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Realized yesterday that my net worth has exceeded $1M for the first time Celebrated by buying Bitcoins
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Jan 24, 2018 22:51
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If you're lucky you can experience the feeling of becoming a millionaire twice! It's like a financial independence prestige mode!
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Jan 24, 2018 23:34
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Dwight Eisenhower posted:please post in this thread when you inevitably fail to sell off your futures contracts and a literal ton of gold is delivered to your doorstep and your neighbors all come out of the woodwork to steal it as apocrypha have convinced me is an absolute certainty in any futures contract trade for physical commodities That is like $40MM of gold so I also hope they post about it if that happens, could be a great story
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Jan 25, 2018 00:10
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So what I'm getting from this is that I should be investing in the here and now with a bigass gold chain.
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Jan 25, 2018 04:30
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FieryBalrog posted:So what I'm getting from this is that I should be investing in the here and now with a bigass
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Jan 25, 2018 10:15
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I'll never forget one of my colleagues was so excited to spend his first adult real paycheck on a gold chain (he's a doctor). Like he wanted to talk about the karat weight of the gold and the gauge and everything. I still don't get it.
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Jan 25, 2018 15:57
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GoGoGadgetChris posted:Realized yesterday that my net worth has exceeded $1M for the first time Congrats! quote:Celebrated by buying Bitcoins  At least it wasn't cocaine?
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Jan 25, 2018 16:07
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EAT FASTER!!!!!! posted:I'll never forget one of my colleagues was so excited to spend his first adult real paycheck on a gold chain (he's a doctor). I'm not saying it is a good idea to do something like that, but surely you can understand that some people find it hard to get off on numbers in a bank account as opposed to tangible material rewards for their success, most people don't think or feel like FIREs/frugals is a recurring theme of this thread
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Jan 25, 2018 16:30
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pr0zac posted:
Cocaine will probably be more valuable in a year or so...
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Jan 25, 2018 16:32
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BEHOLD: MY CAPE posted:I'm not saying it is a good idea to do something like that, but surely you can understand that some people find it hard to get off on numbers in a bank account as opposed to tangible material rewards for their success, most people don't think or feel like FIREs/frugals is a recurring theme of this thread I can understand that people are like this but I admit it's really hard for me. Ive been there, I pissed away most of what I should have saved for the last 5 years on stuff like furniture, cars and records... I didn't get into FI until I realized none of that stuff did anything for me after I actually bought it. The difference for me is I can keep getting off to my bank account but my records are just compounding interest Ive thrown away. I guess it's like when the Mormons come to my door and try to convert me and I know we'll never see eye to eye.
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Jan 25, 2018 17:13
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Effective processes are more appealing to me than possessions but I admit that is because I'm a big dumb nerd.
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Jan 25, 2018 18:13
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Retiring early has never been my goal, but I really like the idea of financial independence; having a high savings rate just gives me more options. Hearing the shock in my manager's voice when I told her I was quitting my soul-sucking job really made it all budgeting and saving worthwhile for me. Having gently caress you money is priceless.
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Jan 25, 2018 19:54
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I still have little brain impulses to go buy an $80k car or dump $3k on a new PC before snapping out of it. It can be hard to shake, probably even moreso for others who don't understand the importance / even understand the concept of FI. It also likely varies significantly with job happiness. For several years I was saving absurd amounts of money, nearly as fast as I could, because I didn't love my job which drove me to try to get to FI as fast as possible. Now that I've moved jobs and love it, I'd be totally cool working until 60+, which then decreases my drive to be frugal. I suspect many people have just accepted the fact that they're going to work most of their life and thus don't particularly care about being FI, whether that's because they like their job/like working, or because they just don't understand the concept of FI in the first place.
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Jan 25, 2018 20:07
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I think it's a dangerous game to assume chasing FI is the cure for what ails everyone. There are a lot of evolutionary reasons why financial security doesn't actually make certain types of people happy. I've even backed off a bit on my FI goals recently. I still want to save a large portion of my income, but I'm definitely becoming looser with my spending habits.
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Jan 25, 2018 21:02
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I don't think it's really supposed to make you happy - it's fundamentally taking away something negative more than it is providing something positive. Barring catastrophe, no longer can ever you be forced to do work for slave wages in order to eat. You are relieved of the fear of that. Taking away negative things isn't sufficient for living a healthy fulfilling life.
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Jan 25, 2018 21:27
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Jeffrey of YOSPOS posted:I don't think it's really supposed to make you happy - it's fundamentally taking away something negative more than it is providing something positive. Barring catastrophe, no longer can ever you be forced to do work for slave wages in order to eat. You are relieved of the fear of that. Taking away negative things isn't sufficient for living a healthy fulfilling life. I agree with that sentiment for logical people, but most people don't behave logically. It's fairly obvious that most people treat money like it's on fire and must be spent quickly before it burns and is useless. I believe this is because our evolutionary roots trained us to utilize resources before they did indeed become useless, such as the case of rotten food, or stolen food. In addition to that, tribal evolution taught us to share resources with the tribe, and not hoard as individuals. I honestly think this is the root of most people's behaviour toward money, and why most don't save a time. People still behave as if their resources (money) are going to go to waste if not used, or their fellow tribe members will starve if the resources are not utilized. We pretend as if we buy things to make us happy, but in reality I think there's a whole other layer underneath that we're not even aware of, which is our evolutionarily determined urge to not hoard resources.
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Jan 25, 2018 23:09
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Now I want to see a Venn diagram of early retirement types and people who don't use consumables in RPGs.
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Jan 26, 2018 00:13
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AreWeDrunkYet posted:Now I want to see a Venn diagram of early retirement types and people who don't use consumables in RPGs.
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Jan 26, 2018 00:20
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I don't often use RPG consumables because they aren't generally challenging without them and using them requires tedious menu'ing. A good RPG would have very limited really strong consumables and would be impossible to win without using them effectively - I've yet to play one. 
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Jan 26, 2018 00:32
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Jeffrey of YOSPOS posted:I don't often use RPG consumables because they aren't generally challenging without them and using them requires tedious menu'ing. A good RPG would have very limited really strong consumables and would be impossible to win without using them effectively - I've yet to play one. Yep, same here. Couldn't be bothered, I just stack and sell then put the profits towards my characters' financial independence.
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Jan 26, 2018 01:30
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I think RPG consumables would actually fall under a different category evolutionarily. Even people who are horrible at holding onto money can be good at preserving physical consumables like paper towels and ziplocks or some other cheap-rear end method of preserving resources. It makes sense evolutionarily - things that don’t have a negative to preserving, such as paper towels, we are good at being cheap with. No one is going to starve because we re-use our paper towels. But money falls under a different category it seems, because it can be used to buy things that do have a shelf life, like food.
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Jan 26, 2018 01:31
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Hoodwinker posted:I absolutely use consumables and pop cooldowns whenever possible in RPGs. It doesn't make sense to hoard them when you can derive a non-zero value from them with use.
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Jan 26, 2018 13:05
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Cicero posted:We should make a game where consumables sitting in your inventory slowly generate a tiny trickle of new gold over time. Or the opposite - save that elixir too long? Sorry, now it's expired and it poisoned you instead.
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Jan 26, 2018 17:29
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Jeffrey of YOSPOS posted:I don't often use RPG consumables because they aren't generally challenging without them and using them requires tedious menu'ing. A good RPG would have very limited really strong consumables and would be impossible to win without using them effectively - I've yet to play one. Tangent: Roguelikes generally play that way - hoarders don't get much benefit because most of them have severe penalties for carrying too much, and if you die with 500 health potions you can't just reload.
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Jan 26, 2018 18:40
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The fact that the FI thread would evolve into Dungeons & Dragons chat illustrates my earlier points deliciously. Now excuse me while I continue to fail at Tinder on another lonely Friday night.
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Jan 26, 2018 22:21
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The D&D thread is currently talking about sweating onions and cooking so I'm guessing somewhere there's a Goons with Spoons thread talking about financial independence.
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Jan 26, 2018 22:22
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There has to be overlap between home cooking and frugality so I wouldn't be surprised.
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Jan 26, 2018 22:25
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Jeffrey of YOSPOS posted:The D&D thread is currently talking about sweating onions and cooking so I'm guessing somewhere there's a Goons with Spoons thread talking about financial independence. There's a "I'm poor what do I cook" thread so yeah probably.
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Jan 26, 2018 22:30
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Jeffrey of YOSPOS posted:I don't often use RPG consumables because they aren't generally challenging without them and using them requires tedious menu'ing. A good RPG would have very limited really strong consumables and would be impossible to win without using them effectively - I've yet to play one.
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Jan 27, 2018 01:21
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Bhodi posted:Darkest Dungeon is pretty close. You have to buy consumables at the beginning of the dungeon run and you sell what you don't use back for pittance so it's more of a core strat than incidental items like in final fantasy. Oh yeah I bought that right when it came out and feverishly played it until I got bored/I had a good team. Scope-limited consumables are good too where there's a defined place they go away at and so you use them first instead of spending permanent resources.
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Jan 27, 2018 01:57
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Darkest Dungeon is especially challenging about items because you have a very limited inventory with which to jam full of gold and trinkets. You either get to keep all of your holy water or dump it for another full stack of gold 
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Jan 27, 2018 03:43
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Jeffrey of YOSPOS posted:Oh yeah I bought that right when it came out lol! noob! u just pushed back your FIRE date by a couple days dipshit! steam sale next time bro peace
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Jan 27, 2018 10:35
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I'm Australian so this is in AUD. I'm a 30 year old who's earning $140,000 p.a. I'd like to retire within 15 years.
However, there's a few things that are tricky to take into account:
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May 5, 2018 05:01
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How are dividends taxed? Is there a cap on your mortgage when adjustment comes?
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May 5, 2018 05:26
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danse macabre posted:I'm Australian so this is in AUD. I'm a 30 year old who's earning $140,000 p.a. I'd like to retire within 15 years. One thing to check is if you can get a cheaper fix rate mortgage. You have a pretty good rate for floating but would they offer you a lower rate 1 year fixed? While I'm in NZ I have a portion of variable rate and 1, 2 and 3 year fixed rates to counter potential interest rate increases. If you use an index on the ASX like IOZ or total world fund the dividends aren't that great and the capital gains have been a bit low but still higher return than the mortgage interest. Overall my investment portfolio is outperforming NZ interest rates. However last year I restructured to reduce the remaining time on the mortgage to 15 years. So I'm paying off the mortgage a bit faster and investing the remainder. Reducing your mortgage faster reduces your exposure to future interest rates, and paying off a mortgage has an effective compounding return. On the flip side investments are outperforming housing and mortgage interest rates (but there's a risk this could also change). I also have the benefit of being in NZ so there's no capital gains tax and that has probably skewed my focus towards investment. No matter which balance you choose don't put everything into the mortgage. If something happens in the future and you've poured everything into the house and you need cash or liquid assets to pay the bills all you have is the remaining debt which doesn't count for anything if you'd need to sell your house to access the money.
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May 5, 2018 07:16
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Devian666 posted:One thing to check is if you can get a cheaper fix rate mortgage. You have a pretty good rate for floating but would they offer you a lower rate 1 year fixed? Unfortunately I doubt I'd be able to get a fixed rate mortgage at ~3.90%. I was able to get my current rate with no fees because I worked at the bank. This means my comparison rate (interest plus fees expressed as a percentage) is also about ~3.90%. Although some fixed rate mortgages quote interest rates of ~3.50%, the comparison rates are over 5.00% due to fees. It's worth talking to some banks about refinancing my variable down to about 3.50% though, thanks! In regards to paying into the mortgage, I wouldn't exactly pay into the mortgage but I would leave additional money in the offset account. This has the same effect as paying down the mortgage faster but the benefit of having the money available to use (as the offset account is a transaction account/checking account). Harry posted:How are dividends taxed? Is there a cap on your mortgage when adjustment comes? Short answer is that I'm not sure how dividends are taxed. It depends whether they are franked or unfranked dividends. But in any case, I'd be automatically reinvesting dividends so I wouldn't realise any gain. When I retire, I'd then start withdrawing money from my balance and be taxed at my personal income tax rate (20-40%). I'm not sure that you mean by 'cap on my mortgage when adjustment comes' -- sorry! -- I'm leaning towards:
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May 6, 2018 01:05
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danse macabre posted:
In the US a lot of ARMs have a max about the interest can jump. So you have a 3.75%, and rates just sky rocket to 8%, some mortgages will have a max of let's say 5%.
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May 6, 2018 01:14
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danse macabre posted:I'd love to hear if there are any issues that I haven't considered with this... Only way to know which would be better is through hindsight. You can make educated guesses either way but splitting the difference to hedge against each extreme certainly isn't a bad way to go, especially if it'll keep you psychologically sated. I don't have a house, but when crunching the numbers once I prettymuch decided to do something similar to minimize interest paid while still contributing to investments.
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May 6, 2018 01:42
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Harry posted:In the US a lot of ARMs have a max about the interest can jump. So you have a 3.75%, and rates just sky rocket to 8%, some mortgages will have a max of let's say 5%. Every month the Reserve Bank of Australia determines whether to move the cash rate up/down by 25 basis points or keeps it unchanged. If there is a movement upwards, banks will generally increase the interest rate on mortgages by the full 25 basis points. The court of public opinion and competition seems to stop banks increasing interest rates by much more than that. However, if the Reserve Bank's cash rate shoots upward over a few months then I'd expect that to be passed onto mortgage interest rates. There's not much I can do about that, unfortunately. Annoyingly, they tend to increase the interest rate on deposits by less than 25 basis points. Fatter margins. danse macabre fucked around with this message at 04:07 on May 6, 2018 |
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May 6, 2018 04:05
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danse macabre posted:Every month the Reserve Bank of Australia determines whether to move the cash rate up/down by 25 basis points or keeps it unchanged. If there is a movement upwards, banks will generally increase the interest rate on mortgages by the full 25 basis points. The court of public opinion and competition seems to stop banks increasing interest rates by much more than that. However, if the Reserve Bank's cash rate shoots upward over a few months then I'd expect that to be passed onto mortgage interest rates. There's not much I can do about that, unfortunately. So there is no contractual determination of the interest rate, it's just whatever the bank decides? In the United States typically the way a variable rate mortgage works is that there is a 5 to 7 year introductory fixed-rate and following that time the rate is determined every year and is typically indexed to the Libor rate plus an agreed-upon fixed percentage premium. So for example your rate may be Libor plus 2% or something like that and calculated annually. In other words neither party has any discretion in the rate, it is set by contract.
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May 6, 2018 15:30
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