So I have came to somthing interesting I want to share with others who may be struggling on some things I found. This may be common knowledge and people who are comftorable taking this in full stride may vary. Because while this concept is not new so many nowadays just do not follow it.
Keep in mind through all of this I am an extremely heavy investor with all of my money so all of my savings goes into that. You mite not need or want to do this as long as I am(forever)
This is the concept of paying yourself first. Many hear it and agree but I find few who truly do it.
This simple concept has caused my net worth to go from negative 20k to positive 20k in one year or a 40k bump.
When I get paid same with my significant other who choose how much we want to save and save that much first.
Then we pay our rent and then any other bills after wards. My parents really disagreed with this but there also in debt.
I mentioned to them I'm not living life to line another's pocket and that's what paying rent is I personally would not want to be a landlord if this wasn't so. I'm living life for my future not the future of some landlord charging obscene rents taking over half my paycheck.
There response. Well paying your bills is your life. My response. I'm not against paying bills. Im against putting someone else's future before my own.
Don't get me wrong I don't recommend not paying your rent. I recommend putting all of this in your budget to make sure you can pay your rent. What I have noticed and what I recommend is to prioritize saving above rent. You can always get another apartment even if the area isn't the best. If your in a struggling time in life trying to save. And you get evicted after evicted. There are apartments who do not do background checks there typically not in the best area. Or you can get a room from roomster for 400 bucks or so depending on location.
If you get played save first then pay bills you secure your savings rate each month to what you want to save. Whatever is leftover you tailor your life to to pay your bills. This allows you to consistently move forward even in times of moderate crises. If an emergency happened deal with that after your savings/investments but before your other bills(except medical emergencys). If that causes you to miss rent one day deal with it use that time to get resourceful on how you can make money to pay the rent in time. And maintain your savings rate do not take the money out.
Will this cause you an eviction a few times? It could.
But your bank account and brokerage account will be much happier in the long run.
When you can actually afford to buy a home you will be much happier. What ever your goals you will feel more empowered as you fight through the struggle for progress rather then fighting through the struggle to live.
I also am 24 just left the navy so I couldn't know anything but I reckon me advancing my net worth 40k in one year is a impressive enough feat to make me feel comftorable helping others.
I hope there were some sort of nuggets in this for some people I know I am young I don't know everything. I just know I personally really want to have wealth my family has never had and to retire on dividends. I hope this helped someone today as they read past this. Because as out of the norm it is in society today to put your savings before bills. It is working amazing for me even if at times it is terrifieing.
God bless have a great christmas.
December 17, 2017 at 11:56AM
