Results 1 to 16 of 16

Thread: Is my money advice good?

  1. #1
    Gamer/Lifter
    Join Date
    Feb 2006
    Location
    South Korea
    Posts
    2,093

    Is my money advice good?

    Some rules I live by, and I try to make others live by.

    1. Save money, every paycheck take a % out of that and put in a different account for rough times. Never know when you'll get sick, lose your job, your car will break down, something will blow up in your house etc. Use this money for those types of expenses. And when your below what you should have, like my rule is I always want to be depositing a maxium ammount I put in a higher % then what I normally do. Currently 10% of my paycheck goes into my savings no question asked. should I require to use it to help pay for something important and it drops below an all time highw hich it will I began saving 15% until I get back up to my old standard.
    2. Don't got the cash? Don't buy it... Unless its something like a car to go to work with, or a house to live in type deal. Example really want that brand new LCD screen? YOur old TV broke? Its costing you 1000 yet you only got 600 in the bank. Guess what your not getting the brand new LCD screen and are out of a TV untl you can afford it. Remember the essetinals in life are as follows
    1. Food
    2. Clothes
    3. House
    4. Car + Gas (don't use if you don't need)
    refering to the car, each time you turn on that car you use money, don't use it if you don't go too. Wanna go to the store? Why not walk? Wanna go to a friends why not have him come over, or walk ove rthere. Try not to drive it'lls ave you cash
    3. Invest, depending on what type of risk your willing to take, or what kind of gains you want invest your money wisely...
    4. Be money smart, I'm going to amsterdamn next week (hehe yea!) so for thepast few weeks i've changed up my eating habits on my break, i've saved me a bit.
    5. Try to not impulse buy, in fact set a limit varying on how much you make. Like I will set a limit of myself for 10 dollars a day. As in if I see something I like, I need think it over unless its cheaper then 10 bucks then I just buy it.

    Remember, its not how much you got,, its how you use it.
    "It is the soldier, not the reporter who has given us the freedom of the press.
    "It is the soldier, not the poet, who has given us the freedom of speech.
    "It is the soldier, not the campus organizer, who gives us the freedom to demonstrate.
    "It is the soldier who salutes the flag, who serves beneath the flag, and whose coffin is draped by the flag, who allows the protester to burn the flag."

  2. #2
    Grammar Nazi BG5150's Avatar
    Join Date
    Jun 2005
    Location
    NJ
    Posts
    3,977
    You are overlooking an very important part of life: credit. That is not to say that you should max out every credit card you are offered. Rather, a judicious use of credit will help you in the long run.

    A good credit score will help you get favorable rates when you apply for a bank loan.

    Here's something to add as 2(a): If you have the money, CHARGE IT! Yes, put it on the credit card. But send a check the next day to Visa (or Amex or MC or whomever). This way, you will develop a credit history with on time payments. Over time, the banks will increase your limit, and with those on-time payments, your credit score will go up.

    Also, try to keep a marginal balance on your cards. Something like 5-10% of your balance. Banks like when they are owed money, and will increase your credit line if they see you MAY be incline in the future to owe them more. Carrying a small balance ($50-$100 for every $1000 of credit) may amount to a few extra dollars a month in interest, but in the long run, it will SAVE you money by lowering your interest rate when you really borrow some cash (as for a house or car, college, etc).

    Don't be afraid of credit, but at the same time, use it widely.
    There are no stupid questions, just stupid people.
    Two wrongs don't make a right, but three rights make a left.
    Are you eating while you are reading this? You should be... --hrdgain81
    Remember, kids, if you type well the Grammar Fairy will leave a quarter under your pillow. The Blue Book of Grammar and Punctuation

    Well, the Blog's (finally) back (again!): Love and Hope and Sex and Dreams Feel free to stop by and comment.
    Here is my newly-created World of Warcraft Blog: BG's WoW Blog. Once again, feel free to stop by and comment.

  3. #3
    Gamer/Lifter
    Join Date
    Feb 2006
    Location
    South Korea
    Posts
    2,093
    Thats a very good point.

    So basically lets assume I got 1,200 in the bank of spending cash as in this money isn't going anywhere else. Then lets assume I want ot buy an item for 400. Well I buy it, I charge it on a credit card then I pay like 395 on it, take the hit for the interset and let it build my credit? Well in the long run costing me very little.
    Last edited by Nik00117; 03-31-2008 at 09:52 AM.
    "It is the soldier, not the reporter who has given us the freedom of the press.
    "It is the soldier, not the poet, who has given us the freedom of speech.
    "It is the soldier, not the campus organizer, who gives us the freedom to demonstrate.
    "It is the soldier who salutes the flag, who serves beneath the flag, and whose coffin is draped by the flag, who allows the protester to burn the flag."

  4. #4
    Grammar Nazi BG5150's Avatar
    Join Date
    Jun 2005
    Location
    NJ
    Posts
    3,977
    Quote Originally Posted by Nik00117 View Post
    Thats a very good point.

    So basically lets assume I got 1,200 in the bank of spending cash as in this money isn't going anywhere else. Then lets assume I want ot buy an item for 400. Well I buy it, I charge it on a credit card then I pay like 395 on it, take the hit for the interset and let it build my credit? Well in the long run costing me very little.
    Yes. Keeping small balances usually is beneficial. It shows the bank that you are using their services and it shows the credit agencies that you have the line of credit and you are pretty much up to date.

    To whom would you rather lend money: someone with $40,000 in a credit line with a $1200 balance? Or someone with $1000 line and no balance? The former, for sure, because it shows 1) the bank thought enough of this person's credit-worthiness to give such a large line and 2) it probably was because the person has been using the credit and paying timely.
    There are no stupid questions, just stupid people.
    Two wrongs don't make a right, but three rights make a left.
    Are you eating while you are reading this? You should be... --hrdgain81
    Remember, kids, if you type well the Grammar Fairy will leave a quarter under your pillow. The Blue Book of Grammar and Punctuation

    Well, the Blog's (finally) back (again!): Love and Hope and Sex and Dreams Feel free to stop by and comment.
    Here is my newly-created World of Warcraft Blog: BG's WoW Blog. Once again, feel free to stop by and comment.

  5. #5
    II MrWebb78's Avatar
    Join Date
    Jan 2003
    Location
    The Big Sac
    Posts
    5,954
    I believe you should only keep 4 months' expenses in a savings account. In case of events such as illness, injury, loss of job, etc. Anything over that amount is money wasted in a horribly low interest account.

    After that amount has been reached, put your 10-20% into a 401k, IRA, mutual fund, or my current favorite is stocks.
    A patriot must always be ready to defend his country against his government. - Edward Abbey

    There is a wide difference between speaking to deceive, and being silent to be impenetrable. - Voltaire

    If it can be imagined, it can be done. - Me

    6'2"
    273 lbs.

  6. #6
    Gamer/Lifter
    Join Date
    Feb 2006
    Location
    South Korea
    Posts
    2,093
    Well, i've never reached 4 months yet. Revise that rule to "up to 4 months" we could also always do 5 or 6 to help out a bit.
    "It is the soldier, not the reporter who has given us the freedom of the press.
    "It is the soldier, not the poet, who has given us the freedom of speech.
    "It is the soldier, not the campus organizer, who gives us the freedom to demonstrate.
    "It is the soldier who salutes the flag, who serves beneath the flag, and whose coffin is draped by the flag, who allows the protester to burn the flag."

  7. #7
    Back in business WBBIRL's Avatar
    Join Date
    Apr 2005
    Location
    The Fridge
    Posts
    5,604
    Spend wisely. You need to have money saved up but at the same time your a young kid so don't be afraid to live a little.

    Be frugal with your money. Above all you have to be strong willed. Do you NEED that 42" HDTV or do you WANT it. If you only want it, do you have the exposable income to cover it?

    Figuring out what portion of your income is exposable is a key factor.

    The little things add up too. I don't drink anymore but when I did I would buy a few beers here and there. You might not think 2$ a bottle is a lot of money but at the end of the month I drank away a $50 bill.

  8. #8
    Grammar Nazi BG5150's Avatar
    Join Date
    Jun 2005
    Location
    NJ
    Posts
    3,977
    WBBIRL makes a good point. Lately I have been prioritizing my spending and future spending by putting things into two categories: wants vs needs. Take care of the needs first. But remember, if you start buying all your "wants" you may not have enough left over for the next round of needs.
    There are no stupid questions, just stupid people.
    Two wrongs don't make a right, but three rights make a left.
    Are you eating while you are reading this? You should be... --hrdgain81
    Remember, kids, if you type well the Grammar Fairy will leave a quarter under your pillow. The Blue Book of Grammar and Punctuation

    Well, the Blog's (finally) back (again!): Love and Hope and Sex and Dreams Feel free to stop by and comment.
    Here is my newly-created World of Warcraft Blog: BG's WoW Blog. Once again, feel free to stop by and comment.

  9. #9
    WBB Member
    Join Date
    Oct 2003
    Posts
    1,065
    Quote Originally Posted by BG5150 View Post

    Also, try to keep a marginal balance on your cards. Something like 5-10% of your balance. Banks like when they are owed money, and will increase your credit line if they see you MAY be incline in the future to owe them more. Carrying a small balance ($50-$100 for every $1000 of credit) may amount to a few extra dollars a month in interest, but in the long run, it will SAVE you money by lowering your interest rate when you really borrow some cash (as for a house or car, college, etc).
    This is completely wrong. There is absolutely no reason to carry any balance on your card and pay interest on it. It does not improve your credit score.

  10. #10
    Grammar Nazi BG5150's Avatar
    Join Date
    Jun 2005
    Location
    NJ
    Posts
    3,977
    Quote Originally Posted by SpecialK View Post
    This is completely wrong. There is absolutely no reason to carry any balance on your card and pay interest on it. It does not improve your credit score.
    I never said that carrying a balance would increase your credit score. I said that carrying a small balance may incline the banks to increase your limit. That in addition to TIMELY payments will help up the score.

    An ancillary benefit to timely payment is potential lowering of the credit card's interest rate itself. Rates are not set in stone and most can be negotiated. Many cards, however, have an escalatory clause stating that if you are late, the rate will go up. But if it goes up and you start paying on time again and get the balance down to a reasonable amount, you can call the bank to see if you can get it lowered again.

    Also, if you can get your standard rate lowered with good payment history. Just call and ask. Worst thing they can do is say no. There is a lot of competition out there, so a bank would rather lower your rate a quarter point than lose your business all together.
    There are no stupid questions, just stupid people.
    Two wrongs don't make a right, but three rights make a left.
    Are you eating while you are reading this? You should be... --hrdgain81
    Remember, kids, if you type well the Grammar Fairy will leave a quarter under your pillow. The Blue Book of Grammar and Punctuation

    Well, the Blog's (finally) back (again!): Love and Hope and Sex and Dreams Feel free to stop by and comment.
    Here is my newly-created World of Warcraft Blog: BG's WoW Blog. Once again, feel free to stop by and comment.

  11. #11
    Banned
    Join Date
    Jul 2008
    Location
    Orlando
    Posts
    153
    What happens if you max credit cards out?. What's the damage?. I'm asking these questions because I just got myself a 2nd (and last) credit card, it's from Capital One(Mastercard). My first one is a Target card but I've only spent like 25 bucks out of 500, I've had it for a year now.

  12. #12
    ANVIL POWER Detard's Avatar
    Join Date
    Mar 2006
    Posts
    5,533
    I just gave my credit card to my mom so I wouldnt use it. I ended up using it to get mcdonalds, groceries, and other random **** when I was drunk and had no cash. I was spending money I didnt have so now I owe my parents money because they had to help me pay off my debt. Credit cards can be the devil if used improperly.
    w:225lbs. h:5'10.
    630/385/545/1560
    Journal | Vids

    "im ready for the ladies too, my stomach has never been bigger and ive never been hairier." - Stumprrp

    TJW

  13. #13
    Banned
    Join Date
    Apr 2008
    Location
    Kansas City, MO
    Posts
    3,096
    Timely payments will help you get a higher limit, not keeping a balance. You can also request/ask for them and you will usually get them if you have been good on your payments.
    Keeping a balance doesn't help your credit score though.

  14. #14
    Determined jAy_Dub's Avatar
    Join Date
    Jun 2004
    Posts
    0
    Quote Originally Posted by Detard View Post
    I just gave my credit card to my mom so I wouldnt use it. I ended up using it to get mcdonalds, groceries, and other random **** when I was drunk and had no cash. I was spending money I didnt have so now I owe my parents money because they had to help me pay off my debt. Credit cards can be the devil if used improperly.
    I learned this the hard way as well. Still paying off one of them... Being in college and having credit cards is a huge no no (unless you pay them off completely at the end of every month).


    AtLarge Nutrition Supplements Get the best supplements and help support Wannabebig![/font][/size]

  15. #15
    monster in training DarrenEff's Avatar
    Join Date
    Apr 2003
    Location
    Nova Scotia
    Posts
    490
    Spend $15 and buy 'The Wealthy Barber'. It's not the bible to financial advising but its a funny read and has good info

  16. #16
    Senior Member
    Join Date
    Oct 2008
    Posts
    657
    You are describing a very safe, dead end way of managing money. You'll be trapped in the middle class. It depends what type of person you are. If I made a few hundred a week I would manage my credit to the point I could take out a good size loan and invest it into a business with high returns I could tolerate/enjoy. If you're lucky grandma is the person to ask before going the bank/credit route.

Similar Threads

  1. Good and Bad Advice...which is it?
    By Y0yo in forum Diet and Nutrition
    Replies: 21
    Last Post: 09-15-2005, 09:01 PM
  2. good advice from an NFL trainer
    By Relentless in forum General Chat
    Replies: 3
    Last Post: 08-23-2002, 12:03 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •