Money Management tips tricks and hacks?

Saving to build someday hopefully. Our work had us very nomadic so we won’t be buying a house for a long time. Plenty of time to save, but obviously a mortgage is the one debt most people can’t just skip ha. That said, a 10-15-20 year mortgage is much desired over a 30 year and most people could live in a house half the size/cost to make that happen ha.


EDIT: I own my parents house, but when they’re finally old enough to move in with us will be many many years from now and it will either be sold or become a rental. It’s not in a location I would ever live in.

 

Gotcha.

 

If you buy a toy and don't use it more than 5 times a year then don't buy it!
-Rent it

 

I should also just clarify for anyone who is lurking this thread and learning. All of the stated above is the “ideal” situation. And it’s what we consistently shoot for. But no one is a failure because life happens, you know? There’s always hiccups and digressions and emergencies and issues that pop up. But being financially independent is about consistency over a lifetime. Not about never making mistakes. Just in case that’s helpful to anyone. I PLAN to never ever be in debt again, and have an emergency fund to help with that, but heaven forbid something major happens I won’t beat myself up if we end up there. We’ll just consistently get back to the grindstone ha. Don’t mean to sermonize but if it helps one kid make good choices and be able to take care of his parents and future family, I’ll look like a dumb dumb for a bit for that end ha. Peace ✌

 

Put as much as you can into your 401K. You defer tax payments and get to take advantage of compounding interest. Plus your employer usually has some sort of matching contribution. I like that the money never hits my bank account so its harder to spend what you don't have access to.

 

This! I know someone with a $60k travel trailer and they use it once a year

 

Buy and pay for absolute needs not your wants (Use 72 hours as a rule before you buy stuff). Stay away from Luxury Items until you can truly afford them. Invest your money in the S&P 500, Stocks or ETF's that pay dividends (and Reinvest those Dividends for the Compounding Interest) and buy BTC (even $25 bucks a month if that's all you can afford) and don't pull it out of those accounts until you're in the financial situation desire. Remember there is no such thing as Get Rich Quick Scheme. Financial Discipline is key to Wealth. "Discipline equals Freedom". ~Jocko Willink

 

That's about the only "outgoing" that is a must-pay. (Everything is a must-pay!) Ensure to get a fixed rate and if you can, do a 15 year loan with a less than 3% interest.

Like you previously mentioned....credit card (cc) usage. Monitor the expenses every day. (To validate transactions) I check my cc account sometimes twice a day. Set aside the target amount of monthly expenses (as planned with your spouse) and pay it off before the end of the billing cycle.

Set up Bill-Pay with your financial institution...this ensures I'm looking at the total amount of the cc bill and manually put the amount by the due date!

I've also set up auto-withdrawals to fund our Roth/IRAs. Lastly, monthly deposits into savings.

Expenses this time of year are the exception...but we have significantly cut down on wants since our kids are adults now.

We are keeping our iPhones until they crap out.

Amazon is a luxury but we pay off the expenses to avoid interest.

Wife's car is paid off...it's just my Taco that has a lean...less than 2% interest. This is 2nd in line after the Mortgage.

Utilities, insurance, gas, groceries, dining out are also fixed into the monthly expense report.

Excel spreadsheets are my friend in this regard.

Ed

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The bad thing about low mortgage interest rates is that it drives the price of housing way up. Every idiot can borrow money at 2% dirt cheap rates and then they start putting crazy high bids on houses because it’s so cheap to borrow. I think you’re better off buying a home in a higher interest environment when home prices are a lot cheaper, at least then you can always refinance when/if rates come down.

 

I agree with all this and bonus points for quoting Jocko.

Those without Bitcoin need to start accumulating asap. I believe BTC will hit $10 million and be the world reserve currency one day.

 

I would move 1/2 of all salary increases into retirement savings. For example I get a 2% raise, 1% was for me, 1% went into the IRA. As I closed in on retirement I was putting more than 25% of my salary into savings.

 

They don’t hand out low interest rates just to anyone these days. We’ve had our mortgage for 15 years and in that time, the banks made plenty of interest on our higher interest rate.

Refinancing allowed us to use the equity in our home. We completed some major upgrades in HVAC, Water Heater, & new garage door…not forgetting the additional stand-alone HVAC for the bonus room which required insulation.

The last major upgrade would be a new roof, which can wait until next year.

Investing in a house is essential in this endeavor. My wife and I are extremely happy with the results of our credit card delete. Now we can focus on paying ourselves.

Ed

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EDIT: it benefits anyone/all to know all the variables associated with financial structure/improvement. Experience is the best teacher as well as advice from a parent that wants their own to succeed.

 

Cash flows....do you know where yours goes? For those afraid of a budget, think of it this way. A budget is a spending plan. This is where I plan to spend my money. I compare to it every month and see where I went off track and adjust as necessary. For the last 30 years I have created budgets for companies from $1.0 million to $250 million. Highly profitable ones PLAN where to spend. Same with individuals.

 

Never finance a depreciating item - Dad

If it has been a year the family was healthy and you dont have more land, more cattle or more $ in the bank, you did something wrong. - great granddad

 

Good advice on Budget Plan.

My mother still practices her "Trust Officer" duties even in her late 70s and imparts her wisdom onto me.

My wife thinks like my mother (without the education/experience) and they both agree on spend plans/budget spreadsheets...keeping track of ALL expenditures.

Knowing where your money goes is critical...even if there is wealth saved up! My wife (and my mother) will tell you they have no money but have stash in their savings account.

E
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EDIT: My wife and mother get along well because they agree with financial management concepts of a spend plan/budget.

 

I gave up cigarettes, started buying bitcoin instead. Paid off ten years of house payments, and am otherwise debt-free.

 

I managed a restaurant in my 20s. Learning to track expenses and budget have been priceless to my personal finances.

I wish I would have learned about using the HSA as an investment account earlier. I put the max in, and pay cash for medical expenses. I keep the receipts so I can reimburse myself from the HSA many years from now, hopefully after the money has grown.

 

Tell us more about the HSA. Reimburse yourself in the future ? The HSA money goes in pre tax ? Grows then can be withdrawn tax free ? And can be used for any expense? Thanks.

 

Can be used for medical expenses. But it goes in pretax and no taxes on gains.

 

Honestly try not to get in too much of debt. I know it sounds like an easy thing to say sometimes but it will help immensely in the long run.