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Financing Black Businesses in Canada and USA: Challenges and Opportunities
What are the experiences of Black entrepreneurs in securing financing for their businesses and what role may alternative financing options (beyond financial institutions) in supporting the development and growth of Black enterprises?
Access to capital is a major challenge for entrepreneurs of all backgrounds, but studies have shown that Black business owners in particular have historically face significant obstacles in obtaining financing for their businesses. This is due to systemic racism, discrimination and lack of access to traditional financial institutions. Despite these challenges, alternative financing options are available for Black entrepreneurs that can support the development and growth of their businesses.
According to a report by the National Black Chamber of Commerce, Black-owned businesses are less likely to be approved for loans than non-Black-owned businesses, and when they are approved, they often receive smaller loans at higher interest rates. This lack of access to traditional forms of financing has led many Black entrepreneurs to seek alternative financing options to support the development and growth of their businesses.
Etienne Noumen: Afro-Canadian Software Engineer and Entrepreneur
A recent report from the Federal Reserve Bank of New York found that Black-owned businesses are less likely to receive loan approval than non-Black owned businesses. This is due to a combination of factors such as systemic racism, discrimination by lenders, and lack of access to traditional financial institutions (such as banks). Additionally, even when loans are provided to Black business owners, they tend to be smaller than those given to non-Black business owners.
Moreover, Black entrepreneurs tend not to have access to the same networks or resources as other entrepreneurs. These networks may include mentorships or incubator programs that can provide valuable advice and guidance on how best to manage finances or secure additional capital. Without these networks and resources, it becomes more difficult for Black entrepreneurs to secure financing for their businesses.
One alternative financing option that has gained popularity in recent years is crowdfunding. Crowdfunding allows businesses to raise funds from a large number of individuals, typically via the internet. This can be a particularly attractive option for Black entrepreneurs, as it allows them to bypass traditional financial institutions that may be less likely to lend to them. Additionally, crowdfunding can also be a way for Black entrepreneurs to build a community of supporters and customers around their business, which can be beneficial for long-term growth.
Another alternative financing option that has been gaining traction is community investing. Community investing allows individuals to invest in businesses that are located in their own communities, and can be a way for Black entrepreneurs to access capital from people who are more likely to understand and support their businesses. Community investing can also be a way for Black entrepreneurs to build relationships with local investors and stakeholders, which can be beneficial for long-term growth.
Microfinance is also a popular alternative financing option for Black entrepreneurs. Microfinance institutions provide small loans, savings, and insurance to low-income individuals and micro-businesses, which can be particularly beneficial for Black entrepreneurs who may not have access to traditional forms of financing. Microfinance can also be a way for Black entrepreneurs to build relationships with local financial institutions and access additional resources to support the development and growth of their businesses.
The Role of Government Agencies & Community Organizations
Government agencies such as the Small Business Administration (SBA) also play an important role in supporting the development and growth of minority-owned businesses. Through its Office of Minority Business Development (OMBD), the SBA offers resources such as business counseling services, technical assistance programs, mentoring opportunities, and more — all designed to help small business owners gain access to capital and advice on how best to manage their operations. There are also numerous community organizations across the country dedicated solely to helping Black entrepreneurs secure financing for their businesses—many through innovative partnerships with local banks and other financial institutions—to ensure access to capital regardless of race or ethnicity.
Financing Black Businesses in Canada and USA: Challenges and Opportunities – Conclusion
In conclusion, Black entrepreneurs have historically faced significant barriers in securing financing for their businesses. However, alternative financing options such as crowdfunding, community investing, and microfinance can provide Black entrepreneurs with access to capital and support for the development and growth of their businesses. It is important that we continue to support and invest in these alternative financing options to ensure that Black entrepreneurs have the resources they need to succeed.
Articles in this blog post have discussed why securing financing is often difficult for black-owned businesses due systemic racism and oppression in banking industry, some alternative sources available, and the importance /role played by government agencies/community organizations. It is evident that there is still much work that needs to be done in order for these disparities between white-owned businesses versus black-owned ones in terms of access to capital/financing. Alternative finance sources as well as government programs need increased investment so that Black owned business can get necessary funding required for them take off. We can only hope with time these issues will be addressed properly. Bring together all stakeholders including public sectors, private sectors, financial institutions and black entrepreneurship communities – we must work together create a robust ecosystem enables equitable access and opportunity needed help our local economies becoming strong and vibrant.
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Defining Black Entrepreneurs: How do we define Black entrepreneurs, Black enterprises, and Black entrepreneurship? Black entrepreneurs are individuals who own and operate businesses that are either majority-owned or controlled by Black people. Black enterprises are businesses that are majority-owned or controlled by Black people. Black entrepreneurship refers to the process of starting, organizing, managing, and assuming the risks of a business venture that is majority-owned or controlled by Black people. It encompasses all aspects of creating, building, and running a business, including identifying opportunities, securing funding, and creating a sustainable business model.
Inspiring policy makers to create change: How can research on Black entrepreneurship inspire policy makers to create change that are supportive of Black entrepreneurs?
The role of community, culture, and ecosystems: What role does community culture, Black entrepreneurship culture, and entrepreneurial ecosystems play in fostering and strengthening Black entrepreneurship in Canada?
Black businesses’ growth and success: How may Black entrepreneurs grow and sustain their business over the longer term?
Understanding the Black immigrant entrepreneur: What are the experiences of Black immigrant entrepreneurs and how do these experiences differ from Black entrepreneurs born in Canada?
Support Books and Business owned by Black Authors and Entrepreneurs in USA and Canada:
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How do you protect yourself against future potential policy changes that would affect your retirement account withdrawals in early retirement?
Protecting your future finance in the wake of any sudden policy changes that can affect retirement account withdrawals in early retirement can be daunting, but with an understanding of the basics of finance and investment, you can empower yourself to be proactive. Ensure that you are keeping a close eye on changes, new investments schemes, and other opportunities. Making wise decisions regarding financial investments to protect your retirement account can go a long way in safeguarding yourself against future potential policy changes. Preparing for the worst is always wise – make sure your finances are diversified and compliant with changing regulations so you will have back-up plans even if suddenly policies change.
There are a few ways you can protect yourself against potential policy changes that may affect your retirement account withdrawals in early retirement:
Diversify: One of the best ways to protect yourself against policy changes is to diversify your retirement savings across multiple accounts, such as 401(k)s, IRAs, and taxable investment accounts. This will help ensure that any changes to one account do not have a significant impact on your overall retirement savings.
Plan for taxes: Keep in mind the tax implications of different types of withdrawals, and try to limit the tax hit as much as you can. For example, if you can wait to start withdrawals from a traditional IRA or 401(k) until you are age 59 1/2, you’ll avoid the 10% penalty for early withdrawals and it could help you balance the tax rate.
Understand the laws: Learn about the laws and regulations that govern your retirement accounts, so you are aware of the potential risks and opportunities.
Consider alternative investments: Consider investing in alternative investments such as real estate, private equity, hedge funds, and venture capital. These investments can provide diversification and can potentially produce higher returns than traditional investments.
Have a flexible financial plan: Have a plan that can adapt to different market conditions and changing policies. This may include having enough savings in cash and liquid assets to withstand potential market downturns and be prepared to make adjustments to your spending or withdrawal rate in response to changes in policy.
Take advantage of any tax savings or other benefits that you can take today. Traditional 401k for example. Tax savings today (both federal and state) are real.
7. I like to remind people that the retirement accounts and rules currently in effect are not that old and change regularly. IRAs were created in 1997. HSAs were created in 2003. Backdoor Roth contributions started in 2010. “Mega” backdoor roth started in 2014. The ACA didn’t exist until 2010. Tax rates change. Policies change.
These things all dramatically shape all of our current saving and retirement strategies. Do your best to take advantage of the current rules to your benefit today, because no one knows what changes the future will bring
It’s important to keep in mind that although these methods can help reduce the potential impact of policy changes, it is impossible to fully protect oneself against policy changes as it’s hard to predict how the laws might change. The best approach is to have a well-diversified portfolio, understand the laws, and have a flexible financial plan.
The financial world can often feel complex and foreign, especially when planning for our retirement. The thought of policy changes that potentially impact our retirement accounts can be daunting; however, with the right finance and investments knowledge, you can protect yourself from potential future policy changes. It’s important to stay up-to-date with finance advancements, trends, and legislation – so that if any shifts in policy do occur, you don’t find yourself unprepared or uncertain. Building a strong pillar of finance and investments will not only help you better understand your retirement goals, but also provide some peace of mind on your ability to confidently withdraw funds from your retirement accounts if needed.
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Top 10 tips to protect your debit or credit card from being hacked?
Protecting your debit card or credit cards from being hacked can be daunting. However, following a few security and privacy best practices can ensure you don’t become the victim of cyberfraud. Keeping your PINs and security codes safe – and not sharing them with anyone – is the foundation for protecting your financial data from malicious hackers.
Upgrading to EMV-chip security on your credit cards offers an extra layer of protection against unauthorized access, while only making purchases on reliable websites that encrypt information helps minimize the risks posed by online shopping scams. Finally, tracking your card transactions regularly will alert you to any suspicious activity right away, allowing you to report it to your bank before further damage is done.
Top 10 tips to protect your debit or credit card from being hacked?
Here are some steps you can take to protect your debit card from being hacked:
Use a strong and unique PIN: Avoid using easily guessable PINs such as your birthday or the last four digits of your phone number. Instead, use a long and complex PIN that is unique to your debit card.
Avoid using your debit or credit card on public or unsecured WiFi networks: Hackers can easily intercept data transmitted over public WiFi networks, so it is best to avoid using your debit card on these networks. Avoid using public Wi-Fi networks to make online purchases or access sensitive information, as these networks are often unsecured and can be easily hacked. Instead, use a secure, encrypted network.
Be cautious when entering your PIN: Cover the keypad with your hand when entering your PIN at an ATM or point-of-sale terminal to prevent anyone from seeing your PIN.
Use a mobile payment service: Mobile payment services, such as Apple Pay or Google Pay, use a technology called “tokenization” to protect your card information. With tokenization, a unique code is generated for each transaction instead of using your actual card information.
Monitor your account regularly: Keep an eye on your account activity and report any unauthorized transactions to your bank as soon as possible.
Use a credit card instead of a debit card: Credit cards offer more protection against fraud than debit cards because you are not using your own money when you make a purchase. If your credit card is compromised, you can dispute the charges with your credit card company and the money will be returned to your account. With a debit card, the money is taken directly from your bank account and may be harder to recover.
Use secure websites: When shopping online, make sure to only use secure websites that have “https” in the URL and a padlock symbol in the address bar. This indicates that the website is encrypted and your information will be protected.
Use strong and unique passwords: Use strong, unique passwords for each of your online accounts and regularly change them to prevent them from being hacked. Avoid using easily guessable passwords, such as “123456” or your name.
Enable two-factor authentication: Many online accounts offer two-factor authentication, which requires you to enter a code sent to your phone or email in addition to your password to log in. This adds an extra layer of security to your account.
Monitor your accounts: Regularly check your bank and credit card statements to make sure there are no unauthorized charges. If you notice any suspicious activity, report it to your bank or credit card company immediately.
By following these steps, you can protect your debit or credit card from being hacked and reduce the risk of fraudulent charges.
To conclude:
When it comes to security and privacy, your debit or credit card should not be taken lightly. To protect against cyber security risks, it’s important to secure your PIN, avoid publicly sharing personal information, use trusted merchants for online purchases, update security features regularly, and stay abreast of emerging fraud safety practices. It never hurts to double check with your bank or credit provider for their recommendations on the latest security best practices. After all, when it comes to our financial security and safeguarding our cards from being hacked, an ounce of prevention is worth a pound of cure.
What strategies can be implemented by businesses to prevent cyber-fraud and protect customer data securely on digital platforms?
There are several strategies that businesses can implement to prevent cyber-fraud and protect customer data securely on digital platforms:
Multi-factor authentication (MFA): Implementing MFA for login and access to sensitive data can help to prevent unauthorized access to customer data.
Encryption: Encrypting sensitive data both in transit and at rest can help protect data in the event of a security breach.
Network security: Implementing firewalls, intrusion detection and prevention systems, and other network security measures can help to prevent unauthorized access to customer data.
Regular security assessments and audits: Regularly assessing and auditing the security of digital platforms can help identify vulnerabilities and implement corrective actions.
Employee education and awareness: Training employees to recognize and prevent cyber-fraud, as well as creating a culture of security can help prevent employee-related frauds.
Network segmentation: Dividing the network into smaller networks can help to limit the damage that can be caused by a security breach.
Access control: Proper access controls can help to prevent unauthorized access to customer data by limiting the number of employees who have access to sensitive data.
Use security tools: Regularly scan for vulnerabilities, use antivirus and anti-malware tools, and use intrusion detection systems to detect and prevent cyber-attacks.
Overall, implementing a combination of these strategies can help businesses to prevent cyber-fraud and protect customer data securely on digital platforms. These measures should be regularly reviewed and updated in light of new threats and regulations.
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What are some ways we can use machine learning and artificial intelligence for algorithmic trading in the stock market?
Machine Learning and Artificial Intelligence are changing Algorithmic Trading. Algorithmic trading is the use of computer programs to make trading decisions in the financial markets. These programs are based on a set of rules that take into account a variety of factors, including market conditions and the behavior of other traders. In recent years, machine learning and artificial intelligence have begun to play a role in algorithmic trading. Here’s a look at how these cutting-edge technologies are changing the landscape of stock market trading.
What are some ways we can use machine learning and artificial intelligence for algorithmic trading in the stock market?
Machine Learning in Algorithmic Trading
Machine learning is a type of artificial intelligence that allows computer programs to learn from data and improve their performance over time. This technology is well-suited for algorithmic trading because it can help programs to better identify trading opportunities and make more accurate predictions about future market movements.
One way that machine learning is being used in algorithmic trading is through the development of so-called “predictive models.” These models are designed to analyze past data (such as prices, volumes, and order types) in order to identify patterns that could be used to predict future market movements. By using predictive models, algorithmic trading systems can become more accurate over time, which can lead to improved profits.
How Does Machine Learning Fit into Algorithmic Trading?
Machine learning algorithms can be used to automatically generate trading signals. These signals can then be fed into an execution engine that will automatically place trades on your behalf. The beauty of using machine learning for algorithmic trading is that it can help you find patterns in data that would be impossible for humans to find. For example, you might use machine learning to detect small changes in the price of a stock that are not apparent to the naked eye but could indicate a potential buying or selling opportunity.
Artificial Intelligence in Algorithmic Trading
Artificial intelligence (AI) is another cutting-edge technology that is beginning to have an impact on algorithmic trading. AI systems are able to learn and evolve over time, just like humans do. This makes them well-suited for tasks such as identifying patterns in data and making predictions about future market movements. AI systems can also be used to develop “virtual assistants” for traders. These assistants can help with tasks such as monitoring the markets, executing trades, and managing risk.
According to Martha Stokes, Algorithmic Trading will continue to expand on the Professional Side of the market, in particular for these Market Participant Groups:
Buy Side Institutions, aka Dark Pools. Although the Buy Side is also going to continue to use the trading floor and proprietary desk traders, even outsourcing some of their trading needs, algorithms are an integral part of their advance order types which can have as many as 10 legs (different types of trading instruments across multiple Financial Markets all tied to one primary order) the algorithms aid in managing these extremely complex orders.
Sell Side Institutions, aka Banks, Financial Services. Banks actually do the trading for corporate buybacks, which appear to be continuing even into 2020. Trillions of corporate dollars have been spent (often heavy borrowing by corporations to do buybacks) in the past few years, but the appetite for buybacks doesn’t appear to be abating yet. Algorithms aid in triggering price to move the stock upward. Buybacks are used to create speculation and rising stock values.
High Frequency Trading Firms (HFTs) are heavily into algorithms and will continue to be on the cutting edge of this technology, creating advancements that other market participants will adopt later.
Hedge Fundsalso use algorithms, especially for contrarian trading and investments.
Corporations do not actually do their own buybacks; they defer this task to their bank of record.
Professional Trading Firms that offer trading services to the Dark Pools are increasing their usage of algorithms.
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Smaller Funds Groups use algorithms less and tend to invest similarly to the retail side.
The advancements in Artificial Intelligence (AI), Machine Learning, and Dark Data Mining are all contributing to the increased use of algorithmic trading.
Computer programs that automatically make trading decisions use mathematical models and statistical analysis to make predictions about the future direction of prices. Machine learning and artificial intelligence can be used to improve the accuracy of these predictions.
1. Using machine learning for stock market prediction: Machine learning algorithms can be used to predict the future direction of prices. These predictions can be used to make buy or sell decisions in an automated fashion.
2. Improving the accuracy of predictions: The accuracy of predictions made by algorithmic trading programs can be improved by using more data points and more sophisticated machine learning algorithms.
3. Automating decision-making: Once predictions have been made, algorithmic trading programs can automatically make buy or sell decisions based on those predictions. This eliminates the need for human intervention and allows trades to be made quickly and efficiently.
4. Reducing costs: Automated algorithmic trading can help reduce transaction costs by making trades quickly and efficiently. This is because there are no delays caused by human decision-making processes.
Machine learning and artificial intelligence are two cutting-edge technologies that are beginning to have an impact on algorithmic trading. By using these technologies, traders can develop more accurate predictive models and virtual assistants to help with tasks such as monitoring the markets and executing trades. In the future, we can expect machine learning and AI to play an even greater role in stock market trading. If you are interested in using machine learning and AI for algorithmic trading, we recommend that you consult with a professional who has experience in this area.
Can artificial intelligence or machine learning predict the future of the stock market?
Can it predict?
Yes, to a certain extent. And let’s be honest, all you care about is that it predicts it in such a way you can extract profit out of your AI/ML model.
Ultimately, people drive the stock market. Even the models they build, no matter how fancy they build their AI/ML models..
And people in general are stupid, and make stupid mistakes. This will always account for “weird behavior” on pricing of stocks and other financial derivatives. Therefore the search of being able to explain “what drives the stock market” is futile beyond the extend of simple macro economic indicators. The economy does well. Profits go up, fellas buy stocks and this will be priced in the asset. Economy goes through the shitter, firms will do bad, people sell their stocks and as a result the price will reflect a lower value.
The drive for predicting markets should be based on profits, not as academia suggests “logic”. Look back at all the idiots who drove businesses in the ground the last 20/30 years. They will account for noise in your information. The focus on this should receive much more information. The field of behavioral finance is very interesting and unfortunately there isn’t much literature/books in this field (except work by Kahneman).
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Is it better economically to run a car into the ground before buying a new one? Data driven answer
Is it better to drive your car into the ground before buying a new one? You might think that’s an odd question, but there’s some logic to it. We all know cars are expensive, and many people feel they have to buy a new one as soon as theirs starts to show its age. But is that really the best way to go? Let’s take a closer look at the numbers.
It might be more economical to run your car into the ground before buying a new one. Sure, you’ll have to deal with a few mechanical problems along the way, but at least you won’t have to worry about depreciation costs. Plus, you’ll get the added bonus of being able to tell your friends and family that you’re driving a “classic.”
