What you guys talking about? He is perfectly clear, where he lives(out of US, prob) a nissanZ goes for a lot more than 40k, so much more that even earning 75k a year, he can't afford it.
Its the same for me, here in Brazil a 370Z goes for about R$350k, which is about $190k US, its ridiculous.
That's insane, I wouldn't pay that much for a Z even if I were Bill Gates.
This is certainly an interesting post. I guess my question to you is which assets are you referring to? I mean not everyone wants to buy real estate and manage it. I'm an iOS developer, and I'd much rather work on contracts or my own apps for the rest of my foreseeable future rather than use that money to buy land and then have to spend all my time upkeeping and doing business deals. Granted I'll have decent money to save either way.
The specifics is where one can get into trouble and disagreement since before one invest they should really understand what they are investing in. If you listen to the news or those ignorant shams called financial planners then they will tell you that old worn out lie; diversify, diversify, diversify.
Warren Buffet I think said it best "Wide diversification is only required when investors do not understand what they are doing.” Obviously everyone when they first invest have no idea what they are doing.
I am not a legendary investor, I don't day trade, and I really don't like risk. I was in a .com (I work in IT) in from 1997 to 2001 and had $3.2 million in preferred stock I knew nothing about investing then. Long story short I learned preferred stock wasn't always preferred since no one could sell their stock until June 28th 2001, and we had to report it to the SEC because it was considered insider trading. All the .com's were going down in flames and I was stuck watching my 134,000 shares drop from $24 a share to .30 cents before I could sell a single share. All my options were worthless. In the end I made a whopping $28,568.32 (my day of infamy), that pretty much made up for the pay cut I took for stock.
I was angry at myself for being so ignorant about investing so I set out to educate myself on investing and read a lot of materials, of those that helped the most in the beginning was Robert Kiyosaki and Warren Buffet's books. Kiyosaki in particular in his writings gives you a foundation to use your own head to educate yourself, as he calls it increasing your financial IQ.
The major trends are easy to see coming a mile away in slow motion, take the financial crisis, Kiyosaki for example wrote a book in 2002 and Richard Duncan wrote on 2005 on the looming housing bubble destined to bust. You will hear a lot of people say something like "well yeah if you cry doom and gloom long enough you are bound to be right eventually". These people don't know how to read trends or understand economic history. They also don't understand that when a bubble pop's it takes 20 years for the industry to bounce back in field that popped. Real estate won't come back for 20 at least years, real estate for rentals are good now, but you again really have to know what you are doing.
In short my personal approach in this economy is play it safe, I'm staying out of the stock market (the only real investors left playing are institutions now, you will lose against them), that also means I'm not keeping my money in a 401K's or Mutual Funds since most of those are chasing stocks on Wall Street. I prefer to stick my money into the basics. During the depression people still bought soap, food, toiletries, cosmetics, etc. So I buy undervalued commodities, and precious metals, after the last shoe drops in this financial mess we are in I will likely invest in companies that make the basics and emerging economies.
I invest in these thing only because I understand what I am investing in and what phase of the cycle they are in, I know what drives them and when the tide is turning against them long before they peak out and I get out long before they peak out. I apologize if I didn't give the specifics you might have wanted to see here, but hopefully I conveyed the most important point to educate yourself first and foremost and then you'll know where to put your money with confidence. Look into Robert Kiyosaki's books, he's a great place to start.
In addition to investing I'm also investing in equipment to educate myself on that I will use in an imaging company I will start in the next 2 years after my agreement with the company I currently work at ends, unless they throw me a nice bone to keep me on, then I may put the company on hold, we'll see. If starting a company isn't your bag, then get into a small growing start up (as long as you can see easily how it makes money, hopefully it is when you join) and make sure you get stock along with a good paycheck, it may pay off huge for you. Despite my .com experience, I was able to find another start up a few years later I was able to get shares in, I'm there now. The company just sold, I have to say at a time when so many people have so much they can legitimately complain about, I can't.
Ask a question like that and you'll get a different answer from everyone. You need to understand the rules of money and most important cash flow, what is known as fiduciary responsibility.
Assets feed you and liabilities eat you.
Poor people buy liabilities they want (occasionally on sale) with their money and live paycheck to paycheck
Middle class people buy liabilities they want (occasionally on sale) with their money and on credit, they too live paycheck to paycheck
The rich or aspiring to be, buy assets that are always on sale which return passive cash flow to them in the form dividends, rent, etc. or things that will appreciate in value and can be sold for a profit later. They do this until their passive income exceeds their paycheck plus all of their expenses by at least 1.5 times. They then quit their job and focus solely on passive income and when it's feasible they let their assets pay for the liabilities they want
The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?
BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.
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That's insane, I wouldn't pay that much for a Z even if I were Bill Gates.
The specifics is where one can get into trouble and disagreement since before one invest they should really understand what they are investing in. If you listen to the news or those ignorant shams called financial planners then they will tell you that old worn out lie; diversify, diversify, diversify.
Warren Buffet I think said it best "Wide diversification is only required when investors do not understand what they are doing.” Obviously everyone when they first invest have no idea what they are doing.
I am not a legendary investor, I don't day trade, and I really don't like risk. I was in a .com (I work in IT) in from 1997 to 2001 and had $3.2 million in preferred stock I knew nothing about investing then. Long story short I learned preferred stock wasn't always preferred since no one could sell their stock until June 28th 2001, and we had to report it to the SEC because it was considered insider trading. All the .com's were going down in flames and I was stuck watching my 134,000 shares drop from $24 a share to .30 cents before I could sell a single share. All my options were worthless. In the end I made a whopping $28,568.32 (my day of infamy), that pretty much made up for the pay cut I took for stock.
I was angry at myself for being so ignorant about investing so I set out to educate myself on investing and read a lot of materials, of those that helped the most in the beginning was Robert Kiyosaki and Warren Buffet's books. Kiyosaki in particular in his writings gives you a foundation to use your own head to educate yourself, as he calls it increasing your financial IQ.
The major trends are easy to see coming a mile away in slow motion, take the financial crisis, Kiyosaki for example wrote a book in 2002 and Richard Duncan wrote on 2005 on the looming housing bubble destined to bust. You will hear a lot of people say something like "well yeah if you cry doom and gloom long enough you are bound to be right eventually". These people don't know how to read trends or understand economic history. They also don't understand that when a bubble pop's it takes 20 years for the industry to bounce back in field that popped. Real estate won't come back for 20 at least years, real estate for rentals are good now, but you again really have to know what you are doing.
In short my personal approach in this economy is play it safe, I'm staying out of the stock market (the only real investors left playing are institutions now, you will lose against them), that also means I'm not keeping my money in a 401K's or Mutual Funds since most of those are chasing stocks on Wall Street. I prefer to stick my money into the basics. During the depression people still bought soap, food, toiletries, cosmetics, etc. So I buy undervalued commodities, and precious metals, after the last shoe drops in this financial mess we are in I will likely invest in companies that make the basics and emerging economies.
I invest in these thing only because I understand what I am investing in and what phase of the cycle they are in, I know what drives them and when the tide is turning against them long before they peak out and I get out long before they peak out. I apologize if I didn't give the specifics you might have wanted to see here, but hopefully I conveyed the most important point to educate yourself first and foremost and then you'll know where to put your money with confidence. Look into Robert Kiyosaki's books, he's a great place to start.
In addition to investing I'm also investing in equipment to educate myself on that I will use in an imaging company I will start in the next 2 years after my agreement with the company I currently work at ends, unless they throw me a nice bone to keep me on, then I may put the company on hold, we'll see. If starting a company isn't your bag, then get into a small growing start up (as long as you can see easily how it makes money, hopefully it is when you join) and make sure you get stock along with a good paycheck, it may pay off huge for you. Despite my .com experience, I was able to find another start up a few years later I was able to get shares in, I'm there now. The company just sold, I have to say at a time when so many people have so much they can legitimately complain about, I can't.
Assets feed you and liabilities eat you.
The easiest time of your life to break free of a job and do item 3 is at your current age when you are young and single. There is no right or wrong answer, it's just a matter of deciding what you want and how far ahead you want to plan. Do you want a $40/K liability you have to pay on month after month or do you want buy an asset that will generate $40/K a year in passive income regardless if you work or not?
BTW I wish I had known what I am telling you in my 20's, if you do it right you can easily have a much, much nicer Italian sports car before you are 30.