Hey guys. I would like you to imagine a scenario and give me your input and opinion on the matter. Let's say hypothetically that you have worked and saved and worked and saved like a dog for the past six and a half years. You are now in your late 20's. You live in an apartment. You own an old car but it is in good condition, paid off. You are sick of living a mediocre existence as a run-of-the-mill guy paying the bills. You have no debt. You are ready for a new phase in your life, where you can achieve greatness and amass great power and wealth. You are willing to risk your safety. You are physically healthy, strong, and mentally ready.

You want greatness. You want to conquer. You have about 52,000 saved up.
In this scenario, what would/should such an ambitious man do?

Views: 1284

Reply to This

Replies to This Discussion

I'm not an ambitious man, but I'll have a shot!

What's your career situation?  That will have a huge effect.

If that cash doesn't go into something related to that, and if you aren't going to move, then it's well worth it to buy a house.  It's way better financially than renting.

If  I hadn't already gone to college then that's where I would use the money.  Of course the degreee program would have to be one that could pay off in the long term (business, IT, medical, computer science, engineering, etc.) but something I am interested in.

If you want to change your situation now, Buy a house/condo/etc, get a roommate or two to really reduce the mortgage into nothing and live like a king for a few years. There are some serious tax advantages to owning as well. This is exactly what I did years ago, and loved it. I rented for a while then bought something (that was actually way more space and more expensive than I needed). I got a few roommates and they nearly paid the mortgage. It was great living for next to nothing in my own home for a few years.

But there are tons of things you can do with it. The "average" ror on safe investments is 5-7% so you could park your 52k in some mutual funds and know you'll be set later in life.

but it depends on what you want to do? change your situation now? or invest for later? Maybe you can swing both in your area?

+1

I'd buy a duplex or 4-plex or even a mobile home park using some of that money for the down payment, putting some more in an account strictly for emergency repairs of that investment and if there's any left I'd take a manly vacation. Maybe a hunting or hiking trip in another country.

Start a business.

Same. Starting a business sounds smart. Risky but smart.

Agree,  but do it right. Make a business plan and do something you love. You might have a friend that has a great idea for a business or has a small business that could use some investment, get creative.

...Id start a business. Risky but

Take some time off work - develop a good business idea and start writing up a plan. Find a mentor group who can help you flesh the idea out, then depending on the idea and size, start up, or leverage a chunk of that 50k into a solid loan to get the business going. 

 

Obviously, finding that business idea and it's development time are the important things here. No point going into debt, or wiping out your savings without a solid idea and a plan to execute it. 

 

Advice from your friendly, neighborhood banker:

 

Unless you are insanely wealthy, invest in your retirement.

If you have a balance on your credit card or revolving line...pay it off.

You may not look at a credit card balance as debt, but it is, and it;s the worst kind.

 

Sadly, $50,000 is not a lot of money for anything crazy, and you are young. Retirement, retirement, reirement.

 

 

Good point

First I think I'd take a bit of pride knowing that a 20-30 something debt free hard worker is NOT run-of-the-mill. Working and saving like a dog doesn't make us a dog or slave.

 

Second, I'd focus the $52,000 on working for me and never against me.

 

Third, I'd set a finacial goal of remainig debt free while affording myself creature comforts.

 

Fourth, I'd insure that family and friends remain a constant effort.

RSS

Latest Activity

Louis Nelms joined Liam Strain's group
Thumbnail

Makers

Wood, metal, fabric, stone - whatever your medium - a place for crafts, woodworking, furniture, builders, tinkerers, and jobbers.
28 minutes ago
Profile IconLouis Nelms and Upside down bloke joined Steven C.'s group
Thumbnail

Exercise

Exercise is a crucial part of maintaining a manly physique. Join up to share ideas, get support and discuss plans with other men.See More
29 minutes ago
Mike McCarthy joined Brian Burnham's group
Thumbnail

Remembering Dad

This is a group for men who have lost their fathers. It is a place to mourn, celebrate, and remember our fathers and a place for men to share experiences and draw strength from one another.See More
32 minutes ago
Jack Bauer replied to Jay D's discussion Money
"With emergencies, it's the stuff you don't see coming that's a bigger problem.  For my family, anything under $5k just isn't enough. I wouldn't leave it in my regular checking account, though.  Something…"
33 minutes ago
Sean O' replied to Jim's discussion book on body sculpting/beginner bodybuilding?
"Yah......that's kinda my opinion as well........"
34 minutes ago
Shane replied to Jim's discussion book on body sculpting/beginner bodybuilding?
"I mean I love you guys and all but...."
39 minutes ago
Douglas Aldrich posted a discussion

HVAC Question

I'm living with two buddies currently renting a house from a landlord. Being three post college 20 year olds, we don't have a lot of money, and one of the bills is for utilities and such. I happened to look up at the ceiling vents the other day and noticed that every single one of them is facing out. One is located directly in front of an outside door, the other a window, and the third in front of the microwave. To me, in order to save money, they should all be facing in. One of the vents is…See More
41 minutes ago
Vendetta5885 replied to Louis Nelms's discussion New Kid on the Block
"Welcome! "
49 minutes ago

© 2015   Created by Brett McKay.   Powered by

Badges  |  Report an Issue  |  Terms of Service