Investing 102

[Vegas69]

You know I agree with those ideals if the self discipline exists. You just have to make sure the risk is worth the reward. I'm in no way saying it's a bad play if your head is in the right place. I've just seen the personal finances of to many people.

[Code510]

Originally Posted by Vegas69

You know I agree with those ideals if the self discipline exists. You just have to make sure the risk is worth the reward. I'm in no way saying it's a bad play if your head is in the right place. I've just seen the personal finances of to many people.

And in today's society we need instant gratification. The "McDonalds Effect" has taken over everything. We don't like waiting for anything. Combine that with credit cards and its no wonder so many people are drowning financially. But long as they look like they are well off.

I heard something awhile back, don't know if its true, but said something to the effect that if you are 100% debt free, and have $10 dollars in your pocket, you are actually richer than 80% of the people in the world. Don't know if that's true, but when you think about it, it probably is.

[Code510]

I just saw this video:

http://finance.yahoo.com/video/playl...144216321.html

Pretty interesting but it's everything I've already been trying to do. Live within my means, don't buy crap I don't need, have zero debt and some sort of investments. He's just doing the basics and making it work!

[Vegas69]

What he's done is great and 180 degrees from the "normal" American. Kudos to him. I really don't think his assets are large enough to sustain retirement with inflation and a family. What about health care and college to name a couple majors. He should keep earning while he's young.

Personally, my desire is to live with more lifestyle. To have the freedom to travel, eat out, and pursue new desires. I do plan to have similar ideals with no debt and waste but much greater income.

I've lived the new cars, boats, motorcycles, etc... I'd rather cement lifestyle a this point in my life.

[Tony_SS]

Originally Posted by Code510

I just saw this video:

I was about to share that after his 'hair on fire' comment because I thought of Greg. lol

It's all about priorities, some people are happy doing the simple things in life, some want more. Nothing wrong with either. But the principle of saving more and spending less is lost on too many, myself included.

We aren't really taught money management in public school, and like Trey said, the marketing industry does their job well, so this is the case. We work all our life and hope we can survive on SS when we need to retire, all while beyond our means.

At 39yrs old I started turning that boat around late in life, but I'm getting there, paying off medical debt, a little left on one car loan and a student loan, then I'll be left with just my mortgage, which will be a great feeling. Next year I'll be debt free and ready to get serious with investing.

I still remember selling my dream Suburban, which we all loved as a family, a classic 91 GMC square body, near perfect shape. Some guy in Chicago had to have it. I made the choice to sell high, made some $ and paid off the last credit card. It was bittersweet, but I'm happy I did it in the end.

[glassman]

when all of us begin investing or saving, in the beginning there are always sacrifices. It sort of changes our frame of mind, to live within our means. Which is always "have" cause we live here in the land of opportunity, but it still takes sacrifice, work, discipline and hard work. Sha'll we have it any other way?

[Vegas69]

I certainly wouldn't... The pain of discipline weighs ounces, while the pain of regret weighs tons. While I've increased my income and decreased my outlay, I'm living more frugally. I've grown to enjoy the simple things in life. Having REAL financial goals and a REAL financial plan in WRITING is the key. Without tracking your money today, investing enough money every month, and projecting your required income at your desired retirement age, you are just a boat in the lake with no sail.

Philosopher out...

[Vegas69]

Just happened to run across this gem...

[GregWeld]

I can only add to this discussion about saving and not saving and the consequences.... by saying that I've been poor... and I've also lived a "normal" life of making car payments / VISA payments etc... and I've been fortunate to have done a few things right and been lucky at the same time.. leading to 20+ years of being relatively "rich". Rich to me is different than "wealthy". Wealthy is private jets - and 100 foot yachts.... Rich is just being able to not have to question what you want to do or which car you want to write a check for... having a second home... being able to live life pretty much free of financial worries.

I think if you asked 100 "rich" people how they got rich... 98 of them would tell you they earned it. All of them would NOT described themselves as "rich". More likely they'd say they are "well off"... or something similar. But here's my real point in the post.


You can not SPEND yourself to wealth.


So the choices you're all discussing.... need to be measured by pretty much a single point in time. RETIREMENT. And how you'd like to live for about a THIRD of your life. Living hand to mouth... or being able to really finally enjoy the fruits of your labor/education etc by being able to take a cruise once a year... or go to Hawaii.... or being able to pay for your daughters wedding.

A MODEST amount of "less" (if that's what you have to do) NOW will pay off in spades later with far MORE.... even if that more is relatively simple peace of mind.

To do all of this -- you not only need to save -- but you need to make your money work for you and grow. That takes some work -- some effort -- some risk -- but what it really takes is a plan.... which is what Todd is saying and he's 100% right.

[Code510]

Originally Posted by GregWeld

You can not SPEND yourself to wealth.

I think that's what a lot of people feel. If they have a house, new cars, new TVs and new clothes, they feel wealthy. Yet they are poor! And I agree with you talking about retirement as well. If you spend the first half of your life doing the right things, then all the wealth and retirement will come.

One of the stories I always talk about is one of my Dad's best friends. Every time I talk to him, he talks about the importance of retirement. Well now he's 58ish and retired from the City Water Department. Makes more on retirement than when he was working. But what I don't like is that he has zero equity in his house, just bought a 200K diesel pusher motorhome along with a new Toyota truck to tow behind it.

So yes, he has retirement and is bringing in a full paycheck...but he's swimming in debt. I just think that's crazy. What if the retirement fund goes bankrupt in 10 years? He will have to go back to work. I would be very uneasy if it was me.