Jason Voorhees
๐ธ๐๐๐๐๐๐๐๐ ๐ฎ๐๐๐ โข ๐๐๐๐๐ฅ
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- May 15, 2020
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I've cranked out tons of threads on stacking cash, but 0 on spending it wisely. I'm mostly free this week after weeks of grinding so I figured it's time to drop some knowledge bombs.
Let's define decent bread. It's depends on your country and buying power but in the US I'm talking at least $120-150K USD annually or that equivalent in your country. Yes I know it sounds pretentious and elitist AF calling top 15% the minimum baseline, but in this economy with inflation that's the harsh truth.
Real wealth building starts when you have the foundation to begin with. You can't create something out of nothing. Real life ain't some hustler movie. Many influencers will beat around the bush when it comes to this because it is demotivating but I'll be direct if you are making below this income imo it's a waste of time.
You can still save up, invest and do all the stuff I listed below but the disposable income left after taxes, housing, food, and basics ain't enough to move the needle on real wealth building or lifestyle upgrades. This isn't an insult to anyone. I've myself worked for peanuts when I first started in just being truthful. If you're grinding below that prioritize leveling up your income first. Side hustles, skills, job hops, education whatever it takes.
And to those delusional niggas who think they've made it and are some ballers or something with a 6 figures you are not. You are not even low tier rich not even close. You just barely out of the trenches You just ain't poor that's about it. I know it's hard pill to swallow but again 6 figures is nothing, once you've accepted this reality. Let's move. Here's are some tips
1. Spend on convenience to buy back time. Time is money. My dad and people always used to tell me this but I understand it now after working a full time job. Time is indeed money. Outsource the drudgery. Hire a cleaner, Wash and Fold services. Spending on all this is a smart move because you buy back time. That $50 Uber or do instead of public transit. Worth it if it frees up hours for side hustles or Netflix binges. You can use apps like TaskRabbit/UrbanClap to turn chores into someone else's problem.
2. Backdoor Roth IRA and tax leveraged accounts. I never knew this was possible but a coworker friend of mine told me about this. It sounds illegal but it's not that big of a deal. Many Techcels salaries hit income limits for direct Roth contributions so what they do is
contribute to a traditional IRA (non-deductible) then go to their brokerage account and click convert to Roth to get that tax treatment and done. The only time this can get complicated is when you already have an existing roth then you can run into something called the pro rata rule which can trigger massive taxes in which case I suggest you get a tax pro to do it for you.
They are other equivalents that exist outside of the US also a few I know of are ISA(UK) PPF(India). And other tax advantaged retirement/savings accounts your country offers just dyor but principles are the same. Prioritize tax optimized vehicles first always.
3. Build an emergency fund first
Before you blow any money on something sock away atleast 3-6 monthsof expenses ideally almost 9 months in a high-yield savings account and buy gold .
looksmax.org
This is the number 1 priority if you are Techcel or a gig worker. I can't stress this enough. Layoffs are just a part of how the industry moves in tech so emergency fund is a must. It also protects you from ER visits and some sudden fuck ups. Automate it via apps like SoFi and sleep knowing you're not one paycheck from ending up on the streets
4. Pay off high interest debt aggressively. 20%+ credit cards debt is brutal and will rape your income before you know it. Use the Avalanche method. Kill highest interest first. If it is Low rate debt like student loans and stuff (mortgage <5-6%) it can wait investing often beats paying it down early. You can use Tools like Undebt.it to map it out. Clear the junk first.
undebt.it
5. Max out tax advantaged accounts. Don't stop at the Roth grab your employer's 401k match then HSA for medical or whatever is available locally to you. You get Triple tax perks. pre tax in, tax free growth, tax free out for health. 2026 limits iirc are $23.5K for 401(k) Compound interest turns this into a retirement yacht fund.
6. Invest in low cost index funds or ETFs.Skip the stock picking drama. Just ride the market with Vanguard VTI. Textbook Boglehead method
Robo advisors like Wealthfront handle the heavy lifting for pennies.
www.wealthfront.com
My advice. 80% stocks, 20% bonds if you're young.
7. Experiences> Stuff. The first thing I did when I made decent money was blow it on a swiss watch and a suit. I still like watches and dressing well but nothing beats the experience and joy from a trip with your family, a special date with someone you love or weekend getaway with your gf. I still fondly remember the date that I went on with my gf last month. learned this quite late but prioritize experiences. over material things. that outlasts it. Allocate 10% of post bills cash for adventures friends, family, or solo quests..
8. Education and skills. Ive hammered this point home in every single money thread I've made if you looked at in the past. I've always said this. Education, skills and continuous learning is what turns rich into ultra rich. The more high leverage knowledge you stack, the more doors open. It's like the fuel to your income engine. The more time you spend learning the more money you'll be making. Upskill constantly. Do courses on Udemy, certifications like CFA, AWS Certificate they all work. A $2K course netting a $20K raise is an Instant win.
9. Charitable giving. Once you have your basics done. You give back strategically. If not for the goodness of it atleast from the tax perks Donor advised funds let you batch donations for bigger deductions.
10. Hire professionals. Don't DIY everything. When I was freelancing my dad's accountant saved my ass soamy times and I avoided so much of headache. I am telling you they are worth it. The pros save you from costly screw ups. CPAs for taxes, estate lawyers for wills. Upfront cost is Peanuts compared to missed opportunities. Theres a reason the rich hire these people.
Probably going into hibernation for another week or two. Ok bye.
