Morning!

Been asked how I cope with financial loss a lot lately, so thought I’d share a recent convo I had with someone who found out she had $$$ parked at crypto broker, Voyager, who ended up filing for bankruptcy this summer…

These tricks don’t put out the sting *entirely*, but hopefully at least gets you past the harder parts so you can move on with your sexy life ;)

Maybe you have some good ways to avoid the pain too?

Here was our convo:

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J,

I just realized I lost $15,000 I had invested in USDC at Voyager.

Do you have any advice for a loss like this? My net worth was close to $500k and life will go on, but I am sad bc this was money earmarked for a wedding, so it feels bad bad.

Thank you for any advice you can give me.

******

Oh no!!! I’m so sorry to hear that! :(

Are you sure it’s gone-gone?! Any sliver of hope you’ll get some of it back??

[UPDATE: they were recently approved to give back $270 million to customers, but unfortunately that’s only a fraction of the loss.]

Really sucks either way, gosh…

I’ve never heard of Voyager before until your note so I googled them and unfort. still don’t know much :(

I will say you’re on the right track of focusing on that half a milly to make you feel better!! That’s really what I do too when $hit goes down…

I also like to pretend it’s just erasing some of the “wins” I’ve gotten over the years vs losing *capital*… For example, with your $500k I’m sure $100k-$200k was just gains!! So really it’s like “only” gaining $85k-$185K in total which of course is still super good and you’d never turn that down right?!

That’s how I usually think of things when it comes to losses anyways :) That, or if it’s real bad I’ll just ignore the crap out of it until I eventually calm down since I know everything is temporary, lol… Like with my recent $13k loss in crypto (!!!). [Update: now only a “loss” of $11k! Though only really counts btw when you cash out…] Not sure this is the most healthiest mindset to have, but it does seem to work for me…

And at least you can still get married to the love of your life with or without $$$ yeah?! What if you “made it a thing” and did a super low key cheap wedding – but still a fun as hell one of course! And tell people it’s because all the $$$ was lost in the bankruptcy?! Kinda like “owning it” instead of ignoring it like I just suggested? Might not be the most appropriate seeing how it’s your wedding and all, haha, but just throwing ideas out there…

Either way, I’m super sorry to hear about this and do hope you feel better sooner than later :( The losses are all a part of the game, though of course you always *wish* they were lost fairly vs unfairly!

– J$

OH! I forgot about one other hack that sometimes works for me, especially when paying unexpected high bills… Since my wife and I both share our money, I just think about how HALF the bills are hers too!, so I’m really only paying half of stuff myself, haha… So in the case with your wedding, while it still sucks, at least *your portion* is only half of it in theory! So maybe sucks just a little bit less?! Maybe?!

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Some of this advice is kinda silly, but I swear it works ;)

And I didn’t say it in the email, but another key takeaway here is to NEVER PLAY WITH MONEY YOU CAN’T AFFORD TO LOSE.

Especially when dealing with crypto-anything.

Sure you won’t earn a lot stashing it in boring old savings or CDs or the like, but at least your *capital* is preserved for exactly when you need it. You never really think you’re going to be involved with a bankruptcy or anything, but as we all know $hit happens so you always gotta be thinking multiple plays ahead…

Anywho, that’s what I do when I’m dealing with financial disasters.

1. I focus on the total *gains* I’ve gotten over the years, and just deduct the losses mentally from it.
2. I remind myself that half of all losses are actually my wife’s – not mine – so it’s only half as bad!
3. I bury my head in the sand for a bit until it all passes over… Again, perhaps not the healthiest, but it does seem to work for those like me with A.D.H.D. – you eventually just forget about it!! And even when you don’t, life has a funny way of erasing it for you anyways with enough time… Nothing is ever permanent.

And remember too, typically losses only “count” when you actually cash out! If your stocks are going up and down and up and down as they usually do, none of it matters until the day you click “sell” and lock in the gains or losses…

So in terms of the overall stock market, I rarely worry much – even during this past madness (I BUY instead!) – since I know none of it matters until X number of decades from now… Until then, it’s all just noise.

My two cents anyways!

How do you all deal with financial pain?? Anyone else dealing with the Voyager nonsense? Anyone else down beaucoup bucks like me in Crypto? :)

Always something going on in life…

I wanna say it makes it interesting, but I think we all would much prefer boredom, haha…

Sending everyone positive vibes

UPDATE: As I was finishing this post, I got an update from our dear friend here… (I had last asked her if she got any of her money back):

“I didn’t get anything back since my money was in USDC. They released funds for people who had their money in fiat USD. Funny though, they lied about having FDIC insurance too, it’s been wild following all the information coming out. As far as dealing with the loss it’s been helpful for me to share with people that care about me. I even told my dad this week that I lost it bc of a bankruptcy. They all have been supportive and kind vs angry/judgemental which surprised me. Overall I’ve been comparing this experience to how bank runs used to happen before FDIC, and I am grateful that doesn’t happen to us anymore.”

Amen to that! And for having loved ones who’ve got your back

[This post, How Do You Deal With Financial Loss?, was first published by J. Money on Elite Edge Money]

Hey, everyone!

We got a comment on the million dollar club page a while back that I thought was pretty interesting … so I dug a little deeper and found a cool story to share.

Below is the original note, followed by my nosy questions and the replies (with edits for length and clarity).

Great tips and information here that might help you on your own path to hitting $1M!

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We got to $1 million (as a couple) around 2015 after about a decade of focus. Our maximum after-tax salary after 15 years in the job was only about $100k combined.

How did we get there — when in 2001 I had $50 in my bank after arriving in Sydney with only what fit into my backpack? It was a slow start, as I had to get my AU degree to be able to stay in the country. We have managed to retire at 43 and are now full-time parents to our toddler twin boys.

1) frugality (don’t buy it if you don’t need it), used furniture, used cars…

2) no debt ever (except mortgage)

3) reasonable pay but nothing special (as an accountant working in public sector)

4) great wife (also frugal and on the same page)

5) house hacking (housemates, subletting, multiple occupancies..)

6) leverage (you pay only 20% deposit for house but you get all the capital appreciation)

7) sensible investment in index funds

8) no gambling, no lotteries, no Bitcoin, no “special investment tips,” there is no easy money for 99% of us

9) we were lucky enough to live in rich country (Australia) with not much of a hard time on our way toward 1mil. Not everyone is so lucky.

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Dude!!! You rocked up to Australia with only 50 bucks and a backpack of clothes!!? That’s crazy! Can you share the backstory and how old you were and stuff?

I was just out of university and had done one year of work in Prague. I was 26 when I arrived. I actually arrived with about $800, having paid for accommodation for a month and for a business college course for about 7 months.

It was just after the Olympics and there were no jobs in Sydney in early 2001. I had a master’s degree under my belt but I couldn’t find even any shelf-stacking or dishwashing jobs. It took me a month to find my first job in Sydney … washing dishes at Taco Bell, where I stayed about 3 months until I “upgraded” to stacking shelves in a supermarket. That $50 net worth relates to my bank statement a month after my arrival. It was just before I got my first paycheck from Taco Bell. Uff that was close. Actually I owed about $3,000 to my mum, who helped me pull off the Ozy trip. I paid her back by the end of the year. So my net wealth at that point was actually negative.

Awesome you had no debt. How did you pay for university? I know AUS and USA have different prices and payment programs … What was it like for you?

Ok. First I will start with my studies back in Prague. I had completed my Bachelor and Master of Commerce. It took about 5 years. I was lucky that my parents covered food and accommodation, and my casual jobs covered discretionary spending (most of that was of course beer). Universities were free in the Czech Republic in the 1990s. So I finished the degree without any student debt.

In Sydney, I had prepaid about 7 months of Business College. After a year or so I decided I would love to stay in Australia, and one of the ways to stay permanently was to complete the Australian University degree. It was about $20,000 for me to get the degree. I asked mum if she would lend me half. She did but of course a couple of years later I had to pay her back.

Luckily any other kind of debt was not common when I was growing up in the 90s in my country. So I never really had a credit card, personal loan, car loan or store cards. Cash was king and I never could understand, what’s the point of borrowing money when you have to pay it back with interest? I did not buy anything until I had the money ready. That made my life a bit easier. It still does. I was poor student but I did not get pushed around by the debt payments.

I hear real estate in Sydney is wicked expensive. Can you share your approx house figures? And how much did house hacking save you?

This is a complex question because of various house hacks we did. Rough answer is a few hundred thousand. At the beginning I just shared a room with a roommate. Later on I got the lease of the flat in my name and made sure that the other 3 rooms were rented out, the place was furnished and my sharemates and landlord were happy. That gave me free room for myself because the sharemates just about covered the rent and bills.

At one point we tried to sublet other apartments for a small cash flow. We used to rent a flat unfurnished, buy second-hand furniture and then sublet it — by room — usually to international students who stayed 3-6 months. After paying rent and bills we used to be couple of hundred bucks ahead. Also we were giving students safe, clean, furnished, flexible rent places in a great location.

Once we finished our degrees and got full time jobs about a year later, we bought our first flat. The living room was so big that we subdivided it and made a 3rd bedroom ready for students. I was making about $36k, wife similar, and the place was $395k in about 2005. That was heaps of money, and the students were a crucial part of the plan to cut stress with the mortgage. Due to this we were able to save up a deposit for another flat nearby in a year or so. Then we got one more.

After that we sold the first place for small profit (about $50k) and bought a house ($665k). The house was old but in a good location, and previous owners made an accommodation downstairs for their daughter. We of course used that area for students and later for a long-term rental. Yes it was like having a duplex and there were occasionally noise problems, but it beats getting a second job, in my mind.

Eventually we wanted to cut our mortgage debt (which at one point exceeded $1mil) so we sold both remaining flats. That might not have been the best decision on my part (wife wanted to keep them – smart woman) because markets powered ahead and they would be worth almost double what we got for them. Also transactional costs are high in Australia. Transfer (stamp) duty, agent fees and legal would be in vicinity of 10% of the property value.

Now we live semiretired (at 43 in my case) on the beautiful Sunshine Coast in South East Queensland. The property has about 10000sqm and 2 houses. So yes, more house hacking because we are letting out the second house to a very nice teacher. I write about house hacking more in detail in couple of my posts.

I gotta say, my favorite thing on your first list was #8… “no gambling, no lotteries, no Bitcoin, no “special investment tips,” there is no easy money for 99% of us.”  Have you ever made a bad investment or lost money along the way? What happened during the global financial crisis? Did you just stay the course and keep investing?

Well first I would like to say that gambling and lotteries only look like good opportunities if you’re bad at math! Saving and investing takes time but works for 90% of people.

The financial crisis actually impacted us positively because the first house we bought was originally on the market for $780k, but we were able to buy it for $665k. Probably our worst decision was to sell the flats. The first sale was fine because we upgraded to the house. But selling the second and third flats was not a wise financial decision. But to be honest we are currently in quite a sweet spot and who knows where we would be if we had not sold the units. So even mistakes can still take you to the desired goal.

After we sold the units I got a bit risk-averse and we have not been investing for 6-7 years (except a bit of ETFs). Luckily we went quite hard in my early 30s. Most people get more risk averse as they grow older, and that stops them (or slows them down) from getting ahead.

I checked out your blog, why 9 to 5? How far along in your FIRE journey were you when you took your sabbatical? What financial impact did taking time off work have?

We took sabbatical about 4 years before retiring. In Australia many employers will let you take 3 months of long service leave after 10 years and often also let you take a portion of it if you have served at least 7 years. So actually at the time of the sabbatical, my wife got paid for 5 months from long service and annual leave. Me too, but I had to use 1 month of unpaid leave. Also we were debt free (including no mortgage) and still some money coming from our housemates. So no financial issue at all. When I returned to work, I was moved to new duties and my salary got nicely upgraded!

I thought of sabbatical as dealing with the standard mid-life crisis (I was 39) and I haven’t found a reason why people should not take it if they can.

Huge congrats on passing the $1M mark!  And thanks for spreading the word about FIRE and helping others. Anything else you want to add?

My main goal with my blog is to spread the word. FIRE is reasonably easy in most first-world countries, but it seems to be only a little bit popular in the US, not much in Australia at all and unheard of in places like South Korea or Japan. I think it is great if someone loves their job and wants to do it forever (as long as they spend time with the family). But they say about 70% of workers don’t like their jobs (my wife and I were in that group).

By spreading the word, we can give extra options to these people — aside from the lottery. We all live only once. It is sad to see the majority of people doing things they don’t want to just to put bread on the table. You can spend your time doing what you don’t want or doing what you like. Rarely both.

**********

Mr. Why 9 to 5 retired at 43 and lives in Sunshine Coast, Australia! He likes to surf and hang out with his wife and twin boys. He writes about his FIRE lifestyle at Why9to5?

[This post, Retired at 43: “No Gambling, No Lotteries, No Bitcoin”, was first published by 5am Joel on Elite Edge Money]

Despite the madness all around us, life – and finances – move on for many of us :)

Here’s a smattering of people still winning out there and focused on the prize.

Keep going, everyone!!

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The $1 Million “Asset”-er

Hey there J$:

Some time ago we were chatting about milestones. I mentioned that our first milestone was to reach $1M in assets. You told me to let you know when we hit that milestone. Well, we hit it last week, so consider this your notification. <grin>

Next milestone is $1M in our retirement, which should also be $1M for our net worth. Hopefully we will be there sooner rather than later.

– Mr. SoS

I asked him what the bulk of the assets consisted of (real estate? stocks?), and here’s what he said:

“Here is the breakdown. The bulk is our retirement and our house. I will feel better when our retirement amount exceeds $1M and we have the option to sell the house and pay off the rest of our debts.”

Then when I asked how in the world his investments went UP in march (???), he told me to read his blog post ;) So that’s where I’ll now direct you too, lol –> Net Worth: 2020.04.01

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The Once Is Enough’er

2008 was brutal and forever damaging for me. I swore to myself I would NEVER go through that again.

Since then, I’ve paid off all my credit cards and debts (only mortgage and student loan left). I own my car outright. My credit cards are all paid off and ready to handle this emergency. I have savings in the bank, and investments I can tap if (and only if) it’s absolutely necessary for survival. I have a better job, one where I can actually pay all my bills and save a little too.

I made a decision to do everything I could to never be in that fear again. School, books, blogs (like this one!), tenacity – I couldn’t sit still until I felt secure. I sincerely hope that this year is a lesson for young people to save for a rainy day. You just never know when it will rain!

– M

In response to our post on whether you feel more prepared or not having lived through the 2008 mess?! (Most people seemed to be better off for it, while the rest of you ARE JUST WAY TOO YOUNG!!! ;))

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The Mortgage Payer Offer!

Hey!!!

Look at this beauty!

In the midst of this crazy COVID world, my husband and I paid off the mortgage!

Since having a nice dinner out wasn’t an option, we settled for a nice bottle of scotch and whiskey! We enjoyed a nice beverage in OUR HOME!

I just wanted to share this with someone. We weren’t sure who we’d tell, and now with people losing jobs we’re really not going to say anything. But I figured I could tell you! Lol. Stay safe!

– Kelly

You probably have no idea what that picture up there is, so read this post if you’re curious :) Her “money board” trick paid off!! Literally! –> Having a hard time paying off debt? Try a Money Board!!

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The Debt-Free Parent of The Year!

Thanks to following you and utilizing your Net Worth and Budget tools I am completely debt-free here in Richmond. Now I even have my 25-year-old daughter tracking her Net Worth each month also!

– Suzy

Here’s our page on all our (free) net worth and budget spreadsheets and templates if you’re needing a new one! –> Free Budget Templates & Spreadsheets

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The No Spend Year’er

Hi J$, your email came the day after my birthday, so I decided it could be a fun challenge at that, to not spend anything on my wants except what I already had set aside as of that moment. And what’s really interesting is, it’s sharpened my creativity about money, even in the last couple of days as I’ve thought about how to make my current money last a whole year now!

I’ve noticed another by-product as well: it’s made me more grateful when I do get to enjoy something for free that I would have otherwise just spent money on almost without thinking.

While I don’t think it’s overly sustainable for more than a year (I like eating out and giving gifts way too much to cut them out of my life completely), I think it will be really interesting to try this until my next birthday and see how I come out.

I estimated I could save over $2,000 just by cutting back to a bare-bones budget. Pretty crazy, eh? :D

– Rachael

Yes! Crazy AWESOME!! :)

One of the best things I ever did for my money too – and that was only 40 days of trying! (Gave up “shopping” for lent – mind blowing!!!).

Here’s a great article we recently featured if anyone’s thinking of trying it –> Our “No Spend” Year

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The Future Multi-(Multi!)-Millionaires

My husband has required financial check-ins with his retirement adviser through his job. The guy ran our numbers and said we’d have $15 million saved (just in retirement, no cash or other values) in 30 years at the rate we’re saving. And our savings rate isn’t even high for FI standards – we’ve fluctuated between 25-40% over the past four years and are currently on the low end. He said it was unreal and had to re-calculate a few times to be sure he didn’t have a typo.

Now, we won’t be working that long so our contributions will taper off before we reach that huge of a number, but still super cool to see what our hard work can do given enough time. Currently, I’m 28 and he’s 32 for reference.

Damn!! That’s incredible!! And in their 20s/20s no less! Though had to laugh out loud at the “not high for FI standards”, haha… only in our world is 25-40% considered low ;)

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The 6 Year Mortgage Payer-Offer

Funny today’s post is about housing as I was going to thank my three favorite people today…again (J$, MMM, ERE) for leading me to the path of freedom.

I am mailing my LAST mortgage check today. Took a 30 year mortgage on a brand new home in 2013 and paying it off today. Never would I dream of paying off my home in 6 years. That is until I stopped being a consumer sucka, started working hard and stashing cash.

I know there’s a whole debate on rent or own, payoff mortgage or invest, or a multitude of opportunity cost situations out there. But personally, having ZERO debt, positive income, and a roof over my head for life… is priceless.

– Brian

The man who knows himself best will always sleep better :) Helluva achievement man – big congrats again! (And keep those compliments rolling! lol…)

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The $35k Debt Crusher

Hi J. Money,

I want to say thank you for inspiring me to pay off $35k in debt in~3 years. I know that’s not a lot, but when you’re earning $50-$60k annually it turns out to be a decent accomplishment.

-Dylan

Hell yeah that’s an accomplishment!! $35k is no small feat no matter how much you earn! Stand tall and be proud! :)

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Huge congrats to all our winners here today – and those others hiding in the shadows keeping it humble over there ;)

I know it’s not easy and we’re all in different phases with this stuff, but EVERY win no matter how big or small should be cherished! It’s all better than how we used to be!!

Keep doing your thing

[This post, Money Wins 💪💪, was first published by J. Money on Elite Edge Money]

Morning, guys!!

Stumbled across an old comment on the blog I tagged to share some day, and decided today’s that day before I forget again! :) It was dropped in 2018 so it’s a tiny bit dated, but a majority of this still holds true and thought you might find it as fascinating as I did when I first read it…

Amazing that no matter where you live, or who you are, you still always have to deal with this money stuff!! And some places – most places – have it much worse than we do, yet people still find a way to power through!

Here’s the note from “silent reader” in response to our post on 7 money goals to hit by 35:

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Hello, J. Money and everyone.

Long-time silent reader here…

I always read your blog with a great interest, because, yeah, the budget is sexy and it is pretty interesting to see how your (USA) financial system works.

I find your financial system more logical, stable and predictable, than ours. I was born in USSR, now live in Ukraine and our financial system, let’s face a truth, is $hit.

When USSR broke down, our people lost ALL their savings and stability. When the initial shock subsided, people started to save money from zero point again.

No one trusted banks, because they existed for a couple of years only, and then they suddenly disappeared in the night taking peoples’ savings with them.

So, people saved their money in cash at their homes and protected them (big and angry dogs, thick metal doors, high security locks, etc.).

Most savings were in a national money, because it was pretty hard to buy American $.

• At those halcyon times (1996) $1 costed around 2 grivnas (Ukranian money)
• In 2008, $1 costed 8 grivnas (financial crisis).
• In 2014, $1 costed 33 grivnas (financial crisis and war with Russia).
• Today, $1 costs 27 grivnas.

Loss after loss…

By the time we were 40, my husband and I both had an Uni degree and PhD, good jobs (I’m a medical doctor and he is a history scientist) and NO debts. We live in a big city and have a son.

We bought our own apartment when we were 35 (paid off in cash). This year we bought an apartment (paid off in cash) for our son (he is 13 now).

Also, we save money (10% of general income) for our son’s future Uni education. We want him to start his adult life having his own home, proper education and no debts. It is up to him how to live his own life further, but we did everything we could to help him to stay on his own two feet.

Although we’ll get a guaranteed pension in the future, we save money for our retirement also (20% of our general income). Who knows how our country is going to surprise us.

We live 20 mins ride from our work, so we never had a car. We use the public transport and, sometimes, taxi (emergency cases).

Our lifestyle is pretty minimalistic, but we have everything we need.

We always contemplate and discuss every purchase, and we have a principle – “we are not so wealthy to buy cheap things”. We buy 1 thing that has a high quality and a long lifespan, instead of 2-3 cheap things of the same kind. At the end of the day, 2-3 cheap things cost more in general, than 1 high quality thing.

If we both lose our jobs, we have a safety pad for 1 year of normal life or 2 years of “cheap” life. Plus, we always can sell my jewelry to have an additional 1-2 years of relatively good life.

We don’t have such an estate plan as you guys have, but if we die suddenly, our son would inherit everything (according to our laws).

That’s how life goes on the other side of the globe. Thank you for the attention :)

******

So interesting/scary/inspirational, right?! Did you catch all those $$$ wins in there??

• Paid off house IN CASH!
• Paid off house #2 (apartment for son) IN CASH!
• 10% towards college savings
• 20% towards retirement savings
• LIVING MINIMALLY
• No cars
• Guaranteed pension!
• Ton of jewelry stacked up! Haha…

Definitely thriving in a world most of us wouldn’t even know how to handle :) And looking back at my response to her, couldn’t help but get jolted by the last line I wrote there too!

We have it SO EASY here in the States, and yet so many people still complain and feel they are owed more/etc/etc.. We’d have the biggest shock of our lives going through what hundreds of other countries have gone through over the centuries… And who knows what’s lurking for us too in the future with how politics and such are shaping up!

Eek! The politics are still going downhill, but little did we know a PANDEMIC was lurking around the corner! And just how are we responding to it as a nation??? Ugh… Still better off than most of the world, but boy do we have a lot more learning to do :(

At any rate – thought you might enjoy this perspective from halfway around the world, and maybe pick up some motivation along the way too :)

Not all of us will be able to pay off our houses anytime soon, but we can still keep striving to make a better life for ourselves!! Both now and into the future!

And lots of stuff to still be GRATEFUL for along the way too…

Thanks for not being so silent anymore, silent reader :)

*****

UPDATE: Got this email from another reader of the site who shares more insight on Ukrainian life :)

“I’m married to a Ukrainian, and his cultural background of paying for everything in cash took a little while for me to get used to, but it’s such a great way to ramp up net worth. I’ll note that flats in Ukraine are a lot cheaper than property in the US, and no one pays for upkeep of common areas so there’s no association dues (so they’re affordable, but dingy on the outside). You can get a decent apartment for $50-90k, depending on the city and area. As your commenter said, Ukrainians are wary of banks, and there’s very little credit available for mortgages. My in-laws think we’re crazy for having a mortgage and stand-alone single family home in the US.

[This post, Life on the other side of the globe!, was first published by J. Money on Elite Edge Money]

Exactly three years ago on this day, we featured a reader of the blog who was suffering tremendously and trying to get a grip not only on his finances, but on being accepted in a world that doesn’t make it easy on people of certain backgrounds.

