How to save money.

[SlickMoTwoToe]

I know some people who just go out and spend a ton of money for the heck of it... It seems like women in particular do this with getting tons of clothes etc, though I know of a couple men who buy new cars every year just for the heck of it. If this kind of needless spending was avoided, maybe they wouldn't constantly have debt to worry about. If people focused on making things (writing, playing music, building, drawing, programming) for fun instead of consuming things (eating out, buying tons of junk, going to movies) then they would probably be a lot better off.

All the things I spend a lot of money on are things that are good for making stuff and that last (relatively) a long time. I think the most useful thing overall is a good computer. Doing business, writing, listening to and creating music, gaming, getting entertainment media for "free," communicating, and surfing the web... it has a great many purposes and a good one can be had for less than $1000 today.

As a musician I get some musical instruments which are fairly expensive, but a $500 guitar lets me learn more music, create my own music, entertain myself and develop new neural connections whereas a $500 TV station lets you entertain yourself and not much more. Even a TV station is way better than $500 worth of clothes that will get used once for vanity purposes etc. People just don't think before they buy.

Great points on lifestyle.  These are really difficult changes for people to implement in their own lives, unless they have a particular interest.  What some people enjoy is boring for others.

One of the things that I want to learn is how to play guitar

Yeah, being extremely interested in creating, and loving music in general is a double-edged sword. You're way more interested in it than just about anything else (especially working to make money) and life in general is just about getting you to what you want to do creatively. It's not like a TV addiction either... you don't really fell fulfillment/self-actualization from watching TV, just lazy satisfaction. With TV you can say you want to get up and do something useful with your life. With a music composition/performance/learning addiction you are doing something that (to you) is incredibly "useful" and fulfilling. You don't have the guilt of wasting your life in front of TV or games to motivate you to do something "productive" (read working for money).

[freeyourmind]

I know some people who just go out and spend a ton of money for the heck of it... It seems like women in particular do this with getting tons of clothes etc, though I know of a couple men who buy new cars every year just for the heck of it. If this kind of needless spending was avoided, maybe they wouldn't constantly have debt to worry about. If people focused on making things (writing, playing music, building, drawing, programming) for fun instead of consuming things (eating out, buying tons of junk, going to movies) then they would probably be a lot better off.

All the things I spend a lot of money on are things that are good for making stuff and that last (relatively) a long time. I think the most useful thing overall is a good computer. Doing business, writing, listening to and creating music, gaming, getting entertainment media for "free," communicating, and surfing the web... it has a great many purposes and a good one can be had for less than $1000 today.

As a musician I get some musical instruments which are fairly expensive, but a $500 guitar lets me learn more music, create my own music, entertain myself and develop new neural connections whereas a $500 TV station lets you entertain yourself and not much more. Even a TV station is way better than $500 worth of clothes that will get used once for vanity purposes etc. People just don't think before they buy.

Great points on lifestyle.  These are really difficult changes for people to implement in their own lives, unless they have a particular interest.  What some people enjoy is boring for others.

One of the things that I want to learn is how to play guitar

Yeah, being extremely interested in creating, and loving music in general is a double-edged sword. You're way more interested in it than just about anything else (especially working to make money) and life in general is just about getting you to what you want to do creatively. It's not like a TV addiction either... you don't really fell fulfillment/self-actualization from watching TV, just lazy satisfaction. With TV you can say you want to get up and do something useful with your life. With a music composition/performance/learning addiction you are doing something that (to you) is incredibly "useful" and fulfilling. You don't have the guilt of wasting your life in front of TV or games to motivate you to do something "productive" (read working for money).

I hear ya bud.  It's just about being passionate, and that passion can manifest in music, or some other type of art, sport, cuisine, etc.  The passion allows you to invest a lot of time, in an enjoyable way, to become masterful.  The tough part is incorporating that into your career and making a living doing it.  People that are able to find and continue to engage with their passion are a different breed.  They're much happier, and age much better than those that are making good money, but are miserable doing it.