Let's define decent bread. It's depends on your country and buying power but in the US I'm talking at least $120-150K USD annually or that equivalent in your country. Yes I know it sounds pretentious and elitist AF calling top 15% the minimum baseline, but in this economy with inflation that's the harsh truth.
Real wealth building starts when you have the foundation to begin with. You can't create something out of nothing. Real life ain't some hustler movie. Many influencers will beat around the bush when it comes to this because it is demotivating but I'll be direct if you are making below this income imo it's a waste of time.
You can still save up, invest and do all the stuff I listed below but the disposable income left after taxes, housing, food, and basics ain't enough to move the needle on real wealth building or lifestyle upgrades. This isn't an insult to anyone. I've myself worked for peanuts when I first started in just being truthful. If you're grinding below that prioritize leveling up your income first. Side hustles, skills, job hops, education whatever it takes.
And to those delusional niggas who think they've made it and are some ballers or something with a 6 figures you are not. You are not even low tier rich not even close. You just barely out of the trenches You just ain't poor that's about it. I know it's hard pill to swallow but again 6 figures is nothing, once you've accepted this reality. Let's move. Here's are some tips
1. Spend on convenience to buy back time. Time is money. My dad and people always used to tell me this but I understand it now after working a full time job. Time is indeed money. Outsource the drudgery. Hire a cleaner, Wash and Fold services. Spending on all this is a smart move because you buy back time. That $50 Uber or do instead of public transit. Worth it if it frees up hours for side hustles or Netflix binges. You can use apps like TaskRabbit/UrbanClap to turn chores into someone else's problem.
2. Backdoor Roth IRA and tax leveraged accounts. I never knew this was possible but a coworker friend of mine told me about this. It sounds illegal but it's not that big of a deal. Many Techcels salaries hit income limits for direct Roth contributions so what they do is
contribute to a traditional IRA (non-deductible) then go to their brokerage account and click convert to Roth to get that tax treatment and done. The only time this can get complicated is when you already have an existing roth then you can run into something called the pro rata rule which can trigger massive taxes in which case I suggest you get a tax pro to do it for you.
They are other equivalents that exist outside of the US also a few I know of are ISA(UK) PPF(India). And other tax advantaged retirement/savings accounts your country offers just dyor but principles are the same. Prioritize tax optimized vehicles first always.
3. Build an emergency fund first
Before you blow any money on something sock away atleast 3-6 monthsof expenses ideally almost 9 months in a high-yield savings account and buy gold .
Why gold is important to have explained by yours truly
Since you niggas like my stock market analysis threads so much let's make another one that is a fairly obvious but important phenomenon that is happening rn which makes for a good case study. Everyone rn is hoarding on gold. Gold went up by 50% this year...
looksmax.org
This is the number 1 priority if you are Techcel or a gig worker. I can't stress this enough. Layoffs are just a part of how the industry moves in tech so emergency fund is a must. It also protects you from ER visits and some sudden fuck ups. Automate it via apps like SoFi and sleep knowing you're not one paycheck from ending up on the streets
4. Pay off high interest debt aggressively. 20%+ credit cards debt is brutal and will rape your income before you know it. Use the Avalanche method. Kill highest interest first. If it is Low rate debt like student loans and stuff (mortgage <5-6%) it can wait investing often beats paying it down early. You can use Tools like Undebt.it to map it out. Clear the junk first.
Free Online Debt Snowball/Avalanche Calculator | Undebt.it
Undebt.it is a free, online debt snowball & avalanche calculator
5. Max out tax advantaged accounts. Don't stop at the Roth grab your employer's 401k match then HSA for medical or whatever is available locally to you. You get Triple tax perks. pre tax in, tax free growth, tax free out for health. 2026 limits iirc are $23.5K for 401(k) Compound interest turns this into a retirement yacht fund.
6. Invest in low cost index funds or ETFs.Skip the stock picking drama. Just ride the market with Vanguard VTI. Textbook Boglehead method
Robo advisors like Wealthfront handle the heavy lifting for pennies.
Money works better here | Wealthfront
Wealthfront makes building wealth easy. Earn 3.30% APY on your uninvested cash and invest in expert-built, automated portfolios of stocks, bonds, and ETFs.
My advice. 80% stocks, 20% bonds if you're young.
7. Experiences> Stuff. The first thing I did when I made decent money was blow it on a swiss watch and a suit. I still like watches and dressing well but nothing beats the experience and joy from a trip with your family, a special date with someone you love or weekend getaway with your gf. I still fondly remember the date that I went on with my gf last month. learned this quite late but prioritize experiences. over material things. that outlasts it. Allocate 10% of post bills cash for adventures friends, family, or solo quests..
8. Education and skills. Ive hammered this point home in every single money thread I've made if you looked at in the past. I've always said this. Education, skills and continuous learning is what turns rich into ultra rich. The more high leverage knowledge you stack, the more doors open. It's like the fuel to your income engine. The more time you spend learning the more money you'll be making. Upskill constantly. Do courses on Udemy, certifications like CFA, AWS Certificate they all work. A $2K course netting a $20K raise is an Instant win.
9. Charitable giving. Once you have your basics done. You give back strategically. If not for the goodness of it atleast from the tax perks Donor advised funds let you batch donations for bigger deductions.
10. Hire professionals. Don't DIY everything. When I was freelancing my dad's accountant saved my ass soamy times and I avoided so much of headache. I am telling you they are worth it. The pros save you from costly screw ups. CPAs for taxes, estate lawyers for wills. Upfront cost is Peanuts compared to missed opportunities. Theres a reason the rich hire these people.
Probably going into hibernation for another week or two. Ok bye.
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