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Welcome to my net worth increasing mega-thread
People hate money talk but studying personal finance is my biggest hobby and I want to lay out a concise version of everything I do. This is my personal finance, not business finance.
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People hate money talk but studying personal finance is my biggest hobby and I want to lay out a concise version of everything I do. This is my personal finance, not business finance.
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2/ I increase my net worth for stability, less stress, to protect my $ from inflation, and build a mini asset empire. I'm not a financial advisor, expert, nor am I rich so do your own research and be aware I will make plenty of financial mistakes.
3/ This is what I've done since making as little as $1k per month.
Calculate and track net worth often! It's not egotistical. Write out liquid assets (checking, savings, cash), investments (stocks, bonds, retirement) and current value of any non-liquid assets worth a decent…
Calculate and track net worth often! It's not egotistical. Write out liquid assets (checking, savings, cash), investments (stocks, bonds, retirement) and current value of any non-liquid assets worth a decent…
4/ …amount (car, house, expensive tech - make sure it's the current worth, not MSRP or what you paid) and subtract all debts (loans, credit card debt). That's my net worth at that moment.
I keep track of my monthly income and spend as if I'm making 1/3 of what I actually do.
I keep track of my monthly income and spend as if I'm making 1/3 of what I actually do.
5/ That's my starting monthly budget.
Once all my REQUIRED monthly payments are made (rent, basic groceries, internet, car payment, etc) I split the remaining money into different areas.
Once all my REQUIRED monthly payments are made (rent, basic groceries, internet, car payment, etc) I split the remaining money into different areas.
6/ PRIORITY: I built up an emergency fund that can cover all my REQUIRED expenses for at least 3 months. Mine is 4 months. This is put into a HIGH INTEREST SAVINGS that I do NOT pull from! I will only touch this if I literally go broke. (I had to pull from it in September 2019).
7/ I use Capital One 360 Performance Savings but there are many FDIC insured banks with good rates.
8/ Since I pay my own taxes and it's not taken out of a paycheck, I put $ in a SEPARATE savings account where I estimate how much of that month's income will be taxed based on brackets. I pretend the account doesn't exist and ONLY use it to pay taxes.
9/ This way, the $ doesn't sneak up on me each quarter.
I use Acorns to auto invest $25 per day in a moderately aggressive portfolio. I always keep it an amount I would not notice disappearing to ensure I never have to pull out for emergencies. Sometimes I buy $SPY for funzies.
I use Acorns to auto invest $25 per day in a moderately aggressive portfolio. I always keep it an amount I would not notice disappearing to ensure I never have to pull out for emergencies. Sometimes I buy $SPY for funzies.
10/ I check my Acorns weekly to keep up with how it's going.
When I have more $ left over that I'm willing to risk losing, I buy individual stocks to try and beat ETFs. This is stupid and and unlikely long term, but it's my verison of gambling.
When I have more $ left over that I'm willing to risk losing, I buy individual stocks to try and beat ETFs. This is stupid and and unlikely long term, but it's my verison of gambling.
11/ The difference is I only hold stocks and never sell unless I've made a very good amount back. Otherwise I plan to hold forever. I check the stock market 2-3 times per day because I enjoy it, but some may find it stressful and hurting them.
12/ I'm personally buying $DIS, $SPY, holding $AMZN, $WIX, $JBLU and sold all my $TSLA at a profit. I try not to day trade and I never short the market.
I put all remaining income into a third performance savings for my future house down payment.
I put all remaining income into a third performance savings for my future house down payment.
13/ If I need extra $ for anything, I don't hesitate to pull from this. I simply don't want to leave cash sitting in my checking cause it's dangerous and doesn't earn interest.
14/ Inflation is 2% a year so you want your money to make as close to or more than 2% a year for you automatically.
I then splurge a little each month on eating out, car mods, unnecessary groceries (candy, ice cream).
I then splurge a little each month on eating out, car mods, unnecessary groceries (candy, ice cream).
15/ If I want to buy something big, I plan about a month in advanced. (i.e. tech)
Speaking of tech, I almost exclusively buy used technology. My phones are always used from eBay, my laptops are usually refurbished, my PC setup is mostly open box and refurbished stuff.
Speaking of tech, I almost exclusively buy used technology. My phones are always used from eBay, my laptops are usually refurbished, my PC setup is mostly open box and refurbished stuff.
16/ DEBIT AND CREDIT CARDS!
I have 3 debit cards (personal, business, Robinhood cause why not) and 2 personal credit cards (Capital One Platinum - my first starting card, Capital One Quicksilver which is 1% cash back on all purchases).
I have 3 debit cards (personal, business, Robinhood cause why not) and 2 personal credit cards (Capital One Platinum - my first starting card, Capital One Quicksilver which is 1% cash back on all purchases).
17/ To build my credit, I put a couple SMALL recurring payments on the Platinum (with a $200 monthly limit) and set it to auto-pay (Audible, Backblaze, YT Premium). This built my credit score and credit line automaticlaly.
18/ Once I could qualify for a new card, I got the Quicksilver and continued building. These have almost 30% interest rates so I NEVER missed a payment and never paid a cent in credit interest.
19/ Since Quicksilver is 1% cash back and my credit line is $3k, I now put ALL non-business payments on this card and pay it back IN FULL every month automatically. NEVER extra things I don't need. The 1% has added up fast.
20/ I'll open another card once I can qualify for better earnings.
NEVER CANCEL A CREDIT CARD IT'LL OOF CREDIT SCORE.
Bought my car 1 year ago. I waited for my credit to get high which took 2 years (721) and applied for a loan.
NEVER CANCEL A CREDIT CARD IT'LL OOF CREDIT SCORE.
Bought my car 1 year ago. I waited for my credit to get high which took 2 years (721) and applied for a loan.
21/ The reason I mention this in the thread is because I financed the auto loan for 7 years. Try to buy a car you could pay for in cash, but it's also best not to put so much money into one item. It ties finances up too much so I paid 1/3 up front.
22/ 7 years is rediculous and sounds stupid, but this continual stream of payments for 7 years will help my score. It also locks in an interest rate.
23/ More importantly, I can make more $ investing the $ I'm not spending up front on the car than what I'm paying in interest which makes it a net gain. (Ok technically a net gain is not buying a car you don't need but I am very frugal in most areas I can splurge in others)
24/ I MAKE SURE MY ASSETS KEEP VALUE
I really like my car so I naturally want to keep it in perfect condition, but I also do it to ensure it is always considered "excellent" condition for when I sell it. I clean and detail the interior and exterior every couple weeks.
I really like my car so I naturally want to keep it in perfect condition, but I also do it to ensure it is always considered "excellent" condition for when I sell it. I clean and detail the interior and exterior every couple weeks.
25/ No auto car wash! I try to keep my furniture like my desk and chair pristine in case I ever sell it. Same with tech the best I can. No overclocking or anything.
ANYTIME I BUY SOMETHING NEW, I GET RID OF SOMETHING ELSE
ANYTIME I BUY SOMETHING NEW, I GET RID OF SOMETHING ELSE
26/ This saves me time on cleaning, space, and I can often sell old stuff to get some money back.
ALSO I THINK ABOUT COST-TO-OWN.
If you buy a new $1k phone that's worth $100 in 2 years, the cost to own after 2 years is $900 when I sell it. That's bad.
ALSO I THINK ABOUT COST-TO-OWN.
If you buy a new $1k phone that's worth $100 in 2 years, the cost to own after 2 years is $900 when I sell it. That's bad.
27/ If you buy a $1k collector's item that retains value you may be able to sell it for the same, or even more money in 2 years, making your cost to own ~$0.
INVEST IN MYSELF, NOT JUST THE MARKET! Things that make me more money, more efficient and happier.
INVEST IN MYSELF, NOT JUST THE MARKET! Things that make me more money, more efficient and happier.
28/ Mostly personal busienss stuff.
I started small. A used printer off Craigslist, a used phone off eBay. Paid Spotify instead of free. I threw away my bed and got a high quality Japanese futon so I had more work space. Much later, I got a little bigger.
I started small. A used printer off Craigslist, a used phone off eBay. Paid Spotify instead of free. I threw away my bed and got a high quality Japanese futon so I had more work space. Much later, I got a little bigger.
