d
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Post by d on May 25, 2022 17:53:11 GMT 10
Had a quick search and couldn’t see anything current. I came into prepping from a FIRE perspective so I’m conflicted when it come to finances in prepping knowing what compounding interest is likely to do. Im curious what you guys do as far as financial preparedness? I like to choose jobs that suite my lifestyle, contribute to super at a minimum and heavily shovel cash into a brokerage account for the flexibility. I also like silver.
D
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frostbite
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Post by frostbite on May 25, 2022 17:57:37 GMT 10
Only put money into shares that you can afford to lose. Silver and Gold are to store wealth, not build it.
Since I was 21 I've put most of my money into real estate. That's had very good results for me.
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d
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Post by d on May 25, 2022 18:06:03 GMT 10
Only put money into shares that you can afford to lose. Silver and Gold are to store wealth, not build it. Since I was 21 I've put most of my money into real estate. That's had very good results for me. Fair. I did some time in real estate- Im 33 and have my place paid off but I don’t like leverage so vanguard indexes are my thing.
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Post by corgiking on May 25, 2022 18:21:53 GMT 10
1. Save emergency cash - minimum 3 months living expenses. 2. Eliminate debt. 3. Then I just spread it around. Extra money into mortgage/realestate, buy into shares by putting small amounts regularly into indexes. Yes it is likely to crash soon but buy regularly and in the long term you are more likely to win than loose. Throw some at physical precious metals.
1 and 2 can be swapped depending who's advice you take.
Keep it simple and diverse. Dont put money into anything unless you can afford to lose it.
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Beno
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Post by Beno on May 25, 2022 19:58:59 GMT 10
I’ve recently made good money in shares and it can be done and done well. It is still a risk and often not worth it unless you go pretty big. Dividends can be very generous. Property has given me large theoretical wealth which was easy money.
We pump large amounts of money into what is left of our homeloan. We have been fortunate enough to have paid off 1/3 of our debt and see a 125% increase in the value of our land in less than 3 years. THIS is the biggest thing you can do to get financially stable in my opinion.
we have a lot of savings for an emergency. corgiking is right a minimum 3 months savings for living expenses. I make some extra dollars on cattle on my land. they are 4 legged gold nuggets in the paddock.
I like the idea of gold but won’t go there myself as i simply could not be bothered.
Anything to do with rare earths should be investigated, it is paying well.
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Post by Joey on May 26, 2022 16:12:01 GMT 10
If I keep going the way I'm going now, I'll be debt-free by next Xmas, then I'll put all that previous debt repayment cash on top of my current weekly savings to bulk save for a house loan over the following 12mths to try and get at least to the 10% level deposit. Hopefully the economy doesn't tank in the mean time
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malewithatail
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Post by malewithatail on May 26, 2022 17:18:33 GMT 10
When I bought my first farm the mortgage was unreal, and that was over 35 years ago. Anyway, I paid everything I had off that loan, tax cheques, money writing scientific papers etc, and paid it off 10 years sooner that agreed by the Credit Union. The interest payments start to become less of the repayments after you get rid of some of the loan, and it pays off quicker and quicker.
Mortgage burning parties are awesome!
Then I got hitched and we borrowed against the farms value for a house. Paying that off in less than 1/2 the time, using the same strategy. Same with a vehicle, pay as much as you can initially and the debt will fall quicker.
Now, we were in a position nearly 20 years ago, to sell the original farm near Albion Park, and buy with cash this one, build a brand new 4 bedroom house and shed complex, refurbish the existing 2 bedroom house for my wifes mother, fence the place and invest in the solar power systems, all debt free.
Any money we get now, such as a maturing super fund next year, will go into upgrading facilities, a new work shed, and some new battery's for my sisters power system etc.
A couple of insulated containers for storage of supplies, and some other gear.
The message is.....get debt free as soon as you can.
I know there is good debt and bad debt. Mortgages are good debt, but any debt prevents you from doing what you need to do at this time.
A $2,000 ute still carries as much as a new $50 K Landcruiser. Keep the maintenance up and it will probably last longer as well, besides, I don't worry about someone running into it in Aldies car park.
Thats our way of life anyway.
You know you own an old tractor when.....You car is parked outside and your tractor is in the shed.
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frostbite
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Post by frostbite on May 26, 2022 17:33:02 GMT 10
I sold in Albion Park in 2004, at the peak of a real estate cycle. Made a killing. Part of the proceeds paid cash for 1250 acres near Texas, Qld, which became Camp Carnage. That property more than tripled in value in 10 years, then I sold it and bought 3 acres close to the beach on the NSW Far South Coast. That coastal property has tripled in value in less than 7 years.
Paying down debt is a great investment plan, but if I had an appetite for more debt when I was younger I would have several extra million in my portfolio now.
Good debt can be good.
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spatial
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Post by spatial on May 26, 2022 18:23:31 GMT 10
Had my home loan interest rates fixed 3 months back, let inflation come so I can pay off sooner, and devalue the debt.
I keep plenty of cash on hand as expecting to wake up one morning and all bank accounts across the world will be frozen. Money goes into many years of storage. In 2008 the world was hours away from a banking holiday. Then the riots and looting sill start.
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Post by Joey on May 26, 2022 18:41:09 GMT 10
Only if you can manage it within your means and don't have to BS on the application just to get your foot in the door
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Post by Stealth on May 26, 2022 19:42:47 GMT 10
Only if you can manage it within your means and don't have to BS on the application just to get your foot in the door Yep. This. I'd agree that in this day and age, being debt free is far more desirable than bulk properties unless those properties are owned free and clear. I don't have anything against property ownership. In fact, quite the opposite. I've just been blocked out of that market for most of my life because I could afford to own. Now that we're in the market our plan is to have a house paid off asap. It'll be a standard 30 year loan, but our payment plan should have us debt free again in five years if everything goes to plan. Scrimping and saving every spare dollar to pay the mortgage off as quickly as we possibly can is part of our retirement plan because retirement in this country assumes that you own your primary place of residence. I really despair for the people that I know who say "Oh I love renting, no responsibilities, not tied down..." yeah cool ok but where are you going to live when you're 80 and you only have the scraps of your super left because you drained it to pay bills (or buy motorbikes) during covid? Anyway, that rant aside. Lol. Once we have our home paid off, what the market looks like will decide our next moves for finance protection. We invest in metals at the moment although that's gone on hold while we're looking for a home. That's purely income protection though. It isn't a plan for income by any means. At this stage we don't have a plan for income development beyond our 9-5s, but we're actually pretty happy with what we're doing at the moment so once the house is paid off that money will then start going to another income generation stream. We just haven't figured out what that stream will be yet haha.
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malewithatail
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Post by malewithatail on May 26, 2022 19:56:41 GMT 10
I doubt the world has 5 years left, both economically and society wise.
You know you own an old tractor when.....You get a silly grin hen your tractor actually starts.
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d
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Post by d on May 27, 2022 5:38:20 GMT 10
As time goes on I’m starting to think keeping most of your money in a bank is quite foolish. I think this is shown by looking at how covid payments are currently administered- As it stands it doesn’t matter what you have invested, it doesn’t matter how many properties you own, it doesn’t matter if you have sufficient stores of food or if you have even tried to avoid covid. What matters is IF you have 10k in the bank. If you have 10k liquid cash then you aren’t eligible for support. Obviously there isn’t an effective, time efficient way for the government to administer the money printer on such a large scale and a rule like this is needed but it does seem, as it has for the last decade in this low interest environment, the savers get screwed.
It seems it would be more prudent to dump cash into a brokerage and invest it in an index or buy crypto/PMs and keep the cash low while maintaining sufficient coverage for outgoings.
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Post by corgiking on May 27, 2022 7:50:42 GMT 10
Yes you can make money on shares and you can make money getting into debt to buy good assets, but i would argue that is regular financial investing, not financial prepping. The housing market and the stock market have both been pumped up very high in the last few years, which is why it has been easy to make money off them. Not saying that they aren't worth doing, or that they will crash, just that investing soley in the epitome of modern greed and speculation (stock and property markets) is not a good strategy for society/financial collapse.
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Post by Stealth on May 27, 2022 13:44:00 GMT 10
I doubt the world has 5 years left, both economically and society wise. Is that the sound of you offering to pay off a full mortage for me right now so that I don't have to have a five year plan? Didn't know you were that generous! I mean, if we're going to deal in fantasy surely you won't have a problem with handing that much money over to a stranger. No? 🤣 Personally I think having an actionable plan to pay off a house in five years that's entirely based in reality rather than the standard expected 30 years is pretty bloody good.
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Beno
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Post by Beno on May 27, 2022 15:49:19 GMT 10
I doubt the world has 5 years left, both economically and society wise. Is that the sound of you offering to pay off a full mortage for me right now so that I don't have to have a five year plan? Didn't know you were that generous! I mean, if we're going to deal in fantasy surely you won't have a problem with handing that much money over to a stranger. No? 🤣 Personally I think having an actionable plan to pay off a house in five years that's entirely based in reality rather than the standard expected 30 years is pretty bloody good. That is a great plan, do it, stick to it and your life will become much more stabilised. If personal shtf comes and you have paid down mortgage significantly then remortgaging could get you out of trouble by lowering repayments per fortnight. In a world gone by i'd say to you to pay down X debt on your house then use that equity to use on another investment. There is a point where pumping money to completely erase debt becomes the second best option in terms of money making. However These days i'm all for getting all debts to zero.
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frostbite
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Post by frostbite on May 27, 2022 17:47:56 GMT 10
Only those with an accurate crystal ball know the best course of action.
Paying off your mortgage as fast as possible is a great plan. Owning your home and being debt free is liberating. Investing the equity in your home into a second property, increasing your debt burden, might turn out to be a great decision financially, or it might result in your financial downfall (as it did for many in the GFC). Your have to take the risk to reap the reward.
Will it all come crashing down in 5 years? Nobody knows. What I do know is that for more than 10 years preppers have been telling me the real estate bubble is about to burst. I didn't listen to them, the bubble didn't burst, and I made a lot of money in the meantime.
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Post by Stealth on May 27, 2022 17:53:42 GMT 10
That is a great plan, do it, stick to it and your life will become much more stabilised. If personal shtf comes and you have paid down mortgage significantly then remortgaging could get you out of trouble by lowering repayments per fortnight. In a world gone by i'd say to you to pay down X debt on your house then use that equity to use on another investment. There is a point where pumping money to completely erase debt becomes the second best option in terms of money making. However These days i'm all for getting all debts to zero. I think that will be the next step in our plan to be honest. I'll admit that we could financially achieve a bit more if we played our repayments smart. We considered those options and realised that the mental health impacts can't be ignored at this stage. We know from experience that being debt free can sometimes be even more valuable than literal cash in hand so while we could probably save a small amount over time if we played our cards smart, I'll admit that I'm definitely feeling the 'something's in the air, best to prepare' vibe that's going on in the world at the moment. I wonder though, what other prepping options are there beyond physical assets that are relatively secure? Property, metals, and food/supply stores seem to be the only thing I can realistically think of. I guess you could put crypto currencies in there, although the volatility and lack of extensive history make me to anxious to dip my toes in. One could argue that now's the time to buy while it's cheaper though.
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Post by Stealth on May 27, 2022 18:05:59 GMT 10
Only those with an accurate crystal ball know the best course of action. Paying off your mortgage as fast as possible is a great plan. Owning your home and being debt free is liberating. Investing the equity in your home into a second property, increasing your debt burden, might turn out to be a great decision financially, or it might result in your financial downfall (as it did for many in the GFC). Your have to take the risk to reap the reward. Will it all come crashing down in 5 years? Nobody knows. What I do know is that for more than 10 years preppers have been telling me the real estate bubble is about to burst. I didn't listen to them, the bubble didn't burst, and I made a lot of money in the meantime. I was watching Martin North and John Adams on youtube a couple of days ago, and John is convinced that the housing market will actually run hotter in the shorter term than it has chance to cool. I'll keep hoping for a crash so that we can invest in our bush block at a better price, but the idea of a crash after us having bought a place doesn't really bother me because ultimately even if we pay $100k more for it than we would have if we'd waited another 2 years, we'll be two years into a five year loan. I can take the hit on the chin with a lot more grace knowing that we're going to save approximately $130k in interest over the life of the loan by paying it off that quickly.😊 The ultimate plan is to find a site somewhat like yours (although likely a lot smaller! lol) and building it up over time. If we're fortunate and things go well, we'll have a property in a good growth area that we can either use as an investment or rent to our kids. The rates will come out of their rent money and then we can save the rest for them until they want to get their own homes. Generational wealth is something that's really been on my mind lately. I'm going to have to look into ways to make that happen because while age pensions will still probably continue to exist at least for the rest of my old age, I have absolutely no hope that they will exist for our kids. Stores of wealth become so important and it's hard to deny that people who start out in life with no money worries tend to have more advantages earlier on than their less financial compatriots. It's pretty depressing to think about it but if I have to be brutally honest I want my kids to have the advantages that I didn't have in my early working years.
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tactile
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Post by tactile on May 27, 2022 18:46:43 GMT 10
Stay mobile, own nothing, diversify, stay above the crap.
That's how I roll.
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