The real secret to wealth

>make 20k a year
>save half of what I make
>57k in bank

Not bad actually. You sound like a dedicated person. You'll make your way.

from the looks of it you're doing pretty well for a guy who's younger than 30. i've seen the attitude of college kids expecting 100k a year right off the bat as soon as they get into an engineering job or some shit like that. most people in general are kinda bad with finances, hence the student loan debt being around 1 trillion. but anyways, yeah, 50k is a pretty good salary if you actually take your money seriously.

Actually debt is one of the most powerful tools you can have, as long as you go in debt with low interest rates (considering you have a sizeable amount of cash and a good credit score this shoud be easy)

One tip i can give you is to never buy a house if you don't need it, it forces you to stay in 1 place and it is almost never worth it.

Be frugal, get a sizeable amount of cash, work yourself up to a good income, leverage those to invest and you wil be a millionaire by 35.

>as soon as they get into an engineering job or some shit like that
Ha.

>implying they can get jobs
I went to a pretty well-respected engineering school on the west coast, and out of ~100 graduates in my program (electrical engineering) I think about 60 had jobs at the time of graduation. I know of 3 who've been laid off in, literally, the 6 months since we graduated.

I don't think it's really hit the public consciousness yet, how truly fucked we are. I give it 2 years, tops, before shit starts to hit the fan.

I'm a designer, but it's not creative design or anything gay like that. It's a skill but I'm not formally trained in it and I work from home which is why I'm able to save a lot of money.

Let's put it this way. I have a very creative living situation.

Thanks senpai

I always felt like I was too smart to get a useless degree but too stupid to get a useful one, got kind of content with what I was doing and never finished school. I might go back and complete something though.

Well I plan on figuring out a good area to settle down in in the future and then looking for the house afterward depending on the economy and my finances.

Graphic designer here working from home as well. Left the stress from working at a horrible agency for a life of less money but more freedom.

Love it. Best of luck user!

How fucking autistic are you? You don't have to use technical terms and jargon every time you talk about something. It just makes you look fucking retarded. If you can't explain what investing is, you need to kill yourself

This.

The other guy must be some inner city hipster faggot to be making fun of a "girl from the midwest"

>debt is one of the most powerful tools you can have

Can you walk me through this line of thinking? When I look at my mortgage, I see a bill of $100k with a yearly 3.5% fee.

That 3.5% is higher than inflation and perhaps more than what I'd make in a mutual fund - plus it's annual so the less I pay today, the more I'll have to pay later.

Yes, 29 years and 11 months from now that payment will be a joke, but that's because I've paid for it in interest, right?

I can see your line of thinking if it's some business that's raking in money hand over fist and need a leg up to expand, but otherwise I don't get it.

He's just retarded.

If you use the debt to somehow make shitloads of money in the short run it might make sense. But there's always risk involved with that.

In terms of mortgage you are buying a house which, let's say is 125k, which in the long run you end up paying a lot more than just 125k for if you get a mortgage. That's how the bank profits off of you.

Thanks man, it just seems like a liability.

I always thought that was lady logic inline with 'but I saved $50 by buying these shoes' or 'but I got 1,000 points!!'.

>and find a girl willing to live humble
No, don't find a girl at all you retard. They're money-sinks.

That's because it is liability.

Take your mortgage rate and compare it with inflation and you are always going to lose and pay more than the house is worth in the long run.

If you can pay cash for a house that's ideal but not everyone can afford to do that obviously. With cash, a 125K house is actually 125K. With a mortgage, the actual cost will be significantly higher.

If i gave you 100k right now,
Woud you be able to give me 150k over 20 years?

Money creates more money, anyone who thinks all debt is bad is an idiot.

I think you confuse personal debt (used to buy products) with bussines debt (used to invest)

I will write a more in depth explanation once i have my pc.

If i gave you 100k right now,
Woud you be able to give me 150k over 20 years?
If I had a plan, I could see taking that loan if I needed it, but I'd do all I could do decrease that $50k. I think I've been too caught up with mortgages where I don't get the initial capital.

I can wrap my head around what you're saying now.

Depreciating or stagnant assets (car, mortgage) aren't worth going into debt for, but debt can be used to accelerate income if used correctly (grow a business).

if we are talking about going in debt for investing it woud be about mortgages most of the time.

purely speaking about net worth, aslong as the money you get from the rental property is more than:
1. the interest on the mortgage
2. taxes
3. insurance for the property
4. suprise expenses (something breaks etc)

you will come out ahead,
if it was this simple however, everyone woud be a millionaire

the biggest problem with renting out RE is cashflow and damage to the property

it is possible you don't get any rent payment for +6 months or that your tenant decides to warm himself by burning your frontdoor on the stove

woud you be able to still make payments? what if you also lose your job?

it definetly isn't risk free and keeping your money in the bank or in funds might be safer but don't expect to be rich from that

"But why woud i want to go in debt when i can buy it from my own funds and don't go in debt?"

simply put, how long woud it take to get 300k in cash? 10 years?
a loan allows you to invest money you don't have for a small fee.

>stocks?? but what if theres a crash and you lose everything?
>why didn't you buy a house or a car instead
>lol you can't even pull out that money until you're almost dead!

when's the last time any of you talked to... anyone?
people still equate frugality with poverty

no im a hipster faggot in the midwest
you'd be about as successful explaining a caloric deficit

An example woud be a a property worth 200k

the total amount u woud pay is 80k in interest, 50-100k in taxes (let's asume 85k) around 30k in damage/other costs after 20 years

or 80k+85k+30k+200k= 395k in total

at a 2% year in value increase the house is worth 328k after 25 years

25 years of rent with a 30% vacancy rate (that's high) woud be 178k

totaling 506k-395k=111k

which woud leave you with a 500k networth and +/- 110k in profits from just 1 investment

scale this up 5-6X with leveraging the mortgaged property and you are a multi millionaire at 50, which you woudn't be able to achieve without going in debt.

>people still equate frugality with poverty
Yup, and why would I give a shit what some dunderhead thinks about me, if I'm living comfortably, financially secure, and doing only and exactly what I want to do, whenever I want?

I understand there's a stigma, and I also don't give a shit because going with the flow is retarded 9 times out of 10.

>at a 2% year in value increase
Since when does the value of a house increase over time? Is an old house more valuable then a new one?

>Is an old house more valuable then a new one
the old house is more valuable now than when it was built, obviously

it's called inflation. the house you own retains value while the money you spent (and no longer own) depreciates. When you sell the house back you'll get much more money because of the depreciation (inflation)

I swear, if people hadn't realised how bad it was right in the middle of the GFC then they never will.

That we still have hundreds of law grads getting out each year is mind boggling.