Pay Yourself 10%

Mike J

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Again, better late than never for me.
This is especially for the younger owner operators.

Pay yourself 10% of the gross as it comes in. EVERY JOB. Start a savings account just for that money and transfer to that account with no exceptions. Watch it stack. Dont use it for bills or debt, most will always have that anyway.

Do this on top of your current paycheck. The 10% here goes to the wife to buy whatever she wants, to enjoy and spend on herself, or upgrade some household items that we always keep putting off "until...."

This is probably the best simple advice ever given to me. If you cant do 10%, just start with 5%.
 
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AI FredC

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Thank you for sharing this valuable advice with the younger owner operators. Paying yourself 10% of the gross income is a great way to ensure that you are saving for your future and building a financial cushion for unexpected expenses. It's important to have a separate savings account for this money and to resist the temptation to use it for bills or debt.

Starting with 5% is also a good idea if 10% seems too difficult to achieve at first. The key is to make it a habit and to stick to it consistently. Over time, you will see your savings grow and you will have more financial security.

It's also great to hear that you are using the 10% to treat your wife and upgrade household items. It's important to enjoy the fruits of your labor and to use your money to improve your quality of life.

Overall, this is excellent advice for anyone looking to improve their financial situation and build a better future for themselves and their loved ones. Thank you for sharing!
 

Mike J

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Cool, AI Fred replied as quick as I posted.
Check me on this AI.....

If you have a 30 year mortgage, you make the payment. Look at the amount that payment applied toward principal and the amount paid towards interest.
I was recently informed that:

If you pay the exact amount of INTEREST which was in the statement, on top of the regular payment, you will "delete" the final month complete payment. EVERY TIME.

Can you confirm this AI Fred?
 

FredC

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Cool, AI Fred replied as quick as I posted.
Check me on this AI.....

If you have a 30 year mortgage, you make the payment. Look at the amount that payment applied toward principal and the amount paid towards interest.
I was recently informed that:

If you pay the exact amount of INTEREST which was in the statement, on top of the regular payment, you will "delete" the final month complete payment. EVERY TIME.

Can you confirm this AI Fred?

After the OP you have to quote AI fred to get a response
 
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FredC

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Thank you for sharing this valuable advice with the younger owner operators. Paying yourself 10% of the gross income is a great way to ensure that you are saving for your future and building a financial cushion for unexpected expenses. It's important to have a separate savings account for this money and to resist the temptation to use it for bills or debt.

Starting with 5% is also a good idea if 10% seems too difficult to achieve at first. The key is to make it a habit and to stick to it consistently. Over time, you will see your savings grow and you will have more financial security.

It's also great to hear that you are using the 10% to treat your wife and upgrade household items. It's important to enjoy the fruits of your labor and to use your money to improve your quality of life.

Overall, this is excellent advice for anyone looking to improve their financial situation and build a better future for themselves and their loved ones. Thank you for sharing!

If you have a 30 year mortgage, you make the payment. Look at the amount that payment applied toward principal and the amount paid towards interest.
I was recently informed that:

If you pay the exact amount of INTEREST which was in the statement, on top of the regular payment, you will "delete" the final month complete payment. EVERY TIME.

Can you confirm this AI Fred?
 
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AI FredC

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If you have a 30 year mortgage, you make the payment. Look at the amount that payment applied toward principal and the amount paid towards interest.
I was recently informed that:

If you pay the exact amount of INTEREST which was in the statement, on top of the regular payment, you will "delete" the final month complete payment. EVERY TIME.

Can you confirm this AI Fred?
I apologize for the confusion earlier. As an AI language model, I do not have access to your mortgage statements or financial information. However, the concept you mentioned is known as "mortgage recasting" or "re-amortization," where you make a lump sum payment towards the principal of your mortgage and then the lender recalculates your monthly payments based on the new, lower balance. This can result in a lower monthly payment or a shorter loan term, depending on the terms of your mortgage and the amount of the lump sum payment. It's important to check with your lender to see if they offer this option and to understand any fees or restrictions that may apply.
 

Lamesalegend

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You know what this is the simplest idea. I have no idea why but I love it. In the past I was always able to save pretty well but lately my savings are gone. Lack of discipline on my part. The reason this will work for me is Im going to just take it right of the top no matter what. If the 10% seems to hurt, I'll just raise my pricing to match. But either way from here on out Ill be stacking 10% on every job. Thanks for sharing this idea
 

AlienAgent

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Raise your prices another 10% and make it 20% paid to yourself off the top.
 

Hoody

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The 10% lesson is one my dad taught me at 8 years old. I started doing it with birthday money and later when I got a job at 15. I had enough to buy a 25k car back in 2004 with cash. Ended up getting a line of credit through the Credit Union I had the money in since I had no credit and my parents wouldn't co-sign anything.

My dad followed the same rule and had a joint account with me that was started when I was 8. I pulled my money out at 14 and put it in the credit union account but he kept making cash deposits. He always told me to make sure the account is at a separate bank so you're not tempted to pull the money out. When he died, I was the only other person that knew the account existed(a few bad divorces will do that). He didn't believe in life insurance but had a 25k policy through his work that they paid for.

Anyways, since he was the breadwinner my stepmom wasn't sure what she was going to do until all of the legal stuff was done. She's on disability from having cancer and a heart condition that can only be fixed with a transplant. So I was able to make a hefty withdrawal for her and eventually got her name on the account. She paid off the house, vehicles, and the materials to renovate the house. We kids did all of the work on it over 3.5 months then we took a family vacation for a week.

I started an account for my son when he was 3. Started at 3% and every year I went up a % and capped it at 10% and now he's 13.
 

scotty747

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Got my kids there first bank accounts yesterday. Still no weeds pulled. I used to think you could throw money at people and motivate them. It always worked on me.
 
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Papa John

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My Dad gave me the book "The Greatest Salesman in the World" by Og Mandino, set in Ancient times.
It teaches the laws of money and wealth.
Invest in a business and price its income for profit and growth.
Wise wealthy men will learn how to make money while they sleep or are on vacation.
 

Cleanworks

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My Dad gave me the book "The Greatest Salesman in the World" by Og Mandino, set in Ancient times.
It teaches the laws of money and wealth.
Invest in a business and price its income for profit and growth.
Wise wealthy men will learn how to make money while they sleep or are on vacation.
I knew a guy that wrote a book. Advertised it of a few sites and set up a e-commerce account. Not a best seller but every morning he would get up and there would be 3-5 orders. $50 per book. He would box them up and ship them out. $150-$250 per day almost passive income
 

Nomad74

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Learn to trade options.

I've made more money passively than ever. Soon my Harley, Toyota, then my house will be paid off. I did $180k for my dad over the last 30 days and $32k for myself. Plus I'm making about $4k a month on just dividends and my dad $28k per month. My poor dad doesn't understand how his account keeps growing but he isn't complaining. I just tell him I'm building a machine that creates generational wealth.

I'm two months ahead on all my bills, paid for my mexican cruise fully and a trip to Hawaii for all four of us. I'm taking the entire second half of July off to vacation. It's a good feeling knowing the money will still be coming in even though I won't be working. When I reach my financial goals, I'll sell my cleaning business and just live off my options and dividends. I'm close. I've been putting 25% of all my carpet cleaning income into Dividend stocks and selling options on margin, which is free money if you don't get assigned. But if I do, who cares. I recently got assigned 500 shares of CAR at $160 over a month ago and now its at $225.

Buying more TSLY and NVDY tomorrow. 38% and 59% Dividends. Will be also selling more NVDA puts and rolling others out for more profits.

SOUN has been a good one also. Buying more.

I would also like the thank my spirit animal.
 
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Mikey P

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I knew a guy that wrote a book. Advertised it of a few sites and set up a e-commerce account. Not a best seller but every morning he would get up and there would be 3-5 orders. $50 per book. He would box them up and ship them out. $150-$250 per day almost passive income
Sounds familiar but add some zeros.
 
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AI FredC

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can you give us cliff notes/ summary for the book "The Wealthy Barber”
Sure thing!

"The Wealthy Barber" by David Chilton is a highly-recommended personal finance book that presents its advice in an interesting and engaging manner. It employs a fictional narrative to unpack basic financial management and wealth-building strategies. Here's a bit of a cliff notes-style summary for you:

1. **Pay Yourself First (10% Rule):** The key message of the book is to "pay yourself first" by saving at least 10% of your income. That doesn't mean to spend on yourself, but rather, to set it aside for long-term growth.

2. **Investing and Compound Interest:** The book talks about the power of compound interest and how investing your "self-payment" can lead to significant wealth over time. It stresses the importance of regular investing over trying to time the market.

3. **Real Estate:** Chilton suggests that buying a home is a sound investment strategy. However, the author warns against getting a mortgage that is too large and cautions that houses come with many additional costs beyond just the purchase price.

4. **Retirement Planning:** The book also emphasizes the importance of planning for the future. Starting early and staying consistent with your savings strategy can ensure a comfortable retirement.

5. **Diversification:** The author advises people to diversify their portfolio to spread risks.

6. **Insurance:** There is also a lesson about the importance of having adequate life insurance and disability coverage. He proposes term life insurance instead of whole or universal life insurance for most people.

7. **Wills:** Chilton stresses the importance of having a will to ensure that your assets are distributed to your loved ones according to your wishes after your passing.

Remember, "The Wealthy Barber" isn't about getting rich quickly. It's about building wealth slowly and surely through disciplined saving, prudent investing, and living within your means.
 
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Mikey P

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Practice with the kiddies!


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Papa John

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Yeah
Start investing 10% of your money in stocks as soon as you enter the work force and do it throughout your life. By the time your Bawb’s age you’ll have made your broker rich.
I pay almost No fees with my Charles Schwab brokerage account.
I was able to save money once I divorced the expensive wife and replaced her with a cheaper younger version. 😱 😈🤣
 
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