Financial tips for the bums

[Michael Sternbach]

I agree with some others here that negative beliefs about money being a hindrance to a spiritual way of life is a strong obstacle to getting it in the first place. It's really much better to have a reasonable amount of it than not to have it!

 

I have actually been thinking of using divinatory methods such as astrology, Tarot, and/or dowsing, which I am pretty good at, in conjunction with stock marketing, whose intricacies my mind somehow refuses to delve into, despite well meant efforts by a friend to communicate them to me.

 

If anybody here has a better grasp of those technical aspects and an openness to aforesaid unorthodox methods of prognosis, please PM me. It could be fun to blend our respective knowledge and come up with some action plan. Also, there would probably be the possibility to do some test runs before investing actual money...

[zanshin]

11 hours ago, Michael Sternbach said:

 

I have actually been thinking of using divinatory methods such as astrology, Tarot, and/or dowsing, which I am pretty good at, in conjunction with stock marketing, whose intricacies my mind somehow refuses to delve into, despite well meant efforts by a friend to communicate them to me.

You might be interested in Gann. 

https://blog.elearnmarkets.com/principles-of-wd-gann-discipline-trading/

 

[rainbowvein]

I think this idea could be helpful.

 

I Didn't Understand Money So I Stopped Calling It Money

 

"To change the way I thought about money, I started substituting the word “money” with the word “freedom.” This helped make previously difficult financial decisions way easier — and made the ones that used to be easy way harder. For example, if I was wondering about putting money into my 401(k), which I’m always hesitant to do because I want to see the money in my account now, I’d ask myself “Should I put some freedom into my 401(k) so I have some freedom when I get older?” All of a sudden, it was a no-brainer.

 

If someone asked me for money, I’d ask myself “Should I give some of my freedom to a friend who shows no signs of wanting to get her own life together and earning her own freedom, but keeps asking for some of my freedom?” So much for that loan.

 

Or if I couldn't decide if I wanted to buy something or not, I’d ask “Are these new jeans worth two hundred units of my current freedom?” Luckily, I’ve come across literally zero pairs of pants I value as much as being free."

[Son Yu]

Wealth = Energy

more energy more wealth

 

wealth is whatever you label it as

 

I think it is either very easy or very hard for a daoist to earn money, cause we either don't care enough or we find it simple to achieve what we desire.

[Aetherous]

1 hour ago, rainbowvein said:

I think this idea could be helpful.

 

I Didn't Understand Money So I Stopped Calling It Money

 

"To change the way I thought about money, I started substituting the word “money” with the word “freedom.” This helped make previously difficult financial decisions way easier — and made the ones that used to be easy way harder. For example, if I was wondering about putting money into my 401(k), which I’m always hesitant to do because I want to see the money in my account now, I’d ask myself “Should I put some freedom into my 401(k) so I have some freedom when I get older?” All of a sudden, it was a no-brainer.

 

If someone asked me for money, I’d ask myself “Should I give some of my freedom to a friend who shows no signs of wanting to get her own life together and earning her own freedom, but keeps asking for some of my freedom?” So much for that loan.

 

Or if I couldn't decide if I wanted to buy something or not, I’d ask “Are these new jeans worth two hundred units of my current freedom?” Luckily, I’ve come across literally zero pairs of pants I value as much as being free."

 

That is the most brilliant tactic!

[thelerner]

For what it's worth, looking back, the strategy here has done pretty well; I'm talking about the breakdown of the investment near the bottom-

Course it's still short term, yet in the long run we're all dead. 

 

Though if there's one thing I've learned from 30 years in the stock market; strategies are traps.  Like newbies at a casino new investors find an initial strategy works well, and get dismayed 5, 10 or 1 year later when it either stops or slaps them hard in the wallet.  Trends and excesses reverse themselves.  What worked brilliantly today, may not tomorrow.

 

For me that means having different portfolio's with different strategies.  Also letting them 'run' into each other slowly.  With the worst performing strategy slowly moving into the better performing one.  And having at least one portfolio/strategy with good loss prevention, ie following Moving Averages and having rules to leave at certain dropping points or another taking out preventional Puts to make up for sharp market drops.

 

Course maybe such cleverness will beat keeping a simple portfolio of mostly low cost index funds, maybe it won't.  Simple is hard to beat. 

Edited October 16, 2017 by thelerner

[C T]

To fully utilise the idea of growing money, one must first ingest and digest the principle of mutual beneficial exchange. 

 

This is vital because whatever you desire in life, you cant get it without someone, or someone in some institution, getting excited about giving you what you desire. Always remember... When someone is clear on what benefits them, they will gladly exchange enough of what benefits you. 

[thelerner]

Similarly one of the best financial proverbs I learned was from a Little Orphan Annie cartoon. 

 

Daddy Warbucks was telling Annie about another Tycoon who always offered the toughest deal, ie the one that benefited themselves the most.  Annie asked 'Isn't that what you're supposed to do in business?'  Warbucks told her 'No, the best deal is the one that benefits both parties the most.'

 

That may seem naive, but if you want return business and be seen as honorable, at times taking less profit and helping out other business people where you can tends to lead to greater prosperity in the long run.   All things being equal or even slightly in-equal people will prefer buying from a friend or one they've found trustworthy in the past.

[rene]

^^ That was the basis of John Nash's Nobel prize in Economics.

A Beautiful Mind. Very cool movie.

[liminal_luke]

7 hours ago, thelerner said:

 

Though if there's one thing I've learned from 30 years in the stock market; strategies are traps. 

 

It`s so easy to underestimate the importance of mindset.  Someone else can make a lot of money following a particular strategy so you think "OK, I`ll just do what she does" only to discover it doesn`t work for you.  Why?  Because you don`t have her mindset.  

[Aetherous]

Just saw this at the bookstore the other day, and was very impressed...basic personal finance knowledge as infographics: https://www.amazon.com/Infographic-Guide-Personal-Finance-Everything/dp/1507204663/

[gendao]

16 hours ago, Aetherous said:

Just saw this at the bookstore the other day, and was very impressed...basic personal finance knowledge as infographics: https://www.amazon.com/Infographic-Guide-Personal-Finance-Everything/dp/1507204663/

Hierarchy of Financial Needs (and the Meaning of Life)

So, where is everybody?

Edited January 21, 2018 by gendao

[Aetherous]

There are more of these high yield savings accounts coming out, and they're getting better each year it seems. Just saw Marcus by Goldman Sachs with their 1.5% APY savings account, which appears all good to me at a quick glance. There are other options out there, too.

[liminal_luke]

On 21/1/2018 at 1:53 AM, gendao said:

Hierarchy of Financial Needs (and the Meaning of Life)

So, where is everybody?

 

This graphic seems to imply that a "purposeful, happy life" is one in which people do not work for money.  That`s an assumption I`d question.

[gendao]

4 hours ago, liminal_luke said:

This graphic seems to imply that a "purposeful, happy life" is one in which people do not work for money.  That`s an assumption I`d question.

True, that level's description is a false equivalence with 3 things that are ultimately independent of each other...

 

Being post-money certainly guarantees neither purpose or happiness, and not that a purpose is even needed for happiness?

 

But being post-money does relieve a lot of stress and frees up a lot of time.  Which could then allow one to devote more time/money to purposes that pay little or even cost money instead (like caretaking family or the environment, for example) and/or the proverbial search for "happiness," etc.

Edited January 24, 2018 by gendao

[windwalker]

On 1/12/2017 at 6:38 AM, Aetherous said:

 

That was really cool, and something I'm going to look into in a few years.

 

...

Another idea about owning your own home: renting out a spare room.

 

Let's say renting a lower end apartment is about $700/month locally...by renting out one of the rooms, one can easily get nearly that much in extra cash each month (minus the additional use of electricity, water, etc). If a mortgage or HELOC were lower monthly payments than renting, perhaps you could basically own a house for free.

 

While it sounds good in some States like California the renter actually has more rights than the landlord.

