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College grads: 5 "savings tips" that DO NOT save money.
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Date: June 10th, 2012 11:51 PM
1. Savings accounts. Most banks give shit interest on these. You might as well put your money in a sock drawer.
WHAT TO DO INSTEAD: The best emergency plan is a good credit rating. But if you really need a bank savings account, lock most of it up in CD's and put the rest into a prepaid credit card like Mango Money.
2. Discount clothing. That $19.99 Wal-Mart item looks like a bargain now, but it won't even be good for cleaning a brillo pad asshole one year from now. Invest in high-quality material that lasts.
WHAT TO DO INSTEAD: Buy select sale items from mid-tier retailers like Macy's or Nordstrom's. Browse in-store items, then look for online bargains. For big purchases, visit specialty shops to get an idea of what you need, then look for department store equivalents.
3. Roommates. Splitting the cost of rent looks great...on paper. But roommates come with drama and fights over stuff in the fridge. If you're already friends, cool. Otherwise, you'll probably end up paying for some douchebag and his girlfriend.
WHAT TO DO INSTEAD: Check your local laws. In some jurisdictions, it is legal to sublease a property for more than the original rent. This would give you income to rent a nicer place. If that's not an option, you can also set up a business in your home and deduct partial rent on your taxes. It takes some time, but so do roommates.
4. Marriage. Many couples take a short-sighted view of the tax benefits for marriage. In reality, the tax protections are very, very small. The financial and emotional costs of divorce (a highly likely outcome for most marriages) should also give savvy young people pause.
WHAT TO DO INSTEAD: Most of us need relationships, but if you don't, try alternatives like masturbation or sperm/egg donation. For the 99%, you might get a better deal by bundling finances in a polyamorous co-op. (For an example, see http://www.polyfamilies.com/polyfinances.html ).
5. 401(k). Face it, by the time your generation retires, the world will be very different. Your dollar-denominated account may be worth nothing in 25 years, and you'll be old and starving.
WHAT TO DO INSTEAD: Consider opting out of your company's 401(k) and buying regular quantities of junk/bar silver. You can offset the income tax hit with regular charitable contributions of used clothing and electronics. |
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Date: June 10th, 2012 11:55 PM |
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Date: June 10th, 2012 11:56 PM |
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Date: June 11th, 2012 9:03 AM |
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Date: June 11th, 2012 9:04 AM |
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Date: June 11th, 2012 1:47 PM |
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Date: June 11th, 2012 1:46 PM |
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Date: June 10th, 2012 11:58 PM |
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Date: June 10th, 2012 11:59 PM |
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Date: June 11th, 2012 12:01 AM |
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Date: June 11th, 2012 12:01 AM |
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Date: June 11th, 2012 12:04 AM |
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Date: June 11th, 2012 12:06 AM |
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Date: June 11th, 2012 12:08 AM |
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Date: June 11th, 2012 12:13 AM |
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Date: June 11th, 2012 12:07 AM |
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Date: June 11th, 2012 12:16 AM |
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Date: June 11th, 2012 12:17 AM
lol, brother. |
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Date: June 11th, 2012 12:17 AM |
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Date: June 11th, 2012 12:35 AM |
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Date: June 11th, 2012 12:37 AM |
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Date: June 11th, 2012 12:55 AM |
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Date: June 11th, 2012 9:08 AM |
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Date: June 11th, 2012 1:52 PM |
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Date: June 11th, 2012 12:24 AM |
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Date: June 11th, 2012 12:24 AM
Unlike your hack reply. |
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Date: June 11th, 2012 12:11 AM
2 = credited, ebay is a good source too. also good dress shoes are worth investing in.
3 = roommates are only a problem if you're some aspie weirdo who isn't flexible at all. i'll take my cheap apartment in a great neighborhood, thanks.
4 = well agreed that you shouldn't rush into it but it can't be seen as a purely financial decision.
5 = still worth it if you get the discount. probably still worth it if you're well diversified in index funds. |
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Date: June 11th, 2012 12:23 AM
1. If you want liquid cash, there are better options than a savings account (prepaid credit card, for one). I think people should have a nominal savings account, but your best bet is still a strong credit rating.
3. You can be "flexible", but why make unnecessary trouble for yourself when you have better alternatives?
4. People underestimate how much finances impact marriages.
5. There are some cases where the 401k makes more sense, but as a retirement plan, it's not viable for most people our age. They need a store of value against inflation first.