29/ A personal assistant, better camera gear and reptile stuff like industrial shelving. I got even bigger, a rental house.
30/ I also treated myself to things that made me happier and more comfortable like my favorite foods (Chipotle) and I got a queen sized bed once I had extra space. Better sleep and energy meant better work and more $ earned.
I LOOK THROUGH EVERY PAYMENT I'VE MADE EVERY MONTH
I LOOK THROUGH EVERY PAYMENT I'VE MADE EVERY MONTH
31/ Every time I do this, I find something to cancel. A subscription I forgot about, accidental duplicate payments or things I shouldn't have bought. Cancel subscriptions, report fraudulent payments and write down what not to buy from now on.
32/ I LOOK THROUGH EVERYTHING THAT COSTS ME MONEY
I changed all my light-bulbs to LEDs to save electricity, tend to do laundry and high energy usages during off peak electrical hours (when the grid has the least stress) which saves money. Got bidets instead of toilet paper.
I changed all my light-bulbs to LEDs to save electricity, tend to do laundry and high energy usages during off peak electrical hours (when the grid has the least stress) which saves money. Got bidets instead of toilet paper.
33/ I LOOK FOR BETTER OPTIONS
If I find a better bank, savings account, etc. I switch when it makes the most sense to add up those little bits. Many people hate change, I enjoy it.
If I find a better bank, savings account, etc. I switch when it makes the most sense to add up those little bits. Many people hate change, I enjoy it.
34/ Example: I won't hesitate to move houses if I can get something better but cheaper even though moving is a huge inconvenience. Stuff like that.
I look for products I use often and see if I can find better or cheaper.
I look for products I use often and see if I can find better or cheaper.
35/ Many camera accessories from the manufacturer can be found in Chinese replicas that give nearly identical value. Walmart sells identical products to other stores but for less. Best Buy gives me credits for the same products Amazon has. I check clearance and bundle deals.
36/ Even with people, I've let employees go that weren't bringing enough value. I replaced my previous accountant with a faster one. I got rid of the NC credit union whose employees are actual idiots. All is a hassle but totally worth it.
COOL OFFERS AND DEALS
COOL OFFERS AND DEALS
37/ Not every offer is a scam. I got some free stocks by signing up to Webull stock trading, for example. Target often has $5 gift cards for buying things I would normally buy. You can also do stuff like credit card churning, but I don't do this right now.
38/ I RESEARCH THROUGHOUT THE WEEK
How are banks changing? What's the government doing differently that may affect finances? How is the stock market acting? I primarily watch BeatTheBush and Graham Stephan on YouTube for updates and value.
How are banks changing? What's the government doing differently that may affect finances? How is the stock market acting? I primarily watch BeatTheBush and Graham Stephan on YouTube for updates and value.
39/ Capital One recently downgraded interest rates without telling anyone, so I had to manually change them back as an example. Just a 1% difference, but it makes said difference.
WHAT I DON'T DO
I don't have a retirement fund.
WHAT I DON'T DO
I don't have a retirement fund.
40/ My ignorant self is likely an idiot, but here's my thought process: I want to be able to access all my money at any time. I don't like having to think about being in my 60s. I usually think 2-4 years in advanced at the most (yeah it's bad whatever).
41/ I don't round up my purchases. It makes my accounting too complicated. I don't donate much money. At the most, I'll donate like $25-50 a month which I plan to change but it's not a priority. And a little secret to admit, I don't actually write out any of my budget at all.
42/ I naturally hate spending money and I never reach what my goal budget would be anyways.
I don't keep money in checking accounts or cash. I don't pay with debit cards. All too risky for my lil heart.
Alright, that's all I got off the top of my head.
I don't keep money in checking accounts or cash. I don't pay with debit cards. All too risky for my lil heart.
Alright, that's all I got off the top of my head.
43/ I'm happy with my net worth, and it could easily drop at any point, but also keep going up. Although I avoid using my real numbers, I'm happy to chat about anything you're wondering. I'm sure I missed things but this is the general stuff.
FIN/ If it's taken well, I may do something similar for my business finances which is a bit more complicated. Maybe videos too but I feel like my audience wouldn't like it lol. Maybe this helps, and if not, I enjoyed writing it all out for my own sake.
