I’m in the States so dunno how this translates… But my parents made get a 500usd limit credit card when I was like 14. It had been the best decision that I’ve made. My credit is so dn good now that I can get what ever I want easily approved. That and they insisted I make a home purchase at like 23- right be fore the mortgages went nuts. My mortgage is like a quarter of what others pay for a rental…
Thanks ma and pa 🤜🤛
Working with my SO to start budgeting each month. We now have a system in place that works for us and a habit of getting out in front of expenses.
Budgeting helped us see that increasing your income is far more powerful than reducing spending, so we’re focused on spending to gain skills and increase our top line right now.
I guess buying my apartment at the time I bought it. Got great mortgage rate and a good price. Fast forward 2 years, the rates are 6 times higher and prices are least 50% up. Turns out I hit a historic low.
It’s either my best or my worst: I bought a house with my SO that we got for about half of the value
Moving to Switzerland.
Accidentally buying a modest house in what at the time was a “distressed” neighborhood because it was all we could afford. 15 years later the neighborhood has been gentrified and is highly desirable. The property has tripled in value and the land is now worth more than the house itself.
Anyhow, it was dumb luck on my part and again, mostly had to do with the place being affordable and relatively close to my wife’s parents.
the land is now worth more than the house itself.
This is usually the case. When the value goes up, pretty much all of the increase is due to the land value increasing. Land is a limited resource that’s always in demand, especially in desirable areas. The house itself is actually going down in value over time due to depreciation.
In my area it’s not uncommon for at least 70% of the value of a property to be in the land, and the house itself accounts for less than 30% of the value. There’s a lot of houses built in the 1940s to 70s in highly desirable areas.
Buying used shit
This is a great move generally. I’ve never bought a new car in my life and I generally buy other expensive stuff used as well. I’ve only ever bought a couple of new guitars for example and I’ve found it’s not worth the upcharge over used.
Boardgames and video games are nice to have new but most of the time the people I buy them from have been super careful with their stuff so you hardly notice it’s been used.
Same thing with clothes. People buy so much shit that they hardly (if ever) wear it before selling it on. I’ve bought Chucks with the tags still on for half of what they’re sold for in retail. Same thing with jeans.
Also it’s generally better for the environment to buy used.
Choosing to be child-free.
Securing a long-term fixed rate mortgage just before the war in Russia. Other than that it’s basically been any time I saved money rather than spending it.
Nitpicky but where in russia is a war going on? You mean the russian attack on ukraine right?
Remember luck is just the intersection of preparation and opportunity.
Saving 60% of my take-home pay was the smartest financial decision I ever made. Difficult to execute, but very rewarding long-term in the behaviors I developed.
Was saving 60% of my income the most impactful financial decision I ever made? No, I had some luck in other areas. But this level of self-discipline helped me develop the skills to handle good luck later
How in the actual hell do you save 60% of your take home? Do you have an exceptionally well paying job? Single and living a ramen noodles and tent lifestyle? Would love to hear more because I can’t even fathom how an average person could achieve this level of saving. I struggle with saving just 20% after all the bills are paid, and I consider myself frugal. Sure I have a Netflix subscription, but I don’t go on vacations or carry a car note, my wardrobe is fruit of the loom package teeshirts and simple jeans, my PC is from 2016… What’s your secret?
Living at home (free rent)
Eating only at work (free food), no fridge at home.
No car (public transit pass)
The percentage isn’t the important thing, its developing the attitude that you can happily live below your means. FWIW it was 60% post-tax, not pre-tax
At some point it becomes a game, how little can you get by with.
Fair enough, cutting out housing and food expenses would definitely go a long way, that’s easily the majority of my personal post-tax costs.
I’m glad those opportunities were available for you to get on your feet and built a cushion. My parents booted me out with 70k in student debt, though it’s been a decade and I’ve dug myself out of it and built a life, it still feels like there’s no escaping the treadmill.
Getting an industry job rather than a postdoc after I finished my PhD.
Ha, couldn’t handle living in poverty for 4-5 more years?
Edit: I’m glad you got out. Chasing the academic dragon is rarely worth it in my opinion.
Leaving Sydney for a cheaper quieter life in Central West NSW!
Nice 4 bedroom home with views, 1200m² block with trees, quiet area, school almost across the road, close to everything else and best of all, a tiny manageable mortgage!
Yes! Particularly if your job is industrial, get a house somewhere else, but not on the city. Try to find a place with good public transport to the city, tho. Cities will be slowly quitting car infrastructure.
Vasectomy BEFORE kids
That’s not how it works. At least not if the vasectomy is done correctly.
Starting investing into index fund ETFs
I only started about 3 years ago but even if I stopped putting in more money right now it would still keep paying me interests around 2000 to 3000€ each year for the rest of my life and it’s 100% passive income. In my case it’s all invested back into the funds though.
The second best move was starting to track my finances. It’s almost impossible to not change your spending habits once you actually see where all the money is going. Almost anyone can cut atleast 100€ a month from their grocery bills by just being a little more mindfull about what you buy. That’s 1200€/year or 12k€/10 years.
Almost anyone can cut atleast 100€ a month from their grocery bills by just being a little more mindfull about what you buy.
Yeah no. I spent about 150€/month on groceries before, now after the inflations about 180€/month. The only way to safe 100€/month there would be to skip meals.
From what you write you seem to be in the top 1-10% of people by income, and the numbers you put out only work for people in the same priviledged situation.
I said almost anyone for a reason. Just because general advice doesn’t apply to you specifically it doesn’t mean it doesn’t apply to the average person then either.
Average monthly cost of groceries in my country in 2020:
- Single person: 300€
- Single parent, one child: 350€
- Couple: 550€
- Single parent, two childs, 620€
- Couple, two childs: 760€
Putting all my money in buying real gold, Osmium and Gallium. Very good investment.