In his case, being gay, of non-white ancestry, and part of a religious Muslim community.

Many of you reached out with generous words of encouragement and even sharing some of your own struggles in life (thank you for that!!), and now I’m happy to report that after three long years our friend here is doing substantially better :)

With his permission, I’d like to share his latest update here in case any of you are going through anything similar, as well as a reminder that you can never go wrong betting on YOURSELF.

It’s not always easy, but as Iqbal here shows today – progress is possible!! So way to go, man!! A refreshing thing to read in these trying times!

Here’s his note below… For reference, he lives in Lisbon, Portugal.

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Hey J.!

Just wanted to check how are you doing during this pandemic outbreak.

And also to let you know how I was doing because it’s been years now since I last sent any news. So, overall, I’m better than ever and you had a big impact on me. Till today I’m very thankful for your support and it pleases me to re-listen to the episodes you recorded with Paula. So much knowledge and so much humility.

As for me, in the last two years I’ve been great because:

– I quit my university degree exactly a year ago and I’ve never been more relieved. That was one of the biggest things that contributed for my depression. I was not letting go of something that was harming me in the name of grit/perseverance without realizing that continuing it was hurting me more than doing good. I found a parallel between that and you deciding to quit the podcast. That episode was so relatable!

– After quitting school, I spent most of the time working (on what I was already working in) and saving up money (I had about €20,500 saved by the end of 2019). I work in tourism (I rent two Airbnb rooms and I’m a tour guide) and property management (I manage 8 tenant contracts).

– Even though this work was not related to what I studied (architecture), it was earning more money (€1,750/month) than people working in my field of study (architecture = €900/month).

– I wanted to invest in Land Flipping due to it’s low-initial-capital required to invest (I was planning on €7,000) so I purchased the REtipster course online by Seth Williams (€2,000). Have you ever heard about it? [Nope! But love the name! :)]

– Because I needed to physically be in the US to open a bank account for the Land Flipping business, I flew to the US and Canada for the first time in my life on Nov. 2019 and LOVED it.

– I felt super welcome by everyone and it all felt very familiar, maybe because I grew up with so many references from there (online and TV). It was very easy to start a friendly conversation with almost everyone!

– I had been very slow applying the knowledge from the Land Flipping course due to excessive demand in my Lisbon-based work. So I haven’t made any deals yet. For now, due to the covid-19, I decided to pause that course.

– During the quarantine I am trying to learn Forex Trading. I see a lot of lessons also apply to stocks (technical analysis).

– I started dating a new guy two years ago who is great and has even met my parents and relatives.

– My dad finally broke his 10-year silence regarding my homosexuality and has been very supportive.

– I’m more and more connected with my parents, siblings, cousins and some aunts and uncles.

– I suspect that many other relatives now know or think I’m gay and keep treating me equally, which is what I always wanted. One of my fears back in 2017 was that my family would treat me differently if they ever knew the truth. It’s still on a Don’t Ask Don’t Tell mode, but overall it might not be as bad as I feared, thankfully.

– I feel much more in control of my finances as I’ve been aggressively tracking my money and cutting unnecessary expenses (as you always recommended).

– I bought my first investment property with my boyfriend this February (2020) and it’s already rented out. We bought it for €99,000 and our down-payment was €16,000 which meant the loan was €83,000 at a fixed yearly interest rate of 1.25%. At the end of 30 years we will have paid €31,215,14 of interest on the €83,000 loan. The closing costs + repairs during February were €4,000 so each of us had to put in a total of €10,000 (€16,000 + €4,000 ÷ 2).

– In March (last month) we rented it for €750/month, so in one year, after taxes, insurance, fees and mortgage, we’ll have an annual liquid profit of €1,200 for each of us, which is equivalent to 12% of the invested capital with the bonus of building an asset being paid by our tenant’s rent. I only present the numbers because you and Paula love actual numbers. With the covid-19, I suspect things might change and our rent might have to go lower. Time will tell.

– The covid-19 has stalled a lot of my work, mainly in tourism, so my monthly income is down by 86% (to €250/month – not counting the €100/month from the real estate profit), but I have a financial cushion that will allow me to survive for at least 6 months (€8,500 saved up) while I learn more about Forex Trading.

Despite the many downsides of this pandemic, like my huge income loss, a possible BIG economic crisis, the many deaths, the vulnerability of my loved ones, the major changes of plans, the many health problems (even Paula caught Covid-19 and suffered a lot with it), I’m seeing many good things:

– I’m enjoying my time at home doing all the things I’ve been delaying due to the “lack of time”.

– I’m grateful I have a roof, I have supermarkets still filled with food, I have internet connection to keep learning new things, I’m communicating with everyone and keep working on property management.

– I’m grateful that the Portuguese government and police have been surprisingly responsible/correct handling this delicate issue. Even rival political parties are united.

– I’m grateful that the majority of people in my neighbourhood are being careful and humble. I offered to go grocery/pharmacy shopping for the vulnerable-elderly people in my building (it’s more common to live in apartments than in single family homes here in European cities) and they were moved by the gesture.

– I’m eating better because I’m cooking everything I eat.

– I’m talking more with loved ones through Whatsapp because I decided to create an online family tree and add everything I can before the elders pass away. I’ve got 534 people so far!

– I’m appreciating the silence in the city, the clear sound of the birds. I think I won’t be able to handle the car noises again once things return “back to normal”.

– I’m appreciating the lack of consumerism habits I used to have (I’m spending way less than I would in a week in little minor stuff like restaurants or clothes).

– I’m appreciating my daily 1-hour non-stop walks through Lisbon with pure silence, no cars, and listening to Paula, with you occasionally coming on in the Bloopers!

– I like the fact that this is an opportunity for the planet to see how it was environmentally needing a break from the heavy industrial usage.

– And I really hope this changes the paradigm of consumer habits in our planet (including for me).

– I hope this balances off the overvalue given to certain jobs and undervalue given to others (footballers versus nurses/psychotherapists/scientific researchers), etc.

(I know this list looks like a modified version of your “I’m just as happy…” post last month, which by the way I just commented there)

Overall I’m very happy and stable in this unstable time, ironically, unlike how lost and desperate I felt when I first emailed you three years ago.

I cannot thank you enough for the dedication you had towards me during that time. You always replied, you always followed up, you recognized the challenge I had even if you weren’t in my shoes (you had empathy) and still encouraged me through your honest and humble words.

So again, a big thank you for everything!

A big hug (with distance) from Lisbon,

– Iqbal

******

Key takeaways I see here:

• He wasn’t afraid to give up on something that no longer holds true for him anymore! (Leaving school)
• He’s been experimenting like crazy with ways to make an income!
• The more open he’s been with people he loves, the more loving – or at least understanding – they’ve been in return. Probably the hardest part out of all of this.
• He’s been TRACKING HIS MONEY and gotten his expenses pretty damn low – being able to go 6 months off €8,500 of savings!
• He seems incredibly grateful these days!
• And possibly the greatest turn around of all – he seems light years more *optimistic* than he once was three years ago… And good reason for it too, with everything he’s accomplished!

So again man – way to STICK TO IT and bet on yourself, and I’m so very glad to hear things are better for you now, as I’m sure everyone else here is happy to hear as well :)

I know it’s not easy – and not even close to being over – but you’ve seen the light now, baby!!! So keep on going!! And be sure to keep connected over the years so we can all continue following along your journey and be inspired by it!

If anyone missed the original post you can see it again here – Seeking Financial Stability as a Gay, Non-White, Man of Muslim Faith – otherwise, will catch y’all back in the morning for more financial chatting…

God bless! And keep on believing in yourselves! :)

UPDATE: Iqbal wanted to stress a few things that went on to really help him in case anyone finds this helpful themselves:

Psychotherapists — They are really important, and doing therapy for two years helped a lot. But it wasn’t just any therapist. It was a referenced one, that was not cheap at all. And where does that bring us? Back to the importance of having money to be able to afford quality services in needed times.

Psychiatrists —  I was very skeptic about taking anti-depressive pills because I feared I’d depend on them forever. I don’t. My treatment was during 17 months (March 2016 – July 2017) and always strictly following what the psychiatrist told me to do and reporting everything to her. It’s been almost three years and I feel better than ever. No addiction, no dependency.

*Verbalizing my fears through the first email I sent you, and reading the very good suggestions and empathetic responses

*Reading Dale Carnegie’s “How to stop worrying and start living” (Amazon affiliate link)

*Searching and getting physical affection, which I was lacking heavily.

[This post, “I’m very happy and stable in this unstable time, ironically, unlike how lost and desperate I felt three years ago.”, was first published by J. Money on Elite Edge Money]

Mornin’!

Here’s a bunch more ideas for ya’ll I’ve collected from around the community…

Sadly no naked men in there for you, but you’re welcome for that picture up there

Let me know if you end up trying any of these out!

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Framing the “art” your kids do on your walls!

A reader sent this one in and it’s HILARIOUS!! From MyModernMet.com:

After coming home to find their 6-year-old son had used a green marker to draw a little house on one of their walls, instead of bestowing punishment, they decided to frame it—just like a masterpiece in a gallery…

The parents even created an artwork label and titled the treasured piece, Interrupted House. The label also states the artist’s preferred medium, “Marker on latex paint,” and includes the caption “Gifted to his parents, by surprise. Nov. 13th.”

Haha…Here’s a photo of the placard that goes next to it ;) Totally stealing this idea for my 1 y/o’s doodles –  now expanded onto three walls (!!)

[See original tweet and photos from the genius who came up with this here: @DrMassicotte]

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Giving *checks* as gifts to people

I usually gift money to kids, at Christmas or birthdays, because everyone else is giving toys or clothes. I almost always write a check though because it forces them to deposit the money. Once the money is deposited, it rarely leaves the bank/savings. I’ve heard complains from family members what a pain it is but in a course of a few years, that money adds up even if there isn’t a lot of interest/dividend. Power of savings! – Cindy

Maybe a bit less faux pas than giving cash too?! Which my wife can’t stand when I do it (which is like all the time! :))

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Staying stealthy with your wealthy!

My rule is to never drive a better vehicle TO WORK than your boss. Stealth wealth is key when you work for a large company. Raises are subjective so it’s always better to be conservative. This is especially important when you work for a very small company as the owner may feel you make enough money and will give you a small raise since you drive a fancier car/truck than them. – Patti

Also good to just do in general!! Gotta be like the Millionaire Next Door up in there and keep your wealth on the low! Here’s a few things I do that helps with that, lol… How I’m Stealthy With My Wealthy

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Levying fees on your kids, haha…

As a kid, if I slept in and was late to school, my Mom would charge me $6. This was the daily cost for me to go to school so she made me pay her back.

(My Mum also made me cook dinner for the whole family every Wednesday night. If I didn’t cook, I would have to buy it. I hated it at the time, but looking back it was all just training for early independence! Thanks Mum!!) – 5AM Joel

That last part also helps you save a ton of money IN THE FUTURE too!! Once you know how to cook you’re well on your way to savings. (And better health!)

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Keeping a notebook around

My parents say the best parenting advice they got was to put a notebook and pen somewhere where it would be immediately handy so they would always be able to write down the funny things their kids unintentionally said.

Our notebook was on top of the fridge, and we collected so many sayings throughout the year that my dad actually would compromise a whole Christmas newsletter each year of just our own quotes! We never had ‘family news’, but we had people saying ours was the only Christmas newsletter they would keep in the year, or asking if they could make copies of it to send to their friends and family too!

It became so popular we even printed it up into a little booklet to sell along with our family business. So you never know where funny sayings can lead to! :D – Leah

Journaling’s also pretty good for the times we’re in right now too since we’re LIVING THROUGH HISTORY!! Gotta jot down all your quarantined doings for future descendants to read! ;)

And speaking of descendants…

******

Thinking of losses as “their” money ;)

Steve Ark on the recent investment losses…

I just remind myself that I’ll be handing down millions to my kids when my wife and I die of old age someday. If the portfolio goes down a bunch now, I’m not losing my money, I’m losing their money. That makes me feel a lot better!

Haha… can’t fault that thinking ;)

Keep hanging in there, y’all!

*****
More ideas from the archives:

• 17 Hacks to Reach FIRE Faster
• 10 #Savings Ideas To Try Out
• 12 More Money Ideas For Ya

[This post, 6 More Ideas For Y’all, was first published by J. Money on Elite Edge Money]

[Hey guys! Got a note from a reader of the blog living out in Italy and dealing with an investment mess right now (amongst other things, eek!), and after some back and forth I asked if he’d be willing to share his story as a warning that even the best of us can be scammed. Though there are always red flags looking back, of course! So hopefully this sticks in the back of your mind the next time you find yourself in a too-good-to-be-true situation too… Take it away, Moreno! And glad you’re at least personally safe and healthy over there! :)]

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Hi J,

I am writing you this note to let you and your fellow readers know what happened to me, as well as to more than two thousands investors around Europe.

After some budget scraping last year, I found myself with some extra money to store somewhere. I couldn’t let it stay parked in the bank account as interest rates in Italy are close to 0% and inflation would eat up your purchasing power day by day.

So it’s a no brainer: You-Have-To-Invest. Stocks, bonds, retirement plans, what else? I recalled the rule: diversify your investments. A golden rule, you will soon see why.

While blog-hopping I came across an article which was about peer to business lending. What the heck is peer to business lending? In a few words: a platform which collects money from investors and lends it to other companies to finance their projects. Where you basically purchase a “fraction” of the whole loan in return for a profit.

The projects are detailed on the website: residential construction, warehouses, logistics, renovation, fur processing, oil terminals, dolomite pits, etc. You can see the whole amount of the loan, pictures, description, and of course the juicy part: interest rates.

The typical range is from 17% to 22% per annum, with interest paid monthly and buy back guarantees in case the loan is not repaid by the company.

Wow! I am in!

Let’s start with Kuetzal.com, now off-line and the first platform in which I invested. Their website looked great. SSL certificate, FAQs detailing everything. Positive reviews everywhere, enthusiast bloggers, you can even find referral bonuses which grant you some extra bucks for your investments.

I register, send my ID and in a couple of days my identity is verified. They provide me with an investor ID and an IBAN account on which I have to transfer money to. I make a small deposit. The money is credited on my account, and I try to withdraw it, just to make sure they pay the money back. All smooth. The money goes back and forth from my bank account to them, and comes back when requested.

Now which project should I invest in? There is a promising “Shredder Machine” project coming soon. 24 months, 20% interest, buy back guarantee. The company wants to buy the expensive shredder machine to sub rent it. Perfect. I begin investigating the project.

The company to be financed exists: SIA VM Cargo Service. They have a website, in English, and a Gmail email contact. It’s still online: http://www.vmcargo.lv. I have a look with google maps street view but I cannot spot their logo anywhere at their address, however it looks like (from satellite images) a zone where trailers and trucks are parked. The shredder machine is a truck indeed. Good.

I decide to put €2000 euro in Kuetzal and invest in the shredder machine project. For three months interests are paid out regularly and I withdraw them to my bank account. The only change is Kuetzal replaces its CEO with a younger-than-previous one. Good money is pouring in, so I decide to invest another €2000 euro through a similar platform called Envestio.

Then the dream turns into a nightmare.

A mysterious and anonymous guy (nickname – Peer Duck) begins tweeting hints that some Kuetzal projects are a SCAM, including the shredder project I’m invested in.

My eyes start opening… Why have an English-only website if you work with Estonian and Latvian businesses? I send a note to their email address, but no answer. I do an image search on Google of their “our parking” picture and I find it is a stock photo. I should have done this before!!

On telegram group (a popular messaging platform we use here) the fire is spreading and the investors gather and try to organize themselves. They start collecting evidence and heavily work on due diligence. More red flags keep popping up everywhere.

Then an email from Kuetzal staff: “We have problems with AML and we cannot transfer money, be patient”, then another email: “We are winding down”.

This is the moment in which you realize how silly you have been. 20% interest? Who have you given your money to? An Estonian limited responsibility company, acting in a non regulated market?

Cool. You greedy genius…

So the damage was done, and I was left to figure out what to do next. I still had €2000 euro in Envestio, and I smelled something rotten there, too. I sell my Envestio projects with a 10% penalty and I request immediate withdraw of my money. I was one of the last people lucky enough to get their money back.

Envestio disappeared shortly after, much the same way as Kuetzal did. After the paid out interest and penalty I ended up with a profit of €3,45, and even more importantly my original €2000 investment. A better outcome than the €1984,27 loss from Kuetzal!

When I saw my Envestio money credited back to my bank account I felt like I could breathe again. I went back to the site to see which of my friends were still there, and it made me happy and sad at the same time. Kinda like being on one of the raft boats of the Titanic.

I immediately tried to figure out how to recover my money from Kuetzal and get justice. I knew I couldn’t do it by myself since I live in Italy and the companies were based in Estonia and/or Latvia, and they say they have borrowed money from the Baltics, Ukraine, Russia, and other locales.

Back on telegram I went to try and unite and fight back! There were groups already discussing Envestio but people were getting banned/censored when they rose concerns, so I created a new telegram group and tried promoting it around, eventually gathering more than two thousand people who were also victimized.

Meanwhile the mysterious Peer Duck and a blogger named Kristaps Mors deleted their posts because they were getting threatened (they live in Estonia), so I started getting nervous too having used my real name to create the telegram group and promote it. I decide to buy an anonymous SIM card and create an anonymous telegram account, just in case.

Then eventually a Spanish guy, Guillermo, who’s also a victim, along with another person who prefers to remain anonymous, stepped up and proposed to join together for a collective lawsuit. It’s a huge success, and I contact him to offer my help as well.

Soon a team is created: two Spanish, one Italian (me) and more from other countries contribute their time and knowledge to the common cause. We hired a law firm and incorporated two SVPs (the Estonian LTD) to represent all the claims of the victims.

Envestio and Kuetzal have been pushed to bankruptcy, and both civil and criminal investigations are currently ongoing. Every day new victims join the lawsuit, and so far comprise of more than two thousand people and a collective claim of €13M euros for both cases.

These days Estonia is experiencing a booming market for p2p and p2b investments due to its favorable tax system and technological environment (e-residency). They’re attracting investors from all over Europe, Russia and a number of other countries. Many legitimate platforms are available in the Baltics, and they offer great earning opportunities at an acceptable risk level.

However, institutional actors have been informed of what happened with Kuetzal and Envestio but have so far shown little interest or support in the case. Lack of regulation and institutional support in fraud cases poses a serious uncertainty for the investor seeking to invest in those countries who need to be aware of what’s going on.

At the end of the day it sucks losing €2000 you fought hard to save, but as much as you want to put the blame and hate on the ones scamming you, you soon come to realize that the real person you need to be angry with is yourself.

I feel like I just received a Masters course on how best to get scammed, and I got lucky that I only lost €2k when all was said and done.

Here are the main takeaways I’m walking away with:

1. Differentiate. Always. How more appealing are those bonds now in coronavirus scenario? Didn’t they look like a waste of money when stocks where roaring?
2. Don’t believe in fairy tales. No one is going to give you 20% interests with no risk. Full stop.
3. Reread step #2
4. Be paranoid. With these kinds of investments check everything. Don’t be shy. Pick up the phone and make a phone call. No answer? That’s your answer. Do not PRETEND it is going to be OK! Give up at the first red flag!
5. Think through the What-If scenario. What if the platform fails? What options do you have at your disposal? Would it still be worth it?

I consider what is happening with our lawsuit a miracle. Gathering everyone together highly increases the chances of recovering something, but it has not been easy and requires a paramount effort. Better that I just paid attention to the red flags to begin with!

So, stay safe, healthy and with your eyes wide open ;)

Ciao,
Moreno

——–

UPDATE: “Since last time I wrote, two other platforms have stopped paying: Monethera and Grupeer. The latter should be about ten times the size (of impact) as Envestio. I was invested in there as well.”

[This post, How I got scammed by p2b fraudsters – and how we’re fighting back, was first published by Guest Author on Elite Edge Money]

[Morning! Please welcome to the site today, Larry Thomas, who shares his financial recovery going through Dave Ramsey’s baby steps program. If you can believe it this was actually a *comment* left in response to our post on 6 things Dave Ramsey is Wrong About, but had to share it here in the form of a blog post as I thought it made for an excellent counter-perspective. Here’s his note below briefly edited for clarity. Thanks, Larry!]

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In January of 2005 I was organizing the financial information for the preparation of my 2004 tax return.

To my amazement, I found that during the 2004 year my wife and I’s income was just over $100,000 before taxes. I proceeded to add our joint income for the previous years from 1999 to 2004. It came to more than $540,000.

I was stunned.

Where did that over half a million dollars go? What did we have to show for it?

As much as I could tell, it was debt. How did we get into this mess? Why were we always broke? When we added our debts together they totaled over $68,000 not including the house mortgage.

When Barbara and I were married in 1992 we kept our finances separate. Since I was coming off of a divorce from my first wife, I had debt and alimony payments. Because of these issues, we decided to keep our finances separate. Since my income was more that Barbara’s income we divided the bills proportionately according to our incomes.

We both had car payments, so each of us paid our own car note. Since I made more money, I paid the house note and purchased the groceries. She paid the utilities and paid for household items and housewares. We each paid our own car insurance.

The disconnect in our separate finances caused us to build separate lines of credit and separate paths to going in debt. This disconnect had each of us thinking our debt was under control because we did not know what debts the other had accrued.

At some point in time, about 2002 or 2003, Barbara decided to work an extra job. I thought it was to earn extra money for Christmas spending. Little did I know that it was to mask over spending. I myself had run up credit card debt on household items for repairs and my hobbies of wood working, golf and liquid libations. But I thought I could handle the additional debt. What I did not expect was the continuous increase of interest rates on my multiple cards from single digits to double digits, with some of them reaching as high as 27%.

I thought I could borrow my way out of debt. So I took out lower interest credit union loans to pay off higher interest credit cards. But all that did was extend the amount of time that I remained in debt, and I still had the credit card and personal loan debt.

Looking back to ’05 I started listening to financial guru Dave Ramsey on the radio. I had seen him on a CBS feature on starting the New Year right by getting your finances in order. It intrigued me so much that I had to learn more about controlling my finances and not letting them control me.

Dave Ramsey prescribed what he calls the Baby Steps. The Baby Steps are no quick fix. They involve a lot of hard work over a period of time. But in order for them to work, both Barbara and I had to work together and combine our financial life sans debts.

To start the Baby Steps, we first had to commit to living on a budget and learn how to use budgeting tools. I also took on an extra job to help pay down debt by working part-time at Radio Shack. We have found that there is also a spiritual component to controlling ones finances.

Below are the Baby Steps in case you’re not familiar with them. I’ve added some bible passages to go along with them that help illustrate the point.

#1. $1,000 in an Emergency Fund

After you do your first budget, save up $1,000 as fast as you can. Just take care of the essentials (housing, utilities, transportation, food, and clothing) and make the minimum payments on your debt until you get the $1,000 saved up.

Why have an Emergency Fund?

An Emergency Fund will help you keep your head above water while you’re getting out of debt. As soon as you start this journey, life will happen. Murphy’s Law goes into effect. Murphy might even move in with you. For example, your refrigerator might break down but guess what? You have an emergency fund to take care of that so you don’t have to stop your debt snowball.

“We should make plans–counting on God to direct us.” – PROVERBS 16:9 TLB

#2. Pay off all debt (except the house) utilizing the “Debt Snowball”

The debt snowball is simple, yet effective. First, list all your debts smallest to largest. Next, make minimum payments on all the debts except the smallest one. Put as much money as you possibly can on that debt.

Once the smallest debt is knocked out, carry the money you were putting on your smallest debt up to the next smallest debt and attack that one. Over time, you’ll knock out debt after debt until they’re all gone!

“The rich rules over the poor, and the borrower becomes the lender’s slave. The Lord will open for you His good storehouse… bless all the work of your hand… you shall lend to many nations, but you shall not Borrow” – PROVERBS 22:7, DEUTERONOMY 28:11 NAS.

#3. 3-6 months expenses in savings for emergencies

Once your debt is gone, build a larger emergency fund of 3-6 months. This emergency fund is important as it will serve you in case loss of employment occurs. This fund allows you to continue living the way you are without stress and fear. It gives you time to choose your next step and place of employment. It allows you to stay on the plan.

“A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences.” – PROVERBS 22:3 TLB

#4. Fully fund 15% into pre-tax retirement plans and ROTH IRA, if eligible

Once you’ve reached this point, it’s time to put a little away for retirement! Take advantage of your company’s 401k if they have one; put money in mutual funds… whatever it is, just start putting away 15% of your income.

“There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up.” – PROVERBS 21:20 NAS

#5. College funding

You have kids? Guess what… high school graduation comes before you know it! What better gift to pass on to your children than a college education. They might not understand now, but they will someday!

“Let each of you look not to your own interests, but to the interests of others.” – PHILIPPIANS 2:4 NRSV

#6. Pay off home early

It’s time to own a home! On Baby Step #6, you pay off your home as fast as you can. Put as much extra money as possible toward your house payment.

Once that house is paid off, you just gave yourself a raise because you have NO PAYMENTS, BABY!

#7. Build wealth and give!

Keep socking away money and making it work for you so that you can retire with dignity. By the time you hit Baby Step #7, guess what has happened? You lived like no one else so that later you could live and give like no one else.

“Don’t forget to be kind to strangers, for some who have done this have entertained angels without realizing it!” – HEBREWS 13:2 TLB.

The Baby Steps are no quick fix. They involve a lot of hard work over a period of time. But if you work the plan, it will work for you.

And trust us, being debt-free, being on the other side – is a wonderful feeling. It’s all worth it. I just got a layoff notice today amid the COVID-19 pandemic and don’t know when I will go back to work. If I did not have my debts paid off and have an emergency fund I would be in a bad situation.

(Though please note, I get a pension since retiring from the city in 2016, and I am also a part-time tax preparer now so I am not totally out of income. You can find my site here if you live in the Ohio area and need assistance – ThomasTax1040.com)

[This post, A Christian’s Perspective on Debt-Free Living, was first published by Guest Author on Elite Edge Money]

Morning!

Lots of scary and anxiety-filled news going around us right now, but there’s also a lot of POSITIVE stuff happening in our community too!

Here’s a bunch of notes I’ve saved up from people killing it these past handful of months, and I just know there will be MORE coming because y’all are fierce and focused!

Don’t let this madness beat you!! Your freedom is still in range!!

*******

Morning J. Money,

This morning I made my final student loan payment! I paid off $86k in debt between my student loans and a car loan in four years.  Man does it feel good to be debt free by 33 (I turn 33 next month).

Cheers from Richmond VA.

– Kevin

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Hey J!

Just have to share… Sold my expensive and costly condo. Moving into a modest 4 bdrm ranch in town next door with low property taxes. Going to save about $7,500 a year and pocketed $62,000 profit. Took out a $109K mortgage. Payments are $480 a month. Retirement here I come!!

(Not really. Still enjoy working but my retirement will be less stressful when it does happen. Woot Woot!)

–  B.

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Aloha J Money!

Your emails are the first thing I read every morning and have inspired me to reach F.I.R.E by the time I’m 45 in order to pursue my passions without the 9 to 5 (or 6 to 6 in my case since I’m in the construction industry).

I just turned 37 and have $228,000 in investments between my wife and I. Three years ago we had over $60k in debt plus our mortgage and and less thank $20k in investments. I’ve now started a side hustle renting Jeeps on Turo and investing as much as I can in our Roth IRA’s, 401k’s, brokerage accounts & real estate crowdfunding through Groundfloor.com.

Thank you for the inspiration, knowledge and motivation!

Mahalo!

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I just wanted you to know that I paid off one of my credit cards!!  Now I can take what I was paying toward that one and put toward the other one!! I’m anticipating being credit card debt free by the end of the year!!  (I will still have school debt and a car loan).   Anyway, thanks for all the encouragement!!!

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Good Afternoon J. Money,

My name is Andrew Lander and I’m a Professional Voice Actor thanks to you!

I was desperately searching for a side hustle last year and landed on your “70+ Ways to Make Extra Money on The Side” article on your blog.

Side Hustle #60, featuring Voice Actor Carrie Olsen, took me on an exciting road where all I wanted to consume was everything about the voice over industry.

Feeling positively obsessed with my new life goal, I invested in one-on-one coaching, practiced day and night, and once I was told I was “demo ready” began auditioning for everything I could!

Fast-forward only 6 months later and I booked my first gig in an indie video game!

While Carrie was the guest, I want to thank you for giving her a platform to share her story that inspired me to pursue a dream I didn’t know I had.

With great thanks and many more booked gigs to come,

Andrew Lander
Business Casual Voice Overs

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Hey J,

Had to share this with someone.

Just a minor step on the road, but it’s the first time my 401k balance cracked a half-mil. :)

Have a great day!

– Gene Roberts

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J$,

I downloaded your Net Worth template in 2016 and it has quite honestly changed my life. Since then my net worth has tripled, my savings have skyrocketed, the template has grown into a massive beast of my own creation, and I actually know where my money is coming from, where it goes, and how much it makes. I just want to say thank you.

<3 $tickyWicket

P.S. When I showed the NW file to my CPA he turned giddy and said, “Oh yay!! You’re my favorite kind of client!”

*******

I’ve been in and out of credit card debt since as long as I can remember, but this is past year, I finally paid off all of them and am vowing not to use them for the whole year. I took them out of my wallet and put them in a safe place in my house.

While paying off all the credit cards I have managed to max out my 401k and contribute to Roth IRAs for the last 4 years! Go me! This year I’m really planning on sticking to my no credit card year!

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Hi J$; read every day but rarely post.

I picked this up from an old post of yours, but the idea is often repeated. I went on a no-spend month. Paid my house payment, power, etc BUT no going-out, entertainment, wander through the mall shopping. I filled up my gas tank on the 1st, bought some fresh fruits & veggies, eggs, and milk, and decided what I COULD spend on that month.

Milk, eggs, fruits, veggies-all okay. Otherwise, very little. I raided my freezer, pantry, friends’ brains for bright ideas, and spent less than $100 on food for the month. Sadly, I can do at least another month like this because my pantry AND freezer are still full. Walked a lot, read a ton of books, took advantage of free wi-fi; stuff like that. Paid cash when I went to the grocery/farmer’s market.

What it boiled down to was… I learned that I can comfortably live on a hell of a lot less than I’ve been spending. *shudder*. And my budget needs some tweaking, so I redirect those $$ where they will be working for me.

Like I said, I’ve been reading your blog for a long time. I’m grateful for the kinda oddball ideas you collect from all over, along with your own. I can’t tell you what motivated me to do a no-spend month but I can tell you, it was well-worth the education. Thanks again for keeping the fire burning; I’m working toward improving my finances every day!

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I started tracking my net worth in March 2013 after finding your blog – $66k. We are a little over 6 years later and at ~$450k. I’d honestly love a freaking recession so I could pile some more money in though! [Got his wish there! – J$]

– Chris, FlippingADollar.com

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We finally got to the half a million net worth mark last week! And I didn’t even know until my wife told me this weekend! Considering we met 6 years ago and at the time I had a $5,000 net worth and my wife said she had something like $30K, I’d say it’s been pretty good!

Although there was a $75K inheritance there in 2015. So we can take credit for roughly $400K in about 6 years (Still can’t believe those numbers!). Sorry, you’re probably one of the few people who can understand how crazy that sounds! I lived paycheck-to-paycheck until I hit 30 and now I’m a half a millionaire! Wooooo!

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Thanks to the Money Show podcast my life has turned 180 degrees. I went from overspending, underinvesting, and accumulating debt to being in a strong financial position.

