I rented (not through choice) for over 20 years and finally managed to get on the property ladder (UK) 5 years ago. Renting meant zero security and I had to move every 2-3 years or less due to rent hikes and flats being sold underneath me. So yes I have a mortgage I'll be paying off for the next 23 years but how on earth is renting better than trying to own your own place which is also an asset that could help fund retirement?
I disagree with the notion that people shouldn’t donate to charities because charities are terrible. Some charities? Yes, sure. There are always bad actors who have started charities as tax shelters. But there are more that publish their administrative budgets in all transparency. Where social safety nets are minimal or non existent they provide essential support. I’d reframe this to “do your research before donating”
Tim, the 2% inflation figure comes from the Consumer Price Index or its equivalent in other countries. It's based on 80,000+ items in the US with different weights. Shelter has more weight than, say, Coca-Cola. But if you don't buy a new property every year, the CPI has nothing to do with you. This is why everyone's inflation is different. And I doubt it's 2% for anyone.
P.S. I lost my childhood friend after lending him $300. Never seen him since 20 years ago.
Couldn’t say less but for one thing Bitcoin is not scares it is actually infinitely down scalable : you can divide it endlessly… its a fiat related thing so watch your Mining 😎
100%. Bitcoin can be divided down to eight decimal places, allowing for very small transactions, often referred to as microtransactions.
Blow their mind some more by telling them how 9ne Bitcoin can be divided into 100 million smaller units called Satoshis (sats). This means that 1 Bitcoin is equal to 100,000,000 Satoshis.
Then when you start talking about it censorship-resistant qualities, and how it is verifiable and scarce, these blown minds start to finally awaken.
Tim, this is one of the best articles I have read in ages. You nailed every point. The rules have completely changed, if there ever were any. I’d call them traditional expectations. One bullet I would elaborate on us be your own personnel officer and school teach us what we need to make money, but teach us nothing on how to grow your money. This was a fantastic post.
Tim, you hit important points and part of the reason I started my Substack….Conventional personal finance advice based on rules of thumb is constantly rehashed, and rarely correct. For me, it is all about the best living standard.
Money is gold and silver. Everything else is ‘currency’ because the big difference between the two is a store of value. Fiat currency is not a store of value but gold and silver (true money) are
🎗️ The core thing to remember here, should be this:
MONEY has an attribute called Store of Value. Notwithstanding, Scarcity, too (i.e., it shouldn't be easy to replicate).
CURRENCY is only something that you use to pay for goods and services.
Currency (dollar, yen, pound, etc.) and money WERE the same, when currency was backed by gold. When currencies stopped being backed by gold, they lost their legit monetary properties.
Yet, we're still conditioned to think that we're actually working for Money. But it IS Currency, in the form of digital 1's & O's, hitting your bank account. Think about that three times, when you get your next W2 pay or 1099 commission check.
Unless you're comparing it to other currencies, Dollar (fiat) "cash" (Currency) is, in many ways, trash… The Petrodollar is nearing its death.
And, while the $ is the world's reserve Currency, unless the Powers That Be find ways to protect its purchasing power and stop its currency debasement, then, well, what can I say, you're not getting ahead 'saving in it!'
In most countries, we truly do a disservice to children (heck, and adults) by not educating them on money management. But then I think, who would educate them? As your article stated, 'most' people aren't educated on it themselves. First, I think we need to take away the stigma that is money and what it (can) represent. It's a means to an end. A tool. Not our identity or what our morals are built around.
pretty much agree with the content. This is a motivation for me to start side hustle which I am already being process of equipped to upskill. Thanks for highlighting money part since bad debt and good debt exist and we need to study and make informed decisions about the money. One of the good decisions that i took is to stick to 5 year old fixed interest rate for my current mortgage. One of the bad decision is to rely on credit cards and paying a lot of interest rate and lot of lessons learned for sure
Honest question - where are you doing deep research on stocks? For years I worked in a field where I legally could not buy individual stocks and am now finally (yay!) able to
When Tim talks money, I listen. I agree with all points so maybe I’m biased but my favourite point is the charity. Someone finally has the guts to call them on the fact that donations might not make it to where it needs to go.
PS thanks for the article on liquidity cycles and elections 📈
I rented (not through choice) for over 20 years and finally managed to get on the property ladder (UK) 5 years ago. Renting meant zero security and I had to move every 2-3 years or less due to rent hikes and flats being sold underneath me. So yes I have a mortgage I'll be paying off for the next 23 years but how on earth is renting better than trying to own your own place which is also an asset that could help fund retirement?
