7 must-read threads from Reddit’s /r/personalfinance subreddit

The Reddit personal finance subreddit {is definitely an} interesting place. {Listed below are} 7 threads I consider must-reads.

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If I ever go bald, know it’s because I tore my hair out {each and every time|each time} I heard people say this.

From the /r/personalfinance thread:

While {it really is} true {that whenever} you buy {a house} a portion {of one’s} monthly {mortgage repayment} will be {likely to} principal, {and for that reason} you are paying yourself {in a few} ways, however, {the price of|the expense of} home ownership is significant. {A few of the} {less popular} costs {are the} {insufficient} flexibility, stress, {the chance} of home price declines, home maintenance, {property} taxes, and HOA fees.

These {may also be} {referred to as} phantom costs – the expenses you don’t normally consider {once you} {purchase a} house.

OP {offers} {an excellent} mental reframing of rent, saying, “As {humans}, {there are many} things {we have to} survive, including food and shelter. Paying money for rent {is not any} more a ‘waste’ of money than {spending money on} food is.”

For more, {make sure to} {have a look at} my article on real estate investing myths and my post on how {to get} a house.

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It’s {an easy task to} look at someone successful and compare yourselves {in their mind}. You start feeling {as if you} aren’t doing enough {to attain} {your personal} goals {and may} {make an effort to} rush {what to} achieve their {degree of} success.

In reality, {probably the most} successful people devoted {lots of time|considerable time} and energy into {addressing} where {they’re} – {and you ought to} do {exactly the same}.

That’s what’s {in the centre} {of the} thread {concerning the} {need for} patience {with regards to} {your targets}:

If you’re just {getting started}, {understand that} it took your parents decades {to get} {all of the} furniture, decorations, appliances, etc {you’re} used {to presenting} around. It’s {an easy task to} forget this {as you} started remembering things {an extended} while {once they} {began} together, {so that it} {feels as though} that’s {what sort of} house {should} be.

It’s impossible {for many people} starting out {to access} that {degree of} settled in without burying themselves {with debt}. So relax, {invest some time}, and embrace the emptiness! You’ll {benefit from the} house {a lot more} if you’re not {concerned about} how to {purchase} everything {at all times|constantly|on a regular basis|continuously}.

So whether you’re saving {for the} wedding or {attempting to} get out of debt, {understand that} these things {devote some time} and that’s okay. {As soon as you} stop {fretting about} {attempting to} accomplish {your targets} quickly, {it is possible to} focus your mental energy on {the items} {it is possible to} control {to perform} {your targets}.

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A fascinating story {in regards to a} research assistant who {realizes} she’s being paid {Significantly less} {when compared to a} coworker who joined six months after she got {the work}.

When she raised {the problem} to management, her boss tried pulling some corporate trickery that’s {normal with} bad companies:

One week later she called me into her office. She absolutely berated me for thinking {I possibly could} {transfer to} the coordinator position {that} I {had been} {carrying it out}, and complained about {might work} performance. Last month I had {an assessment}, and received {high} praise for my performance, and {there’s} {never} been complaints about my performance {previously|during the past}. {Overall}, {I suppose} she was making excuses {never to} increase my pay.

Eventually, she {could} {look for a} job at another place that offered her {a lot more than} she was currently earning – which {resulted in} a bidding war between her old boss and her new employer (aka {the very best} position {you should possibly} {maintain} as {employment} seeker).

A few lessons for {job hunters} {out of this} post:

  • Negotiate mercilessly. OP {may have} just shrugged her shoulders and kept quiet when she {discovered} she {could possibly be} earning more – BUT she didn’t. She addressed {the problem} {and today} has two different companies vying {on her behalf} work. That’s why it’s always in {your very best} interest to negotiate your salary {even though you} think you’re earning enough.
  • Adopt {plenty} mindset. It’s {an easy task to} take any job offer that comes {the right path} – {particularly when} money’s tight. OP had two job offers and knew {that when} one didn’t {workout}, the other {will be} there {on her behalf}. This is {also called|also referred to as} {plenty} mentality, {also it} {could be a} powerful mental shift for {how you} approach finances.
  • Know your worth. {The initial step} to any salary negotiation is {focusing on how} much you’re worth. While websites like Glassdoor or PayScale {will help you} get a {common sense} {of the}, talking to people in your field about their earnings {can provide} you {a feeling} of {what you ought to} be making (like OP did). So don’t {hesitate} to ask. Top Performers do all {they are able to} {to learn} what they’re worth.

Be sure {to look at} my article on how to negotiate your salary and the Briefcase Technique for more.

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When tragedy strikes, {you’re} asking questions you’ve never even considered before. This /r/personalfinance thread tries to answer {among those} questions: {How do you} handle my finances when someone {I really like} dies?

While the post {handles} money accounts and estate issues beautifully, {in addition, it} {switches into} the more {less popular} parts of {coping with} death, like {where you might get} an urn:

The funeral home won’t {let you know} this, {nevertheless, you} don’t {need to} buy {things such as} urns and whatnot {from their website}. I {thought we would}, {as the} prospect of {finding a} plastic baggie with my husband’s ashes that {I’d} {suffer from} was horrifying. {A pal} bought an urn for his father’s ashes on Amazon. {You can find} options {which are} cheaper {compared to the} funeral home, but I {thought we would} pay the obscene markup {in order that} I wouldn’t {suffer from} the logistics.

Overall, it’s {an excellent} read {for anybody} – {even though you} haven’t suffered any personal tragedies. It’s {a fantastic} perspective on life, death, and where our finances {easily fit into} between {everything}.

5. “We {didn’t} {purchase a} bearded dragon.”

For some, a Rich Life means {a fresh} car, ordering appetizers at restaurants, or {paying down} their debt. For others, it’s a desert lizard chilling out in a reptile aquarium {within their} {family room}.

Or {at the very least} that’s what one Reddit user thought when he got {prepared to} {purchase a} bearded dragon for his son’s birthday. When he ran the numbers though, he realized that the investment he’d be making {in to the} pet {will be} {a lot more} than he bargained for.

[We] learned {it requires} expensive UV bulbs that last about {six months} {and so are} about $40 each. Also the electricity cost the run this heat {a day} {could be a} drain on the electric bill.

Also the beardie {must} {visit the} vet every {six months} for a checkup. {And lastly}, food. {They will have} {an extremely} diverse diet {and may|and will} {consume} to $15 {weekly} in foods. {THEREFORE I} did {a complete} cost analysis for a beardie that lives 12 years {also it} {ended up being} {an impressive} $10,000.

This {is an excellent|is a good|is a superb} example of {determining} what fits into your Rich Life. I’m {a large} believer in {shelling out for} {the items} you truly love and ignoring {the others}. {If you} {think that} a bearded dragon {can help you} live your Rich Life, {you should} buy that lizard!

However, {if you discover} that {the advantages of} {looking after} a reptile native to sweltering deserts for {ten years} aren’t worth {the amount of money} and energy, don’t {be worried about} it. Your Rich Life is {everything you} {label of} it.

Also LOL {as of this} robotically cold statement {from the} commenter: “It’s about ROI on {your pet}. Dogs {tend to be more} fulfilling companions {when compared to a} lizard. {At the very least} that’s the case with OP.”

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Sometimes we do all {we are able to} {to avoid} disaster – {nonetheless it} {eventually ends up} happening anyway. {Just to illustrate}: Losing {all you} own in a fire {such as this} OP.

One former insurance worker offered their incredibly insightful {suggestions about} how the {insurance provider} {will|will probably} approach {the problem} and what OP {must do} {to obtain the|to find the|to have the} most out of his claims.

The biggest takeaway: {Utilize the} truth {in your favor}. The commenter then used {a good example of} how one guy used his situation to net him a five-figure insurance claim.

I remember one specific customer … {he previously} some old, {little bit of} shit projector (from mid-late 90s) {which could} stream an equally {little bit of} shit consumer camcorder. Worth like $5 at a scrap yard. It had some oddball fucking resolution {it might} record at, though – and the guy strongly insisted {that people} replace with “Like Kind and Quality” (trigger words). {Finished up} {being truly a} $65k replacement, {as the} only camera {in the marketplace|out there|available} {been} a high-end professional {camcorder} (as in, for shooting actual movies). $65-goddam-thousand-dollars because he knew that loophole, and researched his shit.

This {would go to} illustrate {a large} point {with regards to} anything insurance related: {Research your facts}. {Knowing} {the guidelines} of {the overall game} you’re playing ({whether} taxes, insurance, or salary negotiations), {the higher} positioned {you’re} to win.

7. Explain it like I’m 18/22/30/40.

These threads {will be the} perfect {place to begin} if you’re {new} to {the planet} of personal finance ({apart from} IWT {needless to say}).

These guides {breakdown} important themes {for the} personal finance journey at different stages {you will ever have}. {They’re}:

  • ELI18. For when you’re {out of our home} for {the very first time} and wouldn’t recognize a 401k if it walked {your decision} and slapped the fidget spinner {from your} hand. Great {suggestions about} topics like opening bank accounts, {trying to get} {credit cards}, and even {getting a} roommate.
  • ELI22. So you’ve graduated college {and so are} out in the “{real life}.” Scary right? This post {helps it be} {just a little} less scary {by giving} {a good} introduction to taxes, {adding to} retirement, and {paying down} your {student education loans}.
  • ELI30. When you’re 30, {a complete} new crop of financial questions start {approaching}. {How do you} handle money when I get married? {How do you} {purchase a} house? {I’ve} {your dog} … that’s like {looking after} {a child} right? This comprehensive post helps answer {some of} those questions.
  • ELI40. The name of {the overall game} at 40 and beyond is retirement – rather, it’s {making certain} your investments are best positioned for {once you} retire. This post {is an excellent|is a good|is a superb} primer on {planning} {the near future} and beyond.

Why {I REALLY LIKE} /r/personalfinance

You probably wouldn’t say anything {in case a} friend or coworker {lets you know} {in regards to a} money decision you don’t {trust} ({accumulating} credit card debt, buying a house with little income, etc.). But {in the event that you} saw {exactly the same} issues on Reddit personal finance, you’d {allow} world know {just how} {you are feeling} about their issues and what you’d do instead.

It’s this {degree of} honesty that helps us {observe how} people really use money – and {how exactly to} {utilize it} yourself.

Whether you’re in your forties planning out your retirement or you’re still in {senior high school} {racking your brains on} {how to proceed} {together with your} paycheck, I’m glad you’re here.

I {desire to} give you {a thing that} {will help you} take {your individual} finances {to another} level:

The Ultimate Guide to Personal Finance

{Inside it}, you’ll {learn to}:

  • Master your 401k: {Make the most of|Benefit from} free money {wanted to} you by {your organization} … {and obtain} rich while {carrying it out}.
  • Manage Roth IRAs: Start saving for retirement in {an advisable} long-term investment account.
  • Spend {the amount of money} you have – guilt-free: By leveraging the systems in this book, you’ll learn {just how} you’ll {have the ability to} save money {to invest} {minus the} guilt.

Enter your info below {and obtain} {on the way} to living a Rich Life today.

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