In less than 1 year since discovering the show and the FI community both my significant other and I have paid off all our debt (totaled $49,000), put away over 6 months in emergency savings each, and now comfortably save/invest over 53% of our income.

I grew up in poverty so I hope you know that having others to learn fiscal responsibility from makes a world of difference to people like myself. My life will forever be improved thanks to the resources I’ve found such as bloggers/podcasters like yourself!

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I found an old excel file from 2008 where I was tracking my cash tips from the waitressing job I had in college (I’ve always loved excel). In that file I noted I had $3,221.13 in my bank account which was the extent of my net worth.

Today my net worth is over $215k!!! I’ve been tracking it for 2 years since finding your blog so I know how much it’s grown but it’s extra awesome to see how far I’ve come since college.

– Shawna

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I started reading your blog while I was at my last job where my boss did not like me because of my political affiliation. I became unhappy at work and I felt I had to stay because I had expenses and just “adulting” that I needed to do.

I left that job and started my own business and never looked back. I left them a 200 page exit memo, but leaving was the most freeing thing I did and I never again wanted to be in the position of feeling trapped at work.

While I was consulting I was looking for the next right fit for me. It took about 7 months which I was fine with. Thanks to your blog, I had an emergency fund and I did not need to tap into my savings at all. I was prepared to take my time until I found a role that worked for me. Usually people find the job then leave, but this place was so toxic that I felt better off not having a job than being there.

Fast-forward to today I am at such an awesome place where people are truly so friendly and love what they do. I make just over $67K from my day job of which I save 50% and just over $73K on the side of which I save 100%. (Note: Waiting for a $50K contract to be finalized which would bring me up to just over $120K in side hustle income)

You lit a FIRE under me to hustle like no other. I save, invest and challenge myself to focus on goals and how to crush them. These all kind of happened at once but honestly, waking up, reading your blog and having the right mindset is what is doing it for me.

– “Jeremy”

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J. Money –

Because of you I started tracking our net worth and we are at $750,000.

We got here through diligently saving $$$, and especially have ramped it up the past few years. My current employer matches 18% of our salary/bonus which is incredible. We have T. Rowe Price and they consistently say we are the top company out of all their retirement plans. So, that has helped me bank away $50,000 into my retirement TAX-FREE each year.

I’m hoping to hit $1,000,000 in net worth around 40 years old….. 2.5 years away! I love the articles and ideas they spur. Cheers!

Other details:

• We have $200,000 in home equity
• $100,000 in college savings
• $250,000 in retirement accounts
• $200,000 in other liquid savings (non-retirement)
• I drive a 15 year old beater (paid off) and the wife a 7 year old minivan (paid off).

– Debt Free in RVA

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And then lastly, which I now DOUBLY recommend doing:

Hey J.

Our podcast interview together inspired me to turn off social media from my life on Friday afternoon through Monday morning. It’s been great for my family. I’m going strong with it 4 weeks in a row now. Thank you!

– Andy Hill

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Keep it up everyone!!

This is the part of the journey that’ll make you GREAT!!!

Don’t stop!

[This post, Stay fierce and focused!, was first published by J. Money on Elite Edge Money]

Mornin’!

Here’s a snapshot of someone’s money who recently emailed me, along with some pretty graphs and spreadsheets to gawk over ;) Been a while since we featured one of these, and always fun to peer into someone else’s $$$! Especially when we’re talking at levels like this!

The first part here is all about the numbers, and the 2nd part is the *how* of it all – after I did a little prying… Always gotta keep your eyes open for those opportunities! They can make all the difference in the world!

From “Steve”:

Hey Man –

Just wanted to drop you a line and say thanks for the motivation over the years. I’ve been a long time reader but have not made many comments on your site. I’ve been tracking my net worth in January of 2009 when it was a whopping $24,264.43. Considering I had just graduated college with my undergrad, a positive net worth wasn’t too bad looking back on it now.

Fast forward to today, me and my wife are currently sitting at just over of $2M. Peaked in December at $2,121,656 and then dropped back down to $1,987,146 in February with it hovering right around the $2,014,00 mark now. It’s been a great journey so far and we are excited to see where it takes us. We are both currently 34.

Confession time –

I’m a *SUPER* competitive person and must finally admit to you what my net worth spreadsheet looks like. Yes, that is your net worth chart sitting beneath mine!

Every month I would update my chart and grab your updated chart from the website. Kept me motivated over the years! Glad to see you finally hit $1M. I had no doubt that you would do it.

[Click to blow up]

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Pretty similar graphs indeed! Only with one of us having a *wee* bit more than the other ;)

Asked him how he was able to turbocharge it so much, and here’s what he said:

The biggest benefit to reaching $2M (still weird to type that) was finding a good job right out of college. I kind of lucked into to it to be honest. I graduated with my undergrad and enrolled in the MBA program and found this job as a “filler” until I graduated. Been there 10 years now.

In the beginning, I didn’t make much. Started out at $10/hr and about 6 months later moved into a management role at $32,000 base salary with bonus potential. The bonus programs were lucrative – sometime more than your overall salary. Over the years salary climbed up to $80,000 with a bonus potential of another $80K.

The company also had a private share program. It wasn’t a traditional ESOP but something very similar to where you owned a portion of the company. This program was only available to management or higher when i started with the company. Anyways, this program grew like crazy over the years. One year it grew over 35%!!!! There were no “stock options”, match etc. You had to put your own money in the program and your max number of shares was determined by your position within the company.

I was bound and determined to max this program out because of how lucrative it was. I took every bonus check and threw it towards this program. I pasted a screenshot of my spreadsheet below. I blurred out some details of the program because I’ve recommended your site to co-workers and don’t want them to piece it together that its my chart haha.

Anyways – it was really buckling down and taking all excess money and throwing it in this program. The program has since ended :( But I was able to gain over $800,000 in this program when it was all said and done. During this time I was also taking advantage of company 401K by getting the full match as well as maxing out me and my wife’s ROTH IRA. I took a bunch of risk by putting so much into my employer “stock” but it paid off for me in the end. My wife and I averaged around a 40-50% savings rate.

You’ll notice in 2013 I put in over $100K into this program — that was from a personal, unsecured loan. But I didn’t mind paying almost 9% interest when I was making over 30%. At that time I maxed out the number of shares that I could own so the bonus checks went into paying off the loan.

Anyways – wanted to let you know you’ve impacted more lives than you probably realize over the years. Cheers to your success and positive impact on this world!

[Click to blow up]

Pretty impressive, right?! And absolutely LOVE that he just ran with that company stock program when he realized how lucrative it was. The company could have gone under and he would have lost it all, but I’m sure he was closely monitoring it and would have changed course had he seen any inkling of it.

Reminds me a lot of when I maxed out my 401(k) plan when I heard our company was going to match 100% of 100% of my contributions! All the way up to the legal limit! I jacked up my contributions as high as they’d let me, and then for the next 2-3 months I lived off $60-something paychecks every two weeks until I hit the maximum of $16,500 or whatever it was at the time. Essentially DOUBLING my investments on the spot. (It was also fully vested!)

Similar to Steve’s deal our company eventually discontinued this, but for a few years there we milked it for as much as we could! And now 10+ years later it continues to pay dividends – quite literally!

All this to say that if you come across an amazing opportunity, do your best to take full advantage of it for however long you can… You might have to get a bit ballsy and out of your comfort zone for a while (for Steve it was a personal loan, and for me it was living off peanuts for awhile) but it really is amazing what it can do to your overall wealth when you push yourself like that. And usually everything goes back to normal soon anyways, so you have plenty of time to recollect yourself and take a breather ;)

If anyone else would like to share their journey and numbers with us, pass it on over and we might feature you here next!

Congrats on all your success, Steve + Wife! Way to crush it!

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For more articles featuring other peoples’ money, click here.

And then here’s another on ESPPs which is similar to Steve’s deal there –> The Reality of Employee Stock Participation Plans

[This post, “I crossed $1M in 2016, and then $2M in 2019!”, was first published by J. Money on Elite Edge Money]