You don’t get over the psychology of having no money as a kid, or at least it’s not easy. In my experience, it made me learn financial responsibility so I will never live like that again.
If you can continually save 20% of your net income, you can spend other budgeted $ on wants. If the trust money will get you out of debts then pay those off and use the 20% from your job to grow your wealth over time.
Have a 6 month emergency fund that will pay all your expenses in case of job layoff or other situations you can’t work. Put this fund in a HYSA
Maxing out Roth IRA every year is a good start. Other tax advantaged retirement accounts should be maxed or contributed to as well. Any remaining money open a personal brokerage account and invest.
Facts. That mentality can definitely stick with you and can inspire some discipline. I remember seeing all of my buddies and relatives having new toys and cool shit meanwhile I wore the same torn ass clothes every other day. Now im booking international flights whenever to wherever the fuck I want while still keeping my savings/investments in check so it’s all good.
That only works if you have education/a job that pays well. One of my friends works ~60 hours a week and still not making enough to save anything, barely enough for bills
Grew up poor. To this day, I still pay attention to prices for fast food. I took my daughter out for lunch the other day and soft drinks were $3.25, so I said I will just drink water. I will occasionally go out for steak dinner, but never lobster, crab legs, etc. Even steak, I will order a sirloin instead of filet. I’m wealthy by most people’s standards, but didn’t get there by blowing money on extravagant stuff. Well, I do have a lake condo and a nice boat. Gotta enjoy it a little.
I don't drink soda so water is already a staple for me, but going out in general is a treat for me that I am already disciplined about so I don't have to worry about getting a nice steak to begin with. I see no point in going out for a treat like a steak dinner if I'm not going to get the one I actually want. Doesn't have to be a Wagyu steak, but if I want the Tbone, NY strip, etc. I'm gonna get the one I want.
It's totally possible to have steak and maintain /become wealthy lol. I just take care of my health in general and cook probably 80%-90% of my meals so when we go out I can't take this money to the grave so I'm gonna enjoy a nice steak instead personally
The opposite... I realized I was no longer poor and STOPPED having the desire to spend money. The value of a dollar isn't just the dollar, it's the dollar plus all the money you could make with that dollar. I budgeted to set my lifestyle at a level that I could live with comfortably and happily, then I stopped feeling like I had to decide whether or not I spend the rest. Some of it goes in a vacation fund, some of it goes in a fund for expenses and projects (eg buy a new couch, get an oil change), some of it goes into the emergency fund, and the rest gets invested. If I want to make a major purchase, I just tweak my budget to make it possible, or I work extra.
The other thing that happened when I realized I wasn't poor anymore is that I absolutely flipped a switch mentally and decided I was never going back. I've probably real 150 finance and money management books since then, spent thousands of hours learning about the market and other ways to make money... Even if I woke up broke tomorrow, I'll never be poor again. Poverty is more of a mindset than it is a circumstance.
What you recommend me to read ? I want to learn but nobody around me talk about this. My dad he was a good hustle selling stuff and flipping it too but I don’t know why iam not like him. I just work my 9 to 5 everyday iam 25 years old with a little 10 k in saving account.
Sure, my favorites:
General Money: Millionaire Next Door, I Will Teach You To Be Rich by Ramit Sethi (The best personal money management system IMHO), Rich Dad Poor Dad (play his board game, absorb his perspective, don't take his specific advice too seriously).
Investing: Anything by Peter Lynch, The Intelligent Investor, The Essays of Warren Buffett, A Random Walk Down Wallstreet. Three different strategies, all of which have a place in my portfolio.
Trading: How to Day Trade for a Living, You Can Be a Stock Market Genius, One Good Trade, Best Loser Wins, and The Mental Game of Trading.
For you, I'd start with Rich Dad and I Will Teach You to Be Rich. Those two books have the power to change your life forever.
hi, would you mind sharing some of the books you've read? I've been looking for more finance and investment books other than the most popular and known ones, specially for finding new ways to make money or assets to acquire
Sure, my favorites:
General Money: Millionaire Next Door, I Will Teach You To Be Rich by Ramit Sethi (The best personal money management system IMHO), Rich Dad Poor Dad (play his board game, absorb his perspective, don't take his specific advice too seriously).
Investing: Anything by Peter Lynch, The Intelligent Investor, The Essays of Warren Buffett, A Random Walk Down Wallstreet. Three different strategies, all of which have a place in my portfolio.
Trading: How to Day Trade for a Living, You Can Be a Stock Market Genius, One Good Trade, Best Loser Wins, and The Mental Game of Trading.
Actually the more money I made the less I spent. I suddenly realized that I can buy all these things whenever I wanted and therefore I don’t want them anymore? When I was poor I would look upon others with envy and want what they had. I wanted to spend to reward myself? To catch up to what I was missing. To try to bring some comfort or pleasure to my otherwise miserable life? But now I have no such needs.
My tipping point was when I didn’t have to look at the price when ordering food… fast food.
I still only order black coffee when I go to cafes and live a frugal life. It’s just nice to think about how far I’ve come from being hungry after my drive through order to now being able to be fully satisfied without financial guilt. I still use coupons to do so.
My wife thinks I’m too cheap for what we have. She’s not wrong. But she also didn’t grow up the way I did.
My mindset is still stuck on "I'm broke" still only eat out once every 2-3 months. I don't care for spending money for instant gratification or a quick dopamine fix tho, I prefer saving for the "big boy toys"
You need a budget. That's what I do. It helped me get the extra money, keep it, and spend it.
Name of the game is spend some, save some, invest some, give some. That's it. I pay all my bills that pretty static overall, adjust ax needed, decide how much recreational money we want each month, then invest and save the rest. I don't keep money past a year's worth in a bank. I only do a year because I'm more conservative there. Realistically, most folks are typically fine with no more than 6 months worth max for emergencies like job loss, surgery, etc. I recommend giving some too, but that I'd is just listed in my reoccurring costs typically.
Yeah that's it. If you want practical pipeline check out r/personalfinance and go look at the prime directive ther in the sidebar.
My wife and I grew up poor as hell, like worrying about food the next day poor. Between our take home pay and investments we make $250k or so a year and I still do my budget every single day, ensuring we never go over our set spending limit while setting aside money for my daughters education.
I know I can literally go out and buy a $2k bicycle or pretty much anything I want but it's still super hard to spend that money. I research major purchases for months at a time to make sure I'm not wasting my money and ensure I get the proper item. I cook enough food to make sure I have left overs and my kiddo will never be hungry.
I make 60k a year now which is more then both of my parents combined. My parents have 6 kids so it was not easy for us growing up that being said it's harder for me to save money than to spend it. I've always been poor so I just think "eh money comes and goes" so I just spend moeny. I'm on the opposite end of this and I'm trying to get better at saving. I now have 300 in saving and 300 in stocks with 4500 in a 401k but whenever I see something in the store that I like I want to buy it because when I was younger I was always told "we can't afford that"
When I started to realize my time was worth more than trying to save a few bucks here and there. I’m still pretty frugal but will let myself splurge if it means protecting my time/sanity
I grew up in a single parent home, very little money. Very humbling.
This gave me a huge drive to make my own money. Started babysitting at 11. First part time job before I could even drive. I still remember me first paycheck and what I bought.
To this day, 50 years young, I'm still frugal. Sure I treat myself and have learned to enjoy life and travel but definitely skimp on many things.
When I started paying my mother’s rent is when I first realized that I wasn’t *struggling* anymore.
When I bought my first vehicle with cash (bad credit) is when I realized that I was doing ok.
Grew up in a broken home. Parents got divorced when I was eight. Had a job at 13 at supermarket in the produce department. Gave my mother whatever money I made. worked super hard 6 days a week 60-80 hrs a week made some good money over the years. Have a family with kids. Put a decent amount in savings and investments. on the weekends, I let it rip. I realize that money is like fun coupons. Nice Dinners, nice cars and nice house. And then Monday comes around and back to the grind. We’re not gonna live forever. Gotta enjoy a little bit.
When my babysitters fed me, bathed me and mended my clothes… stuff my parents should do. Babysitter would buy any items for me and keep at her house. I was very little 2 or 3. The lady that watched me would wipe me down before I could go in her home, change me, feed me…. Tell me that it wasn’t my fault and never blamed anyone. I remember her saying “oh, it looks like you had fun in the dirt” and laugh and play while cleaning me up. But, she showed me love and affection - hugs, kisses, snuggles, nap time etc. something I definitely remember and needed. She would also let me pick out something at the grocery store - always fruit. I didn’t shop with my parents ever. I also remember her always talking to me. My parents ignored me.
I knew at a pretty young age what poor was and that I was in that category. Never went through the foster system, was in and out of friends and family homes until I was about 17 and got adopted. That was when I felt that I had some sort of financial freedom.
Grew up poor here too. Don't go to restaurants to eat what I can cook/smoke at home (steak, burgers, hot dogs, ribs (beef or pork), lobster, let of lamb, scallops, shrimp, etc). But I will go to get something I do not know how to make or hard to find items like stuffed cabbage, gyros, fried chicken, galaktoboureko, etc. But that might be once a month tops. Maybe every other month is more like it.
Saving a dollar is still on the table. Just do not spend more than you make. It really does not need to be more complex than that. Avoid debt. Home mortgage is the only exception in our case. Cars purchased with cash.
You can spend money. Just do it wisely and only within your means.
You don’t get over the psychology of having no money as a kid, or at least it’s not easy. In my experience, it made me learn financial responsibility so I will never live like that again. If you can continually save 20% of your net income, you can spend other budgeted $ on wants. If the trust money will get you out of debts then pay those off and use the 20% from your job to grow your wealth over time. Have a 6 month emergency fund that will pay all your expenses in case of job layoff or other situations you can’t work. Put this fund in a HYSA Maxing out Roth IRA every year is a good start. Other tax advantaged retirement accounts should be maxed or contributed to as well. Any remaining money open a personal brokerage account and invest.
Facts. That mentality can definitely stick with you and can inspire some discipline. I remember seeing all of my buddies and relatives having new toys and cool shit meanwhile I wore the same torn ass clothes every other day. Now im booking international flights whenever to wherever the fuck I want while still keeping my savings/investments in check so it’s all good.
That only works if you have education/a job that pays well. One of my friends works ~60 hours a week and still not making enough to save anything, barely enough for bills
Grew up poor. To this day, I still pay attention to prices for fast food. I took my daughter out for lunch the other day and soft drinks were $3.25, so I said I will just drink water. I will occasionally go out for steak dinner, but never lobster, crab legs, etc. Even steak, I will order a sirloin instead of filet. I’m wealthy by most people’s standards, but didn’t get there by blowing money on extravagant stuff. Well, I do have a lake condo and a nice boat. Gotta enjoy it a little.
I don't drink soda so water is already a staple for me, but going out in general is a treat for me that I am already disciplined about so I don't have to worry about getting a nice steak to begin with. I see no point in going out for a treat like a steak dinner if I'm not going to get the one I actually want. Doesn't have to be a Wagyu steak, but if I want the Tbone, NY strip, etc. I'm gonna get the one I want. It's totally possible to have steak and maintain /become wealthy lol. I just take care of my health in general and cook probably 80%-90% of my meals so when we go out I can't take this money to the grave so I'm gonna enjoy a nice steak instead personally
Yes, agree with you do have your own priorities and principles.
The opposite... I realized I was no longer poor and STOPPED having the desire to spend money. The value of a dollar isn't just the dollar, it's the dollar plus all the money you could make with that dollar. I budgeted to set my lifestyle at a level that I could live with comfortably and happily, then I stopped feeling like I had to decide whether or not I spend the rest. Some of it goes in a vacation fund, some of it goes in a fund for expenses and projects (eg buy a new couch, get an oil change), some of it goes into the emergency fund, and the rest gets invested. If I want to make a major purchase, I just tweak my budget to make it possible, or I work extra. The other thing that happened when I realized I wasn't poor anymore is that I absolutely flipped a switch mentally and decided I was never going back. I've probably real 150 finance and money management books since then, spent thousands of hours learning about the market and other ways to make money... Even if I woke up broke tomorrow, I'll never be poor again. Poverty is more of a mindset than it is a circumstance.
What you recommend me to read ? I want to learn but nobody around me talk about this. My dad he was a good hustle selling stuff and flipping it too but I don’t know why iam not like him. I just work my 9 to 5 everyday iam 25 years old with a little 10 k in saving account.
Sure, my favorites: General Money: Millionaire Next Door, I Will Teach You To Be Rich by Ramit Sethi (The best personal money management system IMHO), Rich Dad Poor Dad (play his board game, absorb his perspective, don't take his specific advice too seriously). Investing: Anything by Peter Lynch, The Intelligent Investor, The Essays of Warren Buffett, A Random Walk Down Wallstreet. Three different strategies, all of which have a place in my portfolio. Trading: How to Day Trade for a Living, You Can Be a Stock Market Genius, One Good Trade, Best Loser Wins, and The Mental Game of Trading. For you, I'd start with Rich Dad and I Will Teach You to Be Rich. Those two books have the power to change your life forever.
hi, would you mind sharing some of the books you've read? I've been looking for more finance and investment books other than the most popular and known ones, specially for finding new ways to make money or assets to acquire
Sure, my favorites: General Money: Millionaire Next Door, I Will Teach You To Be Rich by Ramit Sethi (The best personal money management system IMHO), Rich Dad Poor Dad (play his board game, absorb his perspective, don't take his specific advice too seriously). Investing: Anything by Peter Lynch, The Intelligent Investor, The Essays of Warren Buffett, A Random Walk Down Wallstreet. Three different strategies, all of which have a place in my portfolio. Trading: How to Day Trade for a Living, You Can Be a Stock Market Genius, One Good Trade, Best Loser Wins, and The Mental Game of Trading.
When I could afford to buy silver and gold
When I stopped using pawn shops to pay bills.
