Investing And Building Wealth

[KJRR]

I don’t qualify for social security, but I saved, and am okay with that. Make sure you have good insurance, or a lot of money to self-insure because at one or often more times, you will need it.

I've been fortunate as far as health insurance. My wife works for a school system and has awesome insurance. That ends when she retires so hoping to keep her working a while more.
I carry house and auto of course but shop that every 3 years or so to make sure I'm getting good rates. Have used both on occasion.
Check into credit unions for car loans as some offer loan payoff if you should die. Same with smaller banks and mortgages.
I've had minimal life insurance preferring to self-insure there. My view is I was better off saving that money and building up my own wealth that would keep the family going should something happen to me.

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[deleriumtremor]

Here's my $.02. All I can afford because of inflation.

Short Version:
1. Invest in yourself
2. Pay yourself first
3. Live modestly
4. Credit and loans
5. Put your money to work
6. Work hard
7. Learn the difference between wants and needs

The long version:
1. Invest in yourself - Not just formal education but skills that allow you to do things without paying others. If you have to pay someone to do maintenance on your car and home, you better make a bundle of money. As far as education, college isn't always necessary. Plenty of great trades out there. I went into electronics and advanced myself through several jobs, never passing up an opportunity to learn new things and make more money. It ended up in an awesome career in computers, right place at the right time and not afraid to take on something I didn't know much about. I don't look at it as being lucky but rather being ready to take advantage of opportunities that presented themselves or finding new opportunities. I've created several new positions for myself and others with the company I work for. One way to be ready for opportunities or finding them is volunteering. I've coached my kids in baseball and soccer, got involved in the organizations and schools and met some really great people and learned from them. Also been involved at work with volunteer opportunities which is always good to show the bosses you care and are willing to help. The greatest skill I learned in high school was critical thinking. I never realized it at the time, but life has taught me how important this is along with seeing so many without this skill. Critical thinking will keep you out of a lot of problems and help you figure your way out of any you do get into.

2. Pay yourself first - save money for an emergency and retirement. An emergency fund is nice to have when something major breaks on your house, car, life or whatever. Saves you money over putting things on credit. I've saved in retirement funds since my late 20's when I had a job that offered a plan. Rolled those into 401ks or IRAs as I moved to other jobs. Never take a cash out, it puts you behind and costs a lot in taxes. I have a nice amount now and probably retiring at 62, collecting SS at 67 and working part-time until then just to keep busy and out of trouble. If you get a bonus at work, don't blow the whole thing at once. Take 1/2 of it and put it away for an emergency fund, pay off a loan, invest it. Sure, you don't get the same instant gratification as blowing it all at once, but you still get to splurge a little. You'll get the gratification later too that way. Another thing I do, I have a set amount go to my checking to cover monthly bills and automatic investments. The rest goes to savings and then I transfer to checking when irregular bills like property taxes, home or auto insurance come due. Quarterly I look at the savings and take any extra I don't need and invest it, stocks, index funds, bonds.

3. Live modestly - I've never the many of the luxuries as others around me but I am OK with that. When I married and had kids, we lived on my income and considered my wife's income 'fun' money. Still do. We took modest vacations, get away weekends, camping, day trips and we would save for a nice one every 3 years or so like Disney, Yellowstone, beach vacation, San Deigo... most times we drove simply because it was cheaper, and we made it part of the experience. Staying in small motels, driving through the night (drove from Cleveland, Ohio to the Badlands in 24 hrs with breaks for food and fuel), packing a cooler instead of eating out on a trip, cooking on a camping stove at a cabin... My kids have awesome memories of those things now. Never had the newest furniture, appliances, gadgets. In fact, I've taken plenty of my family's castoffs when they got something new. I paid them fairly for it but why do I need new when something used and in good shape will do the same thing. My first house was just a little more what I paid for my Ranger. Doubled my money when I sold it and so did my wife on her's. We put that down on the new house, which was a repo and had a mortgage payment I could carry on my income. Still a modest house and actually could downsize now that the kids are gone but that's another story. I've never wanted to be a slave to my house so never more than we could keep up with ourselves.

4. Credit and loans - The only loans I've had are my house and can't remember the last time I had a car payment, probably about 25 years ago. I've haven't carried credit card debt for 35 years and even then, it was modest. Why should I pay someone else extra for something that isn't a necessity. This goes back to paying yourself. I started buying new cars when I was 25 and had them at least 10 years. After it was paid off, I kept paying myself that money saving for the next car. It's not too hard to keep them running that long if you learn basic maintenance skills. I've still had mechanics I trust do the difficult stuff, probably more now but my time is worth more now than when I was young. I'd say basic maintenance is even easier now with YouTube videos. Never had the most luxurious cars or worried about all the bells and whistles, but they all do the same thing, get you from point A to point B and cars are a rapidly depreciating asset. The Ranger was a splurge, but we were due for a new vehicle and when my daughter totaled her car, it was time to sell her the 10 year old Fusion and get something I wanted since I've been practical with my car purchases most of my life. Right now, we buy a car for cash every 5 years. Unless there is 0% financing then I'll use their money for free while my money is still working for me. I've always paid ahead on my houses and refinanced when the price was right. Started with a 30-year loan because I could swing the payment on my income, refinanced down to a 15 after 5 years and paid it off after 10. And pay bills on time, late fees are a waste of money. Stay away from subscriptions and monthly payments. Cable TV is our one monthly subscription, and we haven't always had it. We've never leased. We use credit cards for just about everything, and pay them off monthly, unless cash is cheaper. They are paying us to use them with the cash back.

5. Put your money to work - I always used to save in the bank. Checking, savings and CDs. Some bonds. I wish I would have started investing sooner. I've always had retirement funds and took an interest in what 401k investments I had. I started reading about investing and in 2008 when the market crashed, I had plenty of cash to start investing. Never more than I could afford to lose but money that was sitting in the bank not earning much. I continued a modest amount each year and watched it take off. I stopped that about 3 years ago thinking that it's been a good run but wanted something a little more automatic than picking stocks. Besides shifting more money into cash and bonds, I started with Index funds and one of the automatic investing companies that are out there now. I now have a car fund, safety fund and wealth fund setup and investing in each bi-weekly. I still have part of my safety fund in the bank savings and CDs but the rest that I wouldn't need in 3 months is in index funds making more money. Speaking of CDs, read up on laddering CDs. You can have them come due weekly, monthly, quarterly or whatever you need. As far as stocks, plenty of good books and people to follow out there. Warren Buffet is my favorite; Peter Lynch has some good books, and The Inteligent Investor by Benjamin Graham is updated every so often. I don't go for the latest investing trends, chase stocks or even think about virtual currency (do I want to invest in something I can see or hold?). I'm in it for the long haul and prefer companies I understand, have a track record and mostly pay dividends. Not a way to get rich quick but I haven't lost it all, I'm risk adverse and still not doing too bad this year as I'm ahead of the indexes over the past year. And right now, look into I series bonds, they are paying better than 9%! It's also about time to start putting cash back in the market. If you have kids, start a college fund. I started with small amounts monthly when they were 5 and 2 and added 1/2 of what they got for birthdays or holidays. I increased the amount when I could and by the end the funds had more than doubled with conservative investments. Also some states have tax credits for what you put into a college fund. They also had skin in the game and worked through college, paying for their own apartments, utilities and food. They went to state colleges that were leaders in the fields they wanted to get into, came out with no debt and have decent paying jobs. The whole college fund may yet prove to be a foolish investment. ?

6. Work hard - I've always given the companies I've worked for more than they expected. It has paid off with raises, promotions and bonuses. If the work I put in wasn't appreciated, I moved on. Life is too short to be miserable at work. I also work hard in my personal life, remodeling, fixing things and a few hobbies. Because of this I'm often disappointed by the effort others give, especially contractors. They rarely meet my expectations and I'd rather just do it myself. Anything worth doing, is worth doing right. I never expect anything to be given to me and always showed appreciation when something was given to me.

7. Learn the difference between wants and needs. Too often I see people confusing these concepts. I have 3 basic needs; Food, shelter and clothing. Anything else is a want.

Other random thoughts - It can be difficult not to eat out every night, take expensive vacations, not have the latest and greatest trinket. We hung with a group of friends that were of the same mindset, sometimes out of necessity, and we would go to each other's houses on the weekends instead of going out, went camping, canoeing and other inexpensive activities. We had lots of fun and have stories to tell. Find friends with toys and go with them on the boat, camping, lake house, 4-wheeling... Much cheaper that way.
Keep in mind the immediate gratification is short lived and it will pass quickly. Then you are looking for the next thing to feel that gratification again. Having a secure future has always been my goal. Most people would never guess how much we are worth by the lifestyle we lead. And I'm OK with that. I only need to impress myself, not anyone else. These financial skills are now being displayed by my kids. They are both hard-working, have emergency and retirement savings, one with a house and the other now looking. We are now at the point where we have lived modestly for so long, it's a little difficult to splurge a little now that the kids are gone. We are learning though.

If you haven't guessed, finances are a favorite subject of mine and I'm willing to discuss ideas and concepts but not numbers. ?

Holy smokes, great stuff.

For this thread, I have written and erased a number of drafts describing what happened along the way in my life that resulted in where I am financially today, which is a pretty great place, at least as I see it.

In the end, with each draft, I realized I had written a history essay that basically reveals that I am much more where I am because I was beyond incredibly lucky almost every step of the way, college, service, career, wife, daughter, than anything that resembles a thoughtful, repeatable approach to life and finances.

To anyone wanting to know how to do it, don’t ask me for that, just read the posts above. If you want to know how something works from an investing or finance point of view, I can probably help in answering a question because I have studied it pretty carefully since I stopped having anything resembling a regular income, and that has been a pretty long time.

This might be one of the most intelligent forums I have ever read, let alone posted on.

Amazing.

 

[Gibs45]

Potentially my favorite thread ever. I’m 28 and just got laid off three weeks ago - as much as it sucks, it’s definitely forced me to evaluate my expenses and where I want to go with my career. I was never a huge spender but little things do add up. Taking a few weeks break and heading back to work hopefully with an even better focus on my finances. Excited for the next chapter.
Admire all of you working your own business, wish I could do the same

 

[wanted33]

I came along late in my parents life, Dad was 44, Mom was 42. Pop always said I was what you get when you go to bed with your motor running. He was born in 1908, went to the 4 grade, then started work. But, he was the smartest man I've ever known. He told me, "Son, a credit card is made by the Devils own hand. If you can't pay cash for something you want, then don't buy it. Carrying to much debt will get you nowhere". And, I heeded his advise. As some know I've lived two life work scenarios, one public service that pays you just enough to live on, and one with a Fortune 500 company that paid me more than I was worth.

Luckily I got in that Fortune 500 company when there was still a company retirement, and they also offered a 401K. Added to that I had profit sharing with the company. That's when my wealth started to climb. My dearest, and I grew up without much. However we didn't know it, because everyone around us had the same thing. Even though I was making more money, we still lived/spent on only what was needed, and saved the rest. I maxed out my 401K contributions early on, and left it there until I retired. When we got our house paid for (thankfully a few years before I retired), we put those monthly payments in our credit union acct. We did enjoy some of the money, but it wasn't on lavish crap that means nothing in the long run.

When the Company decided they would consolidate their operations, and move everything to Richmond, VA I had a choice. Move to Richmond, or retire as luckily I had enough time to be vested. I had been to the Richmond operations many times, and knew that wasn't for me. So, my dear CFO and I sat down, ran the numbers, and I decided to retire at the ripe old age of 55. God is good, life is good, and we are now enjoying the fruits of our labor.

@KJRR said it, and it's true. Living life modestly the wife, and I have also found that it's hard to just spend money on crap. Growing up the way we did, it's hard to change that mind set. But, I'm doing pretty good at changing. I want the last check written to the funeral home, and it bounce.

@AzScorpion Dave, as far as Social Security, the wife and I saved like it wasn't going to be there when we retired.. Another thing my dear old Dad told me was to "never depend on the Grovernment to help you in anything. Do it yourself".

 

[wanted33]

Potentially my favorite thread ever. I’m 28 and just got laid off three weeks ago - as much as it sucks, it’s definitely forced me to evaluate my expenses and where I want to go with my career. I was never a huge spender but little things do add up. Taking a few weeks break and heading back to work hopefully with an even better focus on my finances. Excited for the next chapter.
Admire all of you working your own business, wish I could do the same

Gib, I know I'm really nobody to tell you what to do, but you know how old people are. Consider a "blue collar" job. Have you seen how much it cost to have a plumber, electrician, or contractor do work for you. Not everyone can work in an office, etc. The money isn't there anymore as there are so many vying for not enough of those jobs. As you can see from some of the post here many have done quite well working in the trades. Just some advise from one that grew up in cotton country, and went to work at 13 mowing yards. Good luck, at 28 the world is still out there waiting for you to succeed.

 

[AzScorpion]

Holy smokes, great stuff.

For this thread, I have written and erased a number of drafts describing what happened along the way in my life that resulted in where I am financially today, which is a pretty great place, at least as I see it.

In the end, with each draft, I realized I had written a history essay that basically reveals that I am much more where I am because I was beyond incredibly lucky almost every step of the way, college, service, career, wife, daughter, than anything that resembles a thoughtful, repeatable approach to life and finances.

To anyone wanting to know how to do it, don’t ask me for that, just read the posts above. If you want to know how something works from an investing or finance point of view, I can probably help in answering a question because I have studied it pretty carefully since I stopped having anything resembling a regular income, and that has been a pretty long time.

This might be one of the most intelligent forums I have ever read, let alone posted on.

Amazing.

Bill, when I was writing this up I thought the same. I was like damn this turned out to be a novel. lol I still had so much to add but tried to condense it so everyone wouldn't get bored and figured everyone else would add their story and my deleted parts are in every ones who posted so far.

When you have time try again we'd love to hear it and so what if it's a long essay this is something all of us here enjoy. Even if you write a condensed version and add to it later. I had this thread in the back of my head for some time now and after seeing the pics of your back yard those jump started the idea again. I know I asked you and Rick what you both thought about this because I didn't want this to come out as being pretentious. I thought it's be fun and educational to shed some light on how some of us got the where we are today as there were many tough times along the way.

 

[Trigganometry]

Gib, I know I'm really nobody to tell you what to do, but you know how old people are. Consider a "blue collar" job. Have you seen how much it cost to have a plumber, electrician, or contractor do work for you. Not everyone can work in an office, etc. The money isn't there anymore as there are so many vying for not enough of those jobs. As you can see from some of the post here many have done quite well working in the trades. Just some advise from one that grew up in cotton country, and went to work at 13 mowing yards. Good luck, at 28 the world is still out there waiting for you to succeed.

What you say is so true! My second oldest son decided he wanted to be a plumber. In Massachusetts that’s a 5 year ordeal to get licensed. Last year he got his certificate and also bought his first house a duplex. He’s 27 years old. His tenants are pretty much paying his mortgage. Owns 1000’s of dollars of tools for his trade and makes obscene amounts of money. But, guess who’s dropping by today with his F150 to do a brake job. He says he values my teaching him how to do things automotive and it’s also fun to do it with dad. Ya I’m blessed too with 4 amazing kids.

 

[AzScorpion]

Potentially my favorite thread ever. I’m 28 and just got laid off three weeks ago - as much as it sucks, it’s definitely forced me to evaluate my expenses and where I want to go with my career. I was never a huge spender but little things do add up. Taking a few weeks break and heading back to work hopefully with an even better focus on my finances. Excited for the next chapter.
Admire all of you working your own business, wish I could do the same

Sorry to hear you were laid off but hopefully something better will come along soon. One good thing (not sure what industry you're in) is that so many companies are in need of workers right now you should be able to land on your feet again soon. Living within your means really helps in times like this.

I know the trades aren't for everyone but Jim @wanted33 is right. Learning a good trade will/can be a very profitable career. There's hardly any younger tradesman in the business now and it's a great time to learn one. When I started right out of high school everyone on the job sites were younger with a few older guys. Now it's the opposite and most of is old (er) guys are retiring soon and someone needs to fill our shoes. I get it it's hard work and sitting in a office is much easier but those office jobs just aren't forever anymore.

You will always have work if you put 100% into your career. Not everyone is cut out to be self employed and trust me there were times throughout the years I wanted to just hang it up and go back to work for someone else. No one sees the endless hours you're working off the clock. The phone calls, estimates, gathering materials, laying out the next days plan for 7 guys, billing, payroll and a whole lot more. Now try and find some time for a personal life after working 60-70 hours a week. ?

When I sold my business in MA and moved here to AZ I knew 2 people. I was burned out and hated getting up every morning and the thought of going to work (we did a lot pf production) just depressed me. After being here 6 months I started up another small company with zero employees this time. It wasn't going to be easy as I only knew 2 people where back east I had hundreds of connections. I got in good with my local Sherwin Williams store and they passed out my cards, hooked up with a decorator and long story short in 18 months I had and still have more work than I can do. Word of mouth is the best advertising. I honestly turn more work away because I don't want or need to kill myself now.

Hopefully some of our advise helps you and others and we's love to know when you get another job. Good luck!!!

 

[AzScorpion]

Here's my $.02. All I can afford because of inflation.

Short Version:
1. Invest in yourself
2. Pay yourself first
3. Live modestly
4. Credit and loans
5. Put your money to work
6. Work hard
7. Learn the difference between wants and needs

The long version:
1. Invest in yourself - Not just formal education but skills that allow you to do things without paying others. If you have to pay someone to do maintenance on your car and home, you better make a bundle of money. As far as education, college isn't always necessary. Plenty of great trades out there. I went into electronics and advanced myself through several jobs, never passing up an opportunity to learn new things and make more money. It ended up in an awesome career in computers, right place at the right time and not afraid to take on something I didn't know much about. I don't look at it as being lucky but rather being ready to take advantage of opportunities that presented themselves or finding new opportunities. I've created several new positions for myself and others with the company I work for. One way to be ready for opportunities or finding them is volunteering. I've coached my kids in baseball and soccer, got involved in the organizations and schools and met some really great people and learned from them. Also been involved at work with volunteer opportunities which is always good to show the bosses you care and are willing to help. The greatest skill I learned in high school was critical thinking. I never realized it at the time, but life has taught me how important this is along with seeing so many without this skill. Critical thinking will keep you out of a lot of problems and help you figure your way out of any you do get into.

2. Pay yourself first - save money for an emergency and retirement. An emergency fund is nice to have when something major breaks on your house, car, life or whatever. Saves you money over putting things on credit. I've saved in retirement funds since my late 20's when I had a job that offered a plan. Rolled those into 401ks or IRAs as I moved to other jobs. Never take a cash out, it puts you behind and costs a lot in taxes. I have a nice amount now and probably retiring at 62, collecting SS at 67 and working part-time until then just to keep busy and out of trouble. If you get a bonus at work, don't blow the whole thing at once. Take 1/2 of it and put it away for an emergency fund, pay off a loan, invest it. Sure, you don't get the same instant gratification as blowing it all at once, but you still get to splurge a little. You'll get the gratification later too that way. Another thing I do, I have a set amount go to my checking to cover monthly bills and automatic investments. The rest goes to savings and then I transfer to checking when irregular bills like property taxes, home or auto insurance come due. Quarterly I look at the savings and take any extra I don't need and invest it, stocks, index funds, bonds.

3. Live modestly - I've never the many of the luxuries as others around me but I am OK with that. When I married and had kids, we lived on my income and considered my wife's income 'fun' money. Still do. We took modest vacations, get away weekends, camping, day trips and we would save for a nice one every 3 years or so like Disney, Yellowstone, beach vacation, San Deigo... most times we drove simply because it was cheaper, and we made it part of the experience. Staying in small motels, driving through the night (drove from Cleveland, Ohio to the Badlands in 24 hrs with breaks for food and fuel), packing a cooler instead of eating out on a trip, cooking on a camping stove at a cabin... My kids have awesome memories of those things now. Never had the newest furniture, appliances, gadgets. In fact, I've taken plenty of my family's castoffs when they got something new. I paid them fairly for it but why do I need new when something used and in good shape will do the same thing. My first house was just a little more what I paid for my Ranger. Doubled my money when I sold it and so did my wife on her's. We put that down on the new house, which was a repo and had a mortgage payment I could carry on my income. Still a modest house and actually could downsize now that the kids are gone but that's another story. I've never wanted to be a slave to my house so never more than we could keep up with ourselves.

4. Credit and loans - The only loans I've had are my house and can't remember the last time I had a car payment, probably about 25 years ago. I've haven't carried credit card debt for 35 years and even then, it was modest. Why should I pay someone else extra for something that isn't a necessity. This goes back to paying yourself. I started buying new cars when I was 25 and had them at least 10 years. After it was paid off, I kept paying myself that money saving for the next car. It's not too hard to keep them running that long if you learn basic maintenance skills. I've still had mechanics I trust do the difficult stuff, probably more now but my time is worth more now than when I was young. I'd say basic maintenance is even easier now with YouTube videos. Never had the most luxurious cars or worried about all the bells and whistles, but they all do the same thing, get you from point A to point B and cars are a rapidly depreciating asset. The Ranger was a splurge, but we were due for a new vehicle and when my daughter totaled her car, it was time to sell her the 10 year old Fusion and get something I wanted since I've been practical with my car purchases most of my life. Right now, we buy a car for cash every 5 years. Unless there is 0% financing then I'll use their money for free while my money is still working for me. I've always paid ahead on my houses and refinanced when the price was right. Started with a 30-year loan because I could swing the payment on my income, refinanced down to a 15 after 5 years and paid it off after 10. And pay bills on time, late fees are a waste of money. Stay away from subscriptions and monthly payments. Cable TV is our one monthly subscription, and we haven't always had it. We've never leased. We use credit cards for just about everything, and pay them off monthly, unless cash is cheaper. They are paying us to use them with the cash back.

5. Put your money to work - I always used to save in the bank. Checking, savings and CDs. Some bonds. I wish I would have started investing sooner. I've always had retirement funds and took an interest in what 401k investments I had. I started reading about investing and in 2008 when the market crashed, I had plenty of cash to start investing. Never more than I could afford to lose but money that was sitting in the bank not earning much. I continued a modest amount each year and watched it take off. I stopped that about 3 years ago thinking that it's been a good run but wanted something a little more automatic than picking stocks. Besides shifting more money into cash and bonds, I started with Index funds and one of the automatic investing companies that are out there now. I now have a car fund, safety fund and wealth fund setup and investing in each bi-weekly. I still have part of my safety fund in the bank savings and CDs but the rest that I wouldn't need in 3 months is in index funds making more money. Speaking of CDs, read up on laddering CDs. You can have them come due weekly, monthly, quarterly or whatever you need. As far as stocks, plenty of good books and people to follow out there. Warren Buffet is my favorite; Peter Lynch has some good books, and The Inteligent Investor by Benjamin Graham is updated every so often. I don't go for the latest investing trends, chase stocks or even think about virtual currency (do I want to invest in something I can see or hold?). I'm in it for the long haul and prefer companies I understand, have a track record and mostly pay dividends. Not a way to get rich quick but I haven't lost it all, I'm risk adverse and still not doing too bad this year as I'm ahead of the indexes over the past year. And right now, look into I series bonds, they are paying better than 9%! It's also about time to start putting cash back in the market. If you have kids, start a college fund. I started with small amounts monthly when they were 5 and 2 and added 1/2 of what they got for birthdays or holidays. I increased the amount when I could and by the end the funds had more than doubled with conservative investments. Also some states have tax credits for what you put into a college fund. They also had skin in the game and worked through college, paying for their own apartments, utilities and food. They went to state colleges that were leaders in the fields they wanted to get into, came out with no debt and have decent paying jobs. The whole college fund may yet prove to be a foolish investment. ?

6. Work hard - I've always given the companies I've worked for more than they expected. It has paid off with raises, promotions and bonuses. If the work I put in wasn't appreciated, I moved on. Life is too short to be miserable at work. I also work hard in my personal life, remodeling, fixing things and a few hobbies. Because of this I'm often disappointed by the effort others give, especially contractors. They rarely meet my expectations and I'd rather just do it myself. Anything worth doing, is worth doing right. I never expect anything to be given to me and always showed appreciation when something was given to me.

7. Learn the difference between wants and needs. Too often I see people confusing these concepts. I have 3 basic needs; Food, shelter and clothing. Anything else is a want.

Other random thoughts - It can be difficult not to eat out every night, take expensive vacations, not have the latest and greatest trinket. We hung with a group of friends that were of the same mindset, sometimes out of necessity, and we would go to each other's houses on the weekends instead of going out, went camping, canoeing and other inexpensive activities. We had lots of fun and have stories to tell. Find friends with toys and go with them on the boat, camping, lake house, 4-wheeling... Much cheaper that way.
Keep in mind the immediate gratification is short lived and it will pass quickly. Then you are looking for the next thing to feel that gratification again. Having a secure future has always been my goal. Most people would never guess how much we are worth by the lifestyle we lead. And I'm OK with that. I only need to impress myself, not anyone else. These financial skills are now being displayed by my kids. They are both hard-working, have emergency and retirement savings, one with a house and the other now looking. We are now at the point where we have lived modestly for so long, it's a little difficult to splurge a little now that the kids are gone. We are learning though.

If you haven't guessed, finances are a favorite subject of mine and I'm willing to discuss ideas and concepts but not numbers. ?

Kj what a great story and some excellent advice!! We sound so much alike and had the same plan and goal through life. I had to edit my original post as it was turning out way to long but everything you wrote were things I wanted to touch upon.

You're so right that buying material things is usually just for instant gratification. I know many like this and while some are very well off (salary wise) they don't have 2 tickles to rub together when it comes to savings or retirement. It's scary when you read that most (I think it was 60%) can not come up with $1,200 for an emergency. Yet these same ones will be at Starbucks every morning and buying the latest and greatest new smartphone. Again wants and needs.

Paying yourself is great advise too! I always had an account which any extra money would go into. It was a second savings account which I never touched even to this day and over the years it does amount to a very nice size safety net. I've laddered CD's when the rates were good and had them from 12-60 months. I'm hoping with all these rate hike we'll see some good CD rates because all mine have matured.

Like you I've always hated loans but you obviously have to have some. I built my second house in '99 and when the rates went down after 911 I remortgaged to a 15 year loan and dumped every extra dime I had on the principal and had it payed off in 8 years. Now having no kids it was easier to do but I could've easily bought a lot more "stuff" for myself. Having that weight off of me made me sleep much better especially being self employed. Then the '08 recession hit and I thanked God every day I did it as business came to a slow down. I wasn't ready for the first recession back in '89 but I made sure I would be for any others along the way. If there's 0% I will most mies use it because it's free money and mine is still working for me. I only last a $500 rebate by taking it on my Ranger but with the difference in the interest rate I still made out $750 ahead.

I don't think I've said this but it's kind of obvious when reading my first post. I never went to college as I hated school. I did great though high school but sitting in a class just wasn't for me. Just pointing out you don't need a degree to be successful just the determination to succeed. I always knew I could never sit in an office to work in a factory because I like being on the go. Heck my dad was the VP for one of the largest machine shops in our area and I could've walked right in and had a job with great pay and benefits. Even he said "I know you and you'd hate it". My career gave me the opportunity to meet some really great (and not so great) people throughout the years. I was always someplace different and I've done multi million dollar homes on the CT shore to rehab work in the inner city. Most times the inner city customers were the nicest.

 

[jsphlynch]

Gib, I know I'm really nobody to tell you what to do, but you know how old people are. Consider a "blue collar" job. Have you seen how much it cost to have a plumber, electrician, or contractor do work for you. Not everyone can work in an office, etc. The money isn't there anymore as there are so many vying for not enough of those jobs. As you can see from some of the post here many have done quite well working in the trades. Just some advise from one that grew up in cotton country, and went to work at 13 mowing yards. Good luck, at 28 the world is still out there waiting for you to succeed.

The job I had between undergrad and graduate school was in construction. After that, it took me over a decade (despite earning a PhD in half that time) to get back to the equivalent pay of what I was making that summer.

 

[NotBudule]

I'm in the middle , I won't starve when I'm to old to care if I starve or not , but I'm damn sure not gona pass on want and fun on a fairly regular basis, I'm in pretty good shape to do things now that I won't be able to later when I can more afford it , it's a crap shoot ...
That being said , I've been at the same job since 96 , and signed up for Thrift Plan day one , never changed or messed with it or thought about the money ? almost 700 K now all these years later ... I guess it's real , I got paper that says so , never saw any of it up close though ?

 

[deleriumtremor]

Bill, when I was writing this up I thought the same. I was like damn this turned out to be a novel. lol I still had so much to add but tried to condense it so everyone wouldn't get bored and figured everyone else would add their story and my deleted parts are in every ones who posted so far.

When you have time try again we'd love to hear it and so what if it's a long essay this is something all of us here enjoy. Even if you write a condensed version and add to it later. I had this thread in the back of my head for some time now and after seeing the pics of your back yard those jump started the idea again. I know I asked you and Rick what you both thought about this because I didn't want this to come out as being pretentious. I thought it's be fun and educational to shed some light on how some of us got the where we are today as there were many tough times along the way.

I understand what you are saying Dave and promise to try and give it a go.

I have very mixed emotions as in most ways mine is kind of a primer on what not to do, because all along the way, things could have ended so terribly badly and yet, I always landed in roses. Kind of a Chancey Gardner character, but one who came from a family with a loving selfless genius father who himself came from truly the humblest roots and whose genuine humbleness I try to cram into my makeup, usually in an incredibly ungainly way.

On the topic of investing and building wealth (kind of the point of this thread), the stuff you guys have already written is so spot on with regard to guidance for anyone wanting to know how to do it using a patient clear headed approach to investing, growing wealth and living a happy life. I also don't want to distract anyone from that focus and theme.

God's truth is I didn't start studying the intricacies of personal investing until after I had sold a company and become myself kind of bullet proof financially. Like many, all the awareness of how the financial markets and money work, I learned after I had abandoned a very lucrative career during which time everything I made, I spent liberally (some of it on the right things like private school for our daughter, building a nice house for my wife, but also a lot on expensive racing cars, airplanes, sailboats, you know, me, me, me ). It wasn't until we (my partner and I) started a business, a business idea a coworker (and subsequently partner) suggested on a long transatlantic flight from SFO to LHR, did I start to learn the difference between profits and capital, balance sheets versus P&L statements. Before we started that business, I was clueless other than I knew a successful business usually spent less than they made.

Another concern of mine is owing to the luck I have enjoyed. It is natural to resent a character like me. It is a special person who has built a great life brick by brick, or is applying themselves early and wants to learn how to do it, to hear my story and not resent the fact that most of the way, my success was pretty much totally owing to being in the right place at the right time, right back to that first day on earth.

Pretty daunting stuff as I really like this incredibly diverse group of people and really don't want to damage that situation.

Anyway, I will try, I promise.

 

[KJRR]

Potentially my favorite thread ever. I’m 28 and just got laid off three weeks ago - as much as it sucks, it’s definitely forced me to evaluate my expenses and where I want to go with my career. I was never a huge spender but little things do add up. Taking a few weeks break and heading back to work hopefully with an even better focus on my finances. Excited for the next chapter.
Admire all of you working your own business, wish I could do the same

Hang in there, things will turn around if you work at it. Sounds like you are on the right track.
I've was laid off from a job I was at for only 6 months. I took the job because it was a huge increase in pay but not exactly what I wanted to do. It ended up a blessing and not sure I would have ended up where I am now without that little setback. I did side jobs for a few months, one for the company that I was at previously, and then landed my next job that paid less but ended up going the direction I wanted.
Overall, just another lesson in the school of life.

 

[KJRR]

No one sees the endless hours you're working off the clock. The phone calls, estimates, gathering materials, laying out the next days plan for 7 guys, billing, payroll and a whole lot more. Now try and find some time for a personal life after working 60-70 hours a week. ?

This is the reason why I never seriously considered going into business for myself. I've done some side-work and contracting over the years but preferred the semi-set hours and someone else handling all the payroll, insurance, planning while I had some time form myself and family.
I do admire all those who have gone into business for themselves and know the dedication it takes to be successful.
I have a few thoughts for businesses when I retire and may give it a go, we'll see when the time comes.

 

[AzScorpion]

I understand what you are saying Dave and promise to try and give it a go.

I have very mixed emotions as in most ways mine is kind of a primer on what not to do, because all along the way, things could have ended so terribly badly and yet, I always landed in roses. Kind of a Chancey Gardner character, but one who came from a family with a loving selfless genius father who himself came from truly the humblest roots and whose genuine humbleness I try to cram into my makeup, usually in an incredibly ungainly way.

On the topic of investing and building wealth (kind of the point of this thread), the stuff you guys have already written is so spot on with regard to guidance for anyone wanting to know how to do it using a patient clear headed approach to investing, growing wealth and living a happy life. I also don't want to distract anyone from that focus and theme.

God's truth is I didn't start studying the intricacies of personal investing until after I had sold a company and become myself kind of bullet proof financially. Like many, all the awareness of how the financial markets and money work, I learned after I had abandoned a very lucrative career during which time everything I made, I spent liberally (some of it on the right things like private school for our daughter, building a nice house for my wife, but also a lot on expensive racing cars, airplanes, sailboats, you know, me, me, me ). It wasn't until we (my partner and I) started a business, a business idea a coworker (and subsequently partner) suggested on a long transatlantic flight from SFO to LHR, did I start to learn the difference between profits and capital, balance sheets versus P&L statements. Before we started that business, I was clueless other than I knew a successful business usually spent less than they made.

Another concern of mine is owing to the luck I have enjoyed. It is natural to resent a character like me. It is a special person who has built a great life brick by brick, or is applying themselves early and wants to learn how to do it, to hear my story and not resent the fact that most of the way, my success was pretty much totally owing to being in the right place at the right time, right back to that first day on earth.

Pretty daunting stuff as I really like this incredibly diverse group of people and really don't want to damage that situation.

Anyway, I will try, I promise.

Bill,
I think a lot of peoples success has to do with being lucky and being at the right place at the right time. Sure some are luckier than others and they always seem to end up getting everything handed to them but I don't hate them for it I envy them and that only makes me fight even harder.

I started my business in 1986 and was only 22. It wasn't easy being in construction to begin with never mind being that young and short, yes size matters. ? Many thought they could take advantage of me and push me around and this wasn't just other subs but even some builders. I've always been nice but never a pushover, luckily the other half of me is Italian so I don't take any crap from anyone. lol

I always say respect is earned so I mostly kept my mouth shut (tough to do sometimes) and let my work speak for itself. I found a niche doing new custom homes and while being good at what you do is key you also need to be fast. I'll admit it's hard (especially today) finding guys geared like this but I was fortunate to have a great crew (s) who understood this. Luckily I became friends with the salesman from a huge lumberyard who hooked me up the the builder just starting that 160 unit condo complex. Long story short that project set me up with so many contacts will all the different subcontractors there. They all hooked me up with their other builders and their own personal homes it was an endless supply of work from there until I sold the company. So while it was luck being at the right place at the right time it was still all up to me on where I wanted to take it. Just like you with your business YOU made it happen it just didn't happen all by itself!

I live by the phrase "Everything happens for a reason". And while I use to get mad when something didn't go right or as planned when I was younger I really understand it better now. You can't sweat the small stuff or things you can't control. Move on to the next thing as there's more light at the end of the tunnel.

This is turning into a book again lol but I do enjoy seeing everyone path and talking about how we got there. Looking forward to hearing more about yours when you're up to it. ?

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