Corporate work has enabled me to live without hardcore financial restrictions, but god damn it is unfulfilling.  I had quit a couple years ago to travel, and I'm getting that same feeling again.

[sdmathis]

I know some people who just go out and spend a ton of money for the heck of it... It seems like women in particular do this with getting tons of clothes etc, though I know of a couple men who buy new cars every year just for the heck of it. If this kind of needless spending was avoided, maybe they wouldn't constantly have debt to worry about. If people focused on making things (writing, playing music, building, drawing, programming) for fun instead of consuming things (eating out, buying tons of junk, going to movies) then they would probably be a lot better off.

Bro i know a guy who changes his phone every fucking month, its not just women. Then i know a couple who go on vacation every single weekend.

People are addicted to consuming. I`m not saying dont do it, you must live your life until you can, but i`m saying most of these people (since they dont have any reserves) end up heavily in debt once shit hits the fan, or become homeless easily.

Wreckless spending and not paying attention to your money can cost you dearly after something unfortunate happense to you, so i think everyone should have reserve money, which is exactly what the current monetary system discourages!

I agree. That's exactly how I was during the 90s. I had a very successful business and I thought the money would never end. I would vacation 4 or 5 times a year and I spent most of my weekends either at the coast or in Vegas. I didn't save more than a few thousand dollars. Then the bottom fell out. Now I'm nearing retirement age and can't afford to retire.

Savings are SO important. I wish I had saved.

[anonyymi]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

[GreenStox]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

Of course they are, especially in the euro zone let's see how much you can earn. Starting from 2.000€ with current interest rate of 0.15% starting from now:

year   sum                      yearly interest rate
2015   2000 €                0.15%
2016   2003 €                0.05%
2017   2004.0015 €        0.01%
2018   2004.2019 €       -0.05%
2019   2003.199799 €       -0.1%
2020   2001.196599 €       -0.5%
2021   1991.190616 €       -1%
2022   1971.27871 €       -2%
2023   1931.853136 €       -5%
2024   1835.260479 €       -10%
2025   1651.734431 €       -15%
2026   1403.974267 €        ....

Wow bro I`ve really became rich by compounding my 2000€ in a Eurozone Bank, not to mention that by then the inflation would probably be around 300% so yeah, my -600€ net profit really beated inflation. Keep the good work up and spread this information, its really wise 

[Erza]

I know some people who just go out and spend a ton of money for the heck of it... It seems like women in particular do this with getting tons of clothes etc, though I know of a couple men who buy new cars every year just for the heck of it. If this kind of needless spending was avoided, maybe they wouldn't constantly have debt to worry about. If people focused on making things (writing, playing music, building, drawing, programming) for fun instead of consuming things (eating out, buying tons of junk, going to movies) then they would probably be a lot better off.

Bro i know a guy who changes his phone every fucking month, its not just women. Then i know a couple who go on vacation every single weekend.

People are addicted to consuming. I`m not saying dont do it, you must live your life until you can, but i`m saying most of these people (since they dont have any reserves) end up heavily in debt once shit hits the fan, or become homeless easily.

Wreckless spending and not paying attention to your money can cost you dearly after something unfortunate happense to you, so i think everyone should have reserve money, which is exactly what the current monetary system discourages!

I agree. That's exactly how I was during the 90s. I had a very successful business and I thought the money would never end. I would vacation 4 or 5 times a year and I spent most of my weekends either at the coast or in Vegas. I didn't save more than a few thousand dollars. Then the bottom fell out. Now I'm nearing retirement age and can't afford to retire.

Savings are SO important. I wish I had saved.

You are too loyal for around 90s. What did you till you didnt even have a time to save you money? Altough if you didnt save it you must have some kind of retirement fund that you plan at first right after your business run well. And going for vegas on every weekends is a bad idea to spend all your time and money

[BTCevo]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

Of course they are, especially in the euro zone let's see how much you can earn. Starting from 2.000€ with current interest rate of 0.15% starting from now:

year   sum                      yearly interest rate
2015   2000 €                0.15%
2016   2003 €                0.05%
2017   2004.0015 €        0.01%
2018   2004.2019 €       -0.05%
2019   2003.199799 €       -0.1%
2020   2001.196599 €       -0.5%
2021   1991.190616 €       -1%
2022   1971.27871 €       -2%
2023   1931.853136 €       -5%
2024   1835.260479 €       -10%
2025   1651.734431 €       -15%
2026   1403.974267 €        ....

