What is your current plan for your finances?

[7thLetter]

Maybe we can learn from each other and improve our own plan.

My plan probably isn't the greatest, but its improving over time as I learn.

Current plan:

- Primary source of income is my 9-5 job, I save around 70% of my income living with family. Keeping my living expenses low. Mainly spend money only on food, gym membership, and rent.

- Side hustles are Amazon FBA and Forex trading. Amazon is something I started recently, so I'm seeing results but nothing too crazy yet. Got a bit invested into it, first product is a loss but good learning experience. Forex, been studying and practicing for 2 years now. Somewhat dabbling in it but need to be more consistent with it. I treat Forex more as an investment rather than a source of income.

- No current investments, probably should have some since all my money is just sitting in the bank. Although I'm waiting for some crash or bear market in the stock market, but we haven't seen anything yet.

- Never really borrowed any money my whole life so I haven't been in debt. But I do have a credit card, and I do my best to pay it off each month. So my credit score is quite good which I'm pretty happy about.

Overall my goal is to reach financial independence. Possibly going to stay at my current job until near the end of 2019 so I can save up some more, and fund my business. Then by then I'll probably have a solid investment portfolio with my business doing a lot better. I'll see where it goes.

What is your plan?

 

 

[Zetxil]

Fuck bitches, get money! 

 

In a slightly more serious note:

1.) 9-5 job, keeping living expenses as low as possible while still being near work so I can spend less time commuting and more time doing things I find enjoyable

2.) Investments in currencies (forex trading) and stock market trading, long and short term trades. Stocks move no matter the market. If you have a good credit score you can look into shorting stocks, works well in a bear market and can help you learn how the market fluctuates (it takes a good investment of time upfront to become decent at shorting stocks reliably ~7-8 months in my experience, but it totally worth it long term) With a bear market coming up *hint* *hint* *wink* wink* there is a great opportunity to learn before trying!

3.) I only try to keep as much money sitting in the bank as is needed for 3-4 months of expenses (for emergencies) but this number should vary from situation to situation. I.e. I am not financially responsible for a family yet! The rest is invested in long term (~60%) and short term (~40%) investments. I also tend to take larger risks with my short term investments in the market because I feel financially stable long term investment wise! 

4.) Currently paying off student loan debt which is boosting my credit score, but no credit card as of yet. I try to stick with the rule of earning before spending! (obviously that isn't perfect)

You look to be in a perfect position and are already taking steps to stay that way! Congrats! 

[7thLetter]

@Zetxil Or MOB money over bitches! Westsiiiiiide, lol just kidding.

22 minutes ago, Zetxil said:

You look to be in a perfect position and are already taking steps to stay that way! Congrats! 

Thanks

25 minutes ago, Zetxil said:

2.) Investments in currencies (forex trading) and stock market trading, long and short term trades. Stocks move no matter the market. If you have a good credit score you can look into shorting stocks, works well in a bear market and can help you learn how the market fluctuates (it takes a good investment of time upfront to become decent at shorting stocks reliably ~7-8 months in my experience, but it totally worth it long term) With a bear market coming up *hint* *hint* *wink* wink* there is a great opportunity to learn before trying!

That's awesome that you're into both. I've looked into short-term trading stocks a couple times but Forex is just what I know best that I don't know if I should start learning a new market just yet. I want to be at least somewhat profitable in Forex before learning to trade stocks. What are your thoughts on the two when you compare them? They both seem quite different to me in my opinion. I don't see a lot of Forex day traders on Youtube, they're more focused on long-term, 30%-50% profit per year. While there are hundreds of videos on day trading stocks.

And yeah definitely waiting for that bear market, idk where its at, the bear is hiding in the woods it needs to come out soon

[Zetxil]

@7thLetter HAHAHA 

1 hour ago, 7thLetter said:

That's awesome that you're into both. I've looked into short-term trading stocks a couple times but Forex is just what I know best that I don't know if I should start learning a new market just yet. I want to be at least somewhat profitable in Forex before learning to trade stocks. What are your thoughts on the two when you compare them? They both seem quite different to me in my opinion. I don't see a lot of Forex day traders on Youtube, they're more focused on long-term, 30%-50% profit per year. While there are hundreds of videos on day trading stocks.

Oh they are completely different! Forex is definitely a long term strategy! I think there is possibility in a crypto short term strategy (huge amounts of variability), if we are still are talking currencies, but I haven't developed anything towards that! Markets on the other-hand fluctuate in pretty consistent ways over the course of days/weeks with some variability (publicity in the news can cause a lot of unpredictable variation) and have easier trends to be able to pick up and notice. I am sure there could be a strategy(s) developed for more short term forex trading, but it would be a lot more intensive than stock market trading due to the general consistencies of the world relations on any given day. One of the great things about fiat currencies is that they are pretty steady day to day, but that makes it harder to trade short term for individual profit. 

Edited March 26, 2019 by Zetxil

[thesmileyone]

Financial independence is my only concern. If my income went to $0 tomorrow, my only concern is the bottom tier of Maslow's heirarchy of needs - a roof over my head, cheap food and water and basic healthcare to last me until I die. Anything else; car, insurance, wine, even heating (because ketogenic diet will convert bodyfat into heat) are all just bonuses therefore sacrifical to me.

Ie my only concern is making enough to LIVE off in "reality" without having to go to work. For me that's money in an index fund performing better than 2.6% (approx rate of inflation over a decade) so that my purchasing power stays the same, ie $1 in 2019 is worth $1 in 2029 and not $0.20.

[7thLetter]

On 3/25/2019 at 7:30 PM, Zetxil said:

One of the great things about fiat currencies is that they are pretty steady day to day, but that makes it harder to trade short term for individual profit. 

@Zetxil Exactly that's the thing about it that makes it seem like its more of a market to be traded long-term rather than short-term. It just doesn't seem as volatile as stocks or crypto. Although there is scalping which is pretty short-term, there's a couple Forex videos on that.

For me, the idea of 30-50% profit a year isn't too appealing to me to be honest lol. I mean its definitely a great idea to minimize risk and have somewhat of a guaranteed income from Forex, but it takes quite the investment to basically just make minimum wage. Not to say I'm the materialistic type looking to buy lambos and ferraris, but all I just want is time freedom.

I'll just keep trying to figure out how to day-trade this market, then move into looking into stocks.

 

@thesmileyone Same. I would be fine earning $500-$1K a month passively, and rent a room in a decent home. I'd 100% be fine with that. And honestly I'd rather earn $500-$1K a month passively for the rest of my life, than to earn $5K a month stuck at a 9-5 job for the rest of my life.

 

 

 

[mandyjw]

@7thLetter I'd really suggest starting a retirement account with Vanguard or another low fee investment management company. You can just set it to withdraw a monthly amount from your account and start with whatever you're comfortable with. That way you get a retirement savings building without having the shock of a market crash when you just invested a huge sum.

You can choose just a target retirement account or a lot of people recommend investing in the total US stock market. It totally depends on your comfort level.