Confessions from a Millenial

[IroNat]

Buy and rent out in a rural College town, it's stupid easy, but you have to be flexible.  My best housing returns are in College towns, find some houses near the campus.  I've sold a few of my properties in Houston just so i can invest more into my three rentals in College Station, Texas.  I'm renting houses out to rich college parents for $2800 a month that should fetch around $1500; within 10-15 years they will have paid themselves off.  You just have to be prepared for turnover, but each semester i have a "list" to pick from.  Just don't get mad when they break something. 

Back to the topic.  This is why you get a real degree.  Hell my first job straight out of college as a structural engineer made me 48k a year in 1998.  Within 10 years i was making around 75k i think and getting nice bonuses.  I pay engineers straight out of a "good" college program around 55k.  If they bust their ass for 4-5 years and get licensed, i'll bump them up to 70k no problem.

Kids today do not understand money, they will buy a 60k BMW, 200k house and 50k wedding within 5 years of getting out of college.  But they won't pay anything more than the minimum on their tuition debt because they are retarded.  I paid off over 50k in loans within 5 years of graduation.  Cry me a river.  I also worked 20-30 hours a week the entire time i was in College.

Like others said, be smart with money, don't buy stupid things you can't afford, pack your lunch, only buy clothes and other items on sale, buy the off brand items at the store.  If you live like this for 5-10 years and save money, you will be in a good place.  But most people believe in instant gratification, they have to have expensive clothes, cars, TV's, etc.  I understand, but there is a smart way to manage your money.

Wise words. 

[Mayday]

Inflation did not get bad until the mid-late 70's, then the federal reserve hiked the interest rates. 

I remember getting 8% interest on my normal bank savings account.  Long term CDs were even more.  You could have a $1 mill in the bank and live off the interest very nicely... can't do that anymore.  TPTB are robbing ppl, slowly and stealthily. 

Low inflation?  I guess you can cherry pick by mentioning new computers and flat screen TVs.

The government fudges inflation numbers more than ever.  Food and energy prices are not counted anymore.  New auto prices are ridiculous.  Cost of tuition is a joke.  Rents keep going up and up. 

"Shrink-flation" is something they came up with during the last 20 years or so to trick ppl into believing food price inflation is in check.  You get much less food for your money these days... haven't you noticed?

Well you made my case for me it seems.

Inflation provides growth. No inflation, no growth.

Baby boomers went through a worklife of high inflation. They are the wealthiest.

Today's young workers are going through worklife of crazy low inflation. They are the poorest.

We are fucked unless they up inflation back to the days of 8%-10% to allow for asset inflation, wage inflation and savings accounts to function again.

As i said, Romans managed this for over a thousand years using currency devalustion. We managed it for 40yrs using debt and low inflqtion and are utterly fucked because a finite currency system doesn't work.

[SOMEPARTS]

Well you made my case for me it seems.

Inflation provides growth. No inflation, no growth.

Baby boomers went through a worklife of high inflation. They are the wealthiest.

Today's young workers are going through worklife of crazy low inflation. They are the poorest.

We are fucked unless they up inflation back to the days of 8%-10% to allow for asset inflation, wage inflation and savings accounts to function again.

As i said, Romans managed this for over a thousand years using currency devalustion. We managed it for 40yrs using debt and low inflqtion and are utterly fucked because a finite currency system doesn't work.

You are conflating inflation and interest rates a bit there. They sent helicopter money in stimulus checks just this year...and recapitalized the banks, again... There are high levels of inflation in certain market segments. Starting to think the reason the wealth gap is widening is that a majority of the population doesn't actually add any value to the system. When that happens...how long can you just send out free money before the system fails? I mean it is failing, really. Rates should be 7% right now at least. The paper and digital economy is completely unattached to actual value.

[Mayday]

You are conflating inflation and interest rates a bit there. They sent helicopter money in stimulus checks just this year...and recapitalized the banks, again... There are high levels of inflation in certain market segments. Starting to think the reason the wealth gap is widening is that a majority of the population doesn't actually add any value to the system. When that happens...how long can you just send out free money before the system fails? I mean it is failing, really. Rates should be 7% right now at least. The paper and digital economy is completely unattached to actual value.

That's because Interest rates and inflation are in a relationship together.

Rates shouldn't be at 7%. The leverage system will always end at zero because it is finite. To get any growth using only debt the only option is to lower rates which will always lead to zero.

Look over history to when we really started to use more debt and ease access to credit. Rates pretty much went from 18% straight to zero over 40yrs. What did inflation do? Went from 18% down to 1%.

You can give QE indefinitely because it is infinite, there is no ceiling. The inflation is a control measure for soending by a govt. If they act like spastics and spend at 18%, inflation becomes 18%, interest rates go to 18% and people get burned. Hence Anabolic's comment of what he experienced. The irony is, that system works but govts were irresponsible and moved to debt so they could continue being irresponsible.

[SOMEPARTS]

That's because Interest rates and inflation are in a relationship together.

Rates shouldn't be at 7%. The leverage system will always end at zero because it is finite. To get any growth using only debt the only option is to lower rates which will always lead to zero.

Look over history to when we really started to use more debt and ease access to credit. Rates pretty much went from 18% straight to zero over 40yrs. What did inflation do? Went from 18% down to 1%.

You can give QE indefinitely because it is infinite, there is no ceiling. The inflation is a control measure for soending by a govt. If they act like spastics and spend at 18%, inflation becomes 18%, interest rates go to 18% and people get burned. Hence Anabolic's comment of what he experienced. The irony is, that system works but govts were irresponsible and moved to debt so they could continue being irresponsible.

The interest rate is zero because the value of newly created money is meaningless other than to keep the ball rolling. They can't get the money in people's hands fast enough. Actual prosperity has already been spoken for and is controlled well into the future, the manipulation of fake money is what is left.

[Mayday]

The interest rate is zero because the value of newly created money is meaningless other than to keep the ball rolling. They can't get the money in people's hands fast enough. Actual prosperity has already been spoken for and is controlled well into the future, the manipulation of fake money is what is left.

Can you clarify as you just mentioned inflation and rates should be 7%.

Your last response somewhat resonates with what i post on here about deflation but it's at odds with your previous post. Would just like to understand where you sit - do you think we are under.high inflation like many on this board or in deflation? just so i can respond correctly.

[epic is back]

I have listened to Ray Reynolds for years about incorporating.  It sounds good but usually you can't write off more than 1/4 of your house even if it's used for business.  Reynolds also claimed to write off his sports car as well but according to the tax laws I've seen you can only write off gas mileage for business related activities and only a portion of the overall cost of the monthly payments.  Reynolds went to prison for tax fraud about 15 years ago but he's still preaching the same message.  If you can do as you claim can you explain how to do it?

I don’t know this fella you speak of

But I do follow cardone
He is smart and sells intangibles

He also goes t take any shit from anyone

[nzgs]

Life is objectively harder for younger people, that's undeniable. What is also undeniable is that young people vote for policies that would make their lives worse, because their moral and economic guidance comes from corporations and billionaires.

[Mr Anabolic]

Life is objectively harder for younger people, that's undeniable. What is also undeniable is that young people vote for policies that would make their lives worse, because their moral and economic guidance comes from corporations and billionaires.

Yes, but the federal reserve and government policies are directly responsible for all of it.  Anyone who does not understand this needs to do some research.  Politicians are totally useless.  Things only get worse over time.

[Mr Anabolic]

Well you made my case for me it seems.

Inflation provides growth. No inflation, no growth.

Baby boomers went through a worklife of high inflation. They are the wealthiest.

Today's young workers are going through worklife of crazy low inflation. They are the poorest.

We are fucked unless they up inflation back to the days of 8%-10% to allow for asset inflation, wage inflation and savings accounts to function again.

As i said, Romans managed this for over a thousand years using currency devalustion. We managed it for 40yrs using debt and low inflqtion and are utterly fucked because a finite currency system doesn't work.

Even with the inflation of the 70's and 80's, boomers were earning livable wages back then... people today are not.

[Humble Narcissist]

I don’t know this fella you speak of

But I do follow cardone
He is smart and sells intangibles

He also goes t take any shit from anyone

I like Cardone as well.

[SOMEPARTS]

Can you clarify as you just mentioned inflation and rates should be 7%.

Your last response somewhat resonates with what i post on here about deflation but it's at odds with your previous post. Would just like to understand where you sit - do you think we are under.high inflation like many on this board or in deflation? just so i can respond correctly.

If you were to look at the economy and equity markets in a snapshot and apply what money policy was up until say the early 2000s then rates would be that high. There is no doubt we are in a ZIRP/NIRP spiral at this point. As Mr. A said the wealth gap can only increase as earning power is down. Unskilled and low skilled jobs alike are way down even before covid. Useless eaters that don't pay taxes can't support the old way of doing things...not like we were balancing the budget anyway. How much inflation you think there is depends on your means and what you are buying. I see crazy inflation in rural housing, land and building materials...but that's what I focus on. There is a lot of distortion in financial information as this all changes, which is why I'm mostly out of things financially that I can't control directly and quickly.

[Mr Anabolic]

If you were to look at the economy and equity markets in a snapshot and apply what money policy was up until say the early 2000s then rates would be that high. There is no doubt we are in a ZIRP/NIRP spiral at this point. As Mr. A said the wealth gap can only increase as earning power is down. Unskilled and low skilled jobs alike are way down even before covid. Useless eaters that don't pay taxes can't support the old way of doing things...not like we were balancing the budget anyway. How much inflation you think there is depends on your means and what you are buying. I see crazy inflation in rural housing, land and building materials...but that's what I focus on. There is a lot of distortion in financial information as this all changes, which is why I'm mostly out of things financially that I can't control directly and quickly.

Very good. 

Some of the Getbig economists on here conveniently ignore many of these things.  They cherry pick and love referencing the bogus government numbers/stats like they are legit.

[stockbridge2112]

My Plumber makes bank try changing jobs or careers to something people want or need.

[Mr Anabolic]

My Plumber makes bank try changing jobs or careers to something people want or need.

A plumber wanted to charge my mom $200 to fix her toilet (tank would not fill back up after flushing).  I told her to forget it and that I would come over and do it myself.  I replaced the fill valve, which cost $13. VERY easy to fix.  Most plumbers are fukin liars and scammers. 

[Humble Narcissist]

A plumber wanted to charge my mom $200 to fix her toilet (tank would not fill back up after flushing).  I told her to forget it and that I would come over and do it myself.  I replaced the fill valve, which cost $13. VERY easy to fix.  Most plumbers are fukin liars and scammers.

It will only get worse as almost no young person can fix anything today.

[Mayday]

Even with the inflation of the 70's and 80's, boomers were earning livable wages back then... people today are not.

Ummm that's because inflation is a requirement for wage inflation 

Wage inflation even has the word 'inflation' in it to give you a massive hint.

Come on dude.  Inflation has gone from 17% down to 1% and wage inflation has gone from double digits to either nothing or 2% to be inline with CPI.  You work around inflation by using debt because it's a balance sheet system. As a result the assets linked to debt skyrocketed meanwhile CPI and wages fell.

I've lead you to water but damn you are taking a long time to take a drink.

[Mayday]

If you were to look at the economy and equity markets in a snapshot and apply what money policy was up until say the early 2000s then rates would be that high. There is no doubt we are in a ZIRP/NIRP spiral at this point. As Mr. A said the wealth gap can only increase as earning power is down. Unskilled and low skilled jobs alike are way down even before covid. Useless eaters that don't pay taxes can't support the old way of doing things...not like we were balancing the budget anyway. How much inflation you think there is depends on your means and what you are buying. I see crazy inflation in rural housing, land and building materials...but that's what I focus on. There is a lot of distortion in financial information as this all changes, which is why I'm mostly out of things financially that I can't control directly and quickly.

For currency and monetary policy it is a macro view. You can't take a miniscule example and then assume the same outcome for everything.

I see the same price increases in rural and building. Guess why? People like me sold property in wealthy areas and took the money to those areas which are piss cheap compared to where we live. Meanwhile where we sold, rents have gone down and prices are struggling to hold.

So consider your rural city of 0.1M people gets a boom and meanwhile the city of 5M is already falling backwards. The economic implications of the large city simply dwarf that of the rural city which is why you can't apply localised outcomes of tiny areas to that of the vast majority.

[SOMEPARTS]

I see the same price increases in rural and building. Guess why? People like me sold property in wealthy areas and took the money to those areas which are piss cheap compared to where we live.

"You can't take a miniscule example and then assume the same outcome for everything." 

[POB]

If they quit drinking Starbucks and eating avocado toast they wouldn’t have money problems

[SOMEPARTS]

So consider your rural city of 0.1M people gets a boom and meanwhile the city of 5M is already falling backwards. The economic implications of the large city simply dwarf that of the rural city which is why you can't apply localised outcomes of tiny areas to that of the vast majority.

Non-American spelling? Are you not American and speaking on our economy?  jk

Regardless of what happens in the city - the reason to live rural is amplified further and the effect is less. I'm not talking about the day trading balance, the macro view, the Fox Biz/CNBC crowd...just day to day stuff. Those of us who already live this way and don't spend 110% of our income on "city life" didn't have to sell a place in the city to wise up. Screw the "vast majority"...can't control what they do anymore than you can lobby the fed. As far as I'm concerned the wheels are too far in motion economically, just paying attention to hedge against the stupidity.

[Mayday]

Non-American spelling? Are you not American and speaking on our economy?  jk

Yep, and yet here i am helping Americans and others understand how it functions and fits together   

I hope your dig at me not being American was a joke. You left the topic in a hurry and switched to saying how you lead a simple life. It's ok to say you disagree, don't make a comment that can be taken as rude as i am polite and my knowledge depth around these topics is considerably larger than yours.

[Mr Anabolic]

Ummm that's because inflation is a requirement for wage inflation 

Wage inflation even has the word 'inflation' in it to give you a massive hint.

Come on dude.  Inflation has gone from 17% down to 1% and wage inflation has gone from double digits to either nothing or 2% to be inline with CPI.  You work around inflation by using debt because it's a balance sheet system. As a result the assets linked to debt skyrocketed meanwhile CPI and wages fell.

I've lead you to water but damn you are taking a long time to take a drink.

You keep referencing government numbers and stats like they are legit.

The water you're leading ppl to is polluted.  Then you pat yourself on the back.   Stop watching CNBC

[Mr Anabolic]

Yep, and yet here i am helping Americans and others understand how it functions and fits together   

I hope your dig at me not being American was a joke. You left the topic in a hurry and switched to saying how you lead a simple life. It's ok to say you disagree, don't make a comment that can be taken as rude as i am polite and my knowledge depth around these topics is considerably larger than yours.

[SOMEPARTS]

Yep, and yet here i am helping Americans and others understand how it functions and fits together   

I hope your dig at me not being American was a joke. You left the topic in a hurry and switched to saying how you lead a simple life. It's ok to say you disagree, don't make a comment that can be taken as rude as i am polite and my knowledge depth around these topics is considerably larger than yours.

Well, that was worth a chuckle. I didn't say I led a simple life, I said I live the life I chose.

Again, as to your anecdote about selling real estate....are you actually in the USA? Context is important.