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12:49p, 5/22/15
BombayAg
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In reply to [removed post] • 2:12p, 5/22/15
quote:
quote:
Can we change gears a little and discuss how you savvy people approach cutting consumption costs? Like cable, wireless, utilities, etc. I am very interested to figure how how i can minimize these recurring payments that i simply forget about because they are on auto payments.
regarding cable, i call directv every six months and threaten to cancel. they will connect you to someone in retention, who will then cut you a deal on price. occasionally they'll try to offer you free stuff instead (IE showtime for 3 months) but if you stick to cancelling because its too expensive, they eventually knock $ off your bill. i've been doing this for years and it has never failed.

Awesome. I will be doing this to effin Comcast.
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Stive
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In reply to CrossBowAg99 • 2:31p, 5/22/15
AG
quote:
quote:
He has a sordid history on texags and it isn't his first username. Pretty sure he's not c/o '15 and at one point I was convinced his account was used by multiple people.
He is also an expert on Houston private schools
And an expert at buying season tickets and selling them for exorbitant amounts to whoever wants to buy them.

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gigemhilo
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In reply to AggieBQ03 • 2:36p, 5/22/15
AG
quote:
If you want to cut costs to help become a millionaire, forget about cable, phone bills, and insurance.

Buy a smaller house.
Drive used cars of a non-luxury brand.
Limit discretionary expenses.
Save directly from your paychecks.
Have a written spending plan/budget of some kind.
x1000
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SACR
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In reply to AggieBQ03 • 2:58p, 5/22/15
AG
quote:
If you want to cut costs to help become a millionaire, forget about cable, phone bills, and insurance.

Buy a smaller house.
Drive used cars of a non-luxury brand.
Limit discretionary expenses.
Save directly from your paychecks.
Have a written spending plan/budget of some kind.
I think this is one of the biggest ones. It isn't the "you won't see it so you won't miss it" aspect, as much it is the simple "you don't have to think about it so it is regularly done". It is the opposite of those autopays you set up online, because this is one that is building wealth for you.
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Ag92NGranbury
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3:36p, 5/22/15
AG
haven't seen this thread in awhile...

just some odd & end stuff...

wife and I splurged a bit last year and took a trip to bora bora... well worth the experience... we used gas points (3x) on amex and then bought four seasons gift certificates when they were discounted 30%... score! always looking for great deals to enjoy great experiences

it is definitely an interesting environment since this thread originated... I hope that all the people making coin off gas/oil saved for that rainy day.... the one thing about business, rainy days ALWAYS happen.

it is also an interesting environment for high incomes and taxation... it makes growing wealth a bit harder in the current environment... there is a growing trend to tax the people the most that create opportunities... growing wealth inside businesses or tax deferred investments is highly desirable right now... avoid income if you can

also avoid the wealth effect... it is easier to spend money when you feel like your wealth is increasing (home values, 401ks, business income, etc)... be prudent in your spending, but saving for that rainy day

my crystal ball gets cloudy sometimes, and by no means should you ever take my advice... you should always have a certified financial planner that you work with.... but my crystal ball thinks that while the road is bumpy, we still have some more new highs to hit over the next year or 2... let investments ride, but build up cash surplus for the next crash... always move opposite of the herd

as for kids, my oldest is 13... we have been saving for her in a 529 since she was born, but she has no idea about it... for her, she believes that she will have to make good grades for a schollie or earn $$ on her own to attend college... and it is developing a very good sense of work ethic in her, both at school and work... she has already saved a decent amount of cash as a 13 year old... someday we will break the news to her about the 529, but not for a long, long time....on the other hand, if she lands a schollie, then maybe i'll get a boat and name her 'College Fund'

have a great memorial day!
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YouBet
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5:10p, 5/22/15
AG
Regarding monthly expenses shop your home insurance. I will plug Liere who advertises on here but they saved me $1500 per year. Was shocked.

If you work for a large corporation research deals your company might be able to get you. I'm always surprised what our company has negotiated on our behalf that isn't always talked about.
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Dill-Ag13
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8:16a, 5/25/15
AG
I heavily use YNAB to track our spending each month. We're just starting out but real estate and stock market timing has been astounding for us so we're trying to "stay ahead".

