Investing 102

[GregWeld]

We all -- always have to have cash for car projects... Hell -- I've spent more money on cars and shops and tools and stuff than anyone I know but Charley...

BUT -- the ever present big butt -- I did that AFTER I could afford to. Like I always tell the kids -- "you can't spend your way to wealth". So I'm all for crazy car stuff... but it's my savings and investing that allows me to be able to do that. Another thing I tell my kids (they don't listen) is -- if you get $1000 for a bonus -- save HALF -- and blow the other half... but it's the saving half that will pay off in the end.

Had a buddy - he was budgeting $85K for a 3 year car build... and we got to discussing that. He had no money in the bank - but was willing to spend $85K building a car (that was going to cost him $125K.... like we all know!). He was YOUNG at 30 years old.... All I could do in my head was run the numbers that if he had the ABILITY to spend $85K in three years -- what he could SAVE and how much car he could build when he was 50 and pay cash and not bat an eye. But he started building the car anyway - then the overtime went away - then the house - and the car....

[Bucketlist2012]

Originally Posted by GregWeld

We all -- always have to have cash for car projects... Hell -- I've spent more money on cars and shops and tools and stuff than anyone I know but Charley...

BUT -- the ever present big butt -- I did that AFTER I could afford to. Like I always tell the kids -- "you can't spend your way to wealth". So I'm all for crazy car stuff... but it's my savings and investing that allows me to be able to do that. Another thing I tell my kids (they don't listen) is -- if you get $1000 for a bonus -- save HALF -- and blow the other half... but it's the saving half that will pay off in the end.

Had a buddy - he was budgeting $85K for a 3 year car build... and we got to discussing that. He had no money in the bank - but was willing to spend $85K building a car (that was going to cost him $125K.... like we all know!). He was YOUNG at 30 years old.... All I could do in my head was run the numbers that if he had the ABILITY to spend $85K in three years -- what he could SAVE and how much car he could build when he was 50 and pay cash and not bat an eye. But he started building the car anyway - then the overtime went away - then the house - and the car....

I know.. Simple money management first..

I roll debt free except a small 4% fixed mortgage. no other debt.. Keep the emergency fund of dead presidents in a different account.. .5%, but it is my sleep at night cash knowing I have it.. I have an account with Schwab, no day Trading.. Keep an eye on my NET worth, rather than the amount of assets. you and I both know that what looks like a Rich life, may be someone Hocked up to their eyeballs , and they own nothing.. If people could understand that first, then they probably could invest, because they would have money.

i have watched this thread and waited to comment because i am still newish to investing. Sure I own McDonalds, and Kinder Morgan, and i rode the commodity train from 2008 to now, just like the Big Banks did..Holy crap, they made 55% on their money in the first quarter of last year, in commodities, with our money !! I just tagged along for the ride.

But you have skills brother...I can see that, and I thank you for sharing..

[GregWeld]

Thanks Solar.... I really don't have any special knowledge or skills... what I'm trying to bring to the table is blue jeans and t-shirt common sense...

[Bucketlist2012]

Originally Posted by GregWeld

Thanks Solar.... I really don't have any special knowledge or skills... what I'm trying to bring to the table is blue jeans and t-shirt common sense...

Haha..that is the skill...

Taking some of the mumbo jumbo they try to feed us, and to break it down to common sense, and also adding in the yield numbers, and other knowledge about certain investments.. Sure they are accessable to everyone, but hearing it another way is refreshing.

I don't expect the answer to it all, but success leaves clues...And I am constantly hungry for knowledge..

Oh, and Solar used to be my Career until 2008 came along..

Medical issues, and the golden opportunity , changed all that, for the better...

[dhutton]

Just wanted to say thanks to Trey for starting this thread and Greg (and others) for taking the time to post here and get me going. I sold my Firebird a few months back and I've taken that money and opened a Schwab account. I picked 12 stocks (aka Don's Dirty Dozen ), a few have done well, a few are possibly shaping up to be turkeys but overall the advice here has gotten me on a good start.

Thanks again,
Don

[Bow Tie 67]

Two days to finish getting through this thread. Thanks to all who have contributed, and a special thanks to Greg.

I have been planing on sitting down with my daughters ( 18 and 19 ) to talk finances. This thread lit a fire under my rump, I am excited as they are young enough were it can make an enormous difference.

As far as I go, I'm getting ready to move my Roth over to the brokerage account. The credit union is only paying .750% I want control of it.

Scottrade account:

Own Ford

Played with AMR recently ouch!!


Added:

Verizon
Merck
Altria
Kinder Morgan


I'm one that has never been diversified and always made the wrong choice.

I own SNWT not sure why just a click of the keyboard, Duh! look if you dare. reverse split to 5000 shares worth $12 now started with $1500

I'm liking the steady less risky approach to well known names.




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