 

It may be a lot of trouble getting the renter to move out if it doesn't work out.

 

The state is also trying to find a way to tax the income.  Have some family members who had bad experience s doing this.

[joeblast]

14 hours ago, Aetherous said:

There are more of these high yield savings accounts coming out, and they're getting better each year it seems. Just saw Marcus by Goldman Sachs with their 1.5% APY savings account, which appears all good to me at a quick glance. There are other options out there, too.

lol "high yield"

I remember when a normal yield on a savings account was like 3%

 

but, counterfeiting

[Aetherous]

11 hours ago, joeblast said:

lol "high yield"

I remember when a normal yield on a savings account was like 3%

 

but, counterfeiting

 

Wow, they used to be that high?

I guess high yield is pretty lame considering inflation this past year was like 2.1% (at least from what I read). Still...better to have money that's sitting around making something, as opposed to making nothing.

[joeblast]

10 hours ago, Aetherous said:

 

Wow, they used to be that high?

I guess high yield is pretty lame considering inflation this past year was like 2.1% (at least from what I read). Still...better to have money that's sitting around making something, as opposed to making nothing.

I remember at least high twos, and CDs were like 5%

 

but that was back when the central banks had some reasonable interest rate and they're not goosing the currency to keep asset values somewhere.  there was a lot more to burn through back then, and the central banks were just getting started on certain shenanigans.

 

central banks of the world need to go, it would be nice if the blockchain became sufficiently developed to make banks go the way of the horse and buggy.

 

 

 

japan has always been one of the test cases for monetary abuse

 

Quote

If you want evidence of the Endgame for Central Bankers, you need to look no further than yesterday’s Bank of Japan (BoJ) announcement.

 

In its simplest rendering, Haruhiko Kuroda, the head of the BoJ, stated that the Japanese Yen is effectively worthless to him.

In his news conference, Kuroda reiterated that changes to the bond-buying operations don’t imply shifts to its policy stance, adding that the BOJ’s primary objective is the yield curve on Japanese government bonds, not the volume of its asset purchases. Kuroda also suggested the yen’s recent move may have resulted from broad dollar weakness, particularly against the euro.

 

Put another way, as far as the head of the BoJ is concerned… it doesn’t matter how much currency he prints: tens of billions of yen, hundreds of billions of yen, even trillions of yen… all that matters is where Japanese bond yields are trading.

 

This is the literal textbook for Central Bankers around the world: devalue your currency in order to maintain the bond bubble.

 

[thelerner]

As a kid savings accounts meant having a passbook, and you'd earn 5 1/4 percent on your money plus get a toaster or stuffed animal.  Course those days had pretty high inflation too, stagflation but you can't have everything. 

 

Interest rates have been abnormally low for almost a decade (they were dropped to stimulate the economy, probably shoulda been sent up years ago, but politics..).  They're creeping up now, probably be close to normal in a few years.  As usual as interest goes up, bond prices go down (cause why hold a 3% bond when you can get a new one paying 5%).  

 

Borrowing will become more expensive but safe savings will provide more money.  I expect we'll see more inflation but that's the way the cycles rolls.   Very Taoish really, good times raises wages and goods.  They get too high, inflation.. and the seeds of recession come into play.  Things cool and the cycle repeats.  Monetary policy tries to keep the highs and lows in check.     Under capitalism, this wobble between expansion and recession is the price we pay for pretty productive system. 

Edited January 26, 2018 by thelerner

[joeblast]

hehe....to stimulate the economy....

 

well, here's an analogue, in that she thought she was only snorting a big ol line of coke

 

 

 

*chuckles*  under capitalism

 

capitalism requires unmolested capital and an even playing field for all players.

 

I dont know precisely what it is that we have, but you sure cant call it just plain capitalism.

 

when the central banks are counterfeiting houses....

(you take out a loan on something.  that money is created as a ledger entry on a bank's balance sheet.  counterfeiting just happened.  it happens every single time a loan is made.  that currency that was just waved into thin air is now a debt instrument to be paid back to the private owners of the federal reserve bank.  there's enough in circulation that there was never even a provision set for paying back the principal on the massive debt - just the interest, paid in gold, in perpetuity)

 

the closer an entity is to the monetary spigot, the more parabolic the benefit.

 

 

I dont know how people can call this capitalism.  that's either naivete, ignorance, or straight up lying.

 

the mockingbird was invented by the minions of these frauds

[thelerner]

I call it capitalism, and think banks, loans and credit are good things.  Powerful tools, while they can be misused, when handled intelligently create much prosperity.   Its great to buy a house and take out a 30 year mortgage, rather then wait 30 years til you're 50 to save up enough to buy it, or similarly a car. 

 

Such loans do 'create' money, increasing the 'velocity of money' (an important element in monetary theory and why inflation didn't raise its head earlier), but that's not bad in my book.  As long as debts can be repaid, and people don't over reach, its all good.  No need to bring mockingbirds, gold or Central banks into the equation.  Loans are what banks do. 

 

Are there 'theorists' who don't use loans or credit cards for fear that they'll add to the counterfeiting by Central bank forgers who create mockingbirds?  Whose idea of Capitalism doesn't have banks, loans or interest rates?   Okaay.    Please consider the above rhetorical and not an opening to explain conspiracy theory. 

 

 

Back to OP.  Credit is a tool, used wisely it's helps, poorly and it can turn people into indentured servants.  Use it carefully.  Having a good credit score will help you and save you money in the future.  Pay bills on time, establish credit, having old credit cards with no late payments helps establish a higher score, even if you don't use them much. 

 

There's a blog called MyMoneyblog (http://www.mymoneyblog.com/)that has imo solid info on finance, coupons, above average credit offers.  Not recommended for most, but he'll 'play' the credit card companies, taking out cards, getting the bonus's and canceling them soon after.  Not a bad game if you stay on top of it. 

 

 

[cold]

5 minutes ago, thelerner said:

I call it capitalism, and think banks, loans and credit are good things.  Powerful tools, while they can be misused, when handled intelligently create much prosperity.   Its great to buy a house and take out a 30 year mortgage, rather then wait 30 years til you're 50 to save up enough to buy it, or similarly a car. 

 

Such loans do 'create' money, increasing the 'velocity of money' (an important element in monetary theory and why inflation didn't raise its head earlier), but that's not bad in my book.  As long as debts can be repaid, and people don't over reach, its all good.  No need to bring mockingbirds, gold or Central banks into the equation.  Loans are what banks do. 

 

Are there 'theorists' who don't use loans or credit cards for fear that they'll add to the counterfeiting by Central bank forgers who create mockingbirds?  Whose idea of Capitalism doesn't have banks, loans or interest rates?   Okaay.    Please consider the above rhetorical and not an opening to explain conspiracy theory. 

 

 

Back to OP.  Credit is a tool, used wisely it's helps, poorly and it can turn people into indentured servants.  Use it carefully.  Having a good credit score will help you and save you money in the future.  Pay bills on time, establish credit, having old credit cards with no late payments helps establish a higher score, even if you don't use them much. 

 

There's a blog called MyMoneyblog (http://www.mymoneyblog.com/)that has imo solid info on finance, coupons, above average credit offers.  Not recommended for most, but he'll 'play' the credit card companies, taking out cards, getting the bonus's and canceling them soon after.  Not a bad game if you stay on top of it. 

 

 

 

The old adage that: "it takes money to make money" remains true and credit can be the seed money. But it's useless without common sense, which is becoming less common.

[thelerner]

I get the feeling every generation think common sense is becoming less common.  If true, we wouldn't be around.  Every generation tends to look down at the next.  Yet they manage.  Throwing us off because they're not interested in the same things we are.  They have different talents and will make different mistakes. 

 

The kids I'm seeing seem more environmental, more computer literate, maybe less sexually obsessed then some of the last X's or Y's or M's. 

[cold]

Yup, I agree values, focus, and goals change with each generation.