Is it better economically to run a car into the ground before buying a new one? Data driven answer
(15% seems kinda optimistic…but depending on the kind of car you buy – it might be OK)
When you look at your car payments – if you finance over 5 years then for a cheap $25,000 new car (A Camry or an Acura or something similar)…you’ll have somewhere around a $500 monthly loan payment over 60 months – so you’re actually paying $30,000 for the car – the rest being interest on the loan.
So in the first 5 years you spend $30,000 on payments and $2,100 on maintenance for a total of $32,100.
If you sell after 5 years: with depreciation – you get $10,000 back from selling the car – so it cost you $22,100 to have a car for 5 years…or $4,420 per year.
After 10 years, you spent $32,100 so far plus another $5,150 in maintenance for a total of $38,250.
If you sell after 10 years: you’ll get about $4,500 back so $33,750 to have a car for 10 years…or $3,375 per year.
After 15 years, you spend $38,250 so far plus another $8,800 in maintenance for a total of $47,050.
If you sell after 15 years: you’ll maybe get $2,000 – so $45,050 to have a car for 15 years…or $3,000 per year.
After 20 years, you spent $47,050 so far – plus $10,300 in maintenance (eek!) for a total of $57,350.
Nobody will buy your PoS car now – but on the plus side, the breaker’s yard will probably tow it for free – so $57,350 to have a car for 20 years…for a total of $2,867 per year.
So the cost to own a car per year (on average) is the least if you keep it until it goes to the car crusher.
This is where that original claim comes from – and it’s true.
WHAT IF YOU SELL AFTER JUST THREE YEARS?
Car payments are now $750/month over 36 months (MUCH higher than financing over 5 years!) – so you pay $27,000 in total (not much less than the $30,000 you’d have paid over 5 years!). But depreciation means that the car is now worth $15,000 and maintenance is zero. So you spent $12,000 over 3 years – which is $4,000 per year.
…which is LESS per year than keeping the car for 5 years.
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PARTIAL CONCLUSION:
These numbers are VERY approximate – maybe you buy a more expensive car and it depreciates faster – maybe you find a crazy reliable car and nurse it along to 25 years. Maybe engine and transmission failure happen simultaneously at year 15 and it goes to the crusher early.
But if we look at my scenario…which is based on industry norms if you swap your car out every 5 years, it’s going to cost you $4420 per year and if you keep it for 20 years, it’s costing you $2,867 per year. So on strict economic terms you should always run your car into the ground.
However, the difference between $4000/year (swap your car every 3 years) and $2867/year is $1133/year or $94 per month.
You could not pay me $94/month to spend most of my life driving crapped out wrecks compared to driving an almost new car all the time.
Just the time I’d spend fritzing around trying to get my 20 year old car to start on a cold, damp morning isn’t worth $94/month.
IMHO – THIS WHOLE EXERCISE IS KINDA SILLY:
People who can afford to buy a new car are not going to worry too much about $94/month to keep replacing it. It’s not that big of a deal.
People who live close to paycheck-to-paycheck probably can’t (and certainly SHOULDN’T) buy a new car to begin with – and in that case, buying a car that’s already done most of it’s depreciation is a much smarter tactic.
If you can’t afford a new car – buy a 5 year old car – for less than half price. Your maintenance costs will be twice what a new car costs – but that’s peanuts compared to a full car payment.
FINAL THOUGHT: THE STEVE JOBS APPROACH:
Steve Jobs famously replaced his car every six months – with an identical car each time. He actually had a standing order with the car dealership – so he didn’t even have to think about it – they’d just drive to his house or his office with a new car and drive away the “old” one.
For years he drove a long run of black Porsche 911’s but did switch to a long number of black Mercedes SL55s.
But this is madness! A car loses 10% of it’s value during the first 20 feet as you back it out of the parking space at the dealership!
But the Steve Jobs story is weirder:
In California, you don’t need a proper license plate for 180 days – you can drive on the temporary dealership plates, so by swapping out his cars every 6 months, he never had to go to the DMV to pick up his replacement plate. Looking at how much his time was worth – that wasn’t such a dumb idea. Jobs was earning upwards of $100 million per year – that’s $50,000 an hour. Going to the DMV for an hour cost him MUCH more than replacing the car!
This seems like a stupid story – but there is an underlying message here. While we look at those ever increasing maintenance costs over years of car ownership – each one comes with a penalty in time and stress.
In later years, the car probably breaks down – or won’t start – and you’d have to get it to a mechanic and sit around for an hour or two (or even be without a car for a few days) while you get it fixed.
How much do you value your time? $5/hour? $50/hour?
When you factor THAT in – then having a worry-free effortless new car can easily be worth the cost of swapping it out every 3 years.
1- Or buy a 3 year old Japanese (or nowadays a Korean would do) car, having let someone else take the bulk of the depreciation, and run it on a shoestring for the next 15 years, when it’s more likely the driver will clap out before the car does.
2- Everyone says this but when I tried to do it I couldn’t find one. It seemed like the only people selling 2–3 year old cars were rental agencies. Is it worth the risk of buying a former rental? I didn’t but it could be totally fine I guess.
3- Rental companies sell their cars early so they don’t have to maintain them very well. The people who rent them also don’t drive them gently – because they don’t care. So buying a rental car seems like a bad idea.
4-
Seems to me there are some significant things you have ignored or just plain got wrong. You say it’s only $94/month difference between 3 year ownership and 20 year ownership but doesn’t your calculation require that you only pay $25,000 every 3 years when you replace your car? Does that mean you have to keep buying less expensive cars or did you just ignore increasing prices because it didn’t fit with your conclusion?
What about other costs which would be less with an older car, for example insurance and excise taxes, if applicable where you live. Also depending on where you live there may be significant sales tax due every time you buy a new car
I don’t expect your analysis to be perfect or all encompassing but I think you have substantially understated the cost differential of owning a car for 3 years vs 20 years
5- The model is simplified. In the real world, most of those variables are unknowns with a heap of “it depends”. Car prices and maintenance/parts are both impacted by inflation, but that effect can be completely dominated by supply/demand issues specific to the item in question, e.g. they stop making a specific part, your particular vehicle increases in popularity; or the old car has lower insurance, but new car has better gas mileage, etc.
6-Yeah – you can NEVER know for sure. My simplified model makes it easier to discuss and think about the consequences of depreciation versus maintenance. In reality, you need to check how the car you’re buying depreciates – and what it costs to maintain. Once you know that – you can run through the same thought processes that I did and deduce what is right in your situation.
A HUGE part of this is how many miles you drive – depreciation is a mix of mileage and age.
7- I don’t understand why all the maintenance is needed. I ran a Toyota Prius till it was 14 years old and I spent around £350 a year on maintenance including servicing. I’ve just bought a 3 year old Honda Jazz that I fully expect to run for another 10 years at similar yearly costs. Drive it gently and keep under the speed limit.
8- That graph comes from a statistical analysis of what an average car needs. There are always going to be a few people who do better than that – and a few that do a hell of a lot worse.
So your anecdotal one-off proves nothing.
9- Looks like the maintenance costs are too inflated for older cars. If one needs to put in 10000 dollars in maintenance a year, it is time to let this car go. But I’ve see enough examples when cars were running for 10 years or more with just basic maintenance, not needing a new transmission or any major repairs. Good strategy could be to buy a 2–5 year old car for a fraction of a new car cost, and then run it into ground.
10- I drive Toyota Corollas. Exclusively. The one I have now is a 2017 and it cost me $17,000. Had 11,000 miles on it when I got it. Paid off in 18 months. Almost nothing to maintain except oil changes, new brakes, and one set of tires so far. Goal is to get 300,000 miles out of her like I did the previous ones. I will drive it until the wheels fall off. Or the air conditioning breaks. I do live in the South.
11- Very well thought out. I came to the conclusion that I am in the switch out every 3 year category now. The peace of mind of always having a warranty is worth it if you can afford it in my humble opinion.
12- One major point to add. The hot-potato risk of a major service issue can greatly accelerate the crusher date, and those last 10 years can be a toss up, fix or crush.
13-
I think your maintenance figures are too high. But, using your own figures exactly:
Buy at 5 years, keep another 15: ((10000+(10300-2100))/15 = $1213/year
Buy at 10 years, keep another 10: (4500+(10300-5150))/10 = $965/year
Buy at 15 years, keep another 5: (2000+(10300-8800))/5 = $700/year
I bought my previous car here in NZ, a 1997 Subaru Outback, in 2012 for US$2.5k, and sold it in 2019 for $600 (22 yr old). There was very little maintenance. I replaced the head gaskets in the same year I got it (planned). $2k? At some point the AC started leaking and it took a couple of refills to find and fix the leaks (first refill with a dye included, so the leaks could be seen before the 2nd refill). No biggie. $500 total? In 2018 something seized in the brakes on one wheel and started dragging. Again, a couple hundred bucks to fix. Aside from that, just regular servicing.
My current car is a 2008 Outback, bought in May 2020 for US$6k with 54,000 miles. So far the only unscheduled thing is a $15 A/C control relay. Beautiful car. Limited 2000 unit production Subaru 50th anniversary model. 265 HP STI turbo engine (0–60 in 5 seconds), “Touring” cabin spec, modern safety features such as dynamic cruise control, pre-collision braking, lane departure warning (in 2008!). Going to keep this thing a long long time. 富士重工業株式会社 ニュースリリース | ニュースリリース | 株式会社SUBARU（スバル）
14-I enjoy your answers Steve:)
The only exception to that I’ve experienced is buying a used electric vehicle. I purchased a very low mile (13k) 3 year old EV lease return and have had zero maintenance on it except for tires. I spent 9k on it still have it. It was paid off early because of the savings and I could probably get around 5k for it at 10y/o. Of course whoever has to replace the battery would get that cost so it might break even using your calculations. I plan to run it into the ground including using it as a storage battery for my off grid solar.
15- My wife and I are leasing a vehicle at the moment. It’s probably the best decision we’ve made regarding transportation. We drive a new car for three years, the dealer pays for all major maintenance while we only pay for oil changes and when the time is up, we give it back and get a new one. We pay one fixed monthly price for a reliable, safe and more fuel efficient vehicle. This actually costs us less than when we drove a used vehicle that would break down randomly throughout the year and would require expensive repairs, not to mention days without a vehicle. Still, people try to tell me how I’m a sucker because I went to the dealership. But the dollars don’t lie: I save far more money doing it this way. Unless of course I am going to steal all of my new vehicles. That would be a lot cheaper, until I was caught at least!
16- I like answers like this with real figures. They give sense of scale and change so nice one!
Side note is RVs or motorhomes, as called in UK, have weirder curve. As highly customized from new much steeper curve over first 3 years. Then long time flat up to 15 years. Then kind of afterlife up to 25 years.
Why excited about Tesla Truck, if ever happens. With RV conversion could last forever.
17- For me it is also stressful to spend time looking for a new car. Trying different models, find a good deal, compromising on this and that. Some people like this part, but I don’t.
So for me the optimum is to get rid of it before the stress occasionally bad news from the mechanics.
Ans: Find one brand/type that you like and stick to it. I owned 7 MINI Coopers in a row. The only decision each time was what color do I want this time?
I’ve now switched to Tesla as my go-to-brand – but I’ll do the same. However, the depreciation curve for Tesla’s is much more gentle – and they need almost no maintenance – and will likely last for 500,000 miles, not 200,000. So I won’t be replacing them every 3 or so years. Probably every 5? We’ll see. Right now, my 3 year old Tesla is worth $2,000 MORE than I paid for it…and is indistinguishable from a brand new Tesla. So there’s no way I’m replacing it right now.
18- In my experience, it’s only worthwhile for people to keep their cars until they have paid off the financing – assuming you haven’t done something stupid like financed over 72-84 months. If you need to do that to keep the payments down, you couldn’t afford the car in the first place.
Beyond that, it only makes sense to keep old vehicles if you are able to repair them yourself. In my case, since I do 90% of the post-warranty repair work on cars I own, I buy vehicles intending to keep them until they disintegrate into a pile of brown powder out there in the yard. My current vehicles are 7, 20, 22, and 23 years old. In the past 3 years I’ve sold off other cars I owned that were 21 and 18 years old.
19-
Interesting analysis, but I think that your data on depreciation is too dramatic.
None suffer 50% depreciation after only 5 years, and in fact some hardly suffer 20% after 5 years. Certainly, 15% per year is too much.
Cars with the Worst Resale Value
Rank and sort over 200 Vehicles with the worst resale values at the 3, 5 and 7 year marks.
19- These monetary and time cost are virtually worthless. I have never purchased a new car for my own use for decades and have never incurred those types of maintenance expenses. I have always had nice cars. My last was an awesome Lincoln Mark VIII and my current is a very nice Silverado crew cab. My wife always insist on a new car. They have constantly been in the shop for scheduled maintenance and odd issues that pop up and the dealers can’t seem to resolve. German cars seem to really rack up annual maintenance cost, and dealing with their service departments is a lesson in extortion.
Her current vehicle is a Ram Big Horn with an A/C system that has a slow leak they cannot seem to fix and a bizarre wind noise that is also elusive. It’s under warranty, but constant trips to the dealership are a constant hassle. All while my 2007 Silverado Classic just rolls right along without any problems.
20- Beautiful analysis. Very insightful thank you. So one question? If the vehicle/truck is used to create dinero, then these stats obviously go out the window correct? Not trying to take away your analysis which is great. Just thought I would add this little wrench in the engine…no pun intended:-)
A VW Golf would be cheap and parts would be readily available, but it would hardly be exotic or particularly fast.
Conversely, something like, say, a Lamborghini Diablo SV would undoubtedly be fast and exotic, but running the thing and replacing parts would be horribly costly and difficult.
What car ticks a balanced box between all these?
Consensus is: – if in the US, a C4-C7 Corvette, preferably a Z06 or ZR1
Engines are cheap and easy to modify, can pull around 1 g on the skid pad depending on setup, dirt cheap on the used market.
– If in Europe, a 996 or 997 Porsche 911.
A mid 2000s Porsche. (996)
They’re reliable, relatively cheap meaning you could buy 3-4 entire fully running models for less than 10k each, and use them for parts, they’re exotic and have a more timeless appearance than most cars from that time. As for speed, they can go top to 177 mph!
At what miles does a car start to wear and break down?
While the mechanics of fancy vehicles like Mercedes, BMW, Lincoln may be designed to last longer than most, the fatal flaw is that the electronics are buggers and will make the car useless long before the cylinders give up the ghost.
Caveat:
All those makes with proper maintenance will go much longer if you
Change coolant every 5 years or less
Change oil religiously with an excellent synthetic oil at proper intervals, and use OEM filters
Service automatic transmissions at 50k miles
Change differential and transfer case oils at 100k
Check hoses belts and replace if necessary at 100k miles
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Algorithm and Tricks to save up to 30 cents per litre on Gas in USA and Canada.
Looking to save a few cents per litre on gas in the USA or Canada? Here are a few tips and tricks that can help you do just that.
First, make sure you’re using the gas rewards program at your local gas station. By using a gas rewards card, you can earn points that can be redeemed for discounts at the pump. Additionally, many gas stations offer coupons and promotions that can save you money on gas purchases. Be sure to check the gas station’s website or app for any current offers.
Second, consider carpooling or taking public transportation when possible. This will help you save on gas costs and may even improve your fuel economy. If you must drive, try to consolidate your errands into one trip instead of making multiple trips. This will also help you save on gas.
Finally, keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%. Additionally, properly inflated tires can also improve your fuel economy by up to 3%. By following these simple tips, you can easily save up to 30 cents per litre on gas in the USA and Canada.
Gas is getting very expensive and we are trying to help consumers save on Gas by providing you daily tricks to help you save up to 30 cents per litre on Gas in USA and Canada.
TOP 1000 CANADA QUIZ CANADA CITIZENSHIP TEST- HISTORY – GEOGRAPHY
Tricks to save up to 30 cents per litre on Gas in USA and Canada
1- Go shop for Food at Safeway and get an automatic 15 cents per litre discount at Safeway Fueling stations
2- To get 30 cents discount at Safeway Fuel stations, use the code below based on Epoch:
[Day]-800-[random 5digits]
Example: Safeway 16 to 30 cents cents off gas code
For July 16 2022, so the Epoch Day is: 197
A random 5 digits (Change the 5 digits if it doesn’t work. )
So a Coupon to save 30 cents per litre at Safeway Gas Station on July 16, 2022 is:
197-800-263944
(Remember to change the random 5 digits until it works)
3. Purchase Discount Gift Cards for Gas
Rewards card – Cashback
You can discover a great deal of rebate gift vouchers for gas on the web. These will work all things considered Shell, Gulf, and Mobil stations. They will spare a couple of dollars for each buy, yet that can add up to enormous reserve funds on a yearly premise.
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The Optimum program is one of the better value points programs. And the points convert to cash discounts on stuff you buy every day, rather than air travel and catalogues full of slightly aged-out consumer trinkets that you don’t really need.
PC Optimum savings on gas
If you are a Costco member and also optimum member, which option gives you the most savings?
From a quick google of prices in my area it looks like the average price is around $2/L and Costco is currently around $1.75. The value of the Optimum program is more that you can keep your eye out for specials and earn points which can then be put toward gas purchases. But the basic earnings of 10 pts/litre (1¢ equivalent) and redeem up to 4,000 pts ($4 equivalent) aren’t anywhere near 25¢/litre. If you don’t mind the lines 😉
If you have one near, try to fuel up at Mobil gas instead of Esso. Esso provides 15 points per liter, Mobil gas provides 35 points per liter.
I used to have a work vehicle that I filled with Mobil gas, on the company credit card, got approx. 30 dollars of free groceries from Loblaws every week because of this practice.
Which card gives 10% cash back at the moment?
TD , CIBC and Scotia all have one right now. It’s 10% cashback on purchases up to $2000 in the first three months.
I use CIBC Dividend card not only do I save on gas (.03 off a litre till you get 300l then .10 off one time and then it resets) but earn Cashback everywhere. Last yr I earned about 580 Cashback this yr I’m over 200 right now.
I bank with CIBC as I use my card I pay it off same day so never paid interest.
Note that your max yearly cash back for the 4% (gas and groceries), 2% and 1.5% categories is $800 (4% of $20,000). After $20,000 yearly spend, the 4% cash back ends, and is replaced with 0.5% on all purchases. In other words, if you spend on any of the other categories, you won’t get the $800, because you’ll hit $20,000 total spend before you hit $20,000 on gas and groceries.
I got a Rogers World Elite card, and use it for all purchases except gas and groceries, for 1.5% cash back. I use the cibc dividend card only for gas and groceries for 4% cash back.
CAA members save 3 cents per L at all shell stations. And they use air miles.
4. Drive Sensibly
Quick quickening and short explosions of speed can cost you a ton with regards to gas. Slow and reliable movement is constantly favored over aimless driving. Land Rovers, for example, can show signs of improvement mileage utilizing journey control. Practice smooth driving and you’ll certainly set aside some cash with improved gas mileage.
5. Time Your Trips to the Gas Station
Gas costs can ascend on Thursdays because of high odds of end of the week travel. To keep away from these expanded costs, top off the tank before Thursday or on significant occasions.
6. Utilize Your Smartphone to Find the Cheapest Gas Station
Your cell phone is for something other than perusing Facebook and Instagram. Use it to locate the least expensive gas in your general vicinity. Applications like AAA Triptik and GasBuddy will assist you with finding the closest and least expensive fuel. gas
Something I’ve noticed with the gas saving apps… many times the prices are wrong. I show up at a station, and end up refueling anyway, and then a few minutes later I see it has been put back to the “fake low price”.
I think owners are gaming the system in order to draw people in.
7. Get a Gas Rewards Card
Too few have a gas rewards card. It resembles not getting a prizes plan regardless of whether you’re a long standing customer. There are a great deal of sites out there that can acquaint you with bargains for fuel rewards. You can get free gas on the off chance that you gather enough focuses, so why not? Pursue that prizes card!
8. Try not to Leave Your Engine Idling for Very Long
Close off your motor in case you’re not going anyplace. You’re squandering gas, and you’re dirtying nature.
9. Deliberately Use Cards or Cash
money or credit
A few service stations charge a premium on the off chance that you pay with Visas, however some give you limits on them. Discover and use what you can to set aside cash.
Keeping your vehicle kept up is the manner by which to get a good deal on gas over the long haul. In the event that you have a clunker or a vehicle that you treat severely, it will have awful mileage. Simply keeping your tires expanded can improve your gas mileage by 3.3%. So focus on your support.
11. Be Picky
Corner store
Quit heading off to the corner store near your home or the interstate so you can get it over with. This can cost you almost 15 pennies more for every gallon. Discover a corner store that has modest costs and stick with it.
11. Try not to Overload Your Car
over-burden vehicle
This is an easy decision, however it needs strengthening. In case you’re hauling around as long as you can remember in your vehicle, quit doing it. Clearly the heavier your vehicle gets the more gas it will require to cover a similar separation. Just keep the minimum necessities in your vehicle. Leave the rest at home.
This application gets you 40/cents per gallon money back at several gas stations. Average individuals are getting paid hundreds, and expert drivers are getting thousands with this application that gets you 40cents money back on each gallon of gas!”
12. Drive more slowly and think ahead and use motor braking.
The amount of time you win for speeding is so little compared to the amount of fuel you are going to save.
13. Plan out grocery trips for longer times. Instead of going a few times a week to pick up a couple things, go once every 2-3 weeks with a list of everything you’ll need for that timeframe.
14. Drive the smallest stick shift diesel available. Press in your clutch on downhills, especially long ones on the freeway. Play a game where you try to put as little foot on the gas.
15. Buy a more fuel efficient car. That makes the biggest difference.
16. Drive less. Combine trips. Carpool. Walk. Bicycle. Take public transit.
Do things (including many types of work) that can be done over a wire, over that wire, instead of driving to it. Drive a more fuel-efficient vehicle. If people would bother to think about when all of these might be possible, they would find that they generally are possible.
I have a gas-powered SUV and paid nearly $60 to fill its tank last week. I no longer drive around town just for the hell of it—I have to be strategic. Instead of driving to Target or Walmart for household goods and groceries, I order these necessities for delivery via Amazon. If I do need to drive to one part of town, I hit all the shops in that area at once and act as if I won’t be back for weeks. Ultimately, I am driving with intent—every trip has a purpose.
17. Tyres
Find the Tyre pressure placard in your car and make sure your tyres are pumped up to the correct pressure.
Try and do this when you have driven the car for less than 5 minutes. hot air expands and will give a false reading if the tyres are hot. do it when it is cold. Do NOT pump them up to the max pressure listed on the side of the tyre.
Keeping your tire pressure perfect is not only a safety measure but also helps in Saving Fuel as the right amount of tire pressure will reduce the friction with the road.
Tips- Tire pressure check is free on every petrol pump, but it does not mean it’s useless. Make Use of It every time you can.
Actually, over-inflate your tires for best gas mileage.
The number on your door is the recommended pressure. The max pressure on the tire is the “do not exceed” number. Something in between is fine.
The drawback is that you’re going to wear out the middle of the tire quicker than the sides (because it’ll dome a bit from the higher pressure if you don’t have enough weight to force it flatter again). This might be noticeable after years.
But tires aren’t that expensive, and fuel is. You’ll pay off the small reduction in tire life with the bigger reduction in fuel use (and, especially if you’re in a pinch today, you could kind of consider it a deferred expense). And, it’s a small change you can always taper off again later.
A side effect will be a slightly harsher ride, and slightly less grip (not great for the winter).
Roughly speaking, 50% of your gas usage comes from rolling resistance in the tires, the other 50% from air resistance. At city speeds, tires and starts/stops make up most of your gas cost. Around 2/3, 3/4 of highway speeds is where air resistance takes over. Above 60mph/100kmph is where you really start to gobble fuel disproportionately (10% faster uses 33% more fuel).
Avoid where you have to use the brakes. Any time you use the brakes you’re wasting all the energy you had to put into accelerating the vehicle. In stop/go traffic, this is most of your fuel use. So instead of racing forward to fill gaps and then have to stop, just drive half the speed, steadily. If you see the light is red, get off the gas and coast, don’t accelerate up to it and then hit the gas. Careful you’re not blocking turning lanes by driving slower, just because you’re stopping at the lights doesn’t mean everyone behind you is.
In short… there’s no free lunch here. If there were ways to save money on gas, those would already be things we’re doing. All the little tips and tricks might add up to 20%, which is like… where gas prices were a month ago.
The only easy way to save money on gas is to drive less.
18. Lose weight.
Get rid of any excess stuff you have in your car. Every extra kilo costs money to haul around. Same goes for aerodynamics. those roof racks you never use? take them off!
19. Change your driving style.
So many people these days drive aggressively. stamping your foot to the floor whenever you accelerate is both unnecessary and burns far more fuel than using 50 or 75% throttle. there are other throttle positions than 100%!
Instead of speeding up to close any gap in front of you. leave it there and coast a bit. someone may change lanes, who cares? watch ahead, if cars start braking ahead, take your foot off the throttle early and coast a bit instead of riding the car in front of you constantly braking and accelerating.
20. Drive smoothly. it’s amazing how big of a difference driving style makes to fuel consumption.
21. Engine Air Filter
Make sure the engine air filter is clean, dirty air filters make for poor fuel consumption.
22. Premium Fuels
Only go for premium fuels if the car company suggests you to. Otherwise, you are just increasing the cost of fuel and increasing the overall running cost of your car. Well, it’s a myth that premium fuel will help you save more fuel and increase the mileage of your car It’s False.
Tips- Buy Normal Fuel, Premium fuel burns more and adds more price and Same less Fuel.
23. Cruise Control
Using cruise control on the highway will provide a smooth ride with a little bit of constant acceleration. Ultimately it will add to your mileage and save you a lot of fuel.
24. Race Peddle Control
If you keep a soft foot on the peddle you will always Save lots of Fuel. When we use a hard foot car consumes the maximum amount of fuel that needs to generate the power we want.
Tips – After attaining a speed of 70-80 try losing your foot maintaining the race paddle at the fixed position where the acceleration is almost zero.
25. Keep RPM Low
Higher RPM means higher fuel consumption and Lower RPM helps in Saving Fuel providing a safe feeling to every passenger in the car.
Tips- Remember you can only create a very little difference in time if you drive fast keeping your speed and RPM high. But you can’t save more than 5 Min as per the traffic on the roads these days. Keep it Low to Save Fuel.
26. Save Fuel by Driving Smart
Driving consciously and safely will always help in maintaining the mileage of a car and Save Fuel. Avoiding unnecessary fast pickups and jackrabbit stops will always help in saving fuel.
Tips – Easy and Safe driving will help in Saving Fuel and driving safety.
27. Overlooked button on your car may help save on gas
The ‘Air Recirculating’ button on your A/C might cool off your car faster and save you a little gas. On most cars, trucks, and SUVs the air recirculation button is easily identifiable, with its representing symbol of a half-circle inside of the outline of a vehicle. Many people say they’re aware of the button, but are not sure when it should be on or off.
Algorithm and Tricks to save up to 30 cents per litre on Gas in USA and Canada
Another function of this climate control system is to stop pollution and exhaust fumes from entering the vehicle. Having this button activated will also help to greatly reduce pollen when driving, which is a big positive if you suffer from outdoor allergens.
“If you don’t switch the air recirculation button on, then your car’s air conditioning will be constantly cooling warm air from outside your vehicle, and will have to work much harder, putting more stress on the blower and air compressor,” said Ruhl.
Another benefit to using the air recirculation feature is the money you could save on gas.
“Cars are usually more fuel-efficient when the air conditioner is set to recirculate interior air. This is because keeping the same air cool takes less energy than continuously cooling hot air from outside,” said Ruhl.
While the recirculation button is great for the summer months, it may be best to avoid it in the winter or when your windows become foggy.
“Anytime you’re using defrost, it’s best to not have that button on. Also, using it while you have your heater on isn’t going to do anything for you vehicle,” said Ruhl.
28. Your driving habits are a huge factor. Very slow accelerations and decelerations help dramatically. Coasting to that upcoming red light instead of keeping on the gas and braking. Chilling at 60 on cruise in the right lane vs accelerating between 65 and 75 passing people in the left. Things like that.
Also for most cars, above 55 its better to keep your windows up and use ac, below 55 better to do windows down and ac off. Varys by model due to aerodynamics, but 55 is good enough to give you an idea.
29. Don’t hard accelerate
Try to slow down in a more gentle manner if your lucky the light will go green before you stop
Be consistent with your speed if it’s 30 mph zone try not to go faster than that or get distracted to the point where your car starts slowing down
If it’s hot out keep the windows down, AC in older cars can make the car consume more gas, not sure how these newer cars are doing with that.
Make sure your tires have good tread, bald tires can spin out more and if the wear is uneven that can cause additional issues.
30. If you drive a SUV trade it for a Toyota Corolla
Scientifically proven that the wavelength of reflections on the beige tone is in the optimal bandwidth to reduce optical resistance, thus better fuel efficiency.
Check your engine air filter. Make sure it is clean, replace if necessary. Make sure your tires are filled to the recommended pressure.
Also change spark plugs at their recommended service life.
Also, if you car is over 160k km, good idea to replace the O2 sensors as they get slow. Replaced all four sensors in my car and my mileage went from 9.x L/100 km to the high 7’s.
A Prius, or any type of gas/electric hybrid, or a smaller vehicle, like a Toyota Corolla, Honda Civic, Chevy Malibu, Ford Focus, VW GTI or Rabbit.
But there is a direct correlation between How you drive, regardless of What you drive. I have a 1998 Chevy Silverado, with a 5.7L (350 cu in) V8, and I can get great MPG’s when I drive it sensibly, and don’t have a ton of unnecessary stuff/gear in the back, or even back seat.
Make sure the tires are set to the appropriate PSI. Always set them to the pressure setting on the inside of the drivers door. On that subject, changing the tire size or wheel size and sidewall thickness will also have a negative effect on MPG.
You would be surprised how much stuff a lot of people have laying in the back of their car, and if they would simply clean it out, they could save money.
Also, keeping your vehicle tuned up and the oil changed per the owners manual will also help keep the MPG high.
Not speeding away from every stop sign or stop light will also help.
Keeping your speed down on the freeway will help.
However, opting to roll the windows down instead of using the A/C to keep cool will actually create drag on the car and lower the efficiency. So crank the heat sucker up to high. Not only with rolling the windows up save fuel, it will also reduce noise and reduce fatigue, so you can drive more comfortably.
What burns more gas, accelerating as fast as possible to 60 mph (e.g. 10 seconds) or accelerating slowly (e.g. 30 seconds)?
Not long ago I had a ’16 Subaru WRX. Fast, turbo-charged all-wheel-drive car. Terrible gas mileage. It’s also heavy, roughly two tons.
One day, I did an experiment on the city streets. Rather than accelerate in a controlled manner and drive at a consistent pace, I put the gas pedal all the way down to reach about 15 mph over the speed limit, and then I put the car in neutral, and let it coast. The car would coast a full mile before it was going slow enough (5 to 10 mph below the speed limit) that I had to put it in gear and goose the throttle again full blast and bring it up to 15 mph over the speed limit.
In this simple test, the overall gas mileage skyrocketed. It went from about 25 mpg to more like 40 mpg. And yet I was ultimately going the speed limit on average, and kicking off my trips very quickly.
This led me to a realization. Yes, holding that gas pedal all the way down uses up a lot of gas. But what it also does is important: it brings you up to speed. What also uses up a lot of gas is simply cruising—not coasting, cruising. That’s where most of your gas is being spent, because your engine is expending gas, quite a bit of it, actually, just to keep up and maintain velocity.
And when you accelerate slowly, you’re effectively cruising, without being up to speed, yet with a little extra gas. That’s wasteful, because you’re going slow and still using up plenty of gas. Is it more wasteful than the explosion of rushing your car forward immediately? Actually, perhaps so, if you’re taking too long to do it.
Remember, just turning that engine using fuel uses up fuel. Accelerating quickly brings the car up to speed quickly—which brings the engine’s productivity to the maximum output quickly—which is not an infinite dump of fuel, it is limited to what the fuel line and injector and cylinder can mix with air and compress, which is measurable, and it’s actually not as far off from cruising fuel as people seem to think. Source: Quora
1️⃣ Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening….your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.
2️⃣ A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.
3️⃣ When you’re filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you’re getting less worth for your money.
4️⃣ One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.
5️⃣ Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.
6️⃣ Note: If the pump repeatedly shuts off early, it could be a sign of a problem with the vapor recovery system, such as a clogged carbon canister.”
1. First and foremost Maintain a steady speed. 2. Fill your tire pressure 1 or 2 psi more than the prescribed number. 3. Do not travel with your AC off, especially during long distance journey. With your AC off you will have to lower the car windows and if you are traveling at speed more than 60 miles per hour it is going to affect the aerodynamics of the car and this might affect the fuel consumption a bit. 4. Remove all unnecessary weight from the car. 5. Choose a well maintained road even if it is going to take you more time than a bad road. 6. Have your car checked with a mechanic before you travel.
Under 70mph and your windows up, your AC will use more energy than if the windows were down and the AC off. As your cruising speed increases, the aerodynamic drag on the car increases to the point where having the windows down creates a greater load on the engine than the AC does. This only applies to modern cars which are generally quite aerodynamic. Having the windows up or down doesn’t really make any difference to vintage cars. Remember though, AC takes more power than you might suppose so on a long hot journey, driving with the AC off will improve mpg. Taking the AC equipment off altogether will make an even bigger difference – as much as 10%.
Does cruising in a car save on gas? How?
Since cruising involves maintaining the vehicle at a constant velocity, it requires minimum efforts (Power) from the engine. The power required from the engine is used to nullify the declaration from frictional forces (air drag and road adhesion). Since less power is required from engine the ECU ensures minimum gas is used.
Can lowering your tailgate really save on gas?
No it’s a myth…in fact the now cancelled show MythBuster’s did an episode on it. Pretty legit test if I do say so, although if you have a truck with two gas tanks you could test it yourself as I have. The one thing that can help seems counterintuitive, which is add a little weight. Like around 100 pounds or so depending, and make sure it’s over or behind the rear axle in the bed. What this does is give the rear wheels a bit more traction and that increases your gass mileage a little. A trick I learned from my Grandpa as a curious little kid wondering why he always had a couple spares mounted to each side of the bed right up against the tailgate. Those old gas guzzlers need all the efficiency they could get.
Bonus: also works better in snow, ice, and slush…get some sand bags and throw them in the same spot behind the axle and you limit fishtailing/sliding in the winter. More weight than the hundred pounds, plus it has multiple uses. If you get stuck where the tires are spinning on the ice you can open up a sand bag and out the sand in front and behind the tire to help gain traction. Make sure to do both sides of the truck as you probably won’t have positraction. Lol…additionally if it’s not too cold you can pee on the ice around the tire. I have gotten many a people unstuck with a little sand and piss.
How can I save gas when driving long distances?
1. First and foremost Maintain a steady speed. 2. Fill your tire pressure 1 or 2 psi more than the prescribed number. 3. Do not travel with your AC off, especially during long distance journey. With your AC off you will have to lower the car windows and if you are traveling at speed more than 60 miles per hour it is going to affect the aerodynamics of the car and this might affect the fuel consumption a bit. 4. Remove all unnecessary weight from the car. 5. Choose a well maintained road even if it is going to take you more time than a bad road. 6. Have your car checked with a mechanic before you travel.
Hope these points might help you.
Can I keep driving on eco mode? How much does it save on gas?
Economy mode is useful on most conditions but be advised, that some engines need to be “ blown free” by using higher rpm snd full engine load in order to keep the exhaust/ turbo- system declogged. That applies especially to diesel- engines with egr- system. In “ grandfather”— drive mode only those will have need for extended overhaul way before resching estimated end of service- time. ( what absolutely nullifies all eventual gains from eco- mode
What are some ways to save on gas annually?
To save gas you should follow the instructions of the manufacturer of your car if your question refers to the gasoline that you spend to make your car run. If your question refers to the natural gas that you use at home to heat up food, water etc then the only recommendation is to watch for any leaks if you suspect that you are losing gas. Fixing those leaks by means of an experienced technician will resolve your problem. Coming back to your car, not over speeding, and not letting the engine on idle for long time in order to keep the air conditioner working or the heater in the Winter these are two important ways to reduce gasoline consumption.
Summary:
Looking to save a few cents per litre on gas? Here are a few tips and tricks that can help you do just that:
1. Check gas prices before you fill up. Many gas stations offer discounts for cash, so it’s worth checking beforehand to see if there’s a station nearby that offers a cheaper price.
2. Use coupons. Many gas stations offer coupons that can be used to save money at the pump. Simply present the coupon when you’re paying and you’ll automatically get a discount.
3. Shop around for gas cards. Some gas cards offer discounts of up to 5 cents per litre, so it’s worth doing some research to see if you could be saving even more money.
4. Drive less. This one is obvious, but the less you drive, the less gas you’ll need to purchase. So, if you can carpool, take public transportation, or walk/bike instead of driving, you’ll save yourself some money in the long run.
5. Keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%, so it’s worth getting your car checked out by a mechanic every
By following these tips, you can easily save money on gas without making major changes to your lifestyle.
Does getting a Tesla make financial sense in terms of cost savings on gas and maintenance?
If you looked at all the cars in the world and calculated which one had the lowest cost per mile transporting someone from Point A to Point B. It would probably not be a Tesla. If people used that criterion for buying a car, then there would be only one car in each class. People buy cars for lots of reasons. If you’re keeping the car for 5 years, some high-mileage hybrids will cost less (absent government subsidies) than a Tesla. Gas is cheap these days. Push it out 10 years or if gas prices go back up, the calculus is different. Your Tesla will outperform that high-mileage hybrid and be a lot more fun to drive. How much is that worth to you?
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With rising prices, what are smart ways to save money or good alternatives like horse and carriage to save on gas?
Algorithm and Tricks to save up to 30 cents per litre on Gas in USA and Canada
This is my plan for tackling the current inflationary environment in the United States:
Limit discretionary driving. I have a gas-powered SUV and paid nearly $60 to fill its tank last week. I no longer drive around town just for the hell of it—I have to be strategic. Instead of driving to Target or Walmart for household goods and groceries, I order these necessities for delivery via Amazon. If I do need to drive to one part of town, I hit all the shops in that area at once and act as if I won’t be back for weeks. Ultimately, I am driving with intent—every trip has a purpose.
Meal substitution. In my area of the U.S., beef is less expensive than chicken. Thus, I substitute beef for chicken and prepare meals like spaghetti, burgers, and chili. Also, my cost of groceries has risen faster than the cost of a Chipotle burrito, for instance, so I sometimes eat a Chipotle burrito instead of eating at home.
Plan for higher utilities. My energy bill is much higher today than it was last year. Since I live in an apartment, each unit’s bill is decided by dividing the energy cost for the entire building by the number of occupied units. Thus, I have very little control over the cost of my monthly bill. I must prepare for this expense and not let it blindside me.
Limit unnecessary consumption. Now is not the time to be frivolous with money. All nonessential consumption (i.e., online shoe shopping, going to the movies, etc.) is essentially placed on hold.
Invest tactfully. With inflation running hot, the Federal Reserve likely hiking interest rates in the coming months, and macroeconomic and political uncertainty, the stock and crypto markets may fall further before rising once again. Having dry powder (i.e., cash) on hand to take advantage of the situation is not a bad idea. I’ve been building my cash position over the past couple of months, so I can buy assets when others are fearful and need/decide to sell. As a long-term investor, you want to buy into fear and weakness, and I believe we are in that environment.
How much money do you save on gas with a hybrid?
If you compare a small, light ICE vehicle, you won’t save anything but if you compare an ICE car of the same weight as an EV then you will save money, possibly as much as $10 every 200 miles.
How much money do you save on gas by paying cash instead of credit in the long-term?
Using a 10 cent per gal difference between cash & cc, that comes to about $28 extra per year to use my credit card for my mileage and average MPG. That’s about $2.33/month so not much at all. Then you need to take into account that I get 3% back using my credit card at the pump from my credit card rewards program. That comes to $29/year. Those were round number calculations I did though so we’ll just call it even.
Does cruise control actually save gas or is that a myth?
The cruise control itself does not save any gas compared to simply keeping your foot at the same position. However, what cruise control does tend to do, is influence the driving style of the human inside.
The whole point of the cruise control is that you don’t need to constantly control the throttle. And thus you will tend to want to avoid needing to do that while using it. At the most, you will want to disengage the cruise control, to reduce speed slowly when needed, and then re-engage when you can overtake.
The result is that you tend to start looking further ahead, a few cars further than the one directly in front of you. Coming up on a car, you will decide earlier if you can overtake, or if you lift the throttle. This is very positive for reducing fuel consumption.
Many drivers without cruise control will not lift until the last moment, and then often need to brake when they can’t overtake. This is disastrous for the fuel consumption.
There are some special situations where cruise control itself can help reducing fuel consumption. One of those is when using the highest gear at very low throttle. This tends to be the most fuel-efficient configuration, but with so little torque, it can be difficult to keep the speed constant. The cruise control can do that very well. If you can’t manage to drive comfortably at that speed yourself, but the cruise control can, then that is a case where the cruise control directly allows higher fuel efficiency.
Another is when your car doesn’t have a mid-console near your foot, and thus is it difficult to lean your foot against it, helping keep a steady position. In that case, driving without cruise control might lead to constant speed changes as well, and the cruise control could help smooth that. That will also improve fuel efficiency slightly.
But in general, anything the cruise control does, you can do as well… It’s is the driving style that improves fuel efficiency. Cruise control can stimulate a more relax driving style, and that helps. If you already were driving relaxed and smooth, then you’ll not notice any difference.
By improving public roads in order to minimize rolling resistance and enhance traction, how much money could be saved on gas consumption and avoidance of traffic accidents?
Patent 6,923,124 has a rolling surface that is 1000 times smoother than typical asphalt. This smooth rolling surface and engineered reverse sag allows steel wheels instead of energy wasting rubber tires. All oil can be avoided (saved) by switching to aerodynamic vehicles rolling on three more perfect rolling surfaces configured in a triangle. There is no reason a car should ever leave the normally traveled portion of the roadway. Designing in 3D means a vehicle can never come off the designated trajectory. Instead of a reactive suspension producing pitch, yaw and roll the guideway produces those motions with precision. This improved “road” (guideway) allows for 180 mph travel at a tiny fraction of the required energy. This in turn allows all transportation to be powered by a 7 foot wide s
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If I drove 100 miles every day, how long would it take me to pay off my electric car with the money I save on gas?
Driver of 2014 Tesla Model S and builder of Honda del Sol EV conversion.3y
Ok, let’s get serious, and go about doing this the way a person would who’s really trying to save money. Two scenarios: * Aggressive scenario: Buy a used 2014 Nissan Leaf for $8,000. It will only have about 30,000 miles and a range around 85 miles. In my area, electricity will cost 2 cents per mile since our electricity is fairly cheap. Assume the gas car being replaced was getting 30 mpg, so its fuel cost is 11 cents per mile. You are commuting to work each day, 50 miles each way. You don’t have enough range to get home, but your employer offers free charging. (That can happen. My employer does.) Driving 100 miles per day, paying for half and getting half from your employer, will cost $1.00 per day, or $30 per month. The gas car would cost $11 per day or $330 per month. Savings is $300 per
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What kind of car should I buy that saves on gas?
What’s the best car that will save on gas/maintain car value overtime?
Short answer: Toyota corolla or Honda civic
But there is a direct correlation between How you drive, regardless of What you drive. I have a 1998 Chevy Silverado, with a 5.7L (350 cu in) V8, and I can get great MPG’s when I drive it sensibly, and don’t have a ton of unnecessary stuff/gear in the back, or even back seat.
Make sure the tires are set to the appropriate PSI. Always set them to the pressure setting on the inside of the drivers door. On that subject, changing the tire size or wheel size and sidewall thickness will also have a negative effect on MPG.
You would be surprised how much stuff a lot of people have laying in the back of their car, and if they would simply clean it out, they could save money.
Also, keeping your vehicle tuned up and the oil changed per the owners manual will also help keep the MPG high.
Not speeding away from every stop sign or stop light will also help.
Keeping your speed down on the freeway will help.
However, opting to roll the windows down instead of using the A/C to keep cool will actually create drag on the car and lower the efficiency. So crank the heat sucker up to high. Not only with rolling the windows up save fuel, it will also reduce noise and reduce fatigue, so you can drive more comfortably.
When I have little gas left in my car, is it better to drive fast or slow so that I can get the best distance out of the amount of gas left?
Look at all the other mileage techniques that other people have formulated over the years, they all apply. Basically:
Accelerate firmly from a stop. Too slowly, and you waste time in low gears, which are inefficient. Too fast, your engine is burning more fuel than it needs to. 8 – 10 seconds to 40mph is good, get a feel for your car, maybe get a OBD sensor to monitor fuel usage directly (any car after 1990s has one, I think)
Try to get to the top gear, and at lowest RPM. Engine spins the slowest for maximum distance. A little slower is usually ok, especially if the car has bad drag coefficients, or there’s a lot of stops. Accelerating to top gear only to brake for a stop light is a waste of fuel.
Modern cars cut fuel when engine braking. Try to roll as far/long as possible without using the brakes and avoid idling. Braking early, then rolling is better than coming to a complete stop since idling is just a constant drain, and if the light goes green, you save kinetic energy. You can usually feel when the ECU starts fuel delivery again when the engine braking lessens, though forcing downshifts is not recommended due to
Increased wear on a transmission which is more expensive than brake replacement
the spurt of fuel needed to kick the RPMs up. Though it may be needed if you need every last drop. Try downshifting early, if needed.
Try not to use neutral when coasting since the engine is still running. Also, its generally illegal
4. coast up hill, accelerate downhill (where possible). Don’t roll down the hill backwards.
5. If in a Hybrid, try to coast at 0 throttle and 0 regen. Regen, while nice, is fundamentally inefficient due to multiple transformations of energy. At 0 throttle, the engine is off, and no fuel is used. Hybrids generally have low drag, so can go pretty far on flat ground.
6. Tailgating can save some fuel, but it isn’t really safe. A few car lengths of distance can still yield a bit, though don’t overspeed to do so.
7. Turn engine off if you’re gonna be stopped for long periods of time.
Is driving slow up on a hill(consume less fuel but takes longer) or fast(consume more fuel but takes less time) better choice for fuel saving ? The hill would be 1 km for reference.
The answer is matching the proper rev range to power to be most efficient.
The real world answer is that if it’s just a kilometer the difference is negligible
Engines are most efficient usually somewhere at the 1/3 to half of the RPM range and at decent load. So if you need to floor it to get on the hill on current gear, downshift, else just press pedal slightly stronger and keep the speed.
As long as you can engine brake downhill the speed doesn’t really matter, just keep the usual traffic speed.
In general accelerating just to slow down later is worse than just keeping steady pace, especially if there are brakes involved.
When accelerating in a car does it use more gasoline to accelerate rapidly as opposed to slowly?
A car is most efficient when in its highest gear. If you accelerate too slowly, you will spend too much time in the lower gears before you get into the highest gear. Therefore, accelerating excessively slowly is not the most economical technique. Thus, advise to accelerate slowly to save fuel is WRONG!
A few decades ago, BMW did some tests to determine the most economical way to drive their cars. Although that was before fuel injection became common, I’m sure that the rules have not changed very much. They found that for their cars, the most economical technique was to accelerate with a heavy foot (2/3 to 3/4 throttle) but upshift at only 2000 rpm. That works well for a manual transmission, but is generally impossible with an automatic transmission because it will upshift at a considerably higher speed if you use a heavy foot and, just as bad, delay locking the torque converter. So, with an automatic transmission, the most economical technique is probably to accelerate at a moderate rate, i.e., not too fast and not too slowly.
The rules may have changed slightly because of modern electronic fuel injection systems which control the fuel mixture better. They are less likely to deliver an excessively rich mixture at wide throttle openings which occur with a very heavy foot.
With an Otto-cycle engine (4-stroke, spark ignition), the throttle valve is an important source of inefficiency. The power required to suck in air against the vacuum created by the throttle valve wastes fuel. For that reason, an Otto-cycle engine is most efficient when the throttle valve is wide open, or nearly so, provided that the fuel system does not provide an excessively riche mixture under those conditions. That’s why it is most efficient to use a heavy foot and upshift at low speeds, but not at such low speeds that the engine knocks or doesn’t run smoothly since that could cause damage.
The most inefficient thing you can do is use a lower gear than necessary for the power you are using. So, if you delay upshifting until 3000 rpm when, with a heavier foot you could get the same power at 2000 rpm, you are wasting fuel. So, for fuel efficiency, you should upshift at the lowest possible speed that will provide the power you need, but not at such a low speed that the that the engine protests.
In a vehicle with an automatic transmission What burns more gas, accelerating as fast as possible to 60 mph or accelerating slowly?
In simplistic physics terms, it makes no difference. You create the same amount of kinetic energy either way – and theoretically, that means you must burn the same amount of fuel.
For an internal combustion engine with gears it gets complicated.
A conventional car engine has a range of RPM’s at which the engine operates most efficiently. At lower or higher RPM’s gas consumption is worse.
So the trick is to keep the car in that band.
With a manual gearbox – the best approach is to push hard on the pedal to get the RPM’s into the efficient range – then accelerate more smoothly to the top of that range – then downshift.
If your car has enough gears, you can arrange to stay in the efficient range for all but the initial acceleration in 1st gear.
However, with an automatic (and especially automatics with not many gears in their gearbox) – you have no direct control over that – so it becomes a matter of tricking the gearbox into doing what you want. With modern gearboxes, you’d hope that the manufacturer set the shift points for efficiency – but it depends on the car. For a sports car they probably optimized the shift pattern for best 0–60 time – so they’d keep the engine in the “power zone” of RPM’s rather than in the “efficiency zone”…for a family sedan, the reverse would be the case. Many cars have a “sport” button which essentially lets you choose between keeping the engine in the power band or the efficiency band.
But even on the “economy” setting, the software won’t be able to prevent you from demanding performance that drives it out of the economy range.
It also varies depending on the air temperature – when the air is cold, it’s more dense and the fuel management software can burn fuel in larger quantities than on hot days – and that may influence the decision.
There are other considerations too. If you accelerate and brake gently then it takes longer to get you where you’re going. This means that the air conditioner, radio, lights, computer(s), etc are running for longer…and that takes energy too.
On the other hand – if you continually red-line the engine, it’ll wear out faster and a worn out engine uses more gas than a good engine.
Looking to save a few cents per litre on gas? Here are a few tips and tricks that can help you do just that:
1. Check gas prices before you fill up. Many gas stations offer discounts for cash, so it’s worth checking beforehand to see if there’s a station nearby that offers a cheaper price.
2. Use coupons. Many gas stations offer coupons that can be used to save money at the pump. Simply present the coupon when you’re paying and you’ll automatically get a discount.
3. Shop around for gas cards. Some gas cards offer discounts of up to 5 cents per litre, so it’s worth doing some research to see if you could be saving even more money.
4. Drive less. This one is obvious, but the less you drive, the less gas you’ll need to purchase. So, if you can carpool, take public transportation, or walk/bike instead of driving, you’ll save yourself some money in the long run.
5. Keep your car well-maintained. A well-tuned engine can improve your fuel economy by up to 4%, so it’s worth getting your car checked out by a mechanic every
Well, this may or not be cost efficient. It might actually be cheaper to buy new cars every 100,000 miles or so. But here we go.
Get a good vehicle. Modern pickup trucks and SUV’s are not good vehicles. Volvos are affordable and are well built. So are BMWs and Mercedes. Look at the van the American Pickers drive – it’s a Mercedes. I wouldn’t even rule out many American production cars.
Change your oil as frequently as it says in the owner’s manual. And don’t scrimp. You don’t have to get ultra expensive synthetics, but get something more than the bare minimum.
Do other automotive maintenance as frequently as it says in the owner’s manual. Car parts go bad. It’s not just tires either.
Drive carefully. Accelerate and decelerate smoothly. Drive at or near the speed limit. My sister was using our parent’s old ’96 Saturn until about two years ago when some idiot t-boned her by running a stop sign.
Speaking of Saturns, which were great in cold climates because they didn’t use a lot of metal, if you live anywhere they use road salt, keep the car as clean and rust-free as possible. Best to drive in Texas – Texas has a good climate for cars. They don’t know what road salt is in Texas.
Park it in a garage. This is optional if you live somewhere with good car weather. Like Texas.
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Financial Independence and Legit Side Money Ideas For Techies and Geeks
Programmers, developers, software engineers, and other tech-savvy geeks are often some of the most financially independent people out there. That’s because they often have the skills to turn their side hustles into legit businesses that can generate significant income. In fact, many of the most successful tech entrepreneurs got their start by developing apps and selling them on popular app stores.
But you don’t need to be a whiz kid to make good money from your technical skills. Even if you’re not interested in starting your own company, there are plenty of opportunities to freelance or consult on projects that can pay well. And with the global economy increasingly reliant on technology, those skills are in high demand. So if you’re looking to boost your income, consider using your geeky talents to earn some extra cash. Who knows, you might just find yourself becoming a millionaire in the process.
If you’re a programmer, developer, software engineer, geek, or computer scientist, then you know that financial independence is important. After all, who wants to be tied down to a job they hate just because they need the money? The good news is that there are plenty of legitimate side money ideas out there for techies and geeks. Here are just a few:
Programmers can make money by developing new apps and selling them on app stores like Apple’s App Store or Google Play.
Developers can create websites or online courses teaching others how to code or use specific software programs.
Software engineers can offer consulting services to companies who need help designing or improving their systems.
Geeks can start a blog about their favorite topic (technology, science fiction, gaming, etc.) and make money through advertising or affiliate sales.
Computer scientists can develop new algorithms or sell their existing ones to companies willing to pay for them.
So if you’re looking for ways to make some extra cash on the side, don’t despair – there are plenty of options out there for you. Do some research and see which one might be the best fit for your skills and interests. With a little effort, you could be well on your way to financial independence in no time!
Originally Answered: How can I earn money online with a laptop and internet connection?
Making money isn’t that big of a deal especially if a person is determined, The primary cause of poverty is ignorance and nothing else.
It stars with a burning desire to learn and your willingness to practice all you’ve learned and make the mistakes needed in other to get the a greater height, “that is how financial progression is achieved and sustained.”
in the aspect of making money online with a laptop, you can try out the following listed below….
Affiliate Marketing.
Selling on Amazon, eBay, Etsy, and Craigslist.
Blogging.
Niche E-commerce.
Your Own YouTube Channel.
Selling E-books.
Develop Apps.
Invest/trade cryptocurrency.
To be a master and be really successful in any of the listed, one has to first learn them before anything else goes.
And if you’re interested in cryptocurrency but too Busy and don’t have to time to learn, you can contact me I’ll teach you how a newbie trader can make profit in crypto quickly.
If you are looking for an all-in-one solution to help you prepare for the AWS Cloud Practitioner Certification Exam, look no further than this AWS Cloud Practitioner CCP CLFC01 book below.
Okay so I know saving your investment money through the year and loading up accounts at the end of the year goes against conventional wisdom… The reason being you potentially miss out on maximally exploiting years where the market is up 20% or more… However, I find that putting money into accounts frequently just makes me think about this journey too often. I don’t mind seeing ups and downs. But seeing my accounts frequently and especially seeing the number increase frequently just makes me want to review everything and run totals, calculations, and projections and such. It’s been fun and at times very gratifying but I’m so far in my journey that sometimes I think it’s really unhealthy and the number of years left is a little daunting as well. I use sofi so I can make a vault for my investing money and I think just putting it away until the end of quarters or year and doing a check/analysis 1-4x a year would be good for my mental state. A small side benefit here is that I can at least make 4% apy on it in the meantime so it’s not just doing NOTHING. A second small benefit is I’m sure I’d feel a little more secure floating a larger bank balance. I JUST WANT TO REPEAT… this is for mental health primarily… those last couple things I mentioned are just small perks. Edit: I use fidelity and so to my knowledge my money can be auto drafted into my account but I have to personally spread my funds among my index funds/etfs. Also I’m self employed and my income is highly variable from month to month and week to week which makes auto draft tougher. submitted by /u/Banana_rocket_time [link] [comments]
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I projected my retirement expenses and wanted to see if it’s a realistic figure or if I am off. Spend Amount $24,000 Mortgage $12,000 Car $36,000 Food $24,000 Entertainment $20,000 Travel $12,000 Miscellaneous $128,000 Total Annual Spend If I include an effective tax rate of 12%, I’m projecting total annual at around $140,000 (PV). I refinanced our house a few years ago at 2.5% interest so I don’t plan to pay more than the monthly minimum. I’m currently 42 and plan to retire at 57. Current investment portfolio is at $600,000. I will have 2 pensions at retirement which will cover a bulk of my annual expenses. I calculated I’ll need to withdraw about $25,000 a year from my 401k until I collect SS at age 70 (my spouse will collect at 62). Do my estimates look about right? Our plan is to travel internationally 1-2x a year and will eat out more often. We live in a HCOL so I factored in more costs to food and entertainment. Appreciate the feedback. submitted by /u/DifficultResponse88 [link] [comments]
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This still isn't Denzel Washington's burner account, but three-ish years have passed since my original post: https://www.reddit.com/r/financialindependence/comments/gxz5g4/black_man_on_fire/ and I've learned, grown and experienced a few new things that I hope some of you will find encouraging. As my post history communicates, I'm still very much a reddit posting noob but have come to appreciate the value of a TLDR so here is my attempt to save those of you in a hurry a bit of time. TLDR: Underrepresented tech business owner shares his journey to financial independence with the hope of inspiring others. The plan 2.0 update. Much has happened in the last three years, however I think it is fair to say that a global pandemic was not a part of anyone's plan. It will come as no surprise to anyone reading a subreddit on independence that perseverance and resilience are often underestimated contributors to success. The pandemic challenged me in ways that I'm still coming to terms with. Here are some of the lessons that I learned. "Slow is fast." Like many minority founders, my inability to secure capital in our early days forced me to be exceptionally mindful of every expense and to truly differentiate wants from needs. At our founding, we didn't have office space because I couldn't afford office space, so we have always been a remote-first company. It is my belief that had I been able to secure access to capital, I would have been faced with a more complex set of pandemic related challenges. We entered the pandemic debt-free(thanks FI) and were able to continue working when others shut down. My sense is that we remain on firm footing and have grown a bit over the last 18 months. I think the lesson I continue to learn here is to focus on what you have. In my case I have the privilege of having a great team to work with. We try to leave our egos on the shelves and focus on what really matters. Our growth has been measured, steady and sustainable. "If you want to go fast go alone, if you want to go far go together." The consulting market is fiercely competitive and many leaders operate from a position of scarcity. From my perspective, the addressable market is far greater than all of the businesses combined so it simply makes sense for us to band together. Thankfully there are a few others that share this perspective and last year we created a community of partnership. We actively seek opportunities to work together and we share our resources. Collectively we've all experienced growth and are in it for the long-haul. Having this community of like minded people continues to be invaluable. This community has helped me grow the business just shy of 30%. "Representation matters" The 4 min mile barrier remained in place until Roger Bannister broke it in 1954 and as of April of 2021 1,664 runners have broken the 4 min mark. The measure is now the standard for professional middle distance runners. I hope that we will all agree that confidence is a significant determinant of success and that self-doubt is self-limiting. Roger Bannister removed all doubt associated with human performance potential in running the mile. Regrettably there remains doubt, in some circles, about the uniformity of performance potential of humans: independent of socioeconomic or gender background. Thankfully the opportunity landscape for full participation in all things nerd continues to expand. Please take comfort in the absolute fact, that if I can do it, you can do it. "Failure only happens when you quit." Without question owning a business is the hardest thing that I have ever done professionally. It also happens to be the most rewarding thing that I have ever done professionally. The lesson I continue to learn(and hope to share) is: hard work + opportunity = luck. It has been my experience that far too many of us give up too soon or worse yet don't start out of fear of failure. I've learned more from my mistakes that I have from my successes. We are all striving for a measure of independence but that independence comes with a cost. Commit to doing the thing that YOU love and do it with all that you have. I know that this perspective isn't popular, but it has been my experience and those of my peers. We all have seen or heard the anecdotes, but for most of us there are no shortcuts to financial independence. Speaking of independence what about retirement? I still haven't figured out what retirement looks like for me and I guess that is ok for now. I'm working much more now than I was three years ago and that isn't awesome but I think it's OK given the growth opportunities we have. Life continues to be good! My wife(I married the love of my life during the pandemic) don't travel as much as we'd like but we are working on that. My goal is to structure the company in a way that allows me to work on the business that I love instead of working in it. I'll end this the way that I began with the hope that someone finds some part of my journey helpful. We are much stronger together than we will ever be rivals. submitted by /u/tapatinerd [link] [comments]
Are you looking to make some extra money online? With the digital age in full swing, there are plenty of money-making ideas to consider…Continue reading on Medium »
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
If you find yourself struggling to make ends meet, it can be incredibly stressful and overwhelming. However, it’s important to remember…Continue reading on Medium »
The mid career years are so important for compounding. In my first decade of career, I switched 3 jobs rather quickly (4.5 years the max time spent in one company). Combined starting salary of spouse and I was $150k, of which my salary was $75k. After 10 years, my salary reached $130k. Had just started at my 4th company, hoping for a hop after quick 2-3 years to climb the proverbial corporate ladder. Our combined net worth was ~ $250k. Then, various life events overtook us and it became clear that climbing the ladder should no longer be my main focus. So, I just sort of gave up and started putting in some reasonable effort at work. But stopped trying to interview around, ask for promotions etc. Decided to just stay put as long as company kept paying me. Fast forward: it’s been 12 years since then. I am still with the same company. This year my salary reached the milestone of $200k. It has risen about 50% in 12 years - I mostly get 3-4% annual raises. Spouse is likewise with same employer, and our combined salary is $380k. I have not asked for a promotion and have not got one. I have moved around in different lateral roles as an individual contributor and hopefully earned some respect along the way from my colleagues. During these 12 years, our combined net worth also steadily went up thanks to the magic of compounding- about 12x - to $3M today. $1.8M investment portfolio and $1.2M home equity. So, guess moral of my story is: just go about your day-to-day work and things will sort of work out, financially at least … submitted by /u/Ok_Art_2874 [link] [comments]
The power of compounding is the ability of an investment to generate earnings not only on the initial investment but also on the…Continue reading on Medium »
Hey Everyone, I'm a little lost as to what I should do with some money I have coming in and was wondering if anyone could offer some guidance for how I should proceed. For some background: I'm a 21 year old college student I currently have no credit card or student load debt I have a decent amount of savings I've built up so far as I've been working since the beginning of highschool (~$40k range) In a few days I'm going to receive around $220k due to my share of an estate being paid out. My main goal is to safely store away the money in a way that it grows nicely overtime. I was thinking something like mutual funds or investing in ETFs, but I wasn't sure how I'd like to break it down by sector if doing the investing myself. If possible I'd like to receive some form of benefits for storing at a certain place (for example a friend mentioned that storing at some places might give me access to better than normal credit cards with the firm), given I don't have to trade off good growth to do so. I don't expect to touch the money much if at all moving forward; I work while in school, over the summer I do software engineering internships to support myself, and next year I'll be graduating and starting software engineering full-time. In the meantime I was going to park it in my Sofi Savings Account - I thought the 4% APY that pays out monthly would be a good way to hold the money until I had finalized my plans. Thank you for any advice you're able to give! I'm really confused as to the best to proceed and really appreciate it. submitted by /u/Fatherly_Spy_08 [link] [comments]
Let's say that you screw up with your initial retirement plan. You're able to be retired for 5 years, but you realize that you must re-enter the workforce and do full-time work again, because you jumped the gun a bit. Is this really the end of the world? I know it might be weird to approach employers with a 5 year gap in employment, but you could just tell them the truth. You tried an early retirement plan and it didn't quite work. You'll be 5 years older, and probably not thrilled to be returning to work full time, but I don't see it as this catastrophic failure. Can somebody explain all the other downsides that I'm not considering? submitted by /u/IHadTacosYesterday [link] [comments]
The jump from GPT-3.5 to GPT-4 in a few months has seriously blown my mind with its capabilities, especially code writing. There are numerous demos online showing all the things it can do. The Sparks paper on GPT-4 shows some incredible capabilities: https://arxiv.org/abs/2303.12712 Good video on the paper: https://youtu.be/Mqg3aTGNxZ0 While I don’t necessarily think we’re coming at the singularity any time soon, I do think this technology is just at the beginning and will only get larger, more complex, and more multi-modal and as such will displace a decent amount of knowledge work. I do think this technology will be useful as a tool with humans in the loop, but the point being we won’t need as many people doing such work. Anyone thinking about how this may impact their current careers and FIRE plans? Is it time to get familiar with these tools? Think of a career switch? Invest more aggressively now in case your skills become irrelevant? submitted by /u/SapiosexualYogurt [link] [comments]
Stock photos are also growing in importance as AI’s online presence gains strength with each passing day. Selling stock photos has emerged…Continue reading on Medium »
What’s up, my fellow chatterboxes! If you’re a talkative and confident guy who loves to talk, then you’re in luck. There are plenty of…Continue reading on Medium »
I’ve been interesting in buying myself a nice used car, a car ive been wanting for a long time which is a 2013 Porsche 911 in manual. This is about a $60k purchase and I’d ideally keep it forever and pass it down to my daughter when she’s older. Background: 34M married in Los Angeles $286k yearly income ($451k combined household with me and wife) Individual take home pay per month is $10,266 NW is my individual net worth. My biggest monthly expenses right now: I pay mortgage of $1800/mo Existing car lease + insurance of $790/mo Family grocery/dinner/fun fund of $900/mo Day care for daughter $1300/mo Credit card payment of $450/mo (all my bills are charged on my credit card and I pay I full each month) 401k and backdoor Roth IRA and HSA maxed every year. And I add $1000/mo to a brokerage account for I don’t even know what. There is currently $115k in there. It was supposed to be used as additional house down payment for when we sell our current home and move but my wife and I decided we will be staying here long term because we love the house and neighborhood. Also worth nothing we put $100k into a brokerage account for my daughter (she’s 2 now) that’s all 100% hers when she grows up, so not counting that in my net worth. Everything left over is savings or disposal income I guess. My plan was to put $15-$20k down and finance the rest for the car. But not sure if I should even if it’s something I really really want. I grew up actually poor so I still feel like I can’t afford things and shouldn’t treat myself to anything. Tbh, it’s a really miserable feeling because I absolutely work my ass off to earn my living and don’t plan to stop or coast at my career, but because of fear that I’m not doing as much as I should to retire comfortably or saving as much as I should, I’ve never actually felt like I’ve enjoyed the fruits of my labor. It’s being increasingly frustrating. Does anyone else deal with this or is it just me? Has anyone bought themselves a nice big one time impractical purchase and still hit their savings goals and are comfortable? Should I just keep working and saving and then die without ever using any of this money for silly fun impractical stuff? (Jk on this last question) Thanks all. submitted by /u/pleasesolvefory [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
I want to bring this subject up because I don't see anyone really talking about Americans working in the Middle East (Safer locations only: Kuwait, Qatar, Dubai, Oman, Turkey) as an option to accelerate your FIRE goals. It has really worked great for me. I am currently working in Qatar. Clean, safe, nice people, things to do, bars that serve alcohol, can also buy alcohol at the state run liquor store, superb brand new underground Metro, cheap Uber rides, home to the outstanding Qatar Airways and direct flights to most all of the cool places in the world, cheap food and grocery delivery. Qatar is much smaller than Dubai, but is moving in a similar direction to Dubai and encouraging tourism. Nothing to do in Qatar on the level of Dubai yet though. The perks of Middle East (Kuwait, Qatar, Dubai, Oman) FIRE acceleration - Good money, but long hours. Typically 12 hour shifts with two days off per week Housing provided free - The quality of the housing is generally great but differs per company. i am living in a really nice 2 bedroom, 2 bathroom apartment in walking distance to food and the Metro. No bills other than the ones you create for yourself - A cell phone bill is typically the only bill and mine is $20 per month for 4g 8 gigs of data and unlimited calls and txts. 5G is available here too. No insurances if you don't own a car - I hate insurance companies Lowered US federal tax liability - You can typically add 25% to your take home vs. same pay in America. The first $122'ish thousand of pay is not federally taxed. This number changes every year. Also no state taxes depending on how your state is setup for overseas work. Side note: Could be beneficial to change your state of residence before going overseas to avoid paying state taxes in states that still tax you even if you are overseas. This can be done easily if you do your research - even without doing an actualy state to state move. World travel experience - Being on this side of the world is great for travel. Get a travel credit card for travel perks. Cheap and excellent health care - Low monthly cost for a world healthcare plan and no copays or out of pocket costs at all for anything as long as you stay out of the US. You read that right. Go to the doctor, pay $0. Go to the hospital, pay 0$. If you need health care while in the US on vacation or something, expect deductibles and the typical BS that we live with in the US. For example: I went to the local Turkish Hospital here in Qatar (which is super new, clean and amazing) for an ear infection and had no appointment. We typically go to what they call hospitals for a doctor visit, as they are fully featured hospitals that take walk-ins as their normal operation. I saw a real doctor and was in and out of the hospital in 15 minutes INCLUDING getting my prescription. Try that in America at any establishment. I paid $0. If I had some exotic health problem then maybe I would consider going to America for treatment, but for most everything it is far better here. They generally like Americans in the above Middle East countries How to find work: I have experience with and can recommend looking for a US company doing contract work for the US government on US military bases in these countries. These include Vectrus, General Dynamics, Leidos, Ratheon, CACI and other government contract companies. These jobs are not typically well advertised on job boards such as Indeed and can sometimes take some inside info to find. (like knowing somebody working there already) The DoD contracts change all the time, and some listings for jobs are advertised even before a government contract is awarded to a company. This is frustrating, but it is the game. This just means to expect to apply for overseas jobs and expect to hear nothing for most applications. Here is the strategy that worked for me: Get a DoD contracting job at your local (or any) military base in the US and then use that as a springboard for your overseas adventure. This will get you the required DoD experience and security clearance stuff. Then you are an easy pickup for any overseas contract. You can then talk to your coworkers at the US military base that have experience overseas and they can discuss their experience with you before you commit to an overseas contract job. Best bet is to google top 20 US government contract companies, then go directly to each company's web site and search their job listings from their site. This sucks, but it is what it is. You can typically search by physical location, which will get you some listings quick if you know where you want to live. Additionally, I recommend you do a resume overhaul by someone that does it professionally on Fiver or other sites. For 75'ish bucks, one of these guys will clean up your resume and get it looking good plus make it standards complaint. Standards complaince is the key. This will make it super easy to apply on these company sites and will automatically fill in their information gathering fields for you based on what is on your resume. If your resume is not standards complaint, these fields will not auto populate for you and applying on company sites will be a lengthy and miserable effort. Also, there are options for working for local companies in the host countries directly. This could be doing things like working for the oil companies or being a teacher at the local private schools or doing IT stuff. This option comes with lots of unknowns. Be sure to do your research as much as possible before committing to one of these positions including speaking to a currently employed American there that can guide you with any questions you may have. You will likely be working with lots of other nationalities, so be ready to learn about other cultures and deal with some language barriers. Family: Some countries are friendlier than others about bringing your family members. Your employer should help with this, but be ready for it to test your patience. Kids that need school will likely need a private school and this will have some cost. A spouse could find work also, but I don't know much about this. I am single and don't have any of these experiences to provide valid info on this subject. Freedom and privacy: Nope. If you are a gun totin' freedom of everything type person, this is not the life for you. You will give blood to be here. Literally. They test the blood for who knows what and use it for who knows what. You will also give fingerprints to be here. They have video surveillance everywhere and some places require an App on your phone for this or that, which also tracks you. If this is a problem for you, don't come to these places. It is that simple. Safety: Do your research, but these countries are all significantly safer than America. In some cases, the entire country is safer than the typical American small town. Let that sink in. I don't lock my apartment door unless I am sleeping. This includes while going out of the country for week(s) long vacations. Attitude: Always remember that you are a guest in any country you go. Leave your attitude at home, be patient and smile. You don't need to learn a language, but learning a few words will be helpful. Everywhere you go outside of the US will allow you to get by just speaking English. Speak slowly, use few words and talk like a caveman and you can get by with English most anywhere. Overseas Saving Strategy: You are not going to be taxed like in the US, so contributing to a 401k may or may not be beneficial. Depends if your company matches or not. Obviously go for the match if they have one as that is free money. If not, then consider your time to FIRE and whether you wanna max out 401k if you are not getting the tax benefits as well as the timing of your FIRE. If you are 40 and want to FIRE before 59 and 1/2, then pumping your 401k without the tax perks is not going to benefit you and could hurt you if you want to withdraw early. Instead, pump money into a standard investment account so that you can access this money when you are 45 or 48 without penalty. For me, I am not currently putting anything into a 401k. I am taking 75+% of my income and putting it into a low cost set of index funds. The rest, I am taking awesome vacations in Asian countries scoping out what my FIRE life will look like. I don't plan on returning to America. Ever. Pay: You can expect that you will get a similar pay per hour as you may get in the US for the same job. The difference is the guaranteed and required overtime as well as the perks of paid living expenses and reduced or 0 income tax. The days of guys getting massive pay for working in a war zone are generally gone, but we are not entertaining working in a warzone in this post. I have never considered war zone work even though it has been presented to me. I also like to play with this fire calculator to see where I am and check on my goals and progress: https://engaging-data.com/fire-calculator/ submitted by /u/chuck1011212 [link] [comments]
The recent economic downturn has left many people struggling to make ends meet, and for those living paycheck to paycheck, the situation…Continue reading on Medium »
Disclaimer: This is related to tax optimization and not tax avoidance, which are two very different things. I think this post will spur good discussion on the topic. Given that tax is (likely) by far the biggest expense of someone throughout their life, I wanted to check how many people have actively made a complete geographical career move on the basis of optimizing (lowering) their taxes? Of course this is much easier said that done and isn't an option for everyone, but am curious who has done this. For myself, I had moved from Canada (Alberta) to Singapore in Q4/20 due to a very lucrative job opportunity that should remain for the foreseeable future. The tax bill came in today at ~58k on ~384k, which is about 15% and will flatline at these rates. In addition, there is 0% tax on dividends, interest or capital gains. Just for comparison I put this same income in the EY Canada tax calculator for my province and this would have been ~149k of tax (~39%), with the additional kicker of 24% on capital gains and 34% on dividends.. Eventually I am going to go back, but honestly it just seems like such a financial burden in doing so and can't imagine how it's possible to reach that "next level" with taxes like this, unless you're genuinely making mountains of cash. I know there are deductions available to not take the whole 48% right in the face, but still.. submitted by /u/Shoddy_Equivalent_16 [link] [comments]
We are nearing our FI journey. With the current trajectory, within two to three years we will be FI. The closer I get the more difficult it becomes to stay motivated. I have fuck you money, but also have golden handcuffs that (due to circumstances beyond my control) I cannot replicate elsewhere. So effectively, I can take my leave and retire early now with a drop in our lifestyle or change how I approach and feel about my situation and keep working for a while. For context, our expected expenses at retirement are between 4% and 5% withdrawal rate today (4% for the most frugal budget we’d be comfortable with in long term and 5% for the the maximum budget we can imagine spending without wasting money). I’d like to have a 3.5% — 4.5% WR, and getting there will take a few years more. I am trying to focus on things I can control and be more articulate about what is it that is causing the burn out at work and widen my perspective. Thinking about the situation as an immediate tradeoff helped a bit. For example: I could retire today. That would mean a change in our expected lifestyle going forward. Is is worth the extra time I will gain? What am planning to do in that extra time that I can’t in the future (spend more time with parents / kids while they are still around / small). Any insights folks who went through a similar situation could offer? submitted by /u/toperato [link] [comments]
Back here again for a 2 year update to this thread. To recap, I bought a house at the very start of the pandemic, put an offer May 2020, and closed August 2020. Prices have roughly doubled and stayed there even after the rate increases. Was about 2.5 times the original at peak of market, which I think was May 2022. So after almost 3 years, soaring real estate prices (atleast for primary) did not have a material effect on my FIRE plans. If anything I feel our plans have been delayed. The cost to maintain a house is something I grossly underestimated. For e.g. since moving in, I have had to replace 2 of our 3 , 18 year old 75 gallon water heaters. Plumbing companies wanted ~$4000 for each of these replacements. Furthermore I have been hit with increased tax assessments and insurance premiums. A surprising observation for me at least has been how prices have held up and recently picked up again, at least where I am. So TLDR after 2 years: If anything, soaring real estate prices in the USA have delayed, but not significantly, my FIRE plans. 1 Year Update: https://www.reddit.com/r/financialindependence/comments/s9cwcx/update_to_have_soaring_real_estate_prices_changed/ Original: https://www.reddit.com/r/financialindependence/comments/llacl2/have_soaring_real_estate_prices_changed_your_fire/ submitted by /u/azfanboy [link] [comments]
Hey there, So given the stories about people's journey through to FIRE and I've noticed a lot regarding when kids came around, but what did you guys, that successfully FIREd, do when it came to optimizing costs for life events like a wedding/buying house together/1st kid costs? In short was it a combination of purchase and hold off investing for a certain time, or allocate a new "budget" piece that factored in down payment/big life purchase expenses or some other mixture I'm not seeing? submitted by /u/slayerabc [link] [comments]
Well, I have made the big step. Decision. After attending Tony Robbins UPW 2022 in Florida, I finally have the momentum I was hoping for to make this major life change. As I learned from UPW, "it's in your moments of Decision that your Destiny is shaped" (TR quote). I have made the decision to pull the plug from the 40 hour a week grind one year from now. About March 2024. THE MATH I have spent months obsessing on the numbers, something I am actually skilled at and enjoy. I have finely combed over the revenue and expense side of the financials. Both of these are equally important as part of the FI/RE feasibility test. As I write this, I am also calling out for help from those that have taken this plunge and have any insight the share. Let me start by sharing the details. I have a cost of living (without too much sacrifice) of $150,000. This includes $30,000 a year for an 11 year old (my only child) to remain in private school. His college should be covered by a 529 so I should only have this expense for 7 more years. Here is what I have in my arsenal: -A beach vacation rental that spins off $125,000 net after all expenses (but before tax) [$3,300,000 home value with $1,500,000 in debt] -An industrial building that is rented out that spins off $60,000 net after expenses (before tax) [$1,000,000 value with no debt] -$2,500,000 invested in the markets -primary residence worth $1,400,000 with $310,000 left on the note -about $750,000 in cash In total about $7,000,000 net worth The vacation rental and the industrial building, after tax, amount to roughly the $150,000 needed - since there is much tax efficiency in rental properties. I almost meet the 4% rule by the cash (if the cash is put in the market) and the investments alone. So, I have what I feel is 2x's what I actually need to pull this off. Keeping in mind that my future likely will involve some type of money making operation that is done at my own speed. THE REASONING I was fortune enough to be born into a family that owns a manufacturing business that dates back to the early 1930's. My brothers and I have been running it for the last 20 years. I have recently turned 50 - which is really what has gotten in my head. I have been in the family business for the last 23 years. While the opportunity to gross $400,000 a year is wonderful, the golden handcuffs present a problem that nobody has yet to fully understand. There is something too finite about knowing where you are going to work until the day you retire. You drive to the same office every day. You spend 8 hours in the same office every day. You cut your vacations short all the time so that you can get back to the grind. A true slave to a never ending email stream. Now, while I understand that this is a typical work life for most people, the circumstance changes once you develop the means to live without needing fresh income. I could continue working every day for 10 more years (until I turn 60) for an additional $2,500,000 net, or I can cut out now and begin a new adventurous chapter of my life. I can be more present for my 11 year old son. I can be more present for my wife of 17 years. I can be open to developing hobbies that I so desperately need to have for my older years. I can fire off the last good 10 years of entrepreneurial missiles in hopes that one of them hits the target. Please feel free to comment, weigh in, share your similar adventures, correct my math. submitted by /u/CountdowntoFIRE_321 [link] [comments]
I'm 39. NW is ~$350k. I have about $200k in brokerage accounts and ~$150k in home equity. I zeroed out in the '08 recession when my business failed, so I'm playing catch up and taking risks. I bought a historic house the VA had declared uninhabitable in a "gentrifying" neighborhood. In the first few months I had to chase a few junkies out of my enclosed porch at gunpoint, and deal with one of those zombies in my kitchen late at night. 6 years later, Gentrification successful. I am walkable to a popular brewery, yoga studio, and smoothie bar. No more gunplay with junkies. The house has been mostly restored, and I now have an $1100/month mortgage/tax/insurance payment for a 3br place with oversized 3 car garage and 1800s old money construction. I can also be in Manhattan in under 2 hours. Early last year I uncovered evidence of widespread fraud at my employer, and quit my high-paying job to go whistleblower. It was scary. 6 months of job interviews and nobody wanted to touch me. I had a feeling this would happen, and had my backup plan. I used this opportunity to go back to school full time for a physics degree, while I was doing some consulting work for ~15-20 hrs/week. Six (hard) college classes plus solving really hard engineering problems on the side was too much. First thing I did this morning was transfer $35k out of my brokerage to wipe out the HELOC I took out for home renovations. This gets my total spend below $2k/month. Conveniently, I also have ~$2500/month coming in from the VA for the next 4 years. I made the decision to just suck it up and be poor for a few years. I don't have to work anymore. It feels liberating after years and years of 60 plus hour work weeks and constant stress. I don't have to work anymore. Not for a few years at least. I don't think I'll ever go back to full-time. I don't care if this set my retirement goals back a few years. I know it's the right choice. For the first time in my adult life I don't feel any stress about anything. I'm probably adding years to my life by cruising into middle age with no stress. Without my little nest egg, I would probably still be trapped in a soul-sucking job getting further and further down the rabbit hole of doing illegal stuff to cover for things in the past. It's been a lot of sacrifice and hardship to get here, but today is the first day that it really feels like it's all been worth it. Time to go hop in the car and head up North for a day of impromptu snowboarding, because fuck it, I'm independent now. submitted by /u/No-Coast-Punk [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
Interest rates are higher now, meaning both bank account interest is higher and housing loans are more expensive. If you think you may want to buy a property in the next 2-4 years but are not sure, how would you change your budgeting and investing plan in the short term? Does it make sense to minimize unplanned and major expenses and put all your savings into high yielding deposits or money market funds until you have saved up for the possible down payment? This positions you for options if property prices decline and there is a recession, so you should save up as quickly as possible. Or do you continue investing some portion of savings because you can't know when the market is at a bottom? I know to stick to the plan, but am not sure how to modify the plan given short term goals. submitted by /u/josemartinlopez [link] [comments]
In today’s world, earning money online has become a popular way for people to make a living. With the rise of technology and the internet…Continue reading on Medium »
“The Essays of Warren Buffett” is a collection of letters and essays written by Warren Buffett, one of the world’s most successful…Continue reading on Medium »
Been putting a bit aside in a HYSA and No penalty CD from Ally, up to 100k now, for a down payment on a house. I'm feeling like perhaps that money should be in the market hoping for a bull run. I'm not sure how to feel about either. Houses are way too expensive and the market is in the crapper. What would you do? submitted by /u/FImilestones [link] [comments]
Hello, I am 29 years old, married with two kids. I work as a CAD Designer at a Civil Engineering firm and am living in a househack we bought last year. My commute is small, my family is happy, but I am struggling with what I consider a financial decision. I just transferred to a nearby university with the intention to get a civil engineering degree to further my career. The issue is, school is taking me a lot of time (possibly 5 more years) and I am at the point where (with the more expensive school) Either student loans or dipping into what we have saved for our next house hack is likely. A degree was just the logical progression for me, but house hacking has been so big for us and we are both totally on board to do it again that I think in a five year period financially we would be better off if I just stopped going. tldr: how do you decide between further education for more pay, or house-hacking when you have already had success there? 5 more years of school and possible student debt, or two or three more properties cash-flowing in the same period. submitted by /u/boombang621 [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
Like ok, I got this. I'm not going to end up a hobo. I don't care if someone else has more than me. I'm comfortable. Compounding is going to run for another few decades and I'll be better than just Ok. Or your version of that. submitted by /u/wc1048 [link] [comments]
Received the below email, I've never heard of this. We make too much to be able to contribute to an IRA, but we aren't allowed to max out this 401k either? What are my options to contribute to a tax advantaged retirement account? Do I have any options for something to do with this 5 digit check? So because lower income co-workers don't contribute to their 401k, I can't contribute what I want to? Each year the XXXXXX 401(k) Plan is required to perform an annual test to ensure our plan does not discriminate in favor of highly compensated employees (HCE). This test is required by the IRS and all traditional employer-sponsored 401(k) plans are required to perform a similar test on an annual basis after the plan year ends. This test compares the average deferral percentage of the HCEs to the average deferral percentage of the non-highly compensated employees (NHCE). Please note both 401k and 401k Roth Contributions are to be considered for the test. The IRS believes if the HCEs, on average, are contributing more than 2% of the NHCEs, on average, the plan is favoring the HCEs. A traditional 401(k) plan, per the IRS, is not allowed to favor the HCEs. Instead, the plan is required to treat all employees equally. If the average deferral percentage of the HCEs is more than the average deferral percentage of the NHCE by 2% or more, the plan sponsor is required to return a portion of the contributions to the HCEs in order to be in compliance with the IRS, referred to as a refund. As in past years, the test failed for 2022, and a refund will be provided to you. This refund is considered taxable income for the 2023 tax year and you will receive a 1099-R in January/February 2024 for tax filing purposes. This refund does NOT impact your 2022 taxable income nor requires the re-issuance of your 2022 W2 forms. · You will receive a refund of $XXXX.XX plus attributable earnings/loss and less applicable federal and state taxes by March 31, 2023. This will be delivered to you in the form of a check from Empower Retirement via USPS mail. · For those HCEs who were age 50 and older during 2022, their refund is less, as they were allowed to keep a portion of their refund in the plan as a catch-up contribution. · For 2022, it was determined the maximum allowed 401k and 401k Roth contribution for the HCEs was $13,XXX. · In addition, the employer match contributions have a similar test, and a portion of the match contributions could be refunded as well. This match associated with the refund of the contribution will either be refunded to you if you are vested in the match contribution or, removed from your account if you are not vested in the match. This will be delivered to you in the form of an additional check from Empower Retirement via USPS mail. · The refunds of the Roth/401k contributions are referred to as ADP refunds and the match refunds are referred to as ACP refunds. If you do not want to receive a refund for 2023, you could limit your contributions to the 2022 limit of $13,000. However, we will not be able to determine the exact amount of the contributions that will be allowed to stay in the plan for 2023 until the test is prepared for 2023, which is during the first quarter of 2024. submitted by /u/jeffrey4848 [link] [comments]
I like to post about my parents b/c they've been a lab for the knowledge I've gained over the years and applied to their situation. I also think it can be illustrative for this sub. A couple of key points; mother stay at home mostly; Dad worked till he was 71. My dad's always done well just skipped the financial market success from 1980 till basically late 2000's. Parents dislike risk in general don't understand the market. My parents are NOT great planners and about 15 years ago I noticed my dad was saving less than I was dollar for dollar but he made 5x what I did. I am a CPA by trade and did taxes for the wealthy for a time and learned what success CAN look like. The Plan: Started by maxxing dad's accounts and he did this for about 15 years. Paid off their house. Started investing in after tax brokerage accounts; mostly bond funds. Getting cash flowing as he was more than happy to just give banks interest free loans at 0%. Pushed really hard for about 5 years and with their almost zero cost lifestyle I was able to leverage them into investing $10k or more after tax per month for that timeframe. in that span his 401k ended being worth about 1.2M w/ company match. bond funds about $850k CD's about $800k He's hit the Social security cap for 40 years and waited to pull until he was 70. He currently receives the max you can from SS ~$4300/mo after M'Care and my mother gets something like $1600. All in they're close to $70k/yr. in SS. Their bond funds and CD's yield close to $5k/mo. their RMD's yield another $4k a mo. At the end of the month they're taking in $15k+ in cash and their expenses are maybe $4.5k This last part is a warning as they aren't all that interested in doing much different than before. They've had a couple of health scares, but at the end of the day they've won the race but don't know what to do now that they've caught their tail.... I know I've benefitted greatly from getting firsthand experience of what is possible. It also tells the story that it's never too late and having a big "shovel" makes a difference. I know they are grateful for the work we did together but they also would have been perfectly happy to just sit it out and let the wind take them where it may... Be diligent, be focused, set a plan and care for yourselves! submitted by /u/clutchied [link] [comments]
Hello FI friends and family! Today we are rolling out an updated set of subreddit rules and operations based on our January low-mod experiment, your feedback, and our internal review of the sub over the past few months. Our goal with these changes is to make this community a welcoming place for all FI-minded people, but to also maintain a higher level of moderation and relevancy than is expected in more general or less moderated financial subreddits. We have no intention of becoming another version of /r/fire or /r/personalfinance, but we do intend on being more openly structured than in recent years. This is so that we can be both more welcoming to new members, but also so that there is a larger and more diverse set of relevant top-level discussions for community members to enjoy and participate in. We will be opening a moderation survey for the community in the coming months for feedback after we’ve all had some time living in the new framework. With all of that in mind, here is a summary of the new rules and operational changes. A modest level of positive subreddit karma will be required to submit top-level posts, but everyone is free to comment. All post submissions that do not pass the subkarma requirement will be placed in queue to be reviewed manually by the modteam - a change from the previous “straight removal” of posts that did not meet this requirement. Additionally, we are keeping the rule that any submission which gets three user reports will be temporarily removed pending manual review by the modteam. There is now a singular rule for top-level topical moderation, which is that top-level posts are expected to be relevant in some way to the FI community and demonstrate some minimal level of effort on the part of the OP. Authors should review the FAQ/wiki/sidebar before posting and also consider whether their post would be better suited for FI-adjacent communities like /r/personalfinance, /r/investing, /r/entrepreneur, and so forth. Commonly asked questions/topics and lower effort submissions may be allowed periodically as top-level posts in order to foster community discussion and provide a space for new users to discover core FI topics, but will more likely be removed and be redirected as needed to the FAQ, daily thread, or more appropriate subreddits. Personalized, in-depth content will no longer be actively pushed into Weekly threads, which have been removed moving forward. The sole exception to this is self-promo content, which will continue to only be allowed within the designated Weekly Self-Promotion thread. Anything that previously went within one of the Weeklies should now be posted within either the Daily or as a top-level post, depending on how substantial the material is. Civility is required of everyone at all times. We have expanded the “No gender” rule to be more universally applicable to all of the routine demographic characteristics many of us are familiar with from the workplace. Speaking of your own personal experience is fine, but weaponizing such against others is not. Politics remains off-limits, but policy itself remains fine as a discussion topic. We have reworded things a bit to make it clear that neutral passing mentions of political parties or politicians are okay. A good general rule to remember - if you need to bring up a certain party or person, then you likely aren’t trying to focus on the policy itself. For the most part, the sub has already been operating under similar conditions for a few weeks now and things appear to be stable. We want to thank all of you for your regular participation in our happy community and, as always, we are only a modmail away if you feel like reaching out. -FI ModTeam PS - For those of you who prefer a visual presentation, here is a completely accurate summary of our current mod practices. https://i.imgur.com/jaOI4TC.mp4 submitted by /u/Zphr [link] [comments]
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This blog is about the top 10 Commandments of Options Trading Strategies.
Options trading is a complex and often risky business. However, by following some simple rules, options traders can increase their chances of success while minimizing their losses.
Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options’ variables. Call options, simply known as calls, give the buyer a right to buy a particular stock at that option’s strike price. Conversely, put options, simply known as puts, give the buyer the right to sell a particular stock at the option’s strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straightforward strategy might simply be the buying or selling of a single option; however, option strategies often refer to a combination of simultaneous buying and or selling of options.
Options strategies allow traders to profit from movements in the underlying assets based on market sentiment (i.e., bullish, bearish or neutral). In the case of neutral strategies, they can be further classified into those that are bullish on volatility, measured by the lowercase Greek letter sigma (σ), and those that are bearish on volatility. Traders can also profit off time decay, measured by the uppercase Greek letter theta (Θ), when the stock market has low volatility. The option positions used can be long and/or short positions in calls and puts.
Below are the 10 Commandments of Options Trading:
Do your homework. Before entering into any options trade, make sure you understand the underlying security, as well as the risks and rewards associated with the trade.
Have a plan. Options trading is not a get-rich-quick scheme. Carefully craft a plan that takes into account your investment goals, risk tolerance, and time horizon.
Use stop-loss orders. A stop-loss order is an order to sell an asset when it reaches a certain price point—the point at which the loss on the trade would become too great to bear. By using stop-loss orders, options traders can limit their losses on any given trade.
Let winners run. Once an options trade is profitable, resist the urge to take profits too early. Instead, let the trade run its course and reap the full rewards of a successful trade.
Cut losers short. On the other hand, when an options trade is going against you, don’t be afraid to exit the position and take your losses. Trying to “fight” the market will only lead to further losses.
Manage your risk exposure. One of the most important aspects of successful options trading is managing risk exposure. Make sure you don’t have too much of your portfolio invested in any one security or sector. Diversification is key to mitigating risk in options trading (or any kind of investing).
Use limit orders. A limit order is an order to buy or sell an asset at a specific price—the price at which you are willing to enter into the trade. By using limit orders, options traders can better control their risk exposure and avoid getting caught up in volatile markets.
8 . Be patient . Patience is a virtue in all aspects of life, but it’s especially important in options trading . Don’t enter into trades just because you’re feeling antsy—wait for opportunities that meet your investment criteria . And once you’ve entered into a trade , resist the urge to “trade emotionally” and instead let your original analysis play out . Over-trading is one of the biggest mistakes options traders can make .
9 . Stay disciplined. Like patience, discipline is also key to success in options trading . Once you’ve developed a sound investment strategy , stick to it ! Don’t let emotions influence your trades — if anything , emotion should be kept out of trading altogether . The best way to do this is by developing a clear set of rules that you always follow when making trades . If you can do this , you’ll be well on your way to success as an options trader.
10. Have realistic expectations . Finally, it’s important to have realistic expectations when trading options . Remember : there are no guaranteed winners in options trading ! Every trade involves some degree of risk, so don’t expect to win every single time. If you approach each trade with reasonable expectations and focus on long-term success, however, you’ll be well on your way to becoming a successful options trader
Furthermore:
Thou shall always take 100% daily gains or 200% all time gains.
Do not fall into temptation and buy during the first 30 minutes of market open. (Selling positions is still permitted)
Thou shall not buy calls on green days.
Thou shall not buy puts on red days.
Avoid greed and do not buy consecutive options on 1 company.
Give thyself at least 3 weeks time to play the option.
End your suffering and sell if down 50% all time on an option play.
Avoid gluttony and do not day trade options. (Swing trades allowed)
Be fruitful, multiply earnings and sell covered calls if holding any.
Celebrate and binge drink after big gains (or losses)
Off topic, but relevant – You absolutely need to be doing a 401k or IRA as well as investing in crypto: 401ks and IRAs offer fantastic tax advantages that straight investing does not. Also if you have an employer who matches you are leaving money on the table by not taking advantage of that. It’s foolish. Crypto is great and should definitely be in your portfolio but it should not be your whole portfolio. Sources: 1- WallStreetBets 2- Wikipedia
Options trading can be complex and risky business, but by following some simple rules traders can increase their chances of success while minimizing losses
Find WallStreetBets on YouTube, Twitch, and Discord Check out our Earnings Thread and Rules. DM the mod inbox/sex line submitted by /u/OPINION_IS_UNPOPULAR [link] [comments]
Okay so I know saving your investment money through the year and loading up accounts at the end of the year goes against conventional wisdom… The reason being you potentially miss out on maximally exploiting years where the market is up 20% or more… However, I find that putting money into accounts frequently just makes me think about this journey too often. I don’t mind seeing ups and downs. But seeing my accounts frequently and especially seeing the number increase frequently just makes me want to review everything and run totals, calculations, and projections and such. It’s been fun and at times very gratifying but I’m so far in my journey that sometimes I think it’s really unhealthy and the number of years left is a little daunting as well. I use sofi so I can make a vault for my investing money and I think just putting it away until the end of quarters or year and doing a check/analysis 1-4x a year would be good for my mental state. A small side benefit here is that I can at least make 4% apy on it in the meantime so it’s not just doing NOTHING. A second small benefit is I’m sure I’d feel a little more secure floating a larger bank balance. I JUST WANT TO REPEAT… this is for mental health primarily… those last couple things I mentioned are just small perks. Edit: I use fidelity and so to my knowledge my money can be auto drafted into my account but I have to personally spread my funds among my index funds/etfs. Also I’m self employed and my income is highly variable from month to month and week to week which makes auto draft tougher. submitted by /u/Banana_rocket_time [link] [comments]
I projected my retirement expenses and wanted to see if it’s a realistic figure or if I am off. Spend Amount $24,000 Mortgage $12,000 Car $36,000 Food $24,000 Entertainment $20,000 Travel $12,000 Miscellaneous $128,000 Total Annual Spend If I include an effective tax rate of 12%, I’m projecting total annual at around $140,000 (PV). I refinanced our house a few years ago at 2.5% interest so I don’t plan to pay more than the monthly minimum. I’m currently 42 and plan to retire at 57. Current investment portfolio is at $600,000. I will have 2 pensions at retirement which will cover a bulk of my annual expenses. I calculated I’ll need to withdraw about $25,000 a year from my 401k until I collect SS at age 70 (my spouse will collect at 62). Do my estimates look about right? Our plan is to travel internationally 1-2x a year and will eat out more often. We live in a HCOL so I factored in more costs to food and entertainment. Appreciate the feedback. submitted by /u/DifficultResponse88 [link] [comments]
For a while, the most likely outcome for stock markets in 2023 was a trading range. Now, much worse scenarios are on the table. This past week, the Dow Jones Industrial Average gained 376 points, or 1.2%, the $S&P 500 index(.SPX.US)$ finished up 1.4%, and the $Nasdaq Composite Index(.IXIC.US)$ rose 1.7%. All three fell about 1% after the Federal Reserve raised rates a quarter point on Wednesday. The go-nowhere action of the market over the past few days -- despite some significant events, such as Fed speeches and $Credit Suisse(CS.US)$ agreeing to be taken over by rival $UBS Group(UBS.US)$ -- is emblematic of recent trading. The S&P has bounced between 3700 and 4200 for the past few months. Investors just can't get excited about stocks with the economy slowing, interest rates rising, inflation persistent, and earnings estimates bleeding lower. All that, combined with a series of rolling crises -- the popping of the crypto bubble and the recent regional bank failures -- have kept a lid on big gains, says Wolfe Research Chief Investment Strategist Chris Senyek. Even if investors could get motivated by slowing inflation and a potential end to the Fed's cycle of rate hikes, more potential crises loom. On Senyek's watch list are commercial real estate and private equity, both leveraged bets in a rising-rate environment. "Best case, we're in a trading range, worst case, the floor falls out," he says. Nor is the current crisis going away. It won't reach the levels of 2008 and 2009, when banks blew up because they had too much leverage and owned too many esoteric -- and toxic -- financial products. But the current issues can linger all the same. "Debt and liquidity crises don't end in two weeks," says Que Nguyen, Research Affiliates, chief investment officer for equities. "It's really a crisis of the Fed's making." How so? Short-term interest rates are now above long-term rates, which is a disaster for smaller banks that borrow at short-term rates and earn returns farther out on the rate curve, explains Ironsides Macroeconomics founder Barry Knapp. Of course, they could have used interest rate swaps and other methods of "maturity transformation," but that's a little too arcane for some U.S. banks. "They're just small country banks," says Knapp, who also worries that the stock market could be headed for a fall. "They're not going to have a big interest-rate-swap book." Brian Rauscher, head of global portfolio strategy at Fundstrat, isn't worried about the bottom falling out, but he, too, can't get excited about the stock market. "It has been a bunch of single cockroaches," he says of the current problems. None, however, are "end-of-the-world bearish." The mood, in other words, is grim, and four strategists offer similar advice: Stay defensive. Hold a little more cash. Stick to quality stocks -- those with solid balance sheets and growth that doesn't depend on the larger economy. Small-cap stocks are cheaper than usual after dropping 18% in the past 12 months, but investors should avoid small-cap bank stocks. Most of all, don't get too excited about the next rally on Wall Street. Stocks "can go sideways for long periods of time," Rauscher says. "Go sideways, go down -- the one thing I just didn't mention was going up." Nor should he have. submitted by /u/Agreeable_Ad4307 [link] [comments]
This still isn't Denzel Washington's burner account, but three-ish years have passed since my original post: https://www.reddit.com/r/financialindependence/comments/gxz5g4/black_man_on_fire/ and I've learned, grown and experienced a few new things that I hope some of you will find encouraging. As my post history communicates, I'm still very much a reddit posting noob but have come to appreciate the value of a TLDR so here is my attempt to save those of you in a hurry a bit of time. TLDR: Underrepresented tech business owner shares his journey to financial independence with the hope of inspiring others. The plan 2.0 update. Much has happened in the last three years, however I think it is fair to say that a global pandemic was not a part of anyone's plan. It will come as no surprise to anyone reading a subreddit on independence that perseverance and resilience are often underestimated contributors to success. The pandemic challenged me in ways that I'm still coming to terms with. Here are some of the lessons that I learned. "Slow is fast." Like many minority founders, my inability to secure capital in our early days forced me to be exceptionally mindful of every expense and to truly differentiate wants from needs. At our founding, we didn't have office space because I couldn't afford office space, so we have always been a remote-first company. It is my belief that had I been able to secure access to capital, I would have been faced with a more complex set of pandemic related challenges. We entered the pandemic debt-free(thanks FI) and were able to continue working when others shut down. My sense is that we remain on firm footing and have grown a bit over the last 18 months. I think the lesson I continue to learn here is to focus on what you have. In my case I have the privilege of having a great team to work with. We try to leave our egos on the shelves and focus on what really matters. Our growth has been measured, steady and sustainable. "If you want to go fast go alone, if you want to go far go together." The consulting market is fiercely competitive and many leaders operate from a position of scarcity. From my perspective, the addressable market is far greater than all of the businesses combined so it simply makes sense for us to band together. Thankfully there are a few others that share this perspective and last year we created a community of partnership. We actively seek opportunities to work together and we share our resources. Collectively we've all experienced growth and are in it for the long-haul. Having this community of like minded people continues to be invaluable. This community has helped me grow the business just shy of 30%. "Representation matters" The 4 min mile barrier remained in place until Roger Bannister broke it in 1954 and as of April of 2021 1,664 runners have broken the 4 min mark. The measure is now the standard for professional middle distance runners. I hope that we will all agree that confidence is a significant determinant of success and that self-doubt is self-limiting. Roger Bannister removed all doubt associated with human performance potential in running the mile. Regrettably there remains doubt, in some circles, about the uniformity of performance potential of humans: independent of socioeconomic or gender background. Thankfully the opportunity landscape for full participation in all things nerd continues to expand. Please take comfort in the absolute fact, that if I can do it, you can do it. "Failure only happens when you quit." Without question owning a business is the hardest thing that I have ever done professionally. It also happens to be the most rewarding thing that I have ever done professionally. The lesson I continue to learn(and hope to share) is: hard work + opportunity = luck. It has been my experience that far too many of us give up too soon or worse yet don't start out of fear of failure. I've learned more from my mistakes that I have from my successes. We are all striving for a measure of independence but that independence comes with a cost. Commit to doing the thing that YOU love and do it with all that you have. I know that this perspective isn't popular, but it has been my experience and those of my peers. We all have seen or heard the anecdotes, but for most of us there are no shortcuts to financial independence. Speaking of independence what about retirement? I still haven't figured out what retirement looks like for me and I guess that is ok for now. I'm working much more now than I was three years ago and that isn't awesome but I think it's OK given the growth opportunities we have. Life continues to be good! My wife(I married the love of my life during the pandemic) don't travel as much as we'd like but we are working on that. My goal is to structure the company in a way that allows me to work on the business that I love instead of working in it. I'll end this the way that I began with the hope that someone finds some part of my journey helpful. We are much stronger together than we will ever be rivals. submitted by /u/tapatinerd [link] [comments]
As the banking crisis spreads and global demand for dollars surges, central banks are rapidly reducing their holdings of U.S. debt to "cash out" and the use of the Federal Reserve's overseas liquidity tools has surged. Federal Reserve data showed that official foreign holdings of U.S. Treasuries fell by $76 billion to $2.86 trillion in the week ended March 22, the largest one-week drop since March 2014. Meanwhile, use of the Federal Reserve's Foreign and International Monetary Administration (FIMA) repurchase agreement instrument reached a record $60 billion, well above the $1.4 billion peak reached at the peak of the epidemic. The Fed's FIMA repurchase agreement instrument was launched on March 31, 2020, to support liquidity in global financial markets and cushion the impact of the epidemic on the global economy. The instrument allows foreign central banks and international organizations to use their holdings of U.S. Treasuries as collateral to request dollar liquidity from the Fed to ease funding pressures. In response to the surge in the use of the FIMA repurchase agreement tool, Barclays strategist Joseph Abate was quoted in the media as saying, "We feel the borrowing is precautionary given the dollar funding rates." Notably, only a small portion of the $136 billion raised by foreign official agencies from the sale of U.S. debt and FIMA repo has flowed directly back into the Fed's balance sheet or broader custody program. As of March 22, the balance of the foreign reverse repo pool had increased by only $3 billion, while agency securities in Fed custody (including mortgage-backed securities) had increased by only $7 billion. Analysis by Wrightson Bond Market Research (Wrightson ICAP) suggests that the above phenomenon suggests that much of the cash raised by central banks may have gone into the private market. submitted by /u/exemplaryprophecy1 [link] [comments]
We live in some seriously regarded times these days so let us pool our single good brain cells and ponder this question. You ever wonder why the fed funds is approaching 5% but you are still getting dick on your current account? There are near $3 trillion at the fed REPO facility collecting 5% but you are getting ~0.6%? WTF. No wonder the less regarded among you have moved money to money market funds, 2 year treasuries, funky etfs such as OPER and even in physical gold. So far 500bn have left for MM funds and this clearly caused the banking strain since the useless banks are now borrowing from the fed in emergency facilities in size of 500bn at 5%. But what the actual fuk!!! Why didn’t these regarded banks hike deposit rates at the same time as the fed funds? That would have surely prevented the 500bn deposit flight and they might have not got into this hot mess in the first place. Seems to me what we have here is a classic case of fighting the fed and losing their shirt. Except this time the ones fighting the fed is the entire banking industry acting as one. Also how is it they are able to keep deposit rates this low across the entire western world? It is as if we are in a corrupt collusive oligarchy controlling the free market interest rate, surely that can’t be happening right? This is free market capitalism with intelligent regulators who would be onto this kind of manipulation like flies on diarrhea? /s Now having fuked the depositors for decades, fuked up on their long duration treasury bets and fuked the congress into deregulating, banks are now looking to fuk the tax payers some more by fuking yellen and fed into bailouts after they themselves fuked up causing all of this inflation in the first place. What the actual F???!!!! submitted by /u/davesmith001 [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
US banks borrowed $475B last week, while small banks lost over $500B in just two weeks since the collapse of SVB. $1T has been withdrawn from the most vulnerable banks over the last 2 years, with $500B withdrawn since March 10th. Small banks borrowed twice as much money as large banks relative to their size. https://news.coincu.com/176394-banking-crisis-us-banks-borrow-475b/ submitted by /u/LorriCrawley [link] [comments]
The mid career years are so important for compounding. In my first decade of career, I switched 3 jobs rather quickly (4.5 years the max time spent in one company). Combined starting salary of spouse and I was $150k, of which my salary was $75k. After 10 years, my salary reached $130k. Had just started at my 4th company, hoping for a hop after quick 2-3 years to climb the proverbial corporate ladder. Our combined net worth was ~ $250k. Then, various life events overtook us and it became clear that climbing the ladder should no longer be my main focus. So, I just sort of gave up and started putting in some reasonable effort at work. But stopped trying to interview around, ask for promotions etc. Decided to just stay put as long as company kept paying me. Fast forward: it’s been 12 years since then. I am still with the same company. This year my salary reached the milestone of $200k. It has risen about 50% in 12 years - I mostly get 3-4% annual raises. Spouse is likewise with same employer, and our combined salary is $380k. I have not asked for a promotion and have not got one. I have moved around in different lateral roles as an individual contributor and hopefully earned some respect along the way from my colleagues. During these 12 years, our combined net worth also steadily went up thanks to the magic of compounding- about 12x - to $3M today. $1.8M investment portfolio and $1.2M home equity. So, guess moral of my story is: just go about your day-to-day work and things will sort of work out, financially at least … submitted by /u/Ok_Art_2874 [link] [comments]
I do not have an options position on this though I am yolo'd in precious metals. Second pic is this article: https://www.ft.com/content/f2fb5fe0-9c59-40ca-80d9-f536660e8f7f I'm a bit regarded when it comes to gamma squeezes (it was not a part of my Wendy's onboarding training) so I figured I'd reach out to the pros here for some insight. With the banking system being 'safe & sound', PM interest seems to be on the rise. In the physical space, inventory is drying up & it stands to reason that if capital is flowing into the physical market, it is likely flowing into the ETFs as well. Sidenote: PSLV/other Sprott trusts own the physical metal, SLV/others own a lot of paper derivatives. Buy the former to own a claim on the metal, use the latter to trade options. The COMEX/other exchanges operate like fractional reserve banks & trade substantially more paper contracts than can be covered by the underlying metal stock (or rocks if you're a JPM nickel trader). submitted by /u/GoldDestroystheFed [link] [comments]
Hey Everyone, I'm a little lost as to what I should do with some money I have coming in and was wondering if anyone could offer some guidance for how I should proceed. For some background: I'm a 21 year old college student I currently have no credit card or student load debt I have a decent amount of savings I've built up so far as I've been working since the beginning of highschool (~$40k range) In a few days I'm going to receive around $220k due to my share of an estate being paid out. My main goal is to safely store away the money in a way that it grows nicely overtime. I was thinking something like mutual funds or investing in ETFs, but I wasn't sure how I'd like to break it down by sector if doing the investing myself. If possible I'd like to receive some form of benefits for storing at a certain place (for example a friend mentioned that storing at some places might give me access to better than normal credit cards with the firm), given I don't have to trade off good growth to do so. I don't expect to touch the money much if at all moving forward; I work while in school, over the summer I do software engineering internships to support myself, and next year I'll be graduating and starting software engineering full-time. In the meantime I was going to park it in my Sofi Savings Account - I thought the 4% APY that pays out monthly would be a good way to hold the money until I had finalized my plans. Thank you for any advice you're able to give! I'm really confused as to the best to proceed and really appreciate it. submitted by /u/Fatherly_Spy_08 [link] [comments]
The definition of insanity is being so stupid that you nearly bankrupt yourself by being greedy and decide to do the same exact thing that put you there in the first place. That's the premise of this sub. Who else does that? Apparently shorties. 250% SI? That can't be right. Let's check somewhere else: Oh 280%.... What does this ETF contain?: Oh ffs If auto-mod takes down this post then it likes hairy buttcracks and kissing carveouts of Gary Gensler. submitted by /u/Silver_Comment3913 [link] [comments]
Let's say that you screw up with your initial retirement plan. You're able to be retired for 5 years, but you realize that you must re-enter the workforce and do full-time work again, because you jumped the gun a bit. Is this really the end of the world? I know it might be weird to approach employers with a 5 year gap in employment, but you could just tell them the truth. You tried an early retirement plan and it didn't quite work. You'll be 5 years older, and probably not thrilled to be returning to work full time, but I don't see it as this catastrophic failure. Can somebody explain all the other downsides that I'm not considering? submitted by /u/IHadTacosYesterday [link] [comments]
The jump from GPT-3.5 to GPT-4 in a few months has seriously blown my mind with its capabilities, especially code writing. There are numerous demos online showing all the things it can do. The Sparks paper on GPT-4 shows some incredible capabilities: https://arxiv.org/abs/2303.12712 Good video on the paper: https://youtu.be/Mqg3aTGNxZ0 While I don’t necessarily think we’re coming at the singularity any time soon, I do think this technology is just at the beginning and will only get larger, more complex, and more multi-modal and as such will displace a decent amount of knowledge work. I do think this technology will be useful as a tool with humans in the loop, but the point being we won’t need as many people doing such work. Anyone thinking about how this may impact their current careers and FIRE plans? Is it time to get familiar with these tools? Think of a career switch? Invest more aggressively now in case your skills become irrelevant? submitted by /u/SapiosexualYogurt [link] [comments]
I’ve been interesting in buying myself a nice used car, a car ive been wanting for a long time which is a 2013 Porsche 911 in manual. This is about a $60k purchase and I’d ideally keep it forever and pass it down to my daughter when she’s older. Background: 34M married in Los Angeles $286k yearly income ($451k combined household with me and wife) Individual take home pay per month is $10,266 NW is my individual net worth. My biggest monthly expenses right now: I pay mortgage of $1800/mo Existing car lease + insurance of $790/mo Family grocery/dinner/fun fund of $900/mo Day care for daughter $1300/mo Credit card payment of $450/mo (all my bills are charged on my credit card and I pay I full each month) 401k and backdoor Roth IRA and HSA maxed every year. And I add $1000/mo to a brokerage account for I don’t even know what. There is currently $115k in there. It was supposed to be used as additional house down payment for when we sell our current home and move but my wife and I decided we will be staying here long term because we love the house and neighborhood. Also worth nothing we put $100k into a brokerage account for my daughter (she’s 2 now) that’s all 100% hers when she grows up, so not counting that in my net worth. Everything left over is savings or disposal income I guess. My plan was to put $15-$20k down and finance the rest for the car. But not sure if I should even if it’s something I really really want. I grew up actually poor so I still feel like I can’t afford things and shouldn’t treat myself to anything. Tbh, it’s a really miserable feeling because I absolutely work my ass off to earn my living and don’t plan to stop or coast at my career, but because of fear that I’m not doing as much as I should to retire comfortably or saving as much as I should, I’ve never actually felt like I’ve enjoyed the fruits of my labor. It’s being increasingly frustrating. Does anyone else deal with this or is it just me? Has anyone bought themselves a nice big one time impractical purchase and still hit their savings goals and are comfortable? Should I just keep working and saving and then die without ever using any of this money for silly fun impractical stuff? (Jk on this last question) Thanks all. submitted by /u/pleasesolvefory [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
I want to bring this subject up because I don't see anyone really talking about Americans working in the Middle East (Safer locations only: Kuwait, Qatar, Dubai, Oman, Turkey) as an option to accelerate your FIRE goals. It has really worked great for me. I am currently working in Qatar. Clean, safe, nice people, things to do, bars that serve alcohol, can also buy alcohol at the state run liquor store, superb brand new underground Metro, cheap Uber rides, home to the outstanding Qatar Airways and direct flights to most all of the cool places in the world, cheap food and grocery delivery. Qatar is much smaller than Dubai, but is moving in a similar direction to Dubai and encouraging tourism. Nothing to do in Qatar on the level of Dubai yet though. The perks of Middle East (Kuwait, Qatar, Dubai, Oman) FIRE acceleration - Good money, but long hours. Typically 12 hour shifts with two days off per week Housing provided free - The quality of the housing is generally great but differs per company. i am living in a really nice 2 bedroom, 2 bathroom apartment in walking distance to food and the Metro. No bills other than the ones you create for yourself - A cell phone bill is typically the only bill and mine is $20 per month for 4g 8 gigs of data and unlimited calls and txts. 5G is available here too. No insurances if you don't own a car - I hate insurance companies Lowered US federal tax liability - You can typically add 25% to your take home vs. same pay in America. The first $122'ish thousand of pay is not federally taxed. This number changes every year. Also no state taxes depending on how your state is setup for overseas work. Side note: Could be beneficial to change your state of residence before going overseas to avoid paying state taxes in states that still tax you even if you are overseas. This can be done easily if you do your research - even without doing an actualy state to state move. World travel experience - Being on this side of the world is great for travel. Get a travel credit card for travel perks. Cheap and excellent health care - Low monthly cost for a world healthcare plan and no copays or out of pocket costs at all for anything as long as you stay out of the US. You read that right. Go to the doctor, pay $0. Go to the hospital, pay 0$. If you need health care while in the US on vacation or something, expect deductibles and the typical BS that we live with in the US. For example: I went to the local Turkish Hospital here in Qatar (which is super new, clean and amazing) for an ear infection and had no appointment. We typically go to what they call hospitals for a doctor visit, as they are fully featured hospitals that take walk-ins as their normal operation. I saw a real doctor and was in and out of the hospital in 15 minutes INCLUDING getting my prescription. Try that in America at any establishment. I paid $0. If I had some exotic health problem then maybe I would consider going to America for treatment, but for most everything it is far better here. They generally like Americans in the above Middle East countries How to find work: I have experience with and can recommend looking for a US company doing contract work for the US government on US military bases in these countries. These include Vectrus, General Dynamics, Leidos, Ratheon, CACI and other government contract companies. These jobs are not typically well advertised on job boards such as Indeed and can sometimes take some inside info to find. (like knowing somebody working there already) The DoD contracts change all the time, and some listings for jobs are advertised even before a government contract is awarded to a company. This is frustrating, but it is the game. This just means to expect to apply for overseas jobs and expect to hear nothing for most applications. Here is the strategy that worked for me: Get a DoD contracting job at your local (or any) military base in the US and then use that as a springboard for your overseas adventure. This will get you the required DoD experience and security clearance stuff. Then you are an easy pickup for any overseas contract. You can then talk to your coworkers at the US military base that have experience overseas and they can discuss their experience with you before you commit to an overseas contract job. Best bet is to google top 20 US government contract companies, then go directly to each company's web site and search their job listings from their site. This sucks, but it is what it is. You can typically search by physical location, which will get you some listings quick if you know where you want to live. Additionally, I recommend you do a resume overhaul by someone that does it professionally on Fiver or other sites. For 75'ish bucks, one of these guys will clean up your resume and get it looking good plus make it standards complaint. Standards complaince is the key. This will make it super easy to apply on these company sites and will automatically fill in their information gathering fields for you based on what is on your resume. If your resume is not standards complaint, these fields will not auto populate for you and applying on company sites will be a lengthy and miserable effort. Also, there are options for working for local companies in the host countries directly. This could be doing things like working for the oil companies or being a teacher at the local private schools or doing IT stuff. This option comes with lots of unknowns. Be sure to do your research as much as possible before committing to one of these positions including speaking to a currently employed American there that can guide you with any questions you may have. You will likely be working with lots of other nationalities, so be ready to learn about other cultures and deal with some language barriers. Family: Some countries are friendlier than others about bringing your family members. Your employer should help with this, but be ready for it to test your patience. Kids that need school will likely need a private school and this will have some cost. A spouse could find work also, but I don't know much about this. I am single and don't have any of these experiences to provide valid info on this subject. Freedom and privacy: Nope. If you are a gun totin' freedom of everything type person, this is not the life for you. You will give blood to be here. Literally. They test the blood for who knows what and use it for who knows what. You will also give fingerprints to be here. They have video surveillance everywhere and some places require an App on your phone for this or that, which also tracks you. If this is a problem for you, don't come to these places. It is that simple. Safety: Do your research, but these countries are all significantly safer than America. In some cases, the entire country is safer than the typical American small town. Let that sink in. I don't lock my apartment door unless I am sleeping. This includes while going out of the country for week(s) long vacations. Attitude: Always remember that you are a guest in any country you go. Leave your attitude at home, be patient and smile. You don't need to learn a language, but learning a few words will be helpful. Everywhere you go outside of the US will allow you to get by just speaking English. Speak slowly, use few words and talk like a caveman and you can get by with English most anywhere. Overseas Saving Strategy: You are not going to be taxed like in the US, so contributing to a 401k may or may not be beneficial. Depends if your company matches or not. Obviously go for the match if they have one as that is free money. If not, then consider your time to FIRE and whether you wanna max out 401k if you are not getting the tax benefits as well as the timing of your FIRE. If you are 40 and want to FIRE before 59 and 1/2, then pumping your 401k without the tax perks is not going to benefit you and could hurt you if you want to withdraw early. Instead, pump money into a standard investment account so that you can access this money when you are 45 or 48 without penalty. For me, I am not currently putting anything into a 401k. I am taking 75+% of my income and putting it into a low cost set of index funds. The rest, I am taking awesome vacations in Asian countries scoping out what my FIRE life will look like. I don't plan on returning to America. Ever. Pay: You can expect that you will get a similar pay per hour as you may get in the US for the same job. The difference is the guaranteed and required overtime as well as the perks of paid living expenses and reduced or 0 income tax. The days of guys getting massive pay for working in a war zone are generally gone, but we are not entertaining working in a warzone in this post. I have never considered war zone work even though it has been presented to me. I also like to play with this fire calculator to see where I am and check on my goals and progress: https://engaging-data.com/fire-calculator/ submitted by /u/chuck1011212 [link] [comments]
Disclaimer: This is related to tax optimization and not tax avoidance, which are two very different things. I think this post will spur good discussion on the topic. Given that tax is (likely) by far the biggest expense of someone throughout their life, I wanted to check how many people have actively made a complete geographical career move on the basis of optimizing (lowering) their taxes? Of course this is much easier said that done and isn't an option for everyone, but am curious who has done this. For myself, I had moved from Canada (Alberta) to Singapore in Q4/20 due to a very lucrative job opportunity that should remain for the foreseeable future. The tax bill came in today at ~58k on ~384k, which is about 15% and will flatline at these rates. In addition, there is 0% tax on dividends, interest or capital gains. Just for comparison I put this same income in the EY Canada tax calculator for my province and this would have been ~149k of tax (~39%), with the additional kicker of 24% on capital gains and 34% on dividends.. Eventually I am going to go back, but honestly it just seems like such a financial burden in doing so and can't imagine how it's possible to reach that "next level" with taxes like this, unless you're genuinely making mountains of cash. I know there are deductions available to not take the whole 48% right in the face, but still.. submitted by /u/Shoddy_Equivalent_16 [link] [comments]
We are nearing our FI journey. With the current trajectory, within two to three years we will be FI. The closer I get the more difficult it becomes to stay motivated. I have fuck you money, but also have golden handcuffs that (due to circumstances beyond my control) I cannot replicate elsewhere. So effectively, I can take my leave and retire early now with a drop in our lifestyle or change how I approach and feel about my situation and keep working for a while. For context, our expected expenses at retirement are between 4% and 5% withdrawal rate today (4% for the most frugal budget we’d be comfortable with in long term and 5% for the the maximum budget we can imagine spending without wasting money). I’d like to have a 3.5% — 4.5% WR, and getting there will take a few years more. I am trying to focus on things I can control and be more articulate about what is it that is causing the burn out at work and widen my perspective. Thinking about the situation as an immediate tradeoff helped a bit. For example: I could retire today. That would mean a change in our expected lifestyle going forward. Is is worth the extra time I will gain? What am planning to do in that extra time that I can’t in the future (spend more time with parents / kids while they are still around / small). Any insights folks who went through a similar situation could offer? submitted by /u/toperato [link] [comments]
Back here again for a 2 year update to this thread. To recap, I bought a house at the very start of the pandemic, put an offer May 2020, and closed August 2020. Prices have roughly doubled and stayed there even after the rate increases. Was about 2.5 times the original at peak of market, which I think was May 2022. So after almost 3 years, soaring real estate prices (atleast for primary) did not have a material effect on my FIRE plans. If anything I feel our plans have been delayed. The cost to maintain a house is something I grossly underestimated. For e.g. since moving in, I have had to replace 2 of our 3 , 18 year old 75 gallon water heaters. Plumbing companies wanted ~$4000 for each of these replacements. Furthermore I have been hit with increased tax assessments and insurance premiums. A surprising observation for me at least has been how prices have held up and recently picked up again, at least where I am. So TLDR after 2 years: If anything, soaring real estate prices in the USA have delayed, but not significantly, my FIRE plans. 1 Year Update: https://www.reddit.com/r/financialindependence/comments/s9cwcx/update_to_have_soaring_real_estate_prices_changed/ Original: https://www.reddit.com/r/financialindependence/comments/llacl2/have_soaring_real_estate_prices_changed_your_fire/ submitted by /u/azfanboy [link] [comments]
Hey there, So given the stories about people's journey through to FIRE and I've noticed a lot regarding when kids came around, but what did you guys, that successfully FIREd, do when it came to optimizing costs for life events like a wedding/buying house together/1st kid costs? In short was it a combination of purchase and hold off investing for a certain time, or allocate a new "budget" piece that factored in down payment/big life purchase expenses or some other mixture I'm not seeing? submitted by /u/slayerabc [link] [comments]
Well, I have made the big step. Decision. After attending Tony Robbins UPW 2022 in Florida, I finally have the momentum I was hoping for to make this major life change. As I learned from UPW, "it's in your moments of Decision that your Destiny is shaped" (TR quote). I have made the decision to pull the plug from the 40 hour a week grind one year from now. About March 2024. THE MATH I have spent months obsessing on the numbers, something I am actually skilled at and enjoy. I have finely combed over the revenue and expense side of the financials. Both of these are equally important as part of the FI/RE feasibility test. As I write this, I am also calling out for help from those that have taken this plunge and have any insight the share. Let me start by sharing the details. I have a cost of living (without too much sacrifice) of $150,000. This includes $30,000 a year for an 11 year old (my only child) to remain in private school. His college should be covered by a 529 so I should only have this expense for 7 more years. Here is what I have in my arsenal: -A beach vacation rental that spins off $125,000 net after all expenses (but before tax) [$3,300,000 home value with $1,500,000 in debt] -An industrial building that is rented out that spins off $60,000 net after expenses (before tax) [$1,000,000 value with no debt] -$2,500,000 invested in the markets -primary residence worth $1,400,000 with $310,000 left on the note -about $750,000 in cash In total about $7,000,000 net worth The vacation rental and the industrial building, after tax, amount to roughly the $150,000 needed - since there is much tax efficiency in rental properties. I almost meet the 4% rule by the cash (if the cash is put in the market) and the investments alone. So, I have what I feel is 2x's what I actually need to pull this off. Keeping in mind that my future likely will involve some type of money making operation that is done at my own speed. THE REASONING I was fortune enough to be born into a family that owns a manufacturing business that dates back to the early 1930's. My brothers and I have been running it for the last 20 years. I have recently turned 50 - which is really what has gotten in my head. I have been in the family business for the last 23 years. While the opportunity to gross $400,000 a year is wonderful, the golden handcuffs present a problem that nobody has yet to fully understand. There is something too finite about knowing where you are going to work until the day you retire. You drive to the same office every day. You spend 8 hours in the same office every day. You cut your vacations short all the time so that you can get back to the grind. A true slave to a never ending email stream. Now, while I understand that this is a typical work life for most people, the circumstance changes once you develop the means to live without needing fresh income. I could continue working every day for 10 more years (until I turn 60) for an additional $2,500,000 net, or I can cut out now and begin a new adventurous chapter of my life. I can be more present for my 11 year old son. I can be more present for my wife of 17 years. I can be open to developing hobbies that I so desperately need to have for my older years. I can fire off the last good 10 years of entrepreneurial missiles in hopes that one of them hits the target. Please feel free to comment, weigh in, share your similar adventures, correct my math. submitted by /u/CountdowntoFIRE_321 [link] [comments]
I'm 39. NW is ~$350k. I have about $200k in brokerage accounts and ~$150k in home equity. I zeroed out in the '08 recession when my business failed, so I'm playing catch up and taking risks. I bought a historic house the VA had declared uninhabitable in a "gentrifying" neighborhood. In the first few months I had to chase a few junkies out of my enclosed porch at gunpoint, and deal with one of those zombies in my kitchen late at night. 6 years later, Gentrification successful. I am walkable to a popular brewery, yoga studio, and smoothie bar. No more gunplay with junkies. The house has been mostly restored, and I now have an $1100/month mortgage/tax/insurance payment for a 3br place with oversized 3 car garage and 1800s old money construction. I can also be in Manhattan in under 2 hours. Early last year I uncovered evidence of widespread fraud at my employer, and quit my high-paying job to go whistleblower. It was scary. 6 months of job interviews and nobody wanted to touch me. I had a feeling this would happen, and had my backup plan. I used this opportunity to go back to school full time for a physics degree, while I was doing some consulting work for ~15-20 hrs/week. Six (hard) college classes plus solving really hard engineering problems on the side was too much. First thing I did this morning was transfer $35k out of my brokerage to wipe out the HELOC I took out for home renovations. This gets my total spend below $2k/month. Conveniently, I also have ~$2500/month coming in from the VA for the next 4 years. I made the decision to just suck it up and be poor for a few years. I don't have to work anymore. It feels liberating after years and years of 60 plus hour work weeks and constant stress. I don't have to work anymore. Not for a few years at least. I don't think I'll ever go back to full-time. I don't care if this set my retirement goals back a few years. I know it's the right choice. For the first time in my adult life I don't feel any stress about anything. I'm probably adding years to my life by cruising into middle age with no stress. Without my little nest egg, I would probably still be trapped in a soul-sucking job getting further and further down the rabbit hole of doing illegal stuff to cover for things in the past. It's been a lot of sacrifice and hardship to get here, but today is the first day that it really feels like it's all been worth it. Time to go hop in the car and head up North for a day of impromptu snowboarding, because fuck it, I'm independent now. submitted by /u/No-Coast-Punk [link] [comments]
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]
Interest rates are higher now, meaning both bank account interest is higher and housing loans are more expensive. If you think you may want to buy a property in the next 2-4 years but are not sure, how would you change your budgeting and investing plan in the short term? Does it make sense to minimize unplanned and major expenses and put all your savings into high yielding deposits or money market funds until you have saved up for the possible down payment? This positions you for options if property prices decline and there is a recession, so you should save up as quickly as possible. Or do you continue investing some portion of savings because you can't know when the market is at a bottom? I know to stick to the plan, but am not sure how to modify the plan given short term goals. submitted by /u/josemartinlopez [link] [comments]
Been putting a bit aside in a HYSA and No penalty CD from Ally, up to 100k now, for a down payment on a house. I'm feeling like perhaps that money should be in the market hoping for a bull run. I'm not sure how to feel about either. Houses are way too expensive and the market is in the crapper. What would you do? submitted by /u/FImilestones [link] [comments]
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2- LibreOffice Calc : Calc is the free spreadsheet program you’ve always needed. Newcomers find it intuitive and easy to learn, while professional data miners and number crunchers appreciate the comprehensive range of advanced functions. Built-in wizards guide you through choosing and using a comprehensive range of advanced features.
Calc is the spreadsheet application you’ve always wanted. Newcomers find it intuitive and easy to learn; professional data miners and number crunchers will appreciate the comprehensive range of advanced functions.
4- Google Sheets: With Google Sheets, you can create, edit, and collaborate wherever you are. For free. Price: Free for non-business use $5/month per user for basic G-Suite $10/month per user for business license
5- Excel: Well it is Microsoft Excel….Enough said. Excel provides a simple way to download financial data into a preconfigured spreadsheet at the click of a button.
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Money Manager Ex is a free, open-source, cross-platform, easy-to-use personal finance software. It primarily helps organize one’s finances and keeps track of where, when and how the money goes. It is also a great tool to get a bird’s eye view of your financial worth.
Money Manager includes all the basic features that 90% of users would want to see in a personal finance application. The design goals are to concentrate on simplicity and user-friendliness – something one can use everyday.
7- Xero: Xero backs up your data and protects it with multiple layers of security including industry-standard data encryption and secure data centres. We also offer two-step authentication as an additional layer of protection for your Xero account.
8- Smartsheet Smartsheet is a Software-as-a-Service (SaaS) company focused entirely on its core cloud-based work automation platform. Their competency is in simplifying tasks and including many diverse types of output. Since all their efforts revolve around a single product and its extensions, there is strong user support.
