Money stories

Manu wrote:

Adder wrote: So for me I started with earned income, then used that to additionally get portfolio income before being able to build passive income.

What kind of passive income source do you have?

I don't talk about my own situation in too much detail just for privacy reasons, but it depends on where your at and what is available for you to work with.

I'm no expert, nor even employed in the field... but I've done a few different things like ran my own business, low frequency share trading, renovated and built residential property - all to try and find what worked for me where I'm at, but that will be different to other places around the world.

I guess it comes down to finding a market that has longevity, with some capability to measure its direction to assert some prediction and movement against. So in a way passive income might better be viewed as a stable and positive phase of the same portfolio which can be turned into portfolio income (when you need to change position in the market). So I view portfolio income as sporadic, and passive as more continuous - if they are the same products/source. Some people diversify and have multiple types of products/sources but it can get complicated!

So the product/source doesn't really matter so much, just your interaction with the market, and I know nothing of your local economy, and international markets are something I've not played with yet.

It all sorta feels like it's all gambling from a certain point of view, at least until sufficient wealth is developed to own everything outright, but then ya also gotta watch that your wealth keeps pace with inflation and the value of the dollar so it almost just has to be considered a type of work on its own - which means time, something we're all short of these days. In some regards its easier to just stick with earned income!!!! One step at a time I guess.

But I think its important to have the same values throughout, and not view it as a destination but instead part of your way of life... so if it can be compatible with your Jedi path in some way it helps. I'm very anti-waste and tend to think efficiency serves entry level to succeed and also serve high end level to avoid the abuse that is so possible with having wealth. I also like to give a little when I'm able to take... which is sorta contrary to my goals, but I tend to have a believe in karma type concepts, such that I incorporate honesty as much as is possible in economics as well
:S :dry:

Adder wrote: Stuff

TL:DR - Buy for Less, Sell for More :laugh:



(I'm sure it varies wildly by country and location - In my world however, almost anything is better than a "savings account" with the interest rates and inflation going around - You need to be active in your money management)

Property and Shares can seem scary, and they certainly are - Property is generally a pretty big ticket item, and not everyone is ready to jump into that sort of thing, and a big loan from the bank just to "get into the market" can be a massive drain, and a massive stress.


Shares....can be good, and also risky.

That said "Mum and dad" trading is not too difficult to get into, and you can set up an account with any number of brokers in your market.

Unless you're passionate, don't stress too much on reading the market every day and trying to nail the one "get rich quick" company (If you do find one though, good on ya!)

There is more than likely forums and sites suitable to your market, and if you do a bit of research and get stuck in, you can make *some* money.

Rules:

Be prepared to lose your investment. It happens.

Do your research, but don't wait once you are confident on a buy - otherwise you'll miss it

Once you *do* have a small portfolio, keep an eye on it, but don't panic.

Finally....It's up to you, but there is an ethical question with shares - Do you want to buy into companies that do things you don't support? Types of energy production, pharmaceuticals, poker machines, etc etc - These can be the best money makers, but they might not be making a world you want to live in





I'm not trying to persuade you to start a share portfolio, I'm just letting you know it's not just "something for business men, con artists, and other well dressed criminals"

Two and a half years ago my wife and I had a $360k mortgage, $17k credit card debt and maybe $800 in our everyday accounts at any given point in time. We lived paycheck to paycheck and were frequently bowled over by large bills (annual insurance premiums for starters).

That was when I found YNAB (www.youneedabudget.com). YNAB taught me to recognise that money is a finite resource and needs to be managed as such and that a budget needs to be fluid, rather like life. I won't say any more on YNAB because this is not an advertisement, but within 12 months of following their system we had paid off all our credit card debt, had an emergency fund and were prepared for large upcoming expenses - we had a stress free financial life.

Now we have paid off an additional $30k on the mortgage (above our scheduled payments), still have $0 debt (other than the mortgage), we have money set aside for large expenditures such as overseas holidays, new cars, etc and the money we earned this month is budgeted for December - because our money lasts that long from when we receive it until when we use it (approx 115 days) that we can plan that far in advance.

The real secret, and this is the part that relates to Jediism, is to be mindful and involved in what you are doing rather than passively hoping it works out, and to practise the discipline to pursue your priorities, not the priorities mass marketing would have you follow.

Once you have accomplished that you can freely move into investing for wealth (if that is your priority).

In the same boat as some others here - 15k+ in credit card debt, a gigantic mortgage. Most of the credit card debt comes from 5 years ago when I quit my job and went back to college for a post-grad, the rest of it is poor impulse control. We're managing to pay the bills, but I have the feeling we're not getting anywhere, which is robbing me of my sleep. In addition to that, we've been hit by two back-taxes bills in one year now and are just paying everything we get straight to the state - again, that was a mix of our own fault:

- calculating taxes here is crazy complicated, especially if you have fluctuating income, should have hired a professional to do the taxes - we're both fairly bad with numbers They don't deduct taxes from the income here - you have to calculate how much you owe and pay that. You're paying taxes for the current year, then fill in a tax declaration the following year. Then the state compares how much you owe to how much you pay and sends you a bill for the difference if your calculations were incorrect.

- and other factors (staff change at the tax office, they're years behind).

Overall, it's time to do something - and I appreciate Dano Ori's post (youneedabudget.com) - mindfulness and impulse control are needed. I believe money spending is my personal alternative to frustration eating. Things have improved though (not financially yet, but at least in terms of mindfulness and general attitude and I'm hoping a clear focus on this will eventually get us out of it.

I tend to talk about my finances if asked. While I, too, consider money a personal affair, talking about it lets me analyse things once in a while, which I find beneficial.

I am sorry to hear about your financial troubles Manu , those certainly get in the way of leading a tense free life , as some here know i am a debt counsellor/ debt controller , yes i have two faces , on the one hand i help people who are in debt , but i also dont hesitate to cut of hard learning individuals that keep putting their selfish needs in front of what they or their family really need , there are people that have coffee and cake when i ring at the door , and i have people that hide behind the couch. Both seem to need me , but they all get a choice. change your behaviour and become debt free , or lose control over your money and let others decide for you. I really dont advice the latter , it may seem calm and serene not to worry about money but its also a sign of dependency. There are a lot of websites that offer education and behavioural change programs that are simple to follow , and i recommend them to my clients aswell , half of my clients i never see back , either because they dont really have a problem or they work well with the online programs, or they dont want to see where they are wrong.

The worst problem i face is that people dont want to hear they dont need certain items , that they can live without certain luxuries. That is worrying because we think we are entitled to stuff. When you have a roof over your head , food and people that love you , you are rich PERIOD , everything else may seem nescesarry but is not. So to keep a long story relatively short, i had 40.000 euro debt , and now i am debt free , it took me a few years , but now have been living on that tight budget for so long , i am addicted to getting the best deal , exchanging clothes with friends , and i recently took up knitting because i wanted That scarf for my daughter

Budgetting 101 Here is one of the many budgetting sites , if you have any more questions , please dont hesitate to ask

Spend less that you make after that everything falls into place. Pay off your debit, put some money in the bank and post when you're done that. No point in investing if your house isn't in order.

Before Kids I had a third shift night stocking job at Target. Got like....$500 a week or something like that. Myself and my husband was happy and lived like kings in our tiny run down appartment playing everquest or wow at all godly hours of the day or night haha

When my two daughters were born we decided the best thing for them was for me to be home. For me to be their mom. For me to run the house. I still do that....I love it. I love that I am here for them when they need me. I love that I can personally teach them skillsets in correlation of their Schooling (Both in Kindergarten)

But.....The older they get....the more money is needed and stressed. Gas prices rise, Utility bills rise, food prices rise.....kids are also at an age where they want to join dance classes and girl scouts....

Doing all of this on one income is becoming more and more challenging and my husband is quite clearly showing signs of stress and strain to keep up with both work and home demands.

Which means....I have to find a job. After 6 years of being at home....I need to find something to bring it a little extra cash.

Unfortunatly it has proven to be real difficult.

Back in the day I could just walk into any store, sign an application and nag them every monday until I was hired. Now a days I have to do all applications online, get automatically signed up to a crap load of e-mail, text and phone spam and told to take a hike until some place decides my "same as everyone elses" application gets noticed and approved.

Its been......Frustrating.

I have even searched for At home Jobs...which would be more ideal because.....I am still needed as a mom. Kids do not go to school all day, nor are they gone all day. They have half days, vacation days, snow days, sick days....and on those days that they are home....I have to be home to. We have no friends, no family....no one that we trust to watch them and the day care places are....yeeeeeeea.....no.

I will say....I wish my parents had taught me more about the importance of money. Sure they said it was important but they never really impressed it. Not saying it i their fault of course Just that like you said Manu. Its not something that is commonly talked about....It should be though....

I'm constantly in a state of financial distress.

I have a job that makes good money, but between living in a neighborhood that has been rapidly gentrifying in the past 5 years (including unusually high rent increases), a student loan, a consumer proposal/debt repayment, all of my bills/utilities, and two cats, I don't have a lot left over. Especially considering that my hobbies (gaming, cosplay, etc) are quite expensive. And it doesn't help that I pay all of it alone because I'm a "confirmed old bachelor".

I really just try to stay above water most of the time. It's been going on so long now, that I'm just used to it. I'm sure that I'd be in better shape if I just made a budget to stick to, but it seems like something always comes up to ruin it. Ah well.

One thing I've noticed that both makes my life infinitely harder, but also is better in the long run is that I do not have any credit. Because of my consumer proposal, my credit score is in the tank, so I never bothered trying to get any new credit. I'm living 100% on cash now. Once that is paid off (not much longer) and my student loan is done (though that will take much longer), thing will probably be quite a lot better.

I want to thank everyone for your replies. Especially for people who are also in financial distress, I know owning up to it is not always easy, especially in a forum such as this, where there is a tendency to try and put forth only the "best" of you.

MartaLina, I would suggest you use your financial expertise to start a course here, for members such as myself who learned about money the hard way. Perhaps you could lead the group once you become Knight?

MartaLina, I would suggest you use your financial expertise to start a course here,

Heh.

Lesson number one:

If you're good at something, don't do it for free

:laugh: