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The Math That Explains Why Net Worth Goes Crazy After the First $100k


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 2 weeks ago '15        #101
abcxyz 
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 Tikyle2 said



Having money and financial security or freedom doesn't make your life go into easy mode. It just lets you focus more energy, angst and attention on other things in life.

This isn't meant to be negative towards anyone but broke people worry about money like incels worry about having no bishes. Once either get what they are seeking their worries don't go away, they just shift to other sh*t.


All that said this article is pretty dead on. I would also add that once you start making enough money to live in your area and save (say that's $50K/yr), that your lifestyle won't change much when your salary rises (say to $100K/yr). You will be able to spend and save a little bit more but it doesn't really open you up to many more unique experiences, just upgrades on your current condition. I'm speaking on this from personal experience and the experiences of many of my friends.
exactly the same for me also.
bills are on autopay. i want or need something, i get it. what changed, is i started looking for bigger ways to take my money to another level. instead of trying to make $100 here and there, now im looking to make tens of thousands here and there. really starting to look into buying more properties and just doing small renovations that would double it up. buy a slightly busted up house for 20-50k. patch walls and ceilings, paint, new vinyl floors, baseboard, returns, faucets, door and cabinet handles, switches, outlets, fans, fixtures, sconces, lights, etc... and sell it under the comparable market value for a quick flip.
basically i just started thinking bigger, being more money conscious and actually looking forward to the future as opposed to just living and working to pay bills.


but the bxllionaires will say they already do and knew this


Last edited by abcxyz; 02-06-2020 at 05:22 PM..
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 2 weeks ago '07        #102
A-L-P 
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 Eastcoast said
The problem is that the cost of living is starting to outpace earnings, which mean if youíre poor you donít get to save much.
That's one factor but my opinion is the lack of financial literacy and personal discipline is the largest factor. I keep hearing all these stories about how unrealistic it is for the average person to save and I just don't buy it. I travel a lot and have been/lived in various socio economic situations and every airport I go to is packed, constantly, weekday and weekend. Lines of people everywhere. Every hotel I got to his booked almost solid all the time, parking lots packed and lobby bars full of people. Every bar I go to his jammed full of young and not so young people drinking, eating and being merry. Every restaurant has long wait times or no seating at all, full of people eating pricey meals all the time. Parking lots are full of new cars, huge trucks that I know cost 50 or even 60+ thousand dollars new. This happens in almost every city I visit, east cost to west coast. Every hood has no shortage of expensive luxury clothing items. Every poor person I know who supposedly doesn't have enough money to invest/save but they always find a way to pre-order the newest 300-400 dollar gaming system, 200 dollar retro Jordans, the latest iPhone, or some concert tickets.
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 2 weeks ago '07        #103
A-L-P 
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 Eastcoast said
I think most people spend their money on what they need, a little bit on leisure, and smaller amounts on non sense.
There's a study that says most people spend around 5,000 per year on non sense.

 2 weeks ago '16        #104
Eastcoast 
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 A-L-P said
There's a study that says most people spend around 5,000 per year on non sense.
Source?


 A-L-P said
That's one factor but my opinion is the lack of financial literacy and personal discipline is the largest factor. I keep hearing all these stories about how unrealistic it is for the average person to save and I just don't buy it. I travel a lot and have been/lived in various socio economic situations and every airport I go to is packed, constantly, weekday and weekend. Lines of people everywhere. Every hotel I got to his booked almost solid all the time, parking lots packed and lobby bars full of people. Every bar I go to his jammed full of young and not so young people drinking, eating and being merry. Every restaurant has long wait times or no seating at all, full of people eating pricey meals all the time. Parking lots are full of new cars, huge trucks that I know cost 50 or even 60+ thousand dollars new. This happens in almost every city I visit, east cost to west coast. Every hood has no shortage of expensive luxury clothing items. Every poor person I know who supposedly doesn't have enough money to invest/save but they always find a way to pre-order the newest 300-400 dollar gaming system, 200 dollar retro Jordans, the latest iPhone, or some concert tickets.
You think Paris Hilton has more Financial literacy than the avg Black women, esp a mother? Itís about wealth.

 1 week ago '07        #105
A-L-P 
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 Eastcoast said
Source?



You think Paris Hilton has more Financial literacy than the avg Black women, esp a mother? It’s about wealth.
Source?


You think Paris Hilton has more Financial literacy than the avg Black women
She inherited her money from her grandparents, so she can afford to be dumb with money. 3rd generation wealth is notorious for squandering money, but from everything I've read, she is a serial investor and more business savvy than what her image portrays.

However, I'm talking about the average everyday person, so an extreme statistical anomaly like billionaire heiress Paris Hilton doesn't disprove the notion that most people in general are impulsive, undisciplined with money. In 2020, with so much free knowledge and apps at our disposals, there aren't too many excuses for why more people aren't putting the 500 dollars they would spend on junk into an index fund/crypto/etc.


avg Black women, esp a mother?
Before I answer that, I need to know your perception of the average black woman's socioeconomic situation and how it hinders them from pursuing financial literacy.

I presume my view on black women is a little more optimistic from what I observe in real life, in addition to statistics I read. I need to make sure we're on the same page because I don't know what you mean when you say the "avg black woman".