Wow bro I`ve really became rich by compounding my 2000€ in a Eurozone Bank, not to mention that by then the inflation would probably be around 300% so yeah, my -600€ net profit really beated inflation. Keep the good work up and spread this information, its really wise 

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

[aso118]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

[freeyourmind]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

There are a couple factors that usually get in the way of the compound interest example in the link you provided.

1) It assumes a 12% annual rate of return - You need to take some risk to get that type of return, likely from equities (stock market), and most people are not able to get attain 12% every year.  Most people can't even beat the market, and the average market rate of growth is 7%.

2) It assumes that you won't use the money until the age of 65 - Most people will want to use at least part of that money to enjoy life while they're still relatively functional in their early years.  Few people are willing to live in the shit part of the neighbourhood, AND have a million dollar retirement savings account that they're not touching

A more realistic example would be compounding interest with a 1.5-2% "high interest" savings account or GIC.  It likely doesn't even beat inflation.

[Dotakels]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

So that you mean don't invest or exchange into bitcoin if your money is small? because it can caused halved you money? is that you exactly mean? Exchange only into bitcoin if your money is big?

[anonyymi]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

There are a couple factors that usually get in the way of the compound interest example in the link you provided.

1) It assumes a 12% annual rate of return - You need to take some risk to get that type of return, likely from equities (stock market), and most people are not able to get attain 12% every year.  Most people can't even beat the market, and the average market rate of growth is 7%.

2) It assumes that you won't use the money until the age of 65 - Most people will want to use at least part of that money to enjoy life while they're still relatively functional in their early years.  Few people are willing to live in the shit part of the neighbourhood, AND have a million dollar retirement savings account that they're not touching

A more realistic example would be compounding interest with a 1.5-2% "high interest" savings account or GIC.  It likely doesn't even beat inflation.

Yeah I agree that 12% is quite optimistic, but the example just shows the power of compound interest.
Dividends including the average annual rate of return is still around 10%.

Why is 1.5-2% savings account that doesn't even beat inflation more realistic? Only stupid or old people would do this.
If you are young and have long investment time, there is no reason to go for savings account. It's either stocks or real estate IMO.

[GreenStox]

Compound interest is the magic. Here is well explained what compound interest can accomplish for you: http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

The thing is that people tend to live on today never worrying about future.
One could easily retire at age of 50 with a million bucks but nobody wants to do this.

Of course they are, especially in the euro zone let's see how much you can earn. Starting from 2.000€ with current interest rate of 0.15% starting from now:

year   sum                      yearly interest rate
2015   2000 €                0.15%
2016   2003 €                0.05%
2017   2004.0015 €        0.01%
2018   2004.2019 €       -0.05%
2019   2003.199799 €       -0.1%
2020   2001.196599 €       -0.5%
2021   1991.190616 €       -1%
2022   1971.27871 €       -2%
2023   1931.853136 €       -5%
2024   1835.260479 €       -10%
2025   1651.734431 €       -15%
2026   1403.974267 €        ....

Wow bro I`ve really became rich by compounding my 2000€ in a Eurozone Bank, not to mention that by then the inflation would probably be around 300% so yeah, my -600€ net profit really beated inflation. Keep the good work up and spread this information, its really wise 

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Yes but -15% interest rate is my favorite, especially if you mix it with a 400% inflation rate that is caused by overprinting of fiat toilet paper.

I think the EU zone will end up like Zimbabwe.

[BTCevo]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

Yes its true the value of bitcoin is still volatile but if you really can do trading you can even get a bigger profit and we will change everything like as easy as flip coin. Altough its easy it doesnt mean you need to buy it with your hard earned money, you can save a little for bitcoin and you can use the rest for your living things. Its up to you how are you gonna do it

[Dotakels]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

Yes its true the value of bitcoin is still volatile but if you really can do trading you can even get a bigger profit and we will change everything like as easy as flip coin. Altough its easy it doesnt mean you need to buy it with your hard earned money, you can save a little for bitcoin and you can use the rest for your living things. Its up to you how are you gonna do it

Can i ask? What do you do to your bitcoin after you buy it? You will do it as a payment if your buying online or you do it as a payment for the services that they gave to you? Or you will invest it? Which one?

[BTCevo]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

Yes its true the value of bitcoin is still volatile but if you really can do trading you can even get a bigger profit and we will change everything like as easy as flip coin. Altough its easy it doesnt mean you need to buy it with your hard earned money, you can save a little for bitcoin and you can use the rest for your living things. Its up to you how are you gonna do it

Can i ask? What do you do to your bitcoin after you buy it? You will do it as a payment if your buying online or you do it as a payment for the services that they gave to you? Or you will invest it? Which one?

Actually I dont think I will do anything to my own bitcoin since I bought it, may be just a little gambling and then I will do trading for the rest altough the bitcoin still in a volatile condition. So what that matter to you?

[Dotakels]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

Yes its true the value of bitcoin is still volatile but if you really can do trading you can even get a bigger profit and we will change everything like as easy as flip coin. Altough its easy it doesnt mean you need to buy it with your hard earned money, you can save a little for bitcoin and you can use the rest for your living things. Its up to you how are you gonna do it

Can i ask? What do you do to your bitcoin after you buy it? You will do it as a payment if your buying online or you do it as a payment for the services that they gave to you? Or you will invest it? Which one?

Actually I dont think I will do anything to my own bitcoin since I bought it, may be just a little gambling and then I will do trading for the rest altough the bitcoin still in a volatile condition. So what that matter to you?

I just get an idea if i also buy a bitcoin. Ahh thanks for the information. Now i know what i am going to do with my bitcoin.But i never gambling so that i wont lose any single of my bitcoin.

[_Miracle]

I (a "she" by the way;-) likes the pre-tax of the 401k, and you can withdraw out of your 401k early (but there will be penalties).
Of course other things like real estate and bitcoin are of interest as well
 

[BTCevo]

It is just wasting time there and your money can't even be withdrawn and that is for 10 years. Imagine that if you convert your money into bitcoins now and how much will you get after 10 years and you still can withdraw your bitcoin anywhere and at anytime

Putting small change into Bitcoin is one thing, substantial investment is another.
I would be devastated if I had put in my hard-earned money into Bitcoin when it was $500+ and discovered that its value had halved in a short period of time.

Yes its true the value of bitcoin is still volatile but if you really can do trading you can even get a bigger profit and we will change everything like as easy as flip coin. Altough its easy it doesnt mean you need to buy it with your hard earned money, you can save a little for bitcoin and you can use the rest for your living things. Its up to you how are you gonna do it

Can i ask? What do you do to your bitcoin after you buy it? You will do it as a payment if your buying online or you do it as a payment for the services that they gave to you? Or you will invest it? Which one?

Actually I dont think I will do anything to my own bitcoin since I bought it, may be just a little gambling and then I will do trading for the rest altough the bitcoin still in a volatile condition. So what that matter to you?

I just get an idea if i also buy a bitcoin. Ahh thanks for the information. Now i know what i am going to do with my bitcoin.But i never gambling so that i wont lose any single of my bitcoin.

Yes it still depends on you whether you going to gambling or not because it can double triple your money in a second but it also can lost just in second but if you never try you will never know the result

[operrajunk74]

i think we should keep the records of expenses then only its possible to tighten our budjet. we need to look at the areas of expenses and we should track it on the monthly basis and improvise it in coming future so it will definitely help us to save money.And it will be definitely a profitable source.

[gripflierGO]

the best way to save money is to spend less. it really doesnt depend on the wages that u r getting but it totally depends on you how to save money u need to keep the monthly record of expenses and sort out where the most of money is getting spend and try to reduce in future.