Money, we all work our asses off for it, the government takes it and gives us a tiny bit back every year, We complain we don;t have enough yet we spend it like water converting to urine.
I want to talk about making, saving, and budgetting money a little bit. I have been thinking about investments lately. About how I can turn $2000 into $53,416.19. Which turns out to be easy throw that into a S&P 5000 ETF and forget about it for 30 years.
How can I make money on the things I buy? Well thats easy to I save up $1000 goto a bank and start a Money Market account, newer money markets are completely liquid and you can transact as much as you want as long as you keep $1000 in there. They are like a savings account but with much better interest. So I want to buy a tv mine is not broke so I can hold off for 6 months. I put the $1300 into my money market and let it sit for 6 months. If I had a money market account with 3.62% interest that $1300 tv really cost me $1017.64. Because I gained $282.36 in interest.
You have to also think about your retirement, A Roth Ira or Roth 401K is the way to go now. To be able to invest $5000 a year for 10 years and let your retirement float for 40 years will get you $800,000. That is if you stop putting foward 5000 a year if you gor for another 10 years your looking at around 2,000,000 when you retire. Not including your business free money or matched 401k retirement that cost you a few bucks a paycheck. Shit I would retire early and live off my investments until this mature then go bananas.
Here is the kicker. That $5000 you are going to be putting into your Ira every year? Why not save up and be one year ahead put that $5000 into a Cd for 12 months and let that money work for you in the short term as well.
I decided that I am going to greatly limit my contact with commercial areas. I want to avoid beind coerced into buying unneeded things. When I do buy something from now on I will do proper research and find the best deal. Shit it might take me 10 minutes to save $30 that seems worth it to me.
What I love about all this is it will only take me 10 hours a month to save a crap load of money and get the money I take home to start working for me.
That is All, Chad
4 years ago