Do you pay yourself first?

[Judge Dread]

Paying off 100 percent of debt and not having money for something unexpected is bad because you will just put yourself in debt to cover the unexpected. Paying down on debt while investing a little into yourself is much healthier and better way to stop the cycle of constant debt.

 

[Golden]

Paying off 100 percent of debt and not having money for something unexpected is bad because you will just put yourself in debt to cover the unexpected. Paying down on debt while investing a little into yourself is much healthier and better way to stop the cycle of constant debt.

Do u mean mortgages or things like credit card n medical debt too?

I'm super financially conservative. Debt is the first stop in my philosophy

 

[Old Man Cain]

Do u mean mortgages or things like credit card n medical debt too?

I'm super financially conservative. Debt is the first stop in my philosophy

There is good debt and bad debt. Good debt is home loans, land purchase and rental property. Bad debt is credit cards car's and student loans.

Basically anything that doesn't bring you in income is bad debt. So it's good to have those items paid off ASAP

 

[Golden]

There is good debt and bad debt. Good debt is home loans, land purchase and rental property. Bad debt is credit cards car's and student loans.

Basically anything that doesn't bring you in income is bad debt. So it's good to have those items paid off ASAP

Primary home debt doesn't usually bring income unless u payin the mortgage with rental properties tho. I have a deep fear of foreclosure of residential property, might be irrational but I always encourage payin ur home loan early if it's at all possible.

 

[Old Man Cain]

Primary home debt doesn't usually bring income unless u payin the mortgage with rental properties tho. I have a deep fear of foreclosure of residential property, might be irrational but I always encourage payin ur home loan early if it's at all possible.

They usually call home debt "good debt" due to the fact you can sell it and make a profit out of it (usually).

Nothing wrong with paying your home off BUT if you make a certain income and you do not have the interest to right off from your house payment you get hit in the pocket. There's a reason the wealthy and stars do not buy a house outright. They buy the homes to get the tax right off.

 

[Golden]

They usually call home debt "good debt" due to the fact you can sell it and make a profit out of it (usually).

Nothing wrong with paying your home off BUT if you make a certain income and you do not have the interest to right off from your house payment you get hit in the pocket. There's a reason the wealthy and stars do not buy a house outright. They buy the homes to get the tax right off.

Yeah I did hear that u can make like 14k from tax write off.

I don't have a high income so that likely informs my conservationist view. Ima take bigger risks when I get my funds up.

 

[Judge Dread]

Yeah I did hear that u can make like 14k from tax write off.

I don't have a high income so that likely informs my conservationist view. Ima take bigger risks when I get my funds up.

As Cain said there is such a thing as good debt . Paying off your mortgage early is not always a good thing. People should treat their financial health the way they treat their physical or spiritual health. If you go from eating everything to saying today I am going to give up all unhealthy eating your chances of success is slimmer. If you say I am going to watch what I eat and start out making small adjustments it is easier to change your diet. The first step is honesty with yourself. Look at what you spend and figure out a ratio of spending, paying off debt and putting something even small away. The goal is to stop going further into debt first and in order to do that you have to have available cash somewhere

 

[Golden]

As Cain said there is such a thing as good debt . Paying off your mortgage early is not always a good thing. People should treat their financial health the way they treat their physical or spiritual health. If you go from eating everything to saying today I am going to give up all unhealthy eating your chances of success is slimmer. If you say I am going to watch what I eat and start out making small adjustments it is easier to change your diet. The first step is honesty with yourself. Look at what you spend and figure out a ratio of spending, paying off debt and putting something even small away. The goal is to stop going further into debt first and in order to do that you have to have available cash somewhere

True, 0 rainy day savings can put u in a position to have to take out some high interest loan when an emergency pops up.

 

[Judge Dread]

Like everything else you have to figure out what works for you. Read and listen to people that may know more about finance but always remember know one knows more about you than you. So never follow anyone else plan blindly!!!i know people that have more death insurance than they will ever need because some insurance salesman or cfp talked them into it. You got 35k in debt and you paying 250 got death(life) insurance . I know people want to leave money for their kids and stuff but cover your funaral cost and find a different way. Ok I am going to save all other points when that other forum gets made

 

[Golden]

Like everything else you have to figure out what works for you. Read and listen to people that may know more about finance but always remember know one knows more about you than you. So never follow anyone else plan blindly!!!i know people that have more death insurance than they will ever need because some insurance salesman or cfp talked them into it. You got 35k in debt and you paying 250 got death(life) insurance . I know people want to leave money for their kids and stuff but cover your funaral cost and find a different way. Ok I am going to save all other points when that other forum gets made

Yeah, def agree with not following another's plan blindly. U gotta assess ur situation, goals n lifestyle choices n sometimes that of ur dependents. A tangent but an element of the housing changes in Crown Heights were folks selling their properties in haste cuz they didn't wanna pass n leave some of their addict children with high value assets during the crack epidemic.

 

[Judge Dread]

Yeah, def agree with not following another's plan blindly. U gotta assess ur situation, goals n lifestyle choices n sometimes that of ur dependents. A tangent but an element of the housing changes in Crown Heights were folks selling their properties in haste cuz they didn't wanna pass n leave some of their addict children with high value assets during the crack epidemic.

I think we could have a Brooklyn based conversation in its own section. Gentrification!!!!!! But if they were going to sell their properties they should have done what other races do and sell to their own or have enough knowledge to protect the family from 1 generation of addicts.

 

[Golden]

I think we could have a Brooklyn based conversation in its own section. Gentrification!!!!!! But if they were going to sell their properties they should have done what other races do and sell to their own or have enough knowledge to protect the family from 1 generation of addicts.

We need to. Did u read that article from the Jewish 20-something year old landlord, talking about it only taking 30k in cash to buy a black family out? Smh

 

[Judge Dread]

He is lying but there is truth in the statement. Even with our property we don't value ourselves.

 

[Judge Dread]

Financial literacy is one of our major problems. That is why we as a people get shortchanged. We won't fall for a street con because we know the street but we will fall for the sign on the tree that says sell your house now for cash.

 

[Old Man Cain]

Financial literacy is one of our major problems. That is why we as a people get shortchanged. We won't fall for a street con because we know the street but we will fall for the sign on the tree that says sell your house now for cash.

The bold man smh. We have the buying power, the ingenuity, the bodies and yet we're falling behind every year.

 

[Golden]

He is lying but there is truth in the statement. Even with our property we don't value ourselves.

Found it http://nymag.com/daily/intelligencer/2015/05/grim-racist-methods-of-one-brooklyn-landlord.html

it's exaggerated but I don't doubt some of those methods prolly bein used.

Financial literacy is one of our major problems. That is why we as a people get shortchanged. We won't fall for a street con because we know the street but we will fall for the sign on the tree that says sell your house now for cash.

It's infuriating. People in my own fam fell for that back in the day. Not the sign in the street but lowball offers n shit.

The lack of financial literacy that typically comes with generations of ur fam having money n knowing how to keep/grow is helping keep us in a disadvantaged position. Even when/if ur no longer poor, if u don't know how somethin should be valued or when an opportunistic greedy figure is doin u foul, ur gonna be taken advantage of at every turn.

 

[Sam Crooke]

I'm pay myself 20% of what I make first

 

[Golden]

I pay my employees first because as a part owner/investor that comes off the bottom line p & l first. I could take a salary but that doesn't seem right and would be tougher for me personally to make certain decisions. One of my other partners that spends more time in the business takes a salary as they are physically there working. The rest gets split up in various accounts. Cain do you have a 529 plan for your son. It is an effective way to save for college and may be tax deductible in your state. They don't pay much of a premium but is is another account that you just put money into and it can't be touched.

Be careful with 529 plans. Colleges factor them in, I believe

 

[Judge Dread]

Found it http://nymag.com/daily/intelligencer/2015/05/grim-racist-methods-of-one-brooklyn-landlord.html

it's exaggerated but I don't doubt some of those methods prolly bein used.



It's infuriating. People in my own fam fell for that back in the day. Not the sign in the street but lowball offers n shit.

The lack of financial literacy that typically comes with generations of ur fam having money n knowing how to keep/grow is helping keep us in a disadvantaged position. Even when/if ur no longer poor, if u don't know how somethin should be valued or when an opportunistic greedy figure is doin u foul, ur gonna be taken advantage of at every turn.

Be careful with 529 plans. Colleges factor them in, I believe

the Tax benefits out weigh the other factors