Is it possible to live entirely off the stock market? (credit, bankrupt)
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I agree, mathjak, OMG, to live in a van and move it around?? It is not for me. My advice to anyone reading this, is to pay off all debt, first your student loans, credit cards and house. The simple truth is not to have no debt. I have a four year old vehicle-paid for . My house is paid for. I don't spend beyond my means. I have plenty of WANTS, my needs come first, if I have anything left over than I spend on my wants. On my meager income I save ten percent. Always pay yourself first. My BBQ is 23 years old, my furniture is 13 years old. I don't own a flat screen television. I make do with what I have. If I wanted a flat screen t.v. I would buy one but it is not a priority. What I see with people is it is the ME generation, always satisfying your wants and living paycheck to paycheck. Smart investing.
The problem with the no-debt mentality is that it fosters an odd fear of investing.
A common forehead-smack moment is when people say, "I'll pay off my house in ten years, then I'll invest." People find excuses to put it off, and 30 years later they have no holdings.
Compounding and time are powerful multipliers to an investment plan. Do not make investing the last item on your to-do list.
The problem with the no-debt mentality is that it fosters an odd fear of investing.
A common forehead-smack moment is when people say, "I'll pay off my house in ten years, then I'll invest." People find excuses to put it off, and 30 years later they have no holdings.
Compounding and time are powerful multipliers to an investment plan. Do not make investing the last item on your to-do list.
Paying off your house or your student loans before you start investing is not realistic for the vast majority of people.
I started investing long before I even had a house or a student loan. There's no reason someone can't or shouldn't do all of these at the same time - especially if you're fortunate enough to be locked into a very low interest rate. Having said that, paying down your debts whenever possible is always a good idea.
my point is that you don't have to KEEP living that way, but for many, the reduction in expenditures is THE key to later having wealth/freedom to live as you please. Blow your income as you go thru life, and you'll be a wage-slave to the end of your days, (and so will your kids). It takes DRASTIC reductions in "outgo" for most people, if they are to have ANY savings at all. There is an annual rate of 5% inflation. So your 7% annual return investment makes you exactly NOTHING. 3/4 of what you pay for any product is taxes. You are being messed over SO badly, yet you "think" that your worker-ant mentality is the best answer, and all the destruction being wrought on this Earth's resources in the name of materialism will have no evil effect on future generations. Just like the idiots "thought" that the bison herds were endless, along with the whales, redwood forests and all the rest of the treasures that people like you just trashed.
You will have infinitely more wealth/freedom with a personal endowment than by living frugal. It affords you sources and options. Living below your means is a given, but not "the key." That's like saying getting 8 hours of sleep is the key to a great day.
I have a car loan with 3 years left, and in theory could sell stock and pay it off tomorrow. That forgoes the future value of that stock; worth significantly more than $x/month savings. If your expenses are reasonable, do not give up future income finding arcane ways to live even cheaper.
You are assuming that you HAVE that income, which a great many do not. Assuming that the income will CONTINUE, which is not the case for a great many. Assuming that your expenses will not INCREASE, which is also not the case, for many, due to accidents or illnesses in the family, etc.
I want all the credit that I can get. i recommend that everyone do the same. I did NOT say all the debt that i can get, but all the credit cards that I can get, using them just enough to keep them "active", Paying off all but a little bit of the balance each month. 20 cards x 10k$ each, costing me at most 2k a year in interest and fees? i'll TAKE that kind of "insurance" that I can grab 180k (in one day) if I need it for a medical, legal, or other emergency.
Paying off your house or your student loans before you start investing is not realistic for the vast majority of people.
I started investing long before I even had a house or a student loan. There's no reason someone can't or shouldn't do all of these at the same time - especially if you're fortunate enough to be locked into a very low interest rate. Having said that, paying down your debts whenever possible is always a good idea.
Um, right. So it sounds like you're agreeing with celcius.
The problem with the no-debt mentality is that it fosters an odd fear of investing.
A common forehead-smack moment is when people say, "I'll pay off my house in ten years, then I'll invest." People find excuses to put it off, and 30 years later they have no holdings.
Compounding and time are powerful multipliers to an investment plan. Do not make investing the last item on your to-do list.
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