At lunch we were having a discussion on how people set themselves up to be rich or poor. There are things that will drain you and there are things you can do to save a few bucks for the future. What are some of the things you can do or stop doing to be well off?
How do you set yourself up to be rich? How do you set yourself up to be poor?
- Thread starter Wild Wiglin Willie
- Start date
taking control of your life instead of your life controlling you. making educated choices. frugality. compounding interest.
Very simply put,... but to direct the important points,...follow this persons ideals, and anybody can become comfortable.
Too many irresponsible people waste money on interest for shit they obviously can't afford,...instead of investing that capital.
Have a weekly/bi-weekly withdraw from your savings to an investment account is the easiest way to get "rich".You need to start at a young age and don't touch it except in an emergency.Buy a reliable car and low maintenance house.Cars and houses are money pits.
Avoid the spending money on strippers,escorts,booze,drugs,cancer sticks and being married with kids.
Oh,and having an education that will get you a decent wage.A degree in history,music,English and philosophy.If you want to work at Tim Hortons ,then go for it.
Avoid the spending money on strippers,escorts,booze,drugs,cancer sticks and being married with kids.
Oh,and having an education that will get you a decent wage.A degree in history,music,English and philosophy.If you want to work at Tim Hortons ,then go for it.
A good education is not about actual learning, it's about training your mind to think rationally.
Don't get discouraged when you take a loss and don't get greedy with a windfall. And continuously read, don't spend your time playing games on your smart phone.
Don't get discouraged when you take a loss and don't get greedy with a windfall. And continuously read, don't spend your time playing games on your smart phone.
Old joke: have rich parents.
Anybody can work hard to become rich but just try choosing your parents.
Anybody can work hard to become rich but just try choosing your parents.
Instead of going out to lunch and spending $10+ everyday, make sandwiches or leftovers from dinner the night before and eat in the office lunch room. Don't buy coffee from Timmie's or Starbucks. Make your own at home and bring to work.
With all the money you save, you can either blow on escorts or contribute to your TFSA.
With all the money you save, you can either blow on escorts or contribute to your TFSA.
Sometime it as simple and tragic as fortune shines or does not shine on you.
It is not always wise or poor decisions so much as it is circumstance.
It is not always wise or poor decisions so much as it is circumstance.
I buy things long before I need them and take advantage of sales. Try to do for yourself as much as possible and not call in people to do things for you. I do most of my own plumbing and electrical work, but you have to know what work you should not do yourself. I have every tool I need to do small things around the house. I do my own oil changes and have the jacks to do tire change overs. ( winter tires are on dedicated rims ) Not only do you have to save money, but you have to save time. An oil change or tire change over will cost you a trip to the dealer and hours of waiting. There is also satisfaction small accomplishments.
It is all according to how you define rich. A common definition of a HNW - High Net Worth Individual is about 1,000,000.00 in investable assets. This represents about 1% of Canadian's. I created a plan to be there before 40. Live like you are poor while maximizing income opportunities and minimizing tax. There are multiple investment strategies that work that include Real Estate, growth investment, etc. Spending as you earn or excessive debt will not get you there.
Some common sense savings.
I have never seen a person get rich smoking. The after tax costs are about $8k per year plus a time consumption of 50 plus days a year to smoke.
Eating out daily costs about $9,000 per year after tax.
You do the math investing these amounts compounded annually.
Don't use debt for discretionary spending.
When you get a raise or bonus place it in savings.
I have never seen a person get rich smoking. The after tax costs are about $8k per year plus a time consumption of 50 plus days a year to smoke.
Eating out daily costs about $9,000 per year after tax.
You do the math investing these amounts compounded annually.
Don't use debt for discretionary spending.
When you get a raise or bonus place it in savings.
I've enjoyed reading this thread and it's good to see so many members who have a good handle on how to generate personal wealth. At a certain point, you have to realize that achieving your financial goals does not depend solely on how much you earn, but the game is about building assets that create value over time. Good lifestyle habits, investing, owning your own home and staying away from unnecessary debt are elements of creating wealth. When I was just starting out, someone told me that there are only two things worth borrowing money for. Those two items are a house and a car. This is required for most people as they start out, and borrowing for discretionary purchases are wealth killers.
just being a devil's advocate: smokers die young so no need to save as much or suffer through shitty twilight years
and eating out daily saves SHITLOAD of cooking/cleaning/dishwashing time, adds tremendously to the enjoyment of life, is not even expensive in Toronto, and you don't have leftovers... so maybe you are even better off?
The greatest benefit to having wealth is that, when managed properly, it provides growth and income for you to enjoy life, not only today, but tomorrow as well. I have known people who think it's crazy to save and invest because it would "deny" them the fun of spending it today. Most people I know have been able to practice some form of delayed gratification, that allows them to enhance their lifestyle through dividends and growth.
Remember, you can be young and poor, but being old and poor is a bad option....
I'd rather have some ability to spend while my dick still works and I can chew with my own teeth...When your biggest joy in life becomes having your diaper changed more often maybe it's time to go?
