All Things Personal Finance

[Cushi]

I’ve made some goals in the area of personal finance. Some months ago I saw some videos on YouTube about how cars keep you broke. Cars are the second most expensive thing Americans buy and often times impedes the ability for Americans to save money. And new cars can put a big dent in your wallet. I’m a car fanatic and I’ve spend a lot of money cars. Some just for a hobby and others for transportation. 

I realize a lot of the money I spent could have been invested or saved. I marked February 27 2023 in my notes in my phone as my last day of being in debt. I don’t plan to get go into debt again. The meeting workbook part we had on preparing for economic failure strengthened my resolve to do just so. On February 27, I paid my current car off and don’t have any other debts. I bought a car that I really wanted and would be fine with keeping for 30 years (if this system lasted that long). My goal is to never spend more than 50% of my savings on a car or anything else, if I can help it. Now that I’m out of debt, it will be easy to save a considerable amount of money in a short period of time and then I will adjust my goal to never spending 25% of my savings on anything. I don’t want to be working when the great tribulation strikes. I want to be able to focus my efforts on persisting in prayer, preaching the judgment message and helping the friends out monetarily who will need help. I realize my bank accounts could be frozen. But as for now, I want to focus on the things I can control.
 

Edited July 12, 2023 by *Jack*

[computerwiz]

1 hour ago, *Jack* said:

Cars are the second most expensive thing Americans buy and often times impedes the ability for Americans to save money.

 

Yup!

 

1 hour ago, *Jack* said:

money I spent could have been invested or saved

 

Double yup!

 

Need an easy way to invest?  Wealthfront does it for you, so you don't have to worry.  I can provide a referral if you want.  They will manage $5,000 for free.  Beyond that, it's a 0.25% fee.  And they make on average about 10% a year with your money (assuming you pick the "risky" investment level, like me).

 

1 hour ago, *Jack* said:

never spending 25% of my savings on anything

 

Hopefully your savings is growing.  I wouldn't necessarily put it at a percentage like that.  I'd have a mindset more of like "this year I start with $5000 in savings, and I must end the year with $10,000"  You will save more to get beyond $10,000, but if you need to use the extra, you can.  Then next year, you start with $10,000 and a goal to end with $15,000.  Save more than you need to reach that goal, and use the extra as needed.

 

I just bought a car 2 years ago.  There was a special 0% APY deal going on....couldn't pass that up!  Technically, I'm converting my cash into the car, since it mostly retains its value (Toyota).  The true money I spent was on the extra warranty items...

[Cushi]

1 hour ago, computerwiz said:

 

Yup!

 

 

Double yup!

 

Need an easy way to invest?  Wealthfront does it for you, so you don't have to worry.  I can provide a referral if you want.  They will manage $5,000 for free.  Beyond that, it's a 0.25% fee.  And they make on average about 10% a year with your money (assuming you pick the "risky" investment level, like me).

 

 

Hopefully your savings is growing.  I wouldn't necessarily put it at a percentage like that.  I'd have a mindset more of like "this year I start with $5000 in savings, and I must end the year with $10,000"  You will save more to get beyond $10,000, but if you need to use the extra, you can.  Then next year, you start with $10,000 and a goal to end with $15,000.  Save more than you need to reach that goal, and use the extra as needed.

 

I just bought a car 2 years ago.  There was a special 0% APY deal going on....couldn't pass that up!  Technically, I'm converting my cash into the car, since it mostly retains its value (Toyota).  The true money I spent was on the extra warranty items...

Thanks. The thought of investing in the stock market makes me feel uneasy. And if I did, I would feel more comfortable investing once I have my savings where I want it. I’m not much of a risk taker when it comes to money, so I’ll “invest” in CD accounts in the meantime. But thanks 😊 

 

Yeah, my savings has grown quite a bit. I’m very frugal. My only problem is cars. When I said I didn’t want to spend 25% or 50% on anything, I was mainly talking about cars. I don’t plan to buy another  car, but if I did it would be brand new and not cost me more than half my savings. I’m into luxury cars now (Lexus) so I had a big number in my head. I have notes in my phone where I want to be in X Amount of time. I have plans for 2030, 2035 retirement, (if this system lasts that long) etc. 

[Cushi]

1 hour ago, computerwiz said:

I just bought a car 2 years ago.  There was a special 0% APY deal going on....couldn't pass that up!  Technically, I'm converting my cash into the car, since it mostly retains its value (Toyota).  The true money I spent was on the extra warranty items...

I’ve always wanted one of those 0% APR deals. I had a 2020 Accord Sport. I was happy with the car but concerned about oil dilution and blown gasket problems that that engine had. I especially became concerned when my oil started smelling like gas. I ended up trading it in last year to get what I really wanted and got $2,900 more for the car than I paid because of the crazy market at the time. I didn’t want another car note, but I figured the used car market is never gonna be this crazy again. The Accord wasn’t a car I could see myself having until the end of this system because it was a missing a lot of safety features and amenities that I wanted. I’m happy with my decision. I still have to fight the itch to get something else, but it’s not as bad anymore.

[computerwiz]

2 minutes ago, *Jack* said:

Thanks. The thought of investing in the stock market makes me feel uneasy. And if I did, I would feel more comfortable investing once I have my savings where I want it. I’m not much of a risk taker when it comes to money, so I’ll “invest” in CD accounts in the meantime. But thanks 😊 

 

No prob.  With interest rates the way they are now, it's not toooooo bad a thing, as long as you're in a bank that offers at least 4% interest rate.  Though the market is already perking up with the latest CPI report showing that inflation is cooling, and so rate hikes might stay off the table.  In which case, is bullish news.  And the market can easily head up 20% once the fed reverses rates.  Just food for thought...  

 

Investing in individual stocks is super risky.  Would never recommend that.  Jeez even big names, like Anheuser-Busch, can take a huge beating with 1 wrong move.  So would never recommend picking just a few individual stocks.  Gotta diversify.  And then there's Bitcoin, ready to explode.....lots of big-name interest jumping onboard the Bitcoin train.

 

I know I know, you said you're not a risk taker.  It's just a beautiful opportunity that's right around the corner.  

 

The way I look at it, either I'm gonna make a huge win by being waist deep in the markets & crypto at this time, or I'll be throwing whatever's left in the streets soon anyways.    I'm about 60% invested, the rest cash.  And that's enough to keep me afloat for 2-3 years should I lose my job for some reason.

[computerwiz]

3 minutes ago, *Jack* said:

I’ve always wanted one of those 0% APR deals. I had a 2020 Accord Sport. I was happy with the car but concerned about oil dilution and blown gasket problems that that engine had. I especially became concerned when my oil started smelling like gas. I ended up trading it in last year to get what I really wanted and got $2,900 more for the car than I paid because of the crazy market at the time. I didn’t want another car note, but I figured the used car market is never gonna be this crazy again. The Accord wasn’t a car I could see myself having until the end of this system because it was a missing a lot of safety features and amenities that I wanted. I’m happy with my decision. I still have to fight the itch to get something else, but it’s not as bad anymore.

 

I've got a 2021 Toyota Corolla.  My favorite color: metallic blue.  I had to get that before the end of the system, in case we won't have cars.    It wasn't just about the color, but I say it is because I would always tell people I wanted a blue car.  But regardless, it should be my Armageddon car.....unless I do very well in the markets.

 

If that happens, I'll get a blue Tesla.  Autopilot is my dream....    I just need to find out how it's gonna handle all the potholes in my area......it might not be a good idea.  

[Pabo]

5 hours ago, *Jack* said:

Cars are the second most expensive thing Americans buy

 

We have 3 cars and the cost of keeping them combined is less than the cost insurance for our home (AU$7,500).

 

Mind you, we own the cars outright (paid cash) and they are fair age now. The youngest (my wife's Tiida) being 15 years old, my everyday run (Ford/Mazda Ute)around is now hitting 34 years old and the Friday car (which actually is my stepson's and I used it to do the shopping because it has a large boot) is going to be 60 next year.

[Cushi]

3 hours ago, computerwiz said:

 

No prob.  With interest rates the way they are now, it's not toooooo bad a thing, as long as you're in a bank that offers at least 4% interest rate.  Though the market is already perking up with the latest CPI report showing that inflation is cooling, and so rate hikes might stay off the table.  In which case, is bullish news.  And the market can easily head up 20% once the fed reverses rates.  Just food for thought...  

 

Investing in individual stocks is super risky.  Would never recommend that.  Jeez even big names, like Anheuser-Busch, can take a huge beating with 1 wrong move.  So would never recommend picking just a few individual stocks.  Gotta diversify.  And then there's Bitcoin, ready to explode.....lots of big-name interest jumping onboard the Bitcoin train.

 

I know I know, you said you're not a risk taker.  It's just a beautiful opportunity that's right around the corner.  

 

The way I look at it, either I'm gonna make a huge win by being waist deep in the markets & crypto at this time, or I'll be throwing whatever's left in the streets soon anyways.    I'm about 60% invested, the rest cash.  And that's enough to keep me afloat for 2-3 years should I lose my job for some reason.

Thanks. I’m glad investing in the stock market works for you, but it’s just not for me. I’m one of those people that avoids stress at all cost and I don’t need the stress or emotional roller coaster of always watching the stock market and fretting over it. I’d rather park my money and forget about it. Plus, I know the easiest way to get scammed or lose money is acting on the insatiable desire for more of it. I’ve recently ordered some financial books, so reading them may change my mind. 
 

I wouldn’t get a CD through my Credit Union. They don’t offer as good a rate as their checking accounts. I’d rather go with a company that can afford to offer a high APR. there’s several out there

 

As far as crypto goes, I wouldn’t invest in that because based on what I’ve researched, I’m almost positive the U.S. is going to come out with digital currency. When they do Bitcoin won’t be worth anything.

[Cushi]

1 hour ago, Pabo said:

 

We have 3 cars and the cost of keeping them combined is less than the cost insurance for our home (AU$7,500).

 

Mind you, we own the cars outright (paid cash) and they are fair age now. The youngest (my wife's Tiida) being 15 years old, my everyday run (Ford/Mazda Ute)around is now hitting 34 years old and the Friday car (which actually is my stepson's and I used it to do the shopping because it has a large boot) is going to be 60 next year.

That’s how it’s supposed to be. It’s smarter to keep cars long term like you guys do. That’s how I plan to do it from now on. Sorry if I wasn’t clear. When I talked about cars being the second most expensive thing Americans buy and that they keep them poor, I was specifically talking about new and like-new cars and the consumer habits of a lot of Americans. 

As of November 2022, the average price of a new car in the United States is 48K. The United States is a capitalist country, so we are constantly bombarded with advertisements of shiny new things. Many Americans succumb to these clever, misleading advertisements and trade their cars in before they’ve gotten the full use out of them, which causes them to constantly spend large amounts of money on vehicles in a relatively short period of time, instead of saving or investing that money.  
 

Take for example a 2024 Mustang GT, a car that’s easily 56K. An American could buy this car for 56K and trade it in in 7 years with a value of 20K and buy a 60K muscle car. Not only would a person lose on the value of the trade in but would fork over another 60K in a 5 year period or so, money they could have saved. This is one of the major reasons why so many Americans can’t save money. For many, it’s not their income that’s the problem. After all, just under 50% of Americans making 100K are living paycheck to paycheck. It’s the consumerism that’s the problem.

[computerwiz]

14 hours ago, *Jack* said:

Thanks. I’m glad investing in the stock market works for you, but it’s just not for me. I’m one of those people that avoids stress at all cost and I don’t need the stress or emotional roller coaster of always watching the stock market and fretting over it. I’d rather park my money and forget about it. Plus, I know the easiest way to get scammed or lose money is acting on the insatiable desire for more of it. I’ve recently ordered some financial books, so reading them may change my mind. 

 

I had to go through some painful lessons before I figured it out.  One of the main ones being don't listen to other people.  

 

But yeah, it can absolutely be an emotional roller coaster if you dump important savings into it.  Always put money you can afford to kiss goodbye.  A good tip is to just start with $500 and put $100 every 1st & 15th.  Start small and see how it feels.  No need to dive in head first.  That strategy is called DCA (Dollar Cost Averaging) and works quite well.  You can set it & forget it.  If using Wealthfront, you don't even have to look at it.  They rebalance & do the buying/selling for you.

 

And remember, when you "lose" in the stock market, at least you get about 30% back when you claim the loss on taxes.  😅  But yeah, checkout the financial books and see what they say on it...

 

14 hours ago, *Jack* said:

As far as crypto goes, I wouldn’t invest in that because based on what I’ve researched, I’m almost positive the U.S. is going to come out with digital currency. When they do Bitcoin won’t be worth anything.

 

You have to understand the problem that Bitcoin is solving.  Bitcoin will always be around, despite the 1,000s of claims it's going to "0".  China tried banning it....you can't ban it.  It's like trying to ban P2P software....like Limewire or Kasa(?) or any of those others from back in the day when people wanted to pirate music/videos/games/etc.

 

It's like saying gold won't have any more value once governments print cheaper, easier to move, paper money.......oh wait.

It's like saying ancient coins don't have any more value because those governments are gone........oh wait (collectors of antiquities still exist).

 

It's like saying Pokemon cards don't have any value because it's just a stupid card game........oh wait.

 

It's never going to "0" in this system of things.

 

 

Yeah.....you don't have BIG names like that interested in BTC if it's gonna go to "0" from a government digital currency.  They'd just be wasting a ton of time and money for nothing.  Don't you think?

 

Once the first ETF gets approved....BTC takes off like a rocket.  The failed banks and all the regulatory drama around crypto have been manufactured to keep the prices down until these guys can jump on board.  The timing of things is.....very suspect.

 

 

[Cushi]

1 hour ago, computerwiz said:

 

I had to go through some painful lessons before I figured it out.  One of the main ones being don't listen to other people.  

 

But yeah, it can absolutely be an emotional roller coaster if you dump important savings into it.  Always put money you can afford to kiss goodbye.  A good tip is to just start with $500 and put $100 every 1st & 15th.  Start small and see how it feels.  No need to dive in head first.  That strategy is called DCA (Dollar Cost Averaging) and works quite well.  You can set it & forget it.  If using Wealthfront, you don't even have to look at it.  They rebalance & do the buying/selling for you.

 

And remember, when you "lose" in the stock market, at least you get about 30% back when you claim the loss on taxes.  😅  But yeah, checkout the financial books and see what they say on it...

 

 

You have to understand the problem that Bitcoin is solving.  Bitcoin will always be around, despite the 1,000s of claims it's going to "0".  China tried banning it....you can't ban it.  It's like trying to ban P2P software....like Limewire or Kasa(?) or any of those others from back in the day when people wanted to pirate music/videos/games/etc.

 

It's like saying gold won't have any more value once governments print cheaper, easier to move, paper money.......oh wait.

It's like saying ancient coins don't have any more value because those governments are gone........oh wait (collectors of antiquities still exist).

 

It's like saying Pokemon cards don't have any value because it's just a stupid card game........oh wait.

 

It's never going to "0" in this system of things.

 

 

Yeah.....you don't have BIG names like that interested in BTC if it's gonna go to "0" from a government digital currency.  They'd just be wasting a ton of time and money for nothing.  Don't you think?

 

Once the first ETF gets approved....BTC takes off like a rocket.  The failed banks and all the regulatory drama around crypto have been manufactured to keep the prices down until these guys can jump on board.  The timing of things is.....very suspect.

 

 

Another thing I didn’t mention about investing in the stock market is I don’t trust anyone to do the buying and selling for me. After all, it’s my money and I’m the one that will lose on a bad investment… But at the same time, there’s so much to learn and too many mistakes that can be made, so I don’t trust myself either.

[computerwiz]

2 minutes ago, *Jack* said:

Another thing I didn’t mention about investing in the stock market is I don’t trust anyone to do the buying and selling for me. After all, it’s my money and I’m the one that will lose on a bad investment… But at the same time, there’s so much to learn and too many mistakes that can be made, so I don’t trust myself either.

 

Well in that case you should probably stay out of the stock market.  It takes way too much time & research to pick individual stocks and to stay on top of them.  And like I said, even big names can have crazy surprises at any given time.  Then you have stock dilution, reverse splits, buyouts, earnings upsets, change of management, failed product launches, etc etc etc. that all factor into how the price moves.  It's a full-time job keeping up with it all for any serious amount of money.  😬

[Hotteok]

I’m economically dumb but I currently have 100,000 us dollars in cash (apart from my house I own) and starting from next year, I’d like to live abroad where living expenses are roughly 15,000 a year. (Asian country where more JWs are needed)

I can make around 1,300 online a month so if I divide and put all of my money into Tesla, Apple and Amazon, will I be rich? 😃

Please excuse my ignorance.  
Should I buy some gold and Japan Yen too?

Edited July 15, 2023 by Hotteok

[computerwiz]

11 hours ago, Hotteok said:

I can make around 1,300 online a month so if I divide and put all of my money into Tesla, Apple and Amazon, will I be rich? 😃

Please excuse my ignorance.  
Should I buy some gold and Japan Yen too?

 

Those big companies are "safe", but certainly will not make you rich.  

 

Gold is at a peak right now, buying some now might actually lose value.  But then there's the news that BRICS might be wanting to use gold to back their currency, so it could go up more.  It is a nice investment, but again, not something to make you rich or live off of.

 

Being in Korea, your best bet would actually be to get into Bitcoin now before it takes off.  There is HUGE institutional interest in it right now.  And you can probably 5-10x your money from this point.  HOWEVER, only put money you don't mind missing (this must always be the case when investing, no matter how confident you are that it will go up).  Also, you have to have patience, as it will take bitcoin 1-2 years to achieve this increase.  And there will be many ups and downs during this timeframe.

 

I don't see Japanese Yen being any kind of good investment strategy....

[Hotteok]

2 hours ago, computerwiz said:

 

Those big companies are "safe", but certainly will not make you rich.  

 

Gold is at a peak right now, buying some now might actually lose value.  But then there's the news that BRICS might be wanting to use gold to back their currency, so it could go up more.  It is a nice investment, but again, not something to make you rich or live off of.

 

Being in Korea, your best bet would actually be to get into Bitcoin now before it takes off.  There is HUGE institutional interest in it right now.  And you can probably 5-10x your money from this point.  HOWEVER, only put money you don't mind missing (this must always be the case when investing, no matter how confident you are that it will go up).  Also, you have to have patience, as it will take bitcoin 1-2 years to achieve this increase.  And there will be many ups and downs during this timeframe.

 

I don't see Japanese Yen being any kind of good investment strategy....

 

Honestly, Bit coin was the last option in my mind so thank you! (because I don't know much about it and because of its volatile image?) 

I'll look into that.. 

Edited July 16, 2023 by Hotteok

[computerwiz]

18 hours ago, Hotteok said:

 

Honestly, Bit coin was the last option in my mind so thank you! (because I don't know much about it and because of its volatile image?) 

I'll look into that.. 

 

Volatile, yes. But also predictable long-term. You have to understand the cycles to be comfortable with the volatility. 

 

 

 

It's also rife with scammers and permanent mistakes (doing transfers, they are permanent, so pay close attention to the address).

 

It is not for the careless or those who are not good with details. However, it will get you the most bang for your buck. 

[computerwiz]

Here's another way to look at it.  The gains from the various main types of investments:

 

 

You can clearly see how Bitcoin has 4-year cycles.  1 red and 3 green.  We just got past the red year.  Also, it's by far the best investment!!

 

You can also see how gold is one of the lowest gaining asset classes.  👀

Edited July 17, 2023 by computerwiz

[Hotteok]

23 minutes ago, computerwiz said:

Here's another way to look at it.  The gains from the various main types of investments:

 

 

You can clearly see how Bitcoin has 4-year cycles.  1 red and 3 green.  We just got past the red year.  Also, it's by far the best investment!!

 

You can also see how gold is one of the lowest gaining asset classes.  👀

wow

It’s as if someone’s making that pattern.. 😲

[computerwiz]

2 minutes ago, Hotteok said:

wow

It’s as if someone’s making that pattern.. 😲

 

It's based on the halving cycle of Bitcoin.  Happens approximately every 4 years.  As the supply distribution decreases, value increases.  It was programmed that way.  Can't be changed.  So it's predictable.

[Hotteok]

On 7/16/2023 at 11:19 AM, computerwiz said:

 

  There is HUGE institutional interest in it right now. 

 

Does it have to do with SEC re-reviewing Black rock's etf application for bitcoin? 

[Cushi]

Interesting information on a new system just implemented in the United States.

 

 

[computerwiz]

On 7/21/2023 at 4:11 AM, Hotteok said:

 

Does it have to do with SEC re-reviewing Black rock's etf application for bitcoin? 

 

That's part of it, but there's way more institutions than that. Scroll up and see my black screenshots. 

[Cushi]

 

[Cushi]

I like the folks at the Ramsey show but this makes sense

 

 

Edited July 27, 2023 by *Jack*

[Cushi]

This is one of several finance books I ordered a few weeks ago. I kept hearing good things about it so I decided to see for myself what it was about. I’ll be letting you guys know what I think of it when I’m done 😊