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Money saving tips/Lifehacks

Discussion in 'Skills, Business and Finance' started by Corvid, Mar 1, 2016.

  1. Corvid

    Corvid Active Member

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    It's a good strategy Burt, I used to do that heading out – I'd calculate the cost of smokes and how many drinks I planned on having, and would only bring that amount with me. Prevents cocktail based regrets..
    I listen to TFMs content, he's good. Some of his theories and observations make a lot of sense. I'm especially fond of his comparisons between humans and other species, i.e. chimps and bonobos.
     
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  2. Corvid

    Corvid Active Member

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    Fossilhead, there's so much in your post I agree with and have done myself. Haven't ever managed to get a partners' spending under control on the long term, that's a feat in itself. It's one thing that causes the majority of fights between long term couples, and keeping separate finances and bank accounts has been recommended before as a good plan. I'd definitely do that too if in that situation, I have heard all the arguments at home and wouldn't want to be the "No" man for someone else all the time.

    My parents grew up with nothing as well, and their attitude has rubbed off on me too. That influence definitely makes a difference. I was taught to respect food and not waste it, and to be grateful for what I had. Taking care of your possessions was a big thing too, respecting your property.

    Thanks to the Internet, I buy everything I can second hand. All my cars, bicycles, musical instruments. You get a guitar second hand online for a third of the retail price. Most people buy them, parents buy them for budding rock stars, they plan to learn but almost invariably give up = practically unused guitar at 2/3 off. It's handy for selling stuff too.

    Regarding long term investments, it seems to me now that property is a great one. If you can manage to get a place cheap with a good location, fix it up a bit, rent it out, it'll pay for itself and usually only appreciate in value. You can get tenants to pay for the house for you through renting, keep renting and live off the money, or sell and get more money back than you put in. You need a bit of capital to get in there though. The banks have been unstable here, many people lost their savings, investments, pensions. I'm less inclined to trust them with my assets. There's even talk of making all bank accounts in Europe negative interest, meaning accounts depreciate with interest rather than appreciate. "Bail–in" rules came into effect in Europe in January, meaning that if the banks suffer another failure, i.e. become insolvent, they can take a percentage of your capital as a bail in to support the bank if your savings are over a certain amount. They can restrict your withdrawals too to prevent a dash to withdraw in an economic crisis. I'm also unsure of interest in the face of inflation, as in, 65,000 (I know you're not starting with that amount) was probably worth more 25 years ago than 115,000 now. 65,000 25 years ago here could have bought two houses. In the right location, selling about 10 years ago, you'd be looking at around 600,000 return. If you rented the houses in the meantime, you'd have most of your original money back. Selling now, it would be about 400,000 return, because the market has fell. But, renting, each house would be worth a minimum of 1200 per month, or 14,400 (x2) = 28,800 per annum gross. If you're creative with book keeping, you might get away with 20% tax. Even if the house bloody well burns down, the land is worth money in the right place!
     
    Last edited: Mar 2, 2016
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