Last edited by A-L-P; 02-09-2020 at 06:44 PM..
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 6 days ago '20        #106
Born Bad 
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 AllWins said
Look at this rich privileged thread. All rich people are evil we need to tax them at 90% or higher.

We need a government that gives free sh*t to everyone. We need free government healthcare for everyone in the world. I need my student debt paid.

Bernie or bust. If you donít agree youíre in shambles.

 6 days ago '20        #107
Born Bad 
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 Brewklyner said
Ye that 7% is iffy. What if I have 50k saved up and I take the whole 50 put it in a compound interest . The govt gonna ask me where i got that 50k from?
Exactly, like 50k is 8 million
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 6 days ago '20        #108
Born Bad 
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 Pythagoras said
So n*ggas are just learning about compounding returns?

Yep

 6 days ago '18        #109
LILHAITIBABYYY  topics gone triple plat - Number 1 spot x3
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There’s a sucker born every minute

Rich get richer by stealing from the poor.

All this sh*t is a scam.

When someone has real game they keep it to themselves.

The game is to be sold not told.

 5 days ago '07        #110
killa55  topics gone triple plat - Number 1 spot x1 OP
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 abcxyz said
exactly the same for me also.
bills are on autopay. i want or need something, i get it. what changed, is i started looking for bigger ways to take my money to another level. instead of trying to make $100 here and there, now im looking to make tens of thousands here and there. really starting to look into buying more properties and just doing small renovations that would double it up. buy a slightly busted up house for 20-50k. patch walls and ceilings, paint, new vinyl floors, baseboard, returns, faucets, door and cabinet handles, switches, outlets, fans, fixtures, sconces, lights, etc... and sell it under the comparable market value for a quick flip.
basically i just started thinking bigger, being more money conscious and actually looking forward to the future as opposed to just living and working to pay bills.


but the bxllionaires will say they already do and knew this
how many flips like this have you done and how long does it usually take. Do you look for a specific profit margin?

 5 days ago '08        #111
Rebuild Mode  topics gone triple plat - Number 1 spot x1
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 Loknows said
Where do you obtain the 7% interest rate?
Average annual return for the S&P over the last 100 years is 10%.
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 1 day ago '04        #112
x Tha Arkitek x 
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 pnoi89 said
Most high yield savings accounts only yielding close to 2% APY.....

Also, Mutual Funds are littered with front loading fees and annual fees as well. In short, passively managed funds (ETF's, index funds) >>>> actively managed funds (Mutual Funds). The only time that makes sense is with you 401k, where your investing options are limited, but your employer's matching some of your contributions.

Also, unless your REIT's are invested within a tax-shielding account (retirement account like a Roth IRA), you'll be subjected to normal income taxes on your capital gains and dividends, as opposed to the much more tax-efficient capital gains tax.
I only slapped because this is not entirely true. Vanguards mutual funds are structured like ETF's, so it's actually just just tax efficient to hold Vanguard managed mutual funds in taxable investment account.

 AliHood said
I invest (401k, self directed brokage and outside of work) and still hoard cash. I gotta stop that, but just trying to get back to 30k liquid and then I'll start putting everything else after that back into the market outside of work. Took a L on a business partnership and had to regroup. Not to far off now tho, probably by end of 2020 if I dont spend crazy like I did last year smh.
Sooner the better. I used to be bad about hoarding cash in "high interest" savings accounts, and you need to quickly get out of that mind set. Once you have enough to cover at most, 1 year of living expenses and/or to cover a large upcoming expense...you should be dumping every single penny after into index funds.
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 1 day ago '05        #113
pnoi89 
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 x Tha Arkitek x said
I only slapped because this is not entirely true. Vanguards mutual funds are structured like ETF's, so it's actually just just tax efficient to hold Vanguard managed mutual funds in taxable investment account.



Sooner the better. I used to be bad about hoarding cash in "high interest" savings accounts, and you need to quickly get out of that mind set. Once you have enough to cover at most, 1 year of living expenses and/or to cover a large upcoming expense...you should be dumping every single penny after into index funds.
Letís make sure weíre on the same page.... Iím good with passively managed mutual funds, as they serve to mimic ETFís and/or align with specific criteria, thus driving down human errors and cost. My gripe is with actively managed mutual funds, which is basically gambling with the added human element and higher cost in fees, regardless if youíre in a taxable or non-taxable (retirement account) environment.

 15 hrs ago '04        #114
AliHood 
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 x Tha Arkitek x said
I only slapped because this is not entirely true. Vanguards mutual funds are structured like ETF's, so it's actually just just tax efficient to hold Vanguard managed mutual funds in taxable investment account.



Sooner the better. I used to be bad about hoarding cash in "high interest" savings accounts, and you need to quickly get out of that mind set. Once you have enough to cover at most, 1 year of living expenses and/or to cover a large upcoming expense...you should be dumping every single penny after into index funds.
I'm with you...I just have to get back to 30K in banks (no investments accounts) then I'm right back there. A lil under 7k there...then its back to flooding market accounts and chopping car loan and student loans down. Been doing normal payments past 14 months and getting back to the bag. Shyt sucks cuz i had to sacrifice so much family and personal time since but once I square back up, i'm good.
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