Out of all the side hustles, if I start doing this again, I'd rather just work the restaurant job. I find it enjoyable, and I don't want to put a ton of miles on my car by driving Uber or Lyft. I'd like to think that 2 shifts a week(12 hours of my time) wouldn't be too much to interfere with the programming job.
Everything with the exception of dating-expenses and energy drinks, I've cut out. For example, minimal streaming apps and I've greatly minimized eating out.
I've done something like this before, but it was extremely exhausting to say the least. I'm hoping that 2 shifts a week(12 hours) wouldn't take away from my main job.
Sure! This is probably where things are going to start to fall apart lol.
You said interest, that is different than a return. Interest is treated as taxable income. In hindsight it is always easy to pick the top performers but reality is most are not going too. We would all be rich otherwise. You also are not going to be able to take on debt today at a percentage rate that would even remotely make sense to bank on a I0% stock return. Stellar credit is 8%+ at best.
I had a miserable time finding a car that I could buy in cash in the past, though I never tried Autotrader. I will look at that.1. Get medical insurance. It's 30-40 bucks a month (deltadental.com)
2. Get a reliable Japanese early 2000's vehicle for around 4k and sell your current vehicle. You can get a 2005 Toyota Camry, around 100k in miles for around $3500 (autotrader.com). These cars, as long as they are taken care of, can last past 400k. Always get it inspected by a private mechanic.
3. You need to start doing the snowball effect. Largest debt first (since the highest amount of interest paid), and then pay it off. You may have to go into some debt for the car, but it would be worth it.
4. Side hustles, uber, deliver pizzas, instacart, lyft, etc. There are promos online where Uber and Lyft will give you money to sign-up.
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You need to think outside the box and get to work. If you program or design sh!t on the computer, start offering work as a freelancer on Fiverr and Upwork.
The issue is that most of the interest rates on these debts suck. This is partially due to my credit, partially due to the credit cards(which are always 20%+.) Even the student loans are above 5%(Sallie Mae.)
The Nasdaq is compounding at about 12% annually. With that said, the cost of consumer debt is almost always higher and you should attack the highest balance first.
Do whatever works for you to pay that **** off. There is more than one way to skin a cat!
understood but at that point, he’s got no money to invest, because if you’re snowballing then you have debt costs that are above any realistic return you would expect. If you’re talking about retirement accounts with match and even factoring in tax shelter status it doesn’t help his main issue which is liquidity. One car accident and he’s probably even worse than where he started
Looks like the competing schools of thought in this thread are:
you got it all but don’t forget to be practical. Let’s say you buy QQQ and keep your savings in there. You need to make it work on a tax adjusted basis, it cannot simply be looked at apples to apples. Debt is paid on the individual level with post tax dollars almost always. There are exceptions.
This is the main thing that got me into that horrible situation originally. Not saving up money, spending more than I made, and then boom car wreck. Everything came crashing down.
Historical stock market returns are I0%. Anyone can cherry pick indexes, sectors,funds, time periods to make a case they want to make but certainly wouldn't bank on them. You also aren't getting debt much cheaper than I0% if at all. Point being, it makes zero sense to keep debt at these rates to play the market. Es[ecailly someone with minimal experience
Right but you’re missing that as an historical average there are multiple businesses in those indexes that are making much more than 10% annually, coupled with others that did worse.
That makes my point though, most pros can't beat an index fund over an extended period of time. I0% over a 20yr period, even those are atrocious odds. The average retail investor who tries to pick stocks and time markets get smoked and is then left with a mountain of debt. Would bet far less than 5% of retail traders beat an index fund over time which is what they would have to do to beat that I0% avg return
Yeah, credit card debt is a no no...I learned it the hard way just like you are in my 20s.
I'm talking mainly about people with mortgages under 4%, car loans under 5% and other low cost debt, like those store cards that are no interest for 18-24 months.
Yeah I know these days that would be tough...
We will be talking about that interest rate period to our kids like our parents spoke to us about 20% interest paying time deposits.
