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Apr 11 2021 10:26pm
Quote (SBD @ Apr 10 2021 01:43pm)


Lul


I don’t believe more education will gain me better biweekly pay. I have a construction engineering degree and with that I am paid well by construction standards and community. Changing my field doesn’t make much sense either. It would take several years to become a doctor/lawyer - and for what a 50%-75% salary increase vs how many more years school and tuition costs (USA)

Depending on the idea I have capital to start it. Something I can build on monthly instead of a single large initial capital investment would be preferred.

Purchasing rental properties seems like a poor choice right now; housing costs are ballooning; I don’t want to buy and get upside down on a loan.
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Apr 11 2021 10:48pm
Quote (hasteful @ Apr 11 2021 11:26pm)
I don’t believe more education will gain me better biweekly pay. I have a construction engineering degree and with that I am paid well by construction standards and community. Changing my field doesn’t make much sense either. It would take several years to become a doctor/lawyer - and for what a 50%-75% salary increase vs how many more years school and tuition costs (USA)

Depending on the idea I have capital to start it. Something I can build on monthly instead of a single large initial capital investment would be preferred.

Purchasing rental properties seems like a poor choice right now; housing costs are ballooning; I don’t want to buy and get upside down on a loan.


If rentals is a good idea is highly dependent on your local area. For real-estate of any kind the local market forces will always be more important than the national forces. In my area, it would be a great idea, but I'm also in an area with an extreme level of rental demand, lots more college students coming in even with the pandemic, and lots of areas that are being targeted for gentrification in the next 5-10 years which will cause them to massively appreciate no matter what the national situation is like.

But that might not be the same for where you are. If you aren't confident in your area then I'd say avoid rentals, since they're a lot of work and a high risk for a high return.

Quote (SBD @ Apr 10 2021 12:43pm)
Almost all passive income sources take significant upfront input be it generating initial capital or your own time. Blogs don't start with sponsors, or viewers you have to write all those initial articles that get close to no views before anything starts accumulating and old articles begin generating passive income after you get a following for instance. There's no free lunch unless you inherit one or get some other type of windfall gain.

I have a big gripe with how people spend their time. People for instance invest all this time into trading, but they're trading such small amounts. That time would be better off invested into actually progressing in a career or advancing education to get additional letters next to your name that will allow you to generate a significantly higher bi-weekly pay cheque. What does it matter that you make 100% gains on your $500 dollar investment when your net pay cheque is less than 5K a bi-weekly. Spend the initial time logging education hours or whatever to get a high rate of return on your time then start logging the hours on researching investments to make that return on your time generate return.


I'm just remembering my work gives me tuition benefits. I really need to take a statistics class and maybe some biology classes. I'm trained as a computational chemist and I'm running an oncology lab. Even a year later it's still a bit outside my wheelhouse, so I think I should maybe take this advice lol.

Although it won't be because I want to increase my income. Higher income jobs in my field will suck so much ass lol. I like working efficiently and as a result only having to work ~35 hours a week. Gives me time to develop other projects and spend time with my wife. Although there are times, like what's coming up, where I'll be doing a mouse experiment where I'll be doing really weird shifts treating mice twice a day 7 days a week. Feels bad man. But outside of that, great hours. There's a lot of value to having free time if you are otherwise comfortable. There's a lot of quality to life in chasing those gains, even if it's a fleeting high from basically gambling. As long as you're otherwise monetarily stable.

This post was edited by Thor123422 on Apr 11 2021 10:49pm
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Apr 12 2021 04:21pm
Quote (SBD @ Apr 10 2021 01:43pm)
Almost all passive income sources take significant upfront input be it generating initial capital or your own time. Blogs don't start with sponsors, or viewers you have to write all those initial articles that get close to no views before anything starts accumulating and old articles begin generating passive income after you get a following for instance. There's no free lunch unless you inherit one or get some other type of windfall gain.

I have a big gripe with how people spend their time. People for instance invest all this time into trading, but they're trading such small amounts. That time would be better off invested into actually progressing in a career or advancing education to get additional letters next to your name that will allow you to generate a significantly higher bi-weekly pay cheque. What does it matter that you make 100% gains on your $500 dollar investment when your net pay cheque is less than 5K a bi-weekly. Spend the initial time logging education hours or whatever to get a high rate of return on your time then start logging the hours on researching investments to make that return on your time generate return.

I know that the above is a bit of a tangent but invest upfront time into yourself, so you can generate a high return starting earlier in life and then that money you get from investing in yourself will multiply far faster than trying to figure out how to generate small beans.

This is partly because I have friends who spend hours and hours on the internet daily or reading reddit or whatever trying to make a buck, meanwhile if they just got some type of designation via spending the same time studying their salary would jump 2-3x what they currently make. You start saving 10K + a month because you invested time into yourself you can start earning real passive income off that.

Perhaps Americans just don't have the same opportunities Canadians have though due to the stark differences in price of education or said reinvestment it to one's self.

"According to US News and World Report, the average cost of private tuition in the US for the 2018-2019 academic year was $35,676, with public, in-state tuition averaging to $9,716. Depending on which province you're in, the average tuition for Canadian students ranges from $6,653 (Ontario) to $2,172 (Newfoundland and Labrador)."

Lul


Im not sure if 5k net biweekly is feasible for most. Isnt that executive level salary?
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Apr 12 2021 05:42pm
Quote (duffman316 @ Apr 12 2021 04:21pm)
Im not sure if 5k net biweekly is feasible for most. Isnt that executive level salary?


Its not for average it's an exaggeration but the point being that for most people more input in their actual chosen career path will yeild more than spending time to turn trivial savings into a real sum of money.

Overtime is a great example. If you get paid overtime and there's ample oppertunity it's more likely to accelerate your savings goals compared to time spent online endlessly going through ticker symbols looking for stocks that are trading lower then they have in the past thinking that for some reason that means they will eventually return to their historical prices.

I've seen many blue collar individuals make an excellent life for themselves going that route. Every extra dollar put away and their family budget is based off pre overtime wages.

Data shows that the more you overthink the market the more you drift from the mean return and not in the right direction. Just pile it in against the s&p or similar things and put extra time you were going to use looking that that stuff and redirect it info something that makes a return.

This post was edited by SBD on Apr 12 2021 05:49pm
Apr 12 2021 10:34pm
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Apr 13 2021 04:27am
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Apr 28 2021 12:40am
YouTube just recommended me this video and it made me think of this thread.

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Apr 28 2021 07:07am
As SBD said, earning more in your career is likely to be the easiest way to accumulate real wealth. If you can generate an additional $2000 per month in cash flow, and invest that earning ~7% annually, you can expect to generate an additional $1,041,853.32 in savings within 20 years. In turn, you can expect that to generate $30,000+ in income on an annual basis. Invest more time at work, seek out additional opportunities, get promoted. The higher you go, the larger the % increases are in real terms. If you aren't capable of this, financial freedom is probably beyond your reach.
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Apr 29 2021 04:13pm
You mention that you buy stocks with dividends and keep adding to them. do you have some with multiples of 100 yet? If so, you should apply for options trading and sell covered calls. My portfolio averages about 2% dividend income and 3% additional income from selling covered calls. That is all income in addition to the gains in the actual share prices. Selling covered calls could be a once per week or even once per month activity for you. It is set it and forget it, so in that sense it is very passive. You own the shares, so no need to take any action when the options reach expiration. If they expire in the money they will auto execute and your shares will be sold (at a profit point - never pick a strike that would not make you profit). The only downside with this is that if you have a stock that really pops big, and you sold a call, you will not be able to take advantage of all those gains. Your gains will be caped at the strike price of the call you sold. I say the trade-off is worth it though. There have only been a couple of times where I really regretted selling the calls. 96% of the time they expire worthless for me.

Another thing you could, is that if you have at least $25,000 in the account, and if it is brokerage account (not an IRA), you should apply for margin. You don't want to actually use the margin because then you pay interest, but you could then sell cash secured puts and hopefully (depending on your brokerage acct) they dont charge you margin and you only are impacting the maintenance requirement. I just sold a 55 strike Uber put expiring tomorrow for $10 and a 237.50 strike SQ put expiring tomorrow for $50. Very easy income, as I expect both to expire worthless, and it requires no action from me since the moment i sold the put. Even if they execute, I do not mind buying those shares at those prices.
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