Comments on: Get These Questions Right and Win The Game of Money

By: J. Money

J. Money — Thu, 27 Aug 2015 20:14:46 +0000

In reply to Syed. Agreed. And this week was a perfect reminder of that too! I hope people bought, bought, bought during those crashes!

By: Syed

Syed — Wed, 26 Aug 2015 16:37:41 +0000

This was a nice little brain exercise. Pretty basic stuff for us financial nerds but I wonder how the general public would do? I think question #5 is very important, especially for young people. If you’re saving for retirement and you’re not almost entirely in stocks early in life, you’re missing out on a whole lot of growth. People are scared of stocks, but they shouldn’t be because they almost always perform better than bonds and real estate in the long term.

By: J. Money

J. Money — Wed, 26 Aug 2015 15:36:37 +0000

In reply to DP @ Someday Extraordinary. Great answers!

By: DP @ Someday Extraordinary

DP @ Someday Extraordinary — Wed, 26 Aug 2015 14:19:12 +0000

Saw this test. I guess it’s a good generic article from Motely, but I have a feeling if you’re reading Motley, or especially this blog, you have a pretty good feel on most of these. Regarding Q2, it’s not necessarily an all-or-nothing answer. Obviously, 25% cc debt will kill you, but you also need to pay yourself first. Lesson learned from “The Richest Man in Babylon” – he paid off his debtors with each payment he received, but he also put aside some money to work for him, as well! Don’t forget to pay yourself!

-DP

By: Michael

Michael — Wed, 26 Aug 2015 11:56:50 +0000

In reply to Chris Muller. @ChrisMiller, historically real estate around the United States has grown around 3%, but as J. Money mentioned it all depends on the area you lived and time of purchase. NYC and Miami over the past 5 years could have doubled the money.

By: J. Money

J. Money — Wed, 26 Aug 2015 11:11:12 +0000

In reply to Chadnudj.

yeah, I was gonna say – the company match changes the game completely. That’s a 100% return and will kill any c/c rate (hopefully – hah!). Not to mention all that match is then growing on top and making even more investment babies while you sleep :)

But yeah, matches aside it does get a bit wonky tax-wise for sure. Which makes me love the “do what makes you happiest” route even more, since both are smart moves!

By: J. Money

J. Money — Wed, 26 Aug 2015 11:09:15 +0000

In reply to Free to Pursue.

yup, savings rates are important! I would have guessed expenses, but I guess they go hand-in-hand eh? and you can have expenses without any income which would put you in pretty dire straights, haha… so yeah – guess it is savings rate :)

By: J. Money

J. Money — Wed, 26 Aug 2015 11:07:53 +0000

In reply to The Professor.

Oh man, like you mean in a net worth?

I guess I’d just leave it out as it seems more like an income stream than an asset (though of course it is). But in terms of the Early Retirement/Financially Free calculations, this would play a major role! That one line item will drastically affect your #’s for sure – and most definitely needs to be included (provided it’s a 100% fact).

I have similar problems with valuing my blog and other online projects. You can certainly put a # on it, but until it’s time to sell you just really don’t know what the market will provide. So for now I leave those out too, and when/if the day comes to offload the profits will then be calculated into the wealth #.

Interesting question though for sure – I bet you’re not alone in wondering :) I’d google a little and see how others do it! Maybe it’s a multiplier of the $ or something?

By: J. Money

J. Money — Wed, 26 Aug 2015 11:04:01 +0000

In reply to Stockbeard. That's awesome! We're becoming better adults! Haha...

By: EL

EL — Tue, 25 Aug 2015 18:33:31 +0000

Yeah this test is very east to me, and had all answers somewhat solid compared to results. Good job finding another test J. you just keep expanding the site readers knowledge.