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Date: June 11th, 2012 4:05 AM
Thoughts on having a self-managed 401k, but investing a large portion of that 401k into SLV and the like?
Tax benefits + your money is in precious metals. |
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Date: June 11th, 2012 1:48 PM |
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Date: June 11th, 2012 9:15 AM |
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Date: June 11th, 2012 12:27 AM
If you get your ass kicked and start racking up debt, you run a significant risk that your credit will be pulled back when you most need it. |
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Date: June 11th, 2012 12:31 AM |
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Date: June 11th, 2012 12:33 AM |
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Date: June 11th, 2012 12:36 AM |
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Date: June 11th, 2012 3:17 PM
1. OP is correct that savings accounts are essentially pointless. 2. Probably not credited--discount clothing is a good deal in my experience. 3. Roommates will save you money, but for some people they're not worth it. 4. Marriage is generally a good deal if you're smart about it. 5. 401k probably isn't worth bothering with unless there's matching.
So, at least 1 and 5 are somewhat credited. |
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Date: June 12th, 2012 8:06 PM
3. I didn't dispute that. I just point out you can make equivalent savings in other ways.
4. Explain how to be "smart" about marriage in ways that aren't available through other superior means. |
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Date: June 11th, 2012 12:01 AM |
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Date: June 11th, 2012 12:37 AM |
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Date: June 11th, 2012 12:38 AM |
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Date: June 11th, 2012 12:39 AM |
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Date: June 11th, 2012 12:40 AM |
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Date: June 11th, 2012 4:06 AM |
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Date: June 11th, 2012 1:52 PM
For most people, roommates are a financial decision. But often, it's a costly one. You end up supporting freeloaders or wasting time worrying about equity. My alternatives are much, much better. |
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Date: June 11th, 2012 8:50 AM |
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Date: June 11th, 2012 1:53 PM |
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Date: June 11th, 2012 1:54 PM |
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Date: June 11th, 2012 2:01 PM
You may need to separate from your employer though. |
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Date: June 11th, 2012 2:00 PM |
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Date: June 11th, 2012 8:54 AM |
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Date: June 11th, 2012 8:59 AM |
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Date: June 11th, 2012 1:54 PM |
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Date: June 11th, 2012 1:55 PM |
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Date: June 11th, 2012 1:58 PM |
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Date: June 11th, 2012 2:00 PM |
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Date: June 11th, 2012 2:01 PM |
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Date: June 11th, 2012 2:09 PM |
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Date: June 11th, 2012 2:59 PM |
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Date: June 11th, 2012 1:55 PM |
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Date: June 11th, 2012 1:56 PM |
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Date: June 11th, 2012 2:57 PM
i have literally never heard of anyone doing one of his probably illegal alternatives. |
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Date: June 12th, 2012 8:00 PM |
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Date: June 11th, 2012 4:00 PM
Rather than split rent with a roommate for which you'll be jointly liable, instead sublease to the financially equivalent of a roommate, except you'll be wholly liable and have less oversight.
PRETTY GOOD ADVICE HERE FELLAHS.
edit: also, notice this is a perpetual motion money machine right here! Just rent all the goddamn apartments in the city, corner the market, and sublease them all! Apparently we all have the skills to get above market rents, though we have no relevant skills or experience! But fuck roommates! |
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Date: June 11th, 2012 4:16 PM |
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Date: June 11th, 2012 8:25 PM |
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Date: June 12th, 2012 8:03 PM |
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Date: June 12th, 2012 8:05 PM
and secondly you'll never get enough above market value to make any of this worth your fucking time, you're assuming some hypothetical world where apt's are listed for hundreds of dollars less per month than they're worth
if you want to be in the rental business get in the rental business, trying to scam a landlord is not great financial advice |
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Date: June 12th, 2012 8:11 PM
2. Sure you can, especially since you don't have to care about actually living in the place. This advice is given to smart people who can take advantage of good opportunities, not lazy whiny dicks.
3. Who said anything about scamming the landlord? |
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Date: June 12th, 2012 8:12 PM |
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Date: June 12th, 2012 8:14 PM
you're basically trying to find a landlord who doesn't know what his place is worth then take the difference in value, you're not cheating him, but this is at heart a scam |
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Date: June 12th, 2012 8:16 PM |
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Date: June 12th, 2012 8:17 PM |
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Date: June 12th, 2012 8:15 PM
Send me 12,000 internet dollarz and I will provide you with ample people to sublease your apartments too!
Do it NOQWW!!@@@ |
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Date: June 12th, 2012 8:13 PM |