds.
Buying stock in electrical utilities, railroad transportation, and the Military-Industrial Complex... those are all inelastic.
Your reasoning is faulty.
You need to look at the long run. Stocks also TANKED in 2008 and 2020... where are many of these tech stocks now? Same with real-estate. You should have bought houses in 2008! Also: Europe's market and real estate prices have grown dramatically from the early 1990s to 2020... much more than North America... house prices are much higher now than they were 10-20 years ago. That's an indisputable fact. I wonder if you can give me evidence that real-estate prices are lower than 5, 10, 15, 20 years ago, anywhere.
‘It has never been like this’: US house price spiral worries policymakers
FT Series: Pandemic-fuelled boom boosts smaller urban areas but revives affordability concerns
Better: ETFs (passive managed index funds have often outperformed classic index funds). Or like you said, 20-30 different stocks diversified across sectors and countries
... just as the stock market will go up and down...
Europe:
Housing in Europe - Evolution of house prices and rents
Looking at the trend of house prices between 2010 and 2020, there has been a steady upwards trend since 2013 with particularly large increases between 2015 and 2020.
The S&P500 has gone up far more than that in the same period, and if you look at the NASDAQ, it's even higher. Don't buy a house, buy NASDAQ.
That's exactly what an index fund is.... it's an ETF that tracks the S&P or NASDAQ‘It has never been like this’: US house price spiral worries policymakers
FT Series: Pandemic-fuelled boom boosts smaller urban areas but revives affordability concernswww.ft.com
Better: ETFs (passive managed index funds have often outperformed classic index funds). Or like you said, 20-30 different stocks diversified across sectors and countries
True. But I'd argue, if you can afford it, real-estate will have beaten holding cash in the area till 2021.
yes sorry, I thought you were talking about about actively managed funds
Nah, because the companies that are used for those can fail or lose their contracts just like any other company. Can also be nationalised.
Better than houses. An area can deplete in population, if it becomes crime infested, property goes down. Land can also be taken from the government. Governments can nationalize land and property.
This doesn't happen here in the UK. The country is too small, land is too precious. A decent neighbourhood doesn't become an estate in 20 years lol.
Not really. Plus, neoliberalism isn't going away. The idea that radically left wing governments are going to get elected in the UK is outlandish. Or in Canada, as far as I can tell.
That could be said about the FTSE 100, those companies aren't going away, they're only going to get bigger and richer with more people lol.
Ok, so why talk about utilities being nationalized.
Good advice, here is advice from former wagie current tradefag, done pressbreak operating, factory floor assembly, janitor, I spend a summer scrubbing toilets and helping old hags with maintenance at a bathhouse, driven forklift and wheelloader and truck and currently repair and install heating pumps commercially.
There is truly, only 1 thing if you are a lazy socially handicapped probably in the lower 100 IQ like me and most other people here working minimum wage and that is a tradecourse, anything longer then 12-14 months and the inkwell brain is bound to be burned out due to lack of long term self motivation skills and social connections.
I wholeheartedly recommend trucking, it got me out of hell into slightly less hell, I only recommend what I guess americans call HVAC but isn't grouped together in my country specifically ventilation and heating pumps if you want something less braindead and that makes you less fat / stressed in the long term but trucking is easy work and great pay, but you will have days you can barely stop to take a shit, many days in a row you get up 3:30 and come home 18:30 or later sometimes illegally because the job needs to be done no matter what the contract and worker rights says, I still think driving a forklift is the best pay per effort job in the world though especially weekends and nights.
There is truly, only 1 thing if you are a lazy socially handicapped probably in the lower 100 IQ like me and most other people here working minimum wage and that is a tradecourse, anything longer then 12-14 months and the inkwell brain is bound to be burned out due to lack of long term self motivation skills and social connections.
I wholeheartedly recommend trucking, it got me out of hell into slightly less hell, I only recommend what I guess americans call HVAC but isn't grouped together in my country specifically ventilation and heating pumps if you want something less braindead and that makes you less fat / stressed in the long term but trucking is easy work and great pay, but you will have days you can barely stop to take a shit, many days in a row you get up 3:30 and come home 18:30 or later sometimes illegally because the job needs to be done no matter what the contract and worker rights says, I still think driving a forklift is the best pay per effort job in the world though especially weekends and nights.
Is that true though? https://www.theguardian.com/business/2015/feb/25/ftse-100-companies-1999-2015
Well, they can be. Here in the UK there's talk of the railways being nationalised because the company running them atm is doing such a bad job. And it's something a neoliberal party might do.
Maybe stocks have some merit as well, but, IMO, property is most reliable. I'd also look at investing in a big Premier League football team. The value of the PL is exploding year on year due to globalisation. So long as the team isn't going to be relegated, it's guaranteed profit. Even the sugar daddies who spunk billions end up selling the club at a huge profit. The Glazers have run Man U into the ground for 20 years but are still looking to sell it for £4-6 billion, after buying it for around £800mil 20 years ago, all the while sucking out huge dividends.
You realize that only proves my points, other companies got bigger and more powerful and that boosted the index.
This is retarded how much do you think you can save up on one year?
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