10 Years of Personal Finance Advice in under 10 minutes

[jraycaen]

@seekeroftruth343 This is very basic advice. Guess it's a good reminder for those just starting out and who know absolutely nothing.

You're doing fine, let me preface, but I feel like you're barely even middle class. Middle class used to be wealthy enough to own a home or afford a mortgage. Seems like you're not quite at that level yet. I'm in a similar position. I'm 35M, married to 30F, and house feels just out of reach for us.

We saved $90k last year into a HYSA (on top of me maxing out my 401k and IRA...my wife put 50% into hers). We're planning to continue saving up and hopefully will jump on a house soon/when ready but even with saving that much money per year we would be cutting it close no doubt with monthly payments exceeding $6k. Guess we could get a condo/townhouse for cheaper but I'd like to go straight to house.

 

[goneguy]

@seekeroftruth343 Rich dad poor dad is literally garbage

 

[rhianne]

@seekeroftruth343

Put 100% of it into S&P 500 low cost index fund.

There's benefits of going broader both in the ability to increase returns and reduce volatility. Doing so can eliminate an uncompensated risk factor (single country).

 

[mrexpress]

@seekeroftruth343 Let's check back in with OP after he decides he wants to make more money as a Nurse Practitioner and takes out more student loans to do so.

RemindMe! 11 years

 

[tidius_cornelius]

@mrexpress NP school isn’t that expensive. Most can do it online in the side while working full time RN no problem. Doesn’t mean it’s a good education- but more common than not.

 

[mrexpress]

@tidius_cornelius Idk, from a few different sources it seems like a DNP from a BSN is like $40k-$70k.

It's not a $160k MBA from Booth, but it's not nothing for a job (NP) with a median salary of ~$110k.

 

[tidius_cornelius]

@mrexpress Youre right not insignificant amount of money but still not all that much to double your salary in two years while still being able to work full time as a RN. Not a rigorous degree. Most advance degrees wouldn’t allow you to do this because of the educational demand

 

[lommakiter]

@seekeroftruth343 Damn, some of you guys are brutal. At least this dude has a system and he seems quite proud of it. I think we can all agree that it’s obviously a system that works for him and probably only him with where he’s at in life. Of course he could do better and the recommendations are questionable to some, but anyone who takes his advice to heart is likely seeking help from the worse situation they’re in. The dude even said “take this all with a grain of salt”

 

[breathoffaith]

@lommakiter He also said "if you disagree, just ask who has more money?". What an arrogant and stupid thing to say.

 

[lommakiter]

@breathoffaith You’re so right. How arrogant. Shame on him for having the wrong point of view on reading material.

 

[breathoffaith]

@lommakiter That's not what is arrogant about the statement, it's the fact that it's phrased in an "I'm right, and anyone who disagrees is wrong".

He is more than entitled to his view.

 

[rhianne]

@lommakiter

At least this dude has a system and he seems quite proud of it.

A good amount of it, or better, can be found in the /r/personalfinance Prime Directive: https://reddit.com/r/personalfinance/w/commontopics and other wiki pages of that subreddit.

 

[dreat]

@seekeroftruth343 Pretty basic, but I am sure it feels great to be in your position after coming from poverty.

 

[cgood21]

@seekeroftruth343 Credit cards if you used in an effective responsible manner, are not bad. Please stop regurgitating this false information.

I use my credit card for every purchase with the exception of rent and utilities. And that’s only because the mgmt company I rent from won’t let me.

As long as you live within means(your budget) verify each purchase can be paid in full, and pay off the CC before interest has accrued, there is no downside.

Buying things on credit (and paying off your CC let’s say once weekly)
- Accumulates cash back rewards
- Gives you protection in the event of the need to chargeback
- Builds your credit

Again, I hear that “credit cards are bad!” All the time like they’re the boogie man. It’s a basic concept that can be used to your advantage.

I received a little over 1600 bucks last year of cash back on shit I was going to buy anyway. I paid $0 in interest and $0 in fees.

I had to do 2 chargebacks on purchases for vendor fraud and Discover facilitated the whole thing. My CC “money” was “refunded” (charge cancelled) within 2 business days.

I HIGHLY suggest you do your own vetting of info before subscribing to it yourself and furthermore, give other people advice.

 

[resjudicata]

@seekeroftruth343 This post changed my life, never heard wisdom on this scale before

 

[rkj]

@seekeroftruth343 You sound like a Ramsey cuck. And quite the cunt overall. You don't think the people who frequent "middleclassfinance" know this stuff? Lolol

 

[faustian]

@seekeroftruth343 This is incredible advice, thank you.

My favorite parts are maxing out your 401k, putting everything into the S&P 500, and driving a modest car. I love that you don't need to sweat the small stuff (like food) because you've taken care of the big things.

 

[wordjockey]

@seekeroftruth343 You should include “The Simple Path to Wealth” by JL Collins.

You should also know that, if you’re strategic about it, credit cards can be very useful and helpful financial tools.

 

[rhianne]

@wordjockey

You should include “The Simple Path to Wealth” by JL Collins

I'd ignore the part about ex-US from Collins though. It seems poorly supported. And it's ignore the "only Vanguard" view.

From memory, the rest was between decent and great though.

 

[wordjockey]

@rhianne I liked the general principle guidelines and especially the reasoning why (in layman terms) that Collins presented. I found it really helpful when I started getting more into financial literacy (his way of defining and explaining financial terms and how/why they work the way they do, etc. was easy to absorb with the language he uses).

Definitely don’t have to go full Vanguard (even he acknowledges this), though!