I look at our "parasitic expenses" as someone called them every 3-6 months. We're going to be dropping cable, switching insurance, and switching internet providers all in the next few months. Should free up $150/month ($1,800 per year!).

I think that this is one of the biggest areas where people can make changes.... Magazine subscriptions, gym memberships, golf memberships, way-too-expensive TV packages, a home phone when cell phones work, etc.
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suburban cowboy
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9:52p, 5/25/15
AG
Class of '14 Ag here looking for advice.

Background: I moved home after graduation and have been able to save 31K cash (out of a 50K starting salary). I contribute 6% to my 401k with 5% employer match. I also participate in an employee stock purchasing plan. Chose not to contribute to a Roth IRA in 2014 because I used that money to pay off my only student loans, but plan to contribute in 2015. I just recently received a promotion and am now making 80K annually. I currently have no debt (all expenses are discretionary), am single and plan on living at home for another 12 months to save for my first home.

Basically, I'm looking for ways to diversify (start) my portfolio, while at the same time save money to buy a house (plan to put 20% down) around a year from now in the Houston area.

I feel like I'm on my way to becoming financially stable, but want to seek council from Ags that have "been there done that", if you will. Any and all advice is highly appreciated. Thanks and Gig 'em!

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YouBet
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10:54p, 5/25/15
AG
Clearly, I did not choose majors well. $80k in your second year out of college?! Damn. You're already ahead of the game.
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SACR
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In reply to suburban cowboy • 1:27a, 5/26/15
AG
I'd put this in its own stand-alone thread on the board, so it gets more attention.

Off the top of my head, I'd say you've done a terrific job of paying off your debts.

You need to remember that even though you received a raise, you still want to live like you're only making $16k a year (good job saving $31k). You want to be careful you don't get caught on the Hedonic treadmill and let lifestyle creep take over.

I think the first thing you need to do is to increase your 401k contributions until you max them out. Living at home on $16k a year, you could easily afford to contribute more than $3k to your 401k. After maxing out your 401k, then max out a Roth IRA.

Are you planning on living in Houston proper? I just did a quick search, and I was shocked at how little you can get for $300k in Houston. Real estate prices there must be crazy.
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Ridge14
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In reply to suburban cowboy • 12:34p, 5/26/15
quote:
Class of '14 Ag here looking for advice.

Background: I moved home after graduation and have been able to save 31K cash (out of a 50K starting salary). I contribute 6% to my 401k with 5% employer match. I also participate in an employee stock purchasing plan. Chose not to contribute to a Roth IRA in 2014 because I used that money to pay off my only student loans, but plan to contribute in 2015. I just recently received a promotion and am now making 80K annually. I currently have no debt (all expenses are discretionary), am single and plan on living at home for another 12 months to save for my first home.

Basically, I'm looking for ways to diversify (start) my portfolio, while at the same time save money to buy a house (plan to put 20% down) around a year from now in the Houston area.

I feel like I'm on my way to becoming financially stable, but want to seek council from Ags that have "been there done that", if you will. Any and all advice is highly appreciated. Thanks and Gig 'em!



Wow a 30k raise is awesome. The company must really value your good and hard work.

You've basically already caught up to this engineering major
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LiereInsurance
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In reply to YouBet • 12:41p, 5/26/15
quote:
Regarding monthly expenses shop your home insurance. I will plug Liere who advertises on here but they saved me $1500 per year. Was shocked.

If you work for a large corporation research deals your company might be able to get you. I'm always surprised what our company has negotiated on our behalf that isn't always talked about.
Thank you very much YouBet!
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SlackerAg
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1:38p, 5/26/15
AG
IceCream, what is your major?
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suburban cowboy
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In reply to SlackerAg • 1:49p, 5/26/15
AG
Bioenvironmental Sciences.

I do environmental compliance for a major O&G.
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Comeby!
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2:51p, 5/26/15
AG
In San Angelo?
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RK
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3:02p, 5/26/15
AG
Mays is a Nichols?

that makes sense.
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Aggie09Derek
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In reply to suburban cowboy • 5:11p, 5/26/15
AG
Move out of your parents house. You make good money, live on your own and enjoy your young single life a bit.
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bmks270
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11:48a, 5/27/15
AG
I'm 26. Seems like everyone I know buying a house around my age lived at home for a year...! Be glad, many don't have the luxury of being able to live with their parents and save that much money. No rent, utilities or cable bills!



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10andBOUNCE
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11:53a, 5/27/15
AG
If my kid comes back to live with me he's gonna pay something to live in my house.
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TLS11
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In reply to 10andBOUNCE • 4:14p, 5/27/15
AG
quote:
If my kid comes back to live with me he's gonna pay something to live in my house.
I don't know. After seeing the kind of head start that kind of first year aggressive saving creates, I think I would let mine stay for a year as long as they were saving pretty much everything and weren't wasting any money. If it was because they were lazy and not wanting to get a good job, it would be different. But if the intent is to create a strong saving foundation for a year, I think I would support it.
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suburban cowboy
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In reply to TLS11 • 4:59p, 5/27/15
AG
This was the understanding/agreement I had with my old man. Plus I mow the lawn and help out with various household chores that I don't mind doing to help him out.

The plan is to go 12 more months, start my house search and buy a place of my own. No need to throw away funds on rent when I can live at home comfortably and still have fun. Twenty four years of age, single, with a bachelor pad of my own and a good rainy day fund is the plan and I'm sticking to it.

I was hoping to get some additional investment advice.
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T Durden
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5:19p, 5/27/15
AG
Save up for the occasional hotel room. Man I would hate to have had my parents walk in on me doing the deed with a nice girl after a night out...or a lazy Sunday afternoon or...you get the point.
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SACR
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In reply to suburban cowboy • 5:22p, 5/27/15
AG
quote:
This was the understanding/agreement I had with my old man. Plus I mow the lawn and help out with various household chores that I don't mind doing to help him out.

The plan is to go 12 more months, start my house search and buy a place of my own. No need to throw away funds on rent when I can live at home comfortably and still have fun. Twenty four years of age, single, with a bachelor pad of my own and a good rainy day fund is the plan and I'm sticking to it.

I was hoping to get some additional investment advice.
I think you'd get more advice if you put this in its own thread.

This thread is about people who became millionaires and how they did it, so you're kinda taking it off topic.
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suburban cowboy
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In reply to SACR • 5:49p, 5/27/15
AG
You got me, man. I'll get a thread up later this evening.
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IrishTxAggie
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10:03p, 5/27/15
AG
Lived with my parents for 18 months post graduation. Dad charged me $500/month plus chores and other crap.
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Protrident
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In reply to AgsMyDude • 6:47a, 5/29/15
AG
quote:
quote:
On the question about starting in rental property: One way is to buy your first house with an eye on that being your first rental property. A few of the advantages doing this:

You'll have a lower mortgage rate since it's your primary residence. You can fix it up while you live there.

When I first moved to California (in the '80's), a guy told me that he still owns every house he ever bought, starting with this strategy. He would buy a better house each time, live in it for a few years, rent it out and buy another better house. His goal was to eventually have a house with an ocean view. (He had several back then).


I am considering doing this exact same thing. Buy a house, live it in for ~3/4 years, try to get a solid way through the mortgage. Move out, rent it out, let the renters pay the mortgage for me on that property basically while living in/owning my primary residence.

Has anybody on here done this? I was wondering how much cut you would have to give for a realtor, or do you write up leases/manage it yourself?
I did this while in the Navy. Having to move every few years, and making pretty good money right out of college (60k year 1 to about 90k year 9), and the market allowing you to have more houses back then, I had 3 houses when I got out, got married, started having kids. Keeping up with rentals in different cities/States was NOT FUN. I can easily call out contractors for repairs, but, you want someone to have eyes on your place every now and then. Also, when renters move, it's a big ordeal to clean, show, and sign the new contract. All the agents I found charged so much I was pretty much break even or slightly under month to month cash flow. I didn't want to wait 30 years to finally appreciate all that hard work so I sold them all.

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Phat32
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9:56a, 5/29/15
AG
Interesting strategy. Will take into consideration. This thread is great even just for ideas.
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ABATTBQ11
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In reply to BombayAg • 10:02a, 5/29/15
AG
quote:
quote:
quote:
Can we change gears a little and discuss how you savvy people approach cutting consumption costs? Like cable, wireless, utilities, etc. I am very interested to figure how how i can minimize these recurring payments that i simply forget about because they are on auto payments.
regarding cable, i call directv every six months and threaten to cancel. they will connect you to someone in retention, who will then cut you a deal on price. occasionally they'll try to offer you free stuff instead (IE showtime for 3 months) but if you stick to cancelling because its too expensive, they eventually knock $ off your bill. i've been doing this for years and it has never failed.

Awesome. I will be doing this to effin Comcast.
I simply go without. I pay $8/month for Netflix and that's it. I'm considering getting Sling TV for football season though. $20/month for some good channels including ESPN and ESPN2 with no contract. $5 more for SECN.
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GarlandAg2012
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10:15a, 5/29/15
AG
Just turned 25 so I updated all my mint info to try to get a snapshot of my progress. My goal was a net worth at 25% of the millionaire club and I'm a little ahead of pace if you trust Zillow "Zestimates" for the rent homes I own. I think they are a little high so I would put my actual net worth right around my goal. Either way this thread has definitely been helpful and motivating and I hope to be in the club by age 30.

To try to contribute to the thread, here's what I've done to get here:

-Graduated debt free and with money in the bank thanks to academic scholarships + internships + parents. I think this was probably the biggest factor to me being where I am now
-Lucky timing for graduation, getting into O&G when hiring was still ongoing and salaries were high.
-Maxing 401k, Roth IRA via backdoor, and Employee stock purchase program
-Bought two rental properties that cashflow about $1,500/month total and have been occupied the whole time I've owned them. One is single family and the other is a duplex. All three units cash flow roughly $500/month.
-Spend less than I make and keep ~4-6 months of expenses on hand just in case


However, I am also a big believer in enjoying life. My dad is extremely frugal and will be able to retire comfortably. However, he is now in his late 50s and doesn't have the energy to do all the fun things he wishes he could have at one point. For instance, he always wanted to see the Great Pyramids...he could have afforded to do so when he was younger but always forced himself to wait. Now he would be miserable from the heat and it's too dangerous to even really go to Egypt, so he will probably never get to see them. I've spoken with him at length about his lifestyle choice and he definitely has some level of regret. He has advised me to be frugal and save my money but also enjoy life while I'm young and I take that to heart. Just my $.02. If anyone has any advice or insight, I'm all ears.
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Pasquale Liucci
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In reply to GarlandAg2012 • 10:32a, 5/29/15
AG
Just out of curiosity, where are your rental properties at that CF ~$1500/mth?

Or is the $1500 cumulative? Maybe I misread, I originally took it as you meaning each CF'd $1500/mth and was thinking I needed to subscribe to the GarlandAg school of property searching.
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Ragoo
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In reply to GarlandAg2012 • 10:35a, 5/29/15
AG
Good stuff and congrats!

Nearly 30 myself and was "slow" to get going. Albeit that is relative. Starting from an average starting salary, laid off, wife making pennies, getting some promotions and wife making more pennies to becoming a teacher and making "real" money we have been able to carve out a nice situation.

Net worth about 375K, 80K in home equity, max my 401k, 2 Roths, just paid off her car, cash reserves.

Been able to travel to Europe and take fun weekend trips whenever, going to Alaska for 2 weeks in july.
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GarlandAg2012
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In reply to Pasquale Liucci • 10:38a, 5/29/15
AG
Each unit cashflows around 500. One is a duplex the other is single family. The $1,500 is cumulative. I had a deal for a fourplex that would cashflow about $1,500 on its own but the numbers didn't make sense considering my cash reserves and the current O&G job market.

The houses are in Baytown and have section 8 tenants. There are pros and cons to section 8. I like them more than my property manager but I could see myself hating them if things didn't go well. Getting direct deposit from uncle sam feels good but they have you by the balls and can basically choose to disregard leases because they know it's too much work to fight them (in a lot of cases at least)
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Pasquale Liucci
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In reply to GarlandAg2012 • 11:04a, 5/29/15
AG
Interesting, thanks for the insights. And congrats on the great start you're off to so far.
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Ag92NGranbury
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11:17a, 5/29/15
AG
http://finance.yahoo.com/news/millionaires-share-top-3-priorities-173600775.html


kind of reminds me of the old proverb.... 'early to bed, early to rise, makes a man healthy, wealthy and wise'
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