Um, guys? Public transit?
In Toronto, the TTC will run you about $1100 a year if you sign up for them to mail you passes monthly. You can't even legally *park* downtown, every workday, for that much (if you can find a spot at all). To say nothing of depreciation (i.e. the actual cost of the car, amortized over its useful lifetime), maintenance, fuel costs and (omfg) insurance (what a scam - the only other time you're *required* to have insurance is malpractice insurance as a doctor, AFAIK).
Cars are a ridiculous money sink and a cancer on the environment; and I fully intend never to own one.
Financial Planning
Read 'The Richest Man in Babylon'. Learn it. Live it. Now. This is the ONLY book you need when it comes to money management. I won't tell you how to financially plan, but it will give you the appropriate rules to live by and you will learn the rules of gold...
Quote:Original post by Zahlman
Um, guys? Public transit?
In Toronto, the TTC will run you about $1100 a year if you sign up for them to mail you passes monthly. You can't even legally *park* downtown, every workday, for that much (if you can find a spot at all). To say nothing of depreciation (i.e. the actual cost of the car, amortized over its useful lifetime), maintenance, fuel costs and (omfg) insurance (what a scam - the only other time you're *required* to have insurance is malpractice insurance as a doctor, AFAIK).
Cars are a ridiculous money sink and a cancer on the environment; and I fully intend never to own one.
not getting shanked on the bus(or waiting for the bus) and the ability to travel between cities when I want to is totally worth the price of my car.
yeah i hate waiting for bus.
and sometimes waiting inside it
especially with more then standard amount of peoples.
there is too much different types of peoples.
its makes me feel like in the hell sometimes.
when you waiting for buss.sometimes you are ready to loose anything you hawe.
because they comes too late then you can think sometimes.
so hawing a car is realy good sometimes.
espesially on this hell.
and sometimes waiting inside it
especially with more then standard amount of peoples.
there is too much different types of peoples.
its makes me feel like in the hell sometimes.
when you waiting for buss.sometimes you are ready to loose anything you hawe.
because they comes too late then you can think sometimes.
so hawing a car is realy good sometimes.
espesially on this hell.
Quote:Original post by Zahlman
Um, guys? Public transit?
In Toronto, the TTC will run you about $1100 a year if you sign up for them to mail you passes monthly. You can't even legally *park* downtown, every workday, for that much (if you can find a spot at all). To say nothing of depreciation (i.e. the actual cost of the car, amortized over its useful lifetime), maintenance, fuel costs and (omfg) insurance (what a scam - the only other time you're *required* to have insurance is malpractice insurance as a doctor, AFAIK).
Cars are a ridiculous money sink and a cancer on the environment; and I fully intend never to own one.
Yeah especially if you live in a big city as you do and have decent public transport buying a car is a stupid thing to do I would think since everyone knows as soon as you buy one it's already depreciating in value!
And I don't know how much you guys pay for gas up there but I'm sick of hearing everyone down here complaining about the high cost of gas for their cars.
I wouldn't know since I've gotten by fine most of my life without owning a car.
And if I do need access to one I could just rent one or use signup for flexcar again.
This will also help in saving money by not having kids since alot of said kids seem to be concieved in the backseat of a car one owns-LOL!
Ive got an ING direct savings bank account. You know, the one you keep seeing advertised on tv with the creepy guy saying "saaaaave yor monney". It gets 3.5% or 4% interest, which is freeking amazing compared to anything that TD bank offers (I have my checking account with TD).
I think I made 100$ in interest last year. Not exactly enough to retire on but way more than Ive ever made before I discovered ING direct. The shitty thing is that the government of course taxed this as income, and the remainder probably only barely covers inflation...
Ive looked into RRSPs many times but I havnt been able to convince myself that its much better than a savings account.
Ive also considered playing the stock market a little bit, but unless youre prepared to invest a huge amount of money, it will never pay off because any little profit you make will be offset by the fee that a stock broker charges to make your buys and sells.
I think I made 100$ in interest last year. Not exactly enough to retire on but way more than Ive ever made before I discovered ING direct. The shitty thing is that the government of course taxed this as income, and the remainder probably only barely covers inflation...
Ive looked into RRSPs many times but I havnt been able to convince myself that its much better than a savings account.
Ive also considered playing the stock market a little bit, but unless youre prepared to invest a huge amount of money, it will never pay off because any little profit you make will be offset by the fee that a stock broker charges to make your buys and sells.
Read again what capn and d000hg have said, its relatively sound.
Assuming you live in the states.
A 401k with a macthing contribution from your employer is always sensible, up to the maximum amount matched, always.
If you don't receive a matching contribution you'll be better served with a roth or standard ira(more competitive market means a more competitive product)
There are standard rules that you should apply for a healthy personal economy, such as living debt free.
However, a full meal deal financial plan is what you need, and you're not going to get it from gamedev or its contributors.
In short, you need a business plan for your financial goals. You need some benchmarks and goals for your reitrement plan.
The reason these are important is because there are literally hundreds if not thousands of investment vehicles, each with merit.
Which one is right for you depends on what type of earnings you need to hit your goals and at what level you place your risk tolerance.
For example, tax free municiples are virtually risk free, and can pay in the 5 to 7% apy post tax returns. These would be crap for you because you're not going to be working with a decent sum of money at first.
The market, which someone said was risky, is the soundest investment over time for most people. Buy index funds and expect to hold them for 30 years and you'll realize a statistical return of 13% on average (APR, not APY)
If you want to be more aggressive study or consult a mutual fund, most underperform the market but good hedge funds can also yield 20-25% apr, depending on the manager and their sector of expertise.
Dave Ramsey, whom you mentioned, is not a bad choice if youre looking for a basic premise to a healthy personal finance plan.
He's very conservative thoug, and by conservative i mean risk averse.
With all the bad credit running around, good credit can take advantage. Not all debt is bad, only dumb debt. Ramsey won't teach you that.
If you have a mortgage at 6% and your money is making you 12% then paying off your house is a very defensive move, but that's his strategy.
Again, dont be the guy asking for directions but you're not sure where you plan on going. Set down and make a plan. How long do you plan on being in the workforce? How volatile is your vocation? How liquid do you need to keep your assets? How will you know if you're ahead or behind pace?
A good financial planner at your age could be a million dollar swing man, im not sure i'd replace it with a 12 dollar purchase at barnes and nobles.
Assuming you live in the states.
A 401k with a macthing contribution from your employer is always sensible, up to the maximum amount matched, always.
If you don't receive a matching contribution you'll be better served with a roth or standard ira(more competitive market means a more competitive product)
There are standard rules that you should apply for a healthy personal economy, such as living debt free.
However, a full meal deal financial plan is what you need, and you're not going to get it from gamedev or its contributors.
In short, you need a business plan for your financial goals. You need some benchmarks and goals for your reitrement plan.
The reason these are important is because there are literally hundreds if not thousands of investment vehicles, each with merit.
Which one is right for you depends on what type of earnings you need to hit your goals and at what level you place your risk tolerance.
For example, tax free municiples are virtually risk free, and can pay in the 5 to 7% apy post tax returns. These would be crap for you because you're not going to be working with a decent sum of money at first.
The market, which someone said was risky, is the soundest investment over time for most people. Buy index funds and expect to hold them for 30 years and you'll realize a statistical return of 13% on average (APR, not APY)
If you want to be more aggressive study or consult a mutual fund, most underperform the market but good hedge funds can also yield 20-25% apr, depending on the manager and their sector of expertise.
Dave Ramsey, whom you mentioned, is not a bad choice if youre looking for a basic premise to a healthy personal finance plan.
He's very conservative thoug, and by conservative i mean risk averse.
With all the bad credit running around, good credit can take advantage. Not all debt is bad, only dumb debt. Ramsey won't teach you that.
If you have a mortgage at 6% and your money is making you 12% then paying off your house is a very defensive move, but that's his strategy.
Again, dont be the guy asking for directions but you're not sure where you plan on going. Set down and make a plan. How long do you plan on being in the workforce? How volatile is your vocation? How liquid do you need to keep your assets? How will you know if you're ahead or behind pace?
A good financial planner at your age could be a million dollar swing man, im not sure i'd replace it with a 12 dollar purchase at barnes and nobles.
I have to say I slightly disagree with what is said here.
Debt in itself is not a bad thing. The important thing is being able to manage it and living within your means. Also since everyone has limited amounts of money what you should really being trying to grasp is comparing the different choices and picking the ones that are right for you as well as the ones that will be the most profitable.
If your company offers some kind of 401k match then its always a great idea to do this. Usually they will match around 6 percent of your paycheck.
Often times the interest on school loans can be deffered by taking a continuing education course at a college.
Using credit cards judiciously is a good idea. As already stated if you pay off the balance each month then cash back rewards is a little bonus besides it being good for your credit rating. As an aside credit card companies do make money off people who pay there balance each month. Merchants are charged a fee for each transaction that goes through there network and this offsets any reward the credit card company may give you.
If there is one debt that you should pay quickly its credit card debt. Its not tax deductible and the rates can be jacked up under many conditions.
After investing in a 401k and paying off any credit card debit usually the next big milestone is building up a 6 month cash reserve. Like was said previously. Rainy days do happen. Part of building up the reserve should be to understand how much you need. Track how much you spend...make a budget.
Once you reach this point decisions get a little more difficult. Save for a house or max out your roth IRA. (Of course you could do both)
Again many times I have seen people on game dev post that you should pay off your house as quickly as possible. Probably the worst advice I have ever seen given here on game dev. Home loan interest rates are probably the lowest interest loans you will be able to get and the interest is tax deductible. If your very responsible with your money you should consider going with a 7 or possilby 10(if you can qualify)year arm. The money you save by not paying the balance should always be invested. 401k, IRA, then consider what other places the money will do the most good.
Ultimately the goal is to save enough money so that you reach financial freedom. Not having to worry about income from a job. Its not a bad idea to project out what you think youll need when you retire and then figure out how much you should try to save.
Debt in itself is not a bad thing. The important thing is being able to manage it and living within your means. Also since everyone has limited amounts of money what you should really being trying to grasp is comparing the different choices and picking the ones that are right for you as well as the ones that will be the most profitable.
If your company offers some kind of 401k match then its always a great idea to do this. Usually they will match around 6 percent of your paycheck.
Often times the interest on school loans can be deffered by taking a continuing education course at a college.
Using credit cards judiciously is a good idea. As already stated if you pay off the balance each month then cash back rewards is a little bonus besides it being good for your credit rating. As an aside credit card companies do make money off people who pay there balance each month. Merchants are charged a fee for each transaction that goes through there network and this offsets any reward the credit card company may give you.
If there is one debt that you should pay quickly its credit card debt. Its not tax deductible and the rates can be jacked up under many conditions.
After investing in a 401k and paying off any credit card debit usually the next big milestone is building up a 6 month cash reserve. Like was said previously. Rainy days do happen. Part of building up the reserve should be to understand how much you need. Track how much you spend...make a budget.
Once you reach this point decisions get a little more difficult. Save for a house or max out your roth IRA. (Of course you could do both)
Again many times I have seen people on game dev post that you should pay off your house as quickly as possible. Probably the worst advice I have ever seen given here on game dev. Home loan interest rates are probably the lowest interest loans you will be able to get and the interest is tax deductible. If your very responsible with your money you should consider going with a 7 or possilby 10(if you can qualify)year arm. The money you save by not paying the balance should always be invested. 401k, IRA, then consider what other places the money will do the most good.
Ultimately the goal is to save enough money so that you reach financial freedom. Not having to worry about income from a job. Its not a bad idea to project out what you think youll need when you retire and then figure out how much you should try to save.
Author
Quote:Original post by Dreddnafious MaelstromI'm not asking for gamedev to create a financial plan for me, I'm asking it to suggest reading that will help me make informed decisions about creating my own.
[...]However, a full meal deal financial plan is what you need, and you're not going to get it from gamedev or its contributors.[...]
Quote:[...]In short, you need a business plan for your financial goals. You need some benchmarks and goals for your reitrement plan.As far as my goals, I want to retire in 20-25 years and have enough money working for me that it makes me $50k a year (at the first year of retirement - I should make enough above that that the rest stays invested to adjust for inflation). I need information in order to be able to judge that goal and to know how to acomplish it, but so far I've only received one book suggestion that claimed to be about what I asked for =-/
The reason these are important is because there are literally hundreds if not thousands of investment vehicles, each with merit.[...]
Quote:[...]Again, dont be the guy asking for directions but you're not sure where you plan on going. Set down and make a plan. How long do you plan on being in the workforce? How volatile is your vocation? How liquid do you need to keep your assets? How will you know if you're ahead or behind pace?[...]I need information in order to know any of that kind of stuff, and I don't have that information. Thus, I decided to ask people for help in finding the information, because I figured that with the age diversity here, perhaps others have already gone through the process and would know where to find good information.
Quote:[...]A good financial planner at your age could be a million dollar swing man, im not sure i'd replace it with a 12 dollar purchase at barnes and nobles.So your suggestion is to hire somebody with job title "Financial Planner"? How would I evaluate such a person for competency? I obviously don't want somebody that isn't good at what they do, but at the same time I don't want to pay so much for services that I'd be better off investing money myself.
Quote:Original post by SpinozaThe exact reason I'm asking for literature is that I want to be able to make informed decisions. All the advice in the world from random people about unrelated things doesn't help as much as a tiny book that tells me about different types of investments and how to determine which types are right for me.
[...]Also since everyone has limited amounts of money what you should really being trying to grasp is comparing the different choices and picking the ones that are right for you as well as the ones that will be the most profitable.[...]
so 25 years working, 50k yield in the first year. you're expecting a collapsing yield, where each annum is less and less due to your withdrawals, or a sustainable yield, where after annum the principle amount actually increases slightly to account for inflation? Is the yield pre or post tax?
A financial planner would best be found at smith barney, schwab, lynch, etc...
Their services are free for account holders speaking in the general, its part of the service package they provide their clients.
Assuming you mean a sustaining annum of 50k, adjusted for inflation.
It takes $840,000 to pay out 50,000 non-collapsing, before taxes, assuming a 6.25% yield, with the overage reinvested to float inflation.
To get to $840,000 principle, over 25 years at an apr of 12%(while you accumulate capital, you can expect a higher yield, once you stop accumulating and try to find an equillibrium, you'll be more risk averse and can expect a lower yield, thus 12% accumulating is likely going to be an index fund plus a no load mutual fund the 6.25% will be diverse and less aggressive as a whole.)
$468.75/month for 25 years @ 12% will yield you $840,003.38
A financial planner would best be found at smith barney, schwab, lynch, etc...
Their services are free for account holders speaking in the general, its part of the service package they provide their clients.
Assuming you mean a sustaining annum of 50k, adjusted for inflation.
It takes $840,000 to pay out 50,000 non-collapsing, before taxes, assuming a 6.25% yield, with the overage reinvested to float inflation.
To get to $840,000 principle, over 25 years at an apr of 12%(while you accumulate capital, you can expect a higher yield, once you stop accumulating and try to find an equillibrium, you'll be more risk averse and can expect a lower yield, thus 12% accumulating is likely going to be an index fund plus a no load mutual fund the 6.25% will be diverse and less aggressive as a whole.)
$468.75/month for 25 years @ 12% will yield you $840,003.38
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