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Old 02-25-2015, 01:10 PM   #21
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I'm not ashamed of our debt, because it's allowed us to have good earning potential, great credit, and lots of flexibility in our lives. I don't feel tied down to my debt. I don't feel poor. What I do feel, however, is that there is a lot of money coming in and out of my bank account, and that it seems silly to let that money pass through my fingers without asking, "hey, can this money also be making money?" Which is exactly what this thread was asking. If the answer is ultimately that there are no small-scale, relatively safe investment options that beat inflation, then that's fine. But the indignation that a debtor would even consider putting money anywhere besides toward her debts for even a short time is absolutely absurd and classist.
I wouldn't invest money and count on it to make a profit short term. Don't ever invest money you will not be OK with doing without for at least 5 years, possibly longer. We do invest, we have several portfolios, but we never count on them for short term gain. We also never put money into them that we can't live without for the long term.

That said, we live debt free. Don't think credit is necessary and don't worry about not having credit cards because we don't need a high score for credit...we broke that circle long ago. If we can't pay cash for something we can't afford it, period. Being able to afford debt payments is not being able to afford the stuff the debt is for, unless we have liquid funds to pay it off 100% at any given time. I guess we see debt differently.

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Old 02-25-2015, 01:25 PM   #22
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Stock market is best for long term investing as it tends to be volatile, so it's best if you can handle the ups and downs (crash of 2008, for example)

Really, paying off a 3%interest debt is like earning 3%, as you are not spending it.

Any high return investment is going to have high risk.

You could check into an interest-earning checking account, cash back credit card, etc.

Look at auto transfers for paying debt, so you don't have to think about it as much.
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Old 02-25-2015, 01:39 PM   #23
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Re: Investment advice

I went looking more into peer to peer since it's been a while since I've looked into it. Really it looks a little interesting however it does have big risk and you should have a good amount to start so you can buy into different interest rates on multiple loans mainly to hedge the riskier notes against the other ones. However it's not really a good choice for short term. Most of the loans I saw were 3-5 years (keep in mind I did most of my research on one site).

Say you start out with $500, you put $100 into risk A loans that are yielding a 2% return and $100 into B with 3%, $100 into C with 4%...etc..etc. You do earn monthly interest on the loans which you can touch immediately or you can reinvest however keep in mind that money that you loan out is no longer yours, if someone defaults on the loan you can't get that money back at all. Essentially you earn your money back when the loan matures through interest and repayments, however that will take a while.

You can however sell your "note" to someone else but you have to find a buyer and you never know if you might take a loss on that note if you decide to get out. It sounds interesting either way, but your money really isn't accessible if you need it for emergencies. I was thinking I might take a couple hundred to try it out just to see. I'm intrigued now.
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Old 02-25-2015, 02:04 PM   #24
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Re: Investment advice

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Originally Posted by Rdesonia View Post
Sorry if you were somehow offended but many people follow the Dave Ramsey thing. (Me included.)
...

If you find any great short term options with low risk, I'd love to hear them.
Nooo! Sorry, I didn't want to quote the specific person because, I don't know, it felt like picking on her after I'd already responded. When I said thanks for the advice earlier I meant it, it wasn't sarcastic. And you responded with your experience and what you're doing, which is all anyone can ever do! I'm not bothered by anyone sharing their experience, it's what I wanted. It just ruffles my feathers when folks think that DR and debt-free is the end-all-be-all, and that doing anything except scrimping and saving must somehow be less admirable (it's happened not just in this thread, but in other threads too).

Oy, and now it sounds like I'm talking about 7 for now--I'm not! I appreciate your perspective, and thank you for sharing it without judgement.


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While I don't expect all threads to be applicable to everyone here it seemed as though she wasn't getting that advice. So either those who can give that advice are not responding or no one here really knows what to do. Either way, I agree with the poster I quoted. A forum more investment focused might be a better place to look for the desired advice as it just was not materializing here.
It's fair. I guess I was thinking that if there are 10 mamas who know how to earn $200 a year swagging, maybe there is 1 mama who also earned that with some hidden gem investment like peer-to-peer or a special kind of savings account only smart people know! I'd never heard of swagbucks before joining this site, never heard of half the money-saving stuff moms on here do. So if a swagging mama can be proud and want to share a good survey, or an eBay seller finds a hot item and is happy about flipping it, why couldn't there be a mama on here who has hacked some investment system, KWIM? This is a diverse site, and to me being thrifty means making the most of the money you have. Mamas on here are always sharing their "hacks," and that's all I was asking.

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Old 02-25-2015, 02:05 PM   #25
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Re: Investment advice

I don't claim to know much about investing and I don't think that investing in something like peer to peer lending is to much work, but I do think it is just too much of a gamble. I did some basic math and if you put 1000 in an account at the beginning of every month for a year and got 15% interest per year compounded monthly, you'd have earned $1021 interest for the whole year. That is $85 a month on average, not 200. That said, EVERYONE I know who has invested in a 10+% "guaranteed winner" investment lost their principal, so I think the 85/month number is high. With a 5% interest rate you are looking at 330/yr or 27/month on average.
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Old 02-25-2015, 02:14 PM   #26
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Re: Investment advice

At the bank in used to work for we had an investment banker on site that was employed jointly by the bank and the investment company. I know he had a few farm customers that would do the same thing you are talking about for their farm payments. I don't know exactly how the ins and outs of it worked but maybe check with your bank and see if they offer anything similar.
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Old 02-25-2015, 02:23 PM   #27
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Re: Investment advice

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Originally Posted by anrmom21 View Post
At the bank in used to work for we had an investment banker on site that was employed jointly by the bank and the investment company. I know he had a few farm customers that would do the same thing you are talking about for their farm payments. I don't know exactly how the ins and outs of it worked but maybe check with your bank and see if they offer anything similar.
OMG thank you for suggesting I may not be a complete lunatic.
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Old 02-25-2015, 04:38 PM   #28
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Re: Investment advice

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Originally Posted by Palooka View Post
Nooo! Sorry, I didn't want to quote the specific person because, I don't know, it felt like picking on her after I'd already responded. When I said thanks for the advice earlier I meant it, it wasn't sarcastic. And you responded with your experience and what you're doing, which is all anyone can ever do! I'm not bothered by anyone sharing their experience, it's what I wanted. It just ruffles my feathers when folks think that DR and debt-free is the end-all-be-all, and that doing anything except scrimping and saving must somehow be less admirable (it's happened not just in this thread, but in other threads too).

Oy, and now it sounds like I'm talking about 7 for now--I'm not! I appreciate your perspective, and thank you for sharing it without judgement.



It's fair. I guess I was thinking that if there are 10 mamas who know how to earn $200 a year swagging, maybe there is 1 mama who also earned that with some hidden gem investment like peer-to-peer or a special kind of savings account only smart people know! I'd never heard of swagbucks before joining this site, never heard of half the money-saving stuff moms on here do. So if a swagging mama can be proud and want to share a good survey, or an eBay seller finds a hot item and is happy about flipping it, why couldn't there be a mama on here who has hacked some investment system, KWIM? This is a diverse site, and to me being thrifty means making the most of the money you have. Mamas on here are always sharing their "hacks," and that's all I was asking.
I understand. I was watching the thread kind of hoping to see something that we could use as well. Swag Bucks bogs down my computer so I cannot do it regularly. I don't do well selling things. Just not my thing. I tend to lose money rather than make money. Only after a few days it seemed like nothing much was materializing.
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Old 02-25-2015, 06:53 PM   #29
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Re: Investment advice

Try the same question in off topic, you might get more knowledge there as people with investments might not be interested in being thrifty.

I totally get what you are saying, and yes, it's something you should consider, but I'm in Canada so I won't suggest anything because all the taxes/fees etc... are totally different!
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Old 02-25-2015, 08:17 PM   #30
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Try the same question in off topic, you might get more knowledge there as people with investments might not be interested in being thrifty.
This kind of makes me sad and is the reason why I don't post too much in this forum. But I read it daily. We are debt free, have investments, we are more than comfortable on dh's income alone, we save a huge chunk every paycheck, save for retirement but I am still thrifty, we don't struggle nor live paycheck to paycheck!

Why would I not want to be thrifty just because we are more than comfortable! I love being thrifty and saving money on things. This just reinforces why I don't really feel comfortable posting in this forum.
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