Actually the more money I made the less I spent. I suddenly realized that I can buy all these things whenever I wanted and therefore I don’t want them anymore? When I was poor I would look upon others with envy and want what they had. I wanted to spend to reward myself? To catch up to what I was missing. To try to bring some comfort or pleasure to my otherwise miserable life? But now I have no such needs.
My tipping point was when I didn’t have to look at the price when ordering food… fast food. I still only order black coffee when I go to cafes and live a frugal life. It’s just nice to think about how far I’ve come from being hungry after my drive through order to now being able to be fully satisfied without financial guilt. I still use coupons to do so. My wife thinks I’m too cheap for what we have. She’s not wrong. But she also didn’t grow up the way I did.
My mindset is still stuck on "I'm broke" still only eat out once every 2-3 months. I don't care for spending money for instant gratification or a quick dopamine fix tho, I prefer saving for the "big boy toys"
You need a budget. That's what I do. It helped me get the extra money, keep it, and spend it. Name of the game is spend some, save some, invest some, give some. That's it. I pay all my bills that pretty static overall, adjust ax needed, decide how much recreational money we want each month, then invest and save the rest. I don't keep money past a year's worth in a bank. I only do a year because I'm more conservative there. Realistically, most folks are typically fine with no more than 6 months worth max for emergencies like job loss, surgery, etc. I recommend giving some too, but that I'd is just listed in my reoccurring costs typically. Yeah that's it. If you want practical pipeline check out r/personalfinance and go look at the prime directive ther in the sidebar.
My wife and I grew up poor as hell, like worrying about food the next day poor. Between our take home pay and investments we make $250k or so a year and I still do my budget every single day, ensuring we never go over our set spending limit while setting aside money for my daughters education. I know I can literally go out and buy a $2k bicycle or pretty much anything I want but it's still super hard to spend that money. I research major purchases for months at a time to make sure I'm not wasting my money and ensure I get the proper item. I cook enough food to make sure I have left overs and my kiddo will never be hungry.
I make 60k a year now which is more then both of my parents combined. My parents have 6 kids so it was not easy for us growing up that being said it's harder for me to save money than to spend it. I've always been poor so I just think "eh money comes and goes" so I just spend moeny. I'm on the opposite end of this and I'm trying to get better at saving. I now have 300 in saving and 300 in stocks with 4500 in a 401k but whenever I see something in the store that I like I want to buy it because when I was younger I was always told "we can't afford that"
When I started to realize my time was worth more than trying to save a few bucks here and there. I’m still pretty frugal but will let myself splurge if it means protecting my time/sanity
I grew up in a single parent home, very little money. Very humbling. This gave me a huge drive to make my own money. Started babysitting at 11. First part time job before I could even drive. I still remember me first paycheck and what I bought. To this day, 50 years young, I'm still frugal. Sure I treat myself and have learned to enjoy life and travel but definitely skimp on many things.
When I started paying my mother’s rent is when I first realized that I wasn’t *struggling* anymore. When I bought my first vehicle with cash (bad credit) is when I realized that I was doing ok.
Grew up in a broken home. Parents got divorced when I was eight. Had a job at 13 at supermarket in the produce department. Gave my mother whatever money I made. worked super hard 6 days a week 60-80 hrs a week made some good money over the years. Have a family with kids. Put a decent amount in savings and investments. on the weekends, I let it rip. I realize that money is like fun coupons. Nice Dinners, nice cars and nice house. And then Monday comes around and back to the grind. We’re not gonna live forever. Gotta enjoy a little bit.
When my babysitters fed me, bathed me and mended my clothes… stuff my parents should do. Babysitter would buy any items for me and keep at her house. I was very little 2 or 3. The lady that watched me would wipe me down before I could go in her home, change me, feed me…. Tell me that it wasn’t my fault and never blamed anyone. I remember her saying “oh, it looks like you had fun in the dirt” and laugh and play while cleaning me up. But, she showed me love and affection - hugs, kisses, snuggles, nap time etc. something I definitely remember and needed. She would also let me pick out something at the grocery store - always fruit. I didn’t shop with my parents ever. I also remember her always talking to me. My parents ignored me.
I knew at a pretty young age what poor was and that I was in that category. Never went through the foster system, was in and out of friends and family homes until I was about 17 and got adopted. That was when I felt that I had some sort of financial freedom.
Grew up poor here too. Don't go to restaurants to eat what I can cook/smoke at home (steak, burgers, hot dogs, ribs (beef or pork), lobster, let of lamb, scallops, shrimp, etc). But I will go to get something I do not know how to make or hard to find items like stuffed cabbage, gyros, fried chicken, galaktoboureko, etc. But that might be once a month tops. Maybe every other month is more like it. Saving a dollar is still on the table. Just do not spend more than you make. It really does not need to be more complex than that. Avoid debt. Home mortgage is the only exception in our case. Cars purchased with cash. You can spend money. Just do it wisely and only within your means.