Well, he admitted he owns property (as a hedge against inflation presume), so I think that's the real answer...
I disagree with the notion that people shouldn’t donate to charities because charities are terrible. Some charities? Yes, sure. There are always bad actors who have started charities as tax shelters. But there are more that publish their administrative budgets in all transparency. Where social safety nets are minimal or non existent they provide essential support. I’d reframe this to “do your research before donating”
even the ones who are transparent have CEO's making 7 figure salaries from the "Charity" so I wouldn't trust a singe one of them
Tim, the 2% inflation figure comes from the Consumer Price Index or its equivalent in other countries. It's based on 80,000+ items in the US with different weights. Shelter has more weight than, say, Coca-Cola. But if you don't buy a new property every year, the CPI has nothing to do with you. This is why everyone's inflation is different. And I doubt it's 2% for anyone.
P.S. I lost my childhood friend after lending him $300. Never seen him since 20 years ago.
P.S.S. Bitcoin to the Moon!
Couldn’t say less but for one thing Bitcoin is not scares it is actually infinitely down scalable : you can divide it endlessly… its a fiat related thing so watch your Mining 😎
Some people don’t know they don’t need $90k to start investing in Bitcoin. It blows their minds when you say they can buy one Satoshi.
100%. Bitcoin can be divided down to eight decimal places, allowing for very small transactions, often referred to as microtransactions.
Blow their mind some more by telling them how 9ne Bitcoin can be divided into 100 million smaller units called Satoshis (sats). This means that 1 Bitcoin is equal to 100,000,000 Satoshis.
Then when you start talking about it censorship-resistant qualities, and how it is verifiable and scarce, these blown minds start to finally awaken.
hahaha Barry, it's not that bad they haven't awakened yet - we can buy more until the Bitcoin price soars again.
Tim, this is one of the best articles I have read in ages. You nailed every point. The rules have completely changed, if there ever were any. I’d call them traditional expectations. One bullet I would elaborate on us be your own personnel officer and school teach us what we need to make money, but teach us nothing on how to grow your money. This was a fantastic post.
The micro skills is my favorite. Stack them up to become unstoppable
“Poverty an artificial creation!
Eradication of poverty is an Obligation, not a charity.” Prof. M. Yunus
Invented charity should be branded as a disgrace to society!
Tim, you hit important points and part of the reason I started my Substack….Conventional personal finance advice based on rules of thumb is constantly rehashed, and rarely correct. For me, it is all about the best living standard.
Money is gold and silver. Everything else is ‘currency’ because the big difference between the two is a store of value. Fiat currency is not a store of value but gold and silver (true money) are
🎗️ The core thing to remember here, should be this:
MONEY has an attribute called Store of Value. Notwithstanding, Scarcity, too (i.e., it shouldn't be easy to replicate).
CURRENCY is only something that you use to pay for goods and services.
Currency (dollar, yen, pound, etc.) and money WERE the same, when currency was backed by gold. When currencies stopped being backed by gold, they lost their legit monetary properties.
Yet, we're still conditioned to think that we're actually working for Money. But it IS Currency, in the form of digital 1's & O's, hitting your bank account. Think about that three times, when you get your next W2 pay or 1099 commission check.
Unless you're comparing it to other currencies, Dollar (fiat) "cash" (Currency) is, in many ways, trash… The Petrodollar is nearing its death.
And, while the $ is the world's reserve Currency, unless the Powers That Be find ways to protect its purchasing power and stop its currency debasement, then, well, what can I say, you're not getting ahead 'saving in it!'
In most countries, we truly do a disservice to children (heck, and adults) by not educating them on money management. But then I think, who would educate them? As your article stated, 'most' people aren't educated on it themselves. First, I think we need to take away the stigma that is money and what it (can) represent. It's a means to an end. A tool. Not our identity or what our morals are built around.
“In fact, in 2024, Wall Street officially embraced it and allowed it to be traded on the New York stock exchange.”
Nope. Bitcoin is NOT traded on the NYSE. It’s not a stock.
no bitcoin itself is not a stock but they have ETF options in bitcoin that are traded on the stock market
As usual, this was eye-opening, Timbo.
Insanity is doing the same thing expecting different results
pretