Financial Issues

[HitManSE 10+ year member]

After a few years of speaking to people, about this ive come to the understanding that a lot of ppl are running in place when you look at them from a financial standpoint. Not to mention those that are even taking a few steps backwards.

Basically the average person ive spoken to about finance has a job, they get paid, pay all their bills, buy whatever they want/need, and start once again from step # 1 not really making any ground as far as them collecting, and keeping a certain amount of $. Yet many of these people plan to retire someday, though I really don’t see how that’s possible for a majority of the population who is stuck in this rut.

I see people in the community that are leasing/purchasing very expensive cars, buying things via credit card and paying the minimum every month just so they can show wealth. Regardless of the level of income, it seems to me it’s the same thing. At the end of the month very little is accomplished. The more that’s earned, the more that’s spent. It’s the same problem, just at a different level.

There is however a way around this.The few who ive ran into that do it differently have spent the majority of their lives spending all their money on assets, not liabilities. My neighbor for one always made me wonder. Hes been retired since his early 40s, yet he has a new car (two actually) every two years, goes on vacation every 2-3 weeks for at least 1-2 weeks at a time. He however doesn’t show his wealth one bit. Obviously he has $ producing assets and pay him out quite well over the course of the year. Not only that, but his net worth is increasing every year despite him enjoying every day life.

(just incase ive lost anyone, a simple definition between the two, is assets put $ in your pocket, liabilities remove $ from your pocket)

Ive made many mistakes when it comes to finance, and ive looked at them from the standpoint that I at least learned from them. Ive however come to the understanding that it is my goal to acquire as many assets throughout life in order to have things set straight when it comes time to retire.

Sooner the better //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

Finance isn’t something that is taught in schools today, and for some reason I think that isn’t a coincidence. People that run in circles seem to help make the economy run, im not sure whats going to happen once they figure out retirement isn’t going to happen (at least in my eyes in wont).

So what im curious about is what everyone else thinks about this. Im no expert on the subject, this is just what ive learned through speakind with others. Im also not certain what assets are better ones to aim for. There are so many out there, and the risk involved with some are a bit more then most would be willing to take.

Im sure there are some of you on here who are more knowledgeable when it comes to investments and the subject of finance, and also those of you who have learned through experience, ect.

Click to read more...

 

[sue bee 10+ year member]

there are a lot of things unaccounted for in your misunderstanding of financing.

here's to you never finding out and making me richer! //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[AJ²06 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/word.gif.64b12e39f936af3b4fff38a1c0bd0244.gif....kinda

 

[azbass 5,000+ posts]

i get paid to be on here. so meh

 

[HitManSE 10+ year member]

there are a lot of things unaccounted for in your misunderstanding of financing.
here's to you never finding out and making me richer! //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

Would you rather I made a post suggesting what people should do with their money? I have a few assests of my own, however thats not what I made this thread for. My assests concerin only myself.

Just curious of others views on this subject considering most dont even think past I "I need to make more money" without thinking of what to do with it once they have it.

 

[Spooby 10+ year member]

Saving money is a waste of time unless you plan it out accordingly. In my eyes if my assests (and the interest rates associated with them) don't outpace the inflation rates then it becomes a liability.

 

[Brock 5,000+ posts]

people are idiots...its not a secret. our economy is supposed to work like this, why else would we focus so much on credit, loans, interest, etc. its based on what you don't have and want rather than what you have and what its worth. at least for the general population.

 

[sue bee 10+ year member]

an asset isn't something that puts money in your pocket necessarily. a car is an asset, but it depreciates in value. it can also have a lien on it. it requires insurance. it may require repair. etc. how is that asset putting money into your pocket? that is a single aspect of a larger financial picture. i don't give a shit about other people's financial problems anyway, i'm hustlin. //content.invisioncic.com/y282845/emoticons/fro.gif.c695f1f814b01c4ad99fe7f8cccadd29.gif

 

[HitManSE 10+ year member]

an asset isn't something that puts money in your pocket necessarily. a car is an asset, but it depreciates in value. it can also have a lien on it. it requires insurance. it may require repair. etc. how is that asset putting money into your pocket? that is a single aspect of a larger financial picture. i don't give a shit about other people's financial problems anyway, i'm hustlin. //content.invisioncic.com/y282845/emoticons/fro.gif.c695f1f814b01c4ad99fe7f8cccadd29.gif

Now you're splitting hairs, you're correct about the car though. Thats just common sense. However the car isnt always necessary to produce $, and that doesnt always apply to everyone. Like those that work at home. So in that sense, if you dont need the car to produce $, it is a liability.

So its not always an asset. It different from one person to the next.

Your home? its a liability. I dont care if its going up in value, it removes $ from your pocket on a monthly basis. Unless its a rental property, and its putting $ in your pocket, then its an asset.

people are idiots...its not a secret. our economy is supposed to work like this, why else would we focus so much on credit, loans, interest, etc. its based on what you don't have and want rather than what you have and what its worth. at least for the general population.

Cant argue with that.

Saving money is a waste of time unless you plan it out accordingly. In my eyes if my assests (and the interest rates associated with them) don't outpace the inflation rates then it becomes a liability.

Agreed, inflation is going up at least 2% a year.

 

[mokedaddy 5,000+ posts]

It takes spending money to make money for the most part but I get what you are saying. When you say you have assets, does that include a home? One of the better things to invest in is real estate because there isnt ever going to be anymore of it. Also stocks, mutual funds, ira's, 401ks and such are a relativeley easy way to set money aside and will usually create decent long term gains.

 

[mokedaddy 5,000+ posts]

Your home? its a liability. I dont care if its going up in value, it removes $ from your pocket on a monthly basis. Unless its a rental property, and its putting $ in your pocket, then its an asset.

That isnt true unless you are talking about renting from someone else. If you own it, than maybe true short term, but if you are trying to look at the big picture, there is no one that will consider a house a liability unless it is a money pit or you're being foreclosed on. Anything you own that adds to your net worth or wealth should be considered an asset. Even a vehicle, yes it loses value but you you can always sell it and get money for it, is considered an asset.

 

[sue bee 10+ year member]

Now you're splitting hairs, you're correct about the car though. Thats just common sense. However the car isnt always necessary to produce $, and that doesnt always apply to everyone. Like those that work at home. So in that sense, if you dont need the car to produce $, it is a liability.
So its not always an asset. It different from one person to the next.

Your home? its a liability. I dont care if its going up in value, it removes $ from your pocket on a monthly basis. Unless its a rental property, and its putting $ in your pocket, then its an asset.

Cant argue with that.

Agreed, inflation is going up at least 2% a year.

How am I splitting hairs? You're overgeneralizing. I'd give you more examples that don't fit accordingly to your groupings, but like I said, I'm a hustla.

 

[sue bee 10+ year member]

That isnt true unless you are talking about renting from someone else. If you own it, than maybe true short term, but if you are trying to look at the big picture, there is no one that will consider a house a liability unless it is a money pit or you're being foreclosed on. Anything you own that adds to your net worth or wealth should be considered an asset. Even a vehicle, yes it loses value but you you can always sell it and get money for it, is considered an asset.

lets not forget about house flippers who look at the house as an asset from which they can get money in their pocket. but you don't want to split hairs now, do you?

 

[HitManSE 10+ year member]

That isnt true unless you are talking about renting from someone else. If you own it, than maybe true short term, but if you are trying to look at the big picture, there is no one that will consider a house a liability unless it is a money pit or you're being foreclosed on. Anything you own that adds to your net worth or wealth should be considered an asset. Even a vehicle, yes it loses value but you you can always sell it and get money for it, is considered an asset.

In the long run, realestate does usually go up in value. However most people finance realestate purchases, meaning a monthly payment has to be made.

If that property isnt producing more income for you on a monthly basis then what you have to pay. IMO it is still a liablity. Personally the main thing I look at is what happens at the end of the month. Even if it does go up in value, its not doing much good if you're having to pay X amount every month.

It takes spending money to make money for the most part but I get what you are saying. When you say you have assets, does that include a home? One of the better things to invest in is real estate because there isnt ever going to be anymore of it. Also stocks, mutual funds, ira's, 401ks and such are a relativeley easy way to set money aside and will usually create decent long term gains.

I have a home, and a rental property.

 

[J31Rob 5,000+ posts]

Money problems? Sell your body & deal drugs.. always worked for me.

jk. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif