Basic Financial Intelligence is Fastlane: Some Simple Strategies to Use Now.

[andrea532]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> It&#039;s always surprising to me how Americans seem to have access to money out of nowhere. In European countries, you&#039;d never be given any sort of credit if you don&#039;t have a very stable, full-time income, and more often than not, you&#039;d be rejected anyway!<br /> <br /> <br /> I don&#039;t know a single person in my life who owns a credit card. For us in Europe, you spend the money you have; you don&#039;t borrow money you don&#039;t have. I wouldn&#039;t be able to sleep at night knowing I have debt to pay or that I&#039;m using an expensive phone, Netflix subscription, or designer clothes while swimming in debt. Seriously, how can you do that? I wouldn&#039;t even go out to restaurants or bars until I was sure my debt was repaid.<br /> <br /> <br /> Unless it&#039;s absolutely necessary, I&#039;d never take out a loan, especially for something non-essential like a new phone, a vacation, or a car. I&#039;d buy the cheapest phone or car in the market that I could afford with my own money.<br /> <br /> <br /> Now I understand why doing business in the US is like the ultimate paradise: people spend money they don&#039;t even have. Indeed, it makes me laugh when people read books by Robert Kiyosaki explaining debts and similar concepts. For the majority of Europeans, using debt is an alien concept and it&#039;a also funny to see how a post like this is necessary... like... really? do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>Hi, I don&#039;t really agree. I&#039;m in Europe and I use the credit card to pay off my expenses, so I don&#039;t pay interest on them. The main advantage of using the credit card is that you can pay later in the month, rather than paying everything at the time.</div>

 

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[Laaz17]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> It&#039;s always surprising to me how Americans seem to have access to money out of nowhere. In European countries, you&#039;d never be given any sort of credit if you don&#039;t have a very stable, full-time income, and more often than not, you&#039;d be rejected anyway!<br /> <br /> <br /> I don&#039;t know a single person in my life who owns a credit card. For us in Europe, you spend the money you have; you don&#039;t borrow money you don&#039;t have. I wouldn&#039;t be able to sleep at night knowing I have debt to pay or that I&#039;m using an expensive phone, Netflix subscription, or designer clothes while swimming in debt. Seriously, how can you do that? I wouldn&#039;t even go out to restaurants or bars until I was sure my debt was repaid.<br /> <br /> <br /> Unless it&#039;s absolutely necessary, I&#039;d never take out a loan, especially for something non-essential like a new phone, a vacation, or a car. I&#039;d buy the cheapest phone or car in the market that I could afford with my own money.<br /> <br /> <br /> Now I understand why doing business in the US is like the ultimate paradise: people spend money they don&#039;t even have. Indeed, it makes me laugh when people read books by Robert Kiyosaki explaining debts and similar concepts. For the majority of Europeans, using debt is an alien concept and it&#039;a also funny to see how a post like this is necessary... like... really? do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>What country are you from?<br /> <br /> I live in France and I see the opposite, people make most of their purchases by paying in installments, so they are &quot;mini credits&quot;.<br /> <br /> It&#039;s the only way they have found to buy expensive items.<br /> Want a luxury item of clothing for €500, with only €1300 monthly salary? Pay in 10 installments!<br /> The new iPhone for €1500? Pay in 24 installments over two years!<br /> <br /> Excessive and luxurious consumption within reach in the short term but destructive in the long term...<br /> They are completely subject to a multinational to be able to satisfy their desire to consume.<br /> <br /> I also observe that the new trend of the moment is renting everything: washing machine, sofa, lawn mower...<br /> They own nothing but are happy :/</div>

 

[andrea532]

<div class="bbWrapper"><blockquote data-attributes="member: 121513" data-quote="Laaz17" data-source="post: 1139332" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139332" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139332">Laaz17 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> What country are you from?<br /> <br /> I live in France and I see the opposite, people make most of their purchases by paying in installments, so they are &quot;mini credits&quot;.<br /> <br /> It&#039;s the only way they have found to buy expensive items.<br /> Want a luxury item of clothing for €500, with only €1300 monthly salary? Pay in 10 installments!<br /> The new iPhone for €1500? Pay in 24 installments over two years!<br /> <br /> Excessive and luxurious consumption within reach in the short term but destructive in the long term...<br /> They are completely subject to a multinational to be able to satisfy their desire to consume.<br /> <br /> I also observe that the new trend of the moment is renting everything: washing machine, sofa, lawn mower...<br /> They own nothing but are happy :/ </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I live in Italy, there are those who make installments and those who use it to extend a payment, but now I&#039;ll stop writing because we&#039;re going off topic.<br /> The point is that in my country they use credit cards to accumulate points like Amex but not too much to get into debt</div>

 

[amp0193]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>As shocking as it may be, yes, it does need to be said.<br /> <br /> Carrying consumer debt is far and away the norm for most people in America.<br /> <br /> Showing fiscal responsibility and purchase restraint is rare, and the proliferation of BNPL apps have only added fuel to the fire.<br /> <br /> It is absolutely unthinkable for most Americans that you would buy a car without going into debt to do so (or to even consider a life without a car to be possible).<br /> <br /> I think a piece of this stems from America being seen as the land of opportunity. People here largely don’t see themselves as poor, they see themselves as on the way to becoming rich, regardless of circumstances, and they live as such.<br /> <br /> Consumerism is firmly entrenched here. And as a result, as you said, it’s a great country to start a business in.</div>

 

[Ravens_Shadow]

<div class="bbWrapper">So what you&#039;re telling me is I should have taken the $40 million in cash lmao</div>

 

[MJ DeMarco]

<div class="bbWrapper"><blockquote data-attributes="member: 12271" data-quote="Ravens_Shadow" data-source="post: 1139350" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139350" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139350">Ravens_Shadow said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> So what you&#039;re telling me is I should have taken the $40 million in cash lmao </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> You are a great example why the analysis is a &quot;case by case&quot; basis.<br /> <br /> Your business has a moat.<br /> <br /> And any increase in profit likely carries a multiple of 20 or better. So, another $1M in revenue is another $20M in valuation. <br /> <br /> 20X, or 2000% is far superior than any marginal tax rates on cash flow.</div>

 

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[ZCP]

<div class="bbWrapper"><blockquote data-attributes="member: 12271" data-quote="Ravens_Shadow" data-source="post: 1139350" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139350" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139350">Ravens_Shadow said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> So what you&#039;re telling me is I should have taken the $40 million in cash lmao </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>taking $10m could have been one play. make sure your distributions are going into other assets / industries. As MJ said, no reason not to continue to leverage the moat. Just don&#039;t suddenly have a large army appear on the horizon that plans to seige / drain the moat / storm the castle without some form of exit plan already in place!</div>

 

[ZCP]

<div class="bbWrapper">i spend a LOT of time talking to kids / college kids / people starting their career. NO ONE has basic financial knowledge. it is purposely NOT in our education system and was made a &#039;taboo&#039; subject to keep us uneducated / reliant on debt. ANY chance you get to sit down and do a P&amp;L and Balance Sheet for someone&#039;s personal finances, PLEASE do so. Their eyes are as big as dinner plates when the reality hits them. It is the only way I&#039;ve been able to get through to some people. Show them the numbers on the paper and sit back and let them decide what that means.<br /> <br /> &#039;Wait, this isn&#039;t sustainable!&#039; ..... No, it isn&#039;t.<br /> &#039;I have to make more money and spend less!&#039; ...... Yep.<br /> &#039;If I don&#039;t put money into investments, I&#039;ll work my whole life and die with nothing??&#039; .... Probably so.<br /> <br /> one hour once a week with your main family members to review your scoresheet can change everything in your life.</div>

 

[Simon Angel]

<div class="bbWrapper">...What about buying gold with money that&#039;s sitting in your bank?<br /> <br /> When you have zero debt and your emergency fund is fully funded and you&#039;ve got excess $$$ that can&#039;t be used to grow your business with great ROI. Is that viable? (I&#039;m talking 5 and low 6-figure sums)<br /> <br /> I have a friend who told me he hired a financial consultant to deal with the same issue who told him to put his money in Blackrock pension funds, and some funds/bonds/something (admittedly, I&#039;m ignorant on this topic) where he&#039;ll have to deposit $5-10K in every 6 months and supposedly get back $300-400K when he&#039;s 60.<br /> <br /> Again, I&#039;m rather illiterate when it comes to investments, but that seemed plain wrong.</div>

 

[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> It&#039;s always surprising to me how Americans seem to have access to money out of nowhere. In European countries, you&#039;d never be given any sort of credit if you don&#039;t have a very stable, full-time income, and more often than not, you&#039;d be rejected anyway!<br /> <br /> <br /> I don&#039;t know a single person in my life who owns a credit card. For us in Europe, you spend the money you have; you don&#039;t borrow money you don&#039;t have. I wouldn&#039;t be able to sleep at night knowing I have debt to pay or that I&#039;m using an expensive phone, Netflix subscription, or designer clothes while swimming in debt. Seriously, how can you do that? I wouldn&#039;t even go out to restaurants or bars until I was sure my debt was repaid.<br /> <br /> <br /> Unless it&#039;s absolutely necessary, I&#039;d never take out a loan, especially for something non-essential like a new phone, a vacation, or a car. I&#039;d buy the cheapest phone or car in the market that I could afford with my own money.<br /> <br /> <br /> Now I understand why doing business in the US is like the ultimate paradise: people spend money they don&#039;t even have. Indeed, it makes me laugh when people read books by Robert Kiyosaki explaining debts and similar concepts. For the majority of Europeans, using debt is an alien concept and it&#039;a also funny to see how a post like this is necessary... like... really? do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I agree. If you don&#039;t have the cash in your pocket, don&#039;t spend it. If you do the cash, save it for the next good investment deal. What good is a babble that is worthless when you get it home? Or a glitchy car that depreciates? Cash is king in my RE world. That truth has made me a minimalist in my personal possessions and a tightwad with my cash. I squeeze every dime for all that it is worth.</div>

 

[ZackerySprague]

<div class="bbWrapper"><blockquote data-attributes="member: 16059" data-quote="amp0193" data-source="post: 1139345" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139345" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139345">amp0193 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> As shocking as it may be, yes, it does need to be said.<br /> <br /> Carrying consumer debt is far and away the norm for most people in America.<br /> <br /> Showing fiscal responsibility and purchase restraint is rare, and the proliferation of BNPL apps have only added fuel to the fire.<br /> <br /> It is absolutely unthinkable for most Americans that you would buy a car without going into debt to do so (or to even consider a life without a car to be possible).<br /> <br /> I think a piece of this stems from America being seen as the land of opportunity. People here largely don’t see themselves as poor, they see themselves as on the way to becoming rich, regardless of circumstances, and they live as such.<br /> <br /> Consumerism is firmly entrenched here. And as a result, as you said, it’s a great country to start a business in. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I miss my 3% APR on my old 2015 Hyundai Elantra. I wanna cry, haha. I&#039;m glad I cleaned up most of my consumer debt these past 2 years. The process sucked, but I am grateful. <br /> <br /> Down to the last ones. It&#039;s been a long 5 years.</div>

 

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[Two Dog]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>Well, yeah. You just wrote an entire post explaining why!!<br /> <br /> The largest banks offering credit cards, credit lines, every debt product imaginable in the US have massive marketing budgets backed by some of the smartest marketing people in the world using some of the most sophisticated analytics software ever created.<br /> <br /> And don&#039;t forget about online betting here. <img src="/community/imgs/emoticons/em-rofl.png" class="smilie" loading="lazy" alt=":rofl:" title="ROFL :rofl:" data-shortname=":rofl:" /></div>

 

[savefox]

<div class="bbWrapper"><blockquote data-attributes="member: 130921" data-quote="alexXx9" data-source="post: 1139328" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139328" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139328">alexXx9 said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> It&#039;s always surprising to me how Americans seem to have access to money out of nowhere. In European countries, you&#039;d never be given any sort of credit if you don&#039;t have a very stable, full-time income, and more often than not, you&#039;d be rejected anyway!<br /> <br /> <br /> I don&#039;t know a single person in my life who owns a credit card. For us in Europe, you spend the money you have; you don&#039;t borrow money you don&#039;t have. I wouldn&#039;t be able to sleep at night knowing I have debt to pay or that I&#039;m using an expensive phone, Netflix subscription, or designer clothes while swimming in debt. Seriously, how can you do that? I wouldn&#039;t even go out to restaurants or bars until I was sure my debt was repaid.<br /> <br /> <br /> Unless it&#039;s absolutely necessary, I&#039;d never take out a loan, especially for something non-essential like a new phone, a vacation, or a car. I&#039;d buy the cheapest phone or car in the market that I could afford with my own money.<br /> <br /> <br /> Now I understand why doing business in the US is like the ultimate paradise: people spend money they don&#039;t even have. Indeed, it makes me laugh when people read books by Robert Kiyosaki explaining debts and similar concepts. For the majority of Europeans, using debt is an alien concept and it&#039;a also funny to see how a post like this is necessary... like... really? do you really need someone to tell you the smartest thing to do is to repay the high-interest debt that you made for stupid things such as a car? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> yeah yeah americans stupid. <br /> <br /> &quot;Based on the table, the top three countries with the higher household or personal debt based on a portion of their annual disposable income are Denmark, Norway, and the Netherlands. High debts may be influenced by many factors, including the cost of living, mortgage, property loans, auto loans, credit cards, and more.&quot;<br /> <a href="https://www.thefastlaneforum.com/community/attachments/1726542202152-webp.58617/" target="_blank"><img src="https://www.thefastlaneforum.com/community/data/attachments/55/55233-9557c2b324c4111e85e1604c87ff91ed.jpg?hash=b8hhSu0EDe" class="bbImage " style="" alt="1726542202152.webp" title="1726542202152.webp" width="200" height="241" loading="lazy" /></a></div>

 

[MitchC]

<div class="bbWrapper">I want to share 2 mistakes I made with my mortgage that I wish someone told me<br /> <br /> I was annoyed when I realised I’d made these mistake that no one told me, but then I realised most people probably don’t even understand this mistake, let alone thought not to make it<br /> <br /> So the first one:<br /> Interest rates were low during covid<br /> I had different options of interest rates and lengths to fix<br /> I picked the lowest rate<br /> 2 years at 1.99%<br /> Now I could have gotten 4 years at 2.2%<br /> It wasn’t until my rate expired 2 years later and we went onto a 6% variable rate that I realised I’d f*cked up, I could have had another 2 years at 2.2% but no, I picked the lowest rate<br /> <br /> My mate who clearly is much smarter than me actually broke his fixed term early and fixed it at a higher rate knowing that if he didn’t, by the time his expired he’d be F*cked<br /> <br /> Second mistake<br /> Not really a mistake<br /> But if you’re on a variable rate, regularly go and ask for a lower rate<br /> The bank isn’t going to give you a lower rate without you asking<br /> Sure rates are going up, and yours is changing<br /> But it’s only ever going to change up<br /> I just assumed the rate always changed and was always correct <br /> I was wrong <br /> It only changes up <br /> <br /> I’ve been to the bank 3 times now and every time I’ve asked they’ve lowered it, I should go back again and ask now really <br /> <br /> This isn’t some crazy negotiation, you are going to the bank to talk to someone with no incentive, who doesn’t give a F*ck, and has no power<br /> <br /> They will open the computer and give you the lowest rate it will let them<br /> <br /> Free money<br /> <br /> Also on this note, if you can be bothered, you can shop around for lower rates, and at the moment banks are offer $1000s of dollars in cash and gifts to switch to them<br /> <br /> You can do this as often as you want, I haven’t bothered so I can’t advice on any hidden risks or costs but I know people who have moved a few times and pocketed a few $1000 each time</div>

 

[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 105350" data-quote="Two Dog" data-source="post: 1139416" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139416" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139416">Two Dog said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Well, yeah. You just wrote an entire post explaining why!!<br /> <br /> The largest banks offering credit cards, credit lines, every debt product imaginable in the US have massive marketing budgets backed by some of the smartest marketing people in the world using some of the most sophisticated analytics software ever created.<br /> <br /> And don&#039;t forget about online betting here. <img src="/community/imgs/emoticons/em-rofl.png" class="smilie" loading="lazy" alt=":rofl:" title="ROFL :rofl:" data-shortname=":rofl:" /> </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>So true. And then add the old tobacco companies buying up the food industry using their magic chemicals to make food addictive. It&#039;s a bunch of ways to make people passive and easy to control.</div>

 

[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 96450" data-quote="ZackerySprague" data-source="post: 1139405" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139405" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139405">ZackerySprague said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I miss my 3% APR on my old 2015 Hyundai Elantra. I wanna cry, haha. I&#039;m glad I cleaned up most of my consumer debt these past 2 years. The process sucked, but I am grateful.<br /> <br /> Down to the last ones. It&#039;s been a long 5 years. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>You won&#039;t feel the difference for a while. Give it time. It&#039;s a different mindset.</div>

 

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[wal]

<div class="bbWrapper">I currently have around £14k worth of debt. Granted most of this is for a car, with only around £2.5k on a credit card and it definitely stings quite a lot.<br /> <br /> This being the case I still watch my money carefully, but definitely could benefit from the weekly reviews as mentioned before. Since reading TMF I have been a lot more conscious of my purchases and even reviewed my last months expenses to see where I was spending the most.<br /> <br /> Turns out basically all my spare cash that I give myself every month goes on food, eating out, MCDs etc. Then something happens, I need the cash to pay for it and I don&#039;t want to pull it from my savings but I don&#039;t have anything left to deal with it. Something I&#039;m actively trying to be more accountable for.<br /> <br /> Most of my cash is sat in 4.6% savings accounts in my bank, I currently don&#039;t have an emergency fund setup so this is the best option for me currently IMO.<br /> <br /> My plan is to follow the Fastlane capital allocation model and reduce expenses as much as possible whilst trying to build a Fastlane business to speed up my income whilst also periodically reviewing offers to reduce the interest on the car as this is currently at 14.9% APR, the credit card is 0% and will stay that way as long as I switch before it ends.<br /> <br /> I think my plan is pretty good, and that I&#039;m on top of everything, but if anyone has any advice or sees any flaws in my plan, it would be greatly appreciated.</div>

 

[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 145722" data-quote="wal" data-source="post: 1139482" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139482" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139482">wal said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I currently have around £14k worth of debt. Granted most of this is for a car, with only around £2.5k on a credit card and it definitely stings quite a lot.<br /> <br /> This being the case I still watch my money carefully, but definitely could benefit from the weekly reviews as mentioned before. Since reading TMF I have been a lot more conscious of my purchases and even reviewed my last months expenses to see where I was spending the most.<br /> <br /> Turns out basically all my spare cash that I give myself every month goes on food, eating out, MCDs etc. Then something happens, I need the cash to pay for it and I don&#039;t want to pull it from my savings but I don&#039;t have anything left to deal with it. Something I&#039;m actively trying to be more accountable for.<br /> <br /> Most of my cash is sat in 4.6% savings accounts in my bank, I currently don&#039;t have an emergency fund setup so this is the best option for me currently IMO.<br /> <br /> My plan is to follow the Fastlane capital allocation model and reduce expenses as much as possible whilst trying to build a Fastlane business to speed up my income whilst also periodically reviewing offers to reduce the interest on the car as this is currently at 14.9% APR, the credit card is 0% and will stay that way as long as I switch before it ends.<br /> <br /> I think my plan is pretty good, and that I&#039;m on top of everything, but if anyone has any advice or sees any flaws in my plan, it would be greatly appreciated. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>You have a plan. That is the beginning. And you are tracking your expenses. That is the tool to make your plan work. When my kids were little, they used to tell us that we were the cheapest people on God&#039;s green earth. Now, as adults, they call us for financial advice. Funny how that awareness works!</div>

 

[wahiemukesh]

<div class="bbWrapper">My friend, Europe is part of the same planet, not another. <br /> <br /> If one wants to learn, there is plenty.<br /> <br /> Think about it.</div>

 

[ZCP]

<div class="bbWrapper">What gets measured gets improved<br /> <a href="https://www.thefastlaneforum.com/community/attachments/1726580105124-webp.58629/" target="_blank"><img src="https://www.thefastlaneforum.com/community/data/attachments/55/55245-975e9650aa5e535db5dc5606249bb754.jpg?hash=3W1uFJOZmC" class="bbImage " style="" alt="1726580105124.webp" title="1726580105124.webp" width="436" height="167" loading="lazy" /></a></div>

 

[wal]

<div class="bbWrapper"><blockquote data-attributes="member: 51608" data-quote="WJK" data-source="post: 1139488" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139488" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139488">WJK said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> You have a plan. That is the beginning. And you are tracking your expenses. That is the tool to make your plan work. When my kids were little, they used to tell us that we were the cheapest people on God&#039;s green earth. Now, as adults, they call us for financial advice. Funny how that awareness works! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>That&#039;s really funny actually, as I am about to go and have a conversation with my parents tomorrow about putting themselves into financial ruin by overspending and excessive debt, so the tables have turned this time!</div>

 

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[thehawkman]

<div class="bbWrapper"><blockquote data-attributes="member: 39527" data-quote="Simon Angel" data-source="post: 1139371" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139371" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139371">Simon Angel said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> ...What about buying gold with money that&#039;s sitting in your bank?<br /> <br /> When you have zero debt and your emergency fund is fully funded and you&#039;ve got excess $$$ that can&#039;t be used to grow your business with great ROI. Is that viable? (I&#039;m talking 5 and low 6-figure sums)<br /> <br /> I have a friend who told me he hired a financial consultant to deal with the same issue who told him to put his money in Blackrock pension funds, and some funds/bonds/something (admittedly, I&#039;m ignorant on this topic) where he&#039;ll have to deposit $5-10K in every 6 months and supposedly get back $300-400K when he&#039;s 60.<br /> <br /> Again, I&#039;m rather illiterate when it comes to investments, but that seemed plain wrong. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>Sounds like a scam. Insurance companies operate on the same principle, but it seems like they do everything in their power not to pay you back when the time comes. My mom tried to cash an insurance policy when my stepfather died and she was denied because they said he&#039;d basically lived more than expected (not in those exact words, but that was basically the gist of it), and the policy had expired at 70 or something , whereas he lived up to 82.</div>

 

[thehawkman]

<div class="bbWrapper"><blockquote data-attributes="member: 22018" data-quote="MitchC" data-source="post: 1139464" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139464" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139464">MitchC said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I want to share 2 mistakes I made with my mortgage that I wish someone told me<br /> <br /> I was annoyed when I realised I’d made these mistake that no one told me, but then I realised most people probably don’t even understand this mistake, let alone thought not to make it<br /> <br /> So the first one:<br /> Interest rates were low during covid<br /> I had different options of interest rates and lengths to fix<br /> I picked the lowest rate<br /> 2 years at 1.99%<br /> Now I could have gotten 4 years at 2.2%<br /> It wasn’t until my rate expired 2 years later and we went onto a 6% variable rate that I realised I’d f*cked up, I could have had another 2 years at 2.2% but no, I picked the lowest rate<br /> <br /> My mate who clearly is much smarter than me actually broke his fixed term early and fixed it at a higher rate knowing that if he didn’t, by the time his expired he’d be F*cked<br /> <br /> Second mistake<br /> Not really a mistake<br /> But if you’re on a variable rate, regularly go and ask for a lower rate<br /> The bank isn’t going to give you a lower rate without you asking<br /> Sure rates are going up, and yours is changing<br /> But it’s only ever going to change up<br /> I just assumed the rate always changed and was always correct<br /> I was wrong<br /> It only changes up<br /> <br /> I’ve been to the bank 3 times now and every time I’ve asked they’ve lowered it, I should go back again and ask now really<br /> <br /> This isn’t some crazy negotiation, you are going to the bank to talk to someone with no incentive, who doesn’t give a F*ck, and has no power<br /> <br /> They will open the computer and give you the lowest rate it will let them<br /> <br /> Free money<br /> <br /> Also on this note, if you can be bothered, you can shop around for lower rates, and at the moment banks are offer $1000s of dollars in cash and gifts to switch to them<br /> <br /> You can do this as often as you want, I haven’t bothered so I can’t advice on any hidden risks or costs but I know people who have moved a few times and pocketed a few $1000 each time </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>But do they? I mean, my experience up to this age is that people/entities will only yield to superior power, so to speak. In the relationship with the bank, that&#039;s unlikely to be you, and that bank employee could very well be reprimanded or even fired for lowering the bank&#039;s profit by giving someone/you a lower interest rate. I can&#039;t think of any leverage you coud use to make them give a lower rate, except perhaps moving to another bank with your loan. Don&#039;t know a lot about how that works TBH (time to have a talk with ChatGPT <span class="smilie smilie--emoji" title="Big Grin :D" data-smilie="8" data-shortname=":D">😀</span>), I think you can do it via refinancing, but from what I know that also involves certain fees so it may not save you much, if anything.</div>

 

[MitchC]

<div class="bbWrapper"><blockquote data-attributes="member: 14927" data-quote="thehawkman" data-source="post: 1139602" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139602" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139602">thehawkman said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> But do they? I mean, my experience up to this age is that people/entities will only yield to superior power, so to speak. In the relationship with the bank, that&#039;s unlikely to be you, and that bank employee could very well be reprimanded or even fired for lowering the bank&#039;s profit by giving someone/you a lower interest rate. I can&#039;t think of any leverage you coud use to make them give a lower rate, except perhaps moving to another bank with your loan. Don&#039;t know a lot about how that works TBH (time to have a talk with ChatGPT <span class="smilie smilie--emoji" title="Big Grin :D" data-smilie="8" data-shortname=":D">😀</span>), I think you can do it via refinancing, but from what I know that also involves certain fees so it may not save you much, if anything. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>What part of I&#039;ve been in and asked 3 times and got a lower rate every time did you not understand?</div>

 

[biophase]

<div class="bbWrapper"><blockquote data-attributes="member: 22018" data-quote="MitchC" data-source="post: 1139640" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139640" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139640">MitchC said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> What part of I&#039;ve been in and asked 3 times and got a lower rate every time did you not understand? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I’m also curious about this part. First, I assume that your bank is the one that underwrote the loan and is currently servicing it.<br /> <br /> When you asked, did they make you sign new docs? Isn’t your rate tied to LIBOR or Prime? Did they just say, “instead of prime + 4, we will give you prime + 3.5?”. I just don’t understand how they can do that with going through an entire loan refinance process each time. Your current loan package has fundamentally changed when they changed the rate.<br /> <br /> Edit: I see that you’re in Australia so maybe it’s totally different there. In the US, I don’t think this would work at all.</div>

 

[MitchC]

<div class="bbWrapper"><blockquote data-attributes="member: 23" data-quote="biophase" data-source="post: 1139655" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139655" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139655">biophase said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I’m also curious about this part. First, I assume that your bank is the one that underwrote the loan and is currently servicing it.<br /> <br /> When you asked, did they make you sign new docs? Isn’t your rate tied to LIBOR or Prime? Did they just say, “instead of prime + 4, we will give you prime + 3.5?”. I just don’t understand how they can do that with going through an entire loan refinance process each time. Your current loan package has fundamentally changed when they changed the rate.<br /> <br /> Edit: I see that you’re in Australia so maybe it’s totally different there. In the US, I don’t think this would work at all. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>Yes maybe it’s different, I don’t know much about this stuff clearly<br /> <br /> I wish I lived in USA, your guys fixed terms are insane, the max you can fix here for is 5 years and you never would because the rate would be so much higher <br /> <br /> 30 year fixed is unheard of<br /> <br /> We have 2 types of loans here <br /> <br /> Fixed and variable <br /> <br /> If you are on a variable rate the rate changes <br /> <br /> You can also move banks at any time there’s no contract <br /> <br /> Usually you would have this as you can have an offset account with this and offset the loan amount with your savings, you cannot offset a fixed mortgage, you are also locked in to a term with a fixed mortgage, but the rate is also fixed <br /> <br /> Anyway, with the variable rate I assumed it went up and down with the market, what I found is it only goes up, they never put it down <br /> <br /> So by going in and asking they see if they can put it down again <br /> <br /> Because they rate is variable they just change it, no need to refinance <br /> <br /> Also my specific situation and package is a little different so my situation is unique <br /> <br /> What the bank is actually doing is applying a discount to my rate <br /> <br /> So rather than lower my rate they are increasing the discount <br /> <br /> I’d be interested to hear how things work in other places, if anyone has a similar experience or different <br /> <br /> Like was mentioned in this thread, no one ever talks about this stuff</div>

 

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[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 145722" data-quote="wal" data-source="post: 1139547" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139547" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139547">wal said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> That&#039;s really funny actually, as I am about to go and have a conversation with my parents tomorrow about putting themselves into financial ruin by overspending and excessive debt, so the tables have turned this time! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>My parents spent themselves into the poor house. They even got a divorce over their conflicts after 43 years of marriage. At the end of Mom&#039;s life, she had a bunch of strokes and I took over her finances. I started her a savings account and put her savings account ledger on the kitchen table next to her coffee cup. She checked it each morning and bragged to me about having a savings account &quot;with money in it!&quot; It was the first time in her life she was able to have savings without Dad spending it.</div>

 

[wal]

<div class="bbWrapper"><blockquote data-attributes="member: 51608" data-quote="WJK" data-source="post: 1139669" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139669" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139669">WJK said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> My parents spent themselves into the poor house. They even got a divorce over their conflicts after 43 years of marriage. At the end of Mom&#039;s life, she had a bunch of strokes and I took over her finances. I started her a savings account and put her savings account ledger on the kitchen table next to her coffee cup. She checked it each morning and bragged to me about having a savings account &quot;with money in it!&quot; It was the first time in her life she was able to have savings without Dad spending it. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>That must have been so great for her. That&#039;s such a lovely story! I&#039;m glad she was happy about it!</div>

 

[Tinker Explorer]

<div class="bbWrapper"><blockquote data-attributes="member: 51608" data-quote="WJK" data-source="post: 1139237" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139237" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139237">WJK said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> When is enough -- just that, enough? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> <br /> Thanks for bringing this up.<br /> <br /> Just reading &quot;The Soul of Money&quot; and Lynne Twist talks about sufficiency. , and enoughness - as the path to abundance and wealth. (but check yourself on the definition of what those 2 words actually mean to you). If we could only recognize that what we have is exactly everything we need, and is enough, then our efforting and what we do everyday in our life would come from a place of - I&#039;m doing this cuz I enjoy it, not because I don&#039;t have enough and I have to stockpile for tomorrow.<br /> <br /> This perspective shift doesn&#039;t necessarily have to change what we do, but energetically, I believe we can attract more easily when we are not acting out of some kind of lack or desperation. This energy can be felt by others even if they&#039;re not conscious of it.<br /> <br /> I started on this path for exactly the reason of having enough to retire, and maybe even live a little more comfortably now. But what if I say I have enough -which I do - and don&#039;t actually <i>have</i> to save up for retirement because I am confident I will be taken care of in every moment. Then what? Well, what am I doing with my days? I&#039;m not a sit on the beach and drink margaritas kind of person. I love having a project. And why not build a business and learn new stuff meanwhile. So the learning and building is what I&#039;m doing cuz I like it. If it supports me along the way financially, it is feedback that the engine is working, and I get a bonus. Wow. What would <i>that </i>feel like? Creating from a place of JOY.</div>

 

[WJK]

<div class="bbWrapper"><blockquote data-attributes="member: 144313" data-quote="Tinker Explorer" data-source="post: 1139751" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=1139751" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-1139751">Tinker Explorer said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Thanks for bringing this up.<br /> <br /> Just reading &quot;The Soul of Money&quot; and Lynne Twist talks about sufficiency. , and enoughness - as the path to abundance and wealth. (but check yourself on the definition of what those 2 words actually mean to you). If we could only recognize that what we have is exactly everything we need, and is enough, then our efforting and what we do everyday in our life would come from a place of - I&#039;m doing this cuz I enjoy it, not because I don&#039;t have enough and I have to stockpile for tomorrow.<br /> <br /> This perspective shift doesn&#039;t necessarily have to change what we do, but energetically, I believe we can attract more easily when we are not acting out of some kind of lack or desperation. This energy can be felt by others even if they&#039;re not conscious of it.<br /> <br /> I started on this path for exactly the reason of having enough to retire, and maybe even live a little more comfortably now. But what if I say I have enough -which I do - and don&#039;t actually <i>have</i> to save up for retirement because I am confident I will be taken care of in every moment. Then what? Well, what am I doing with my days? I&#039;m not a sit on the beach and drink margaritas kind of person. I love having a project. And why not build a business and learn new stuff meanwhile. So the learning and building is what I&#039;m doing cuz I like it. If it supports me along the way financially, it is feedback that the engine is working, and I get a bonus. Wow. What would <i>that </i>feel like? Creating from a place of JOY. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I&#039;ve been retired for 22 years and just not good at it. Sitting around is boring to me. I&#039;m like you. I must always have a project or something to learn. I&#039;ve working just about every day since I was 11 years old. Life would be so boring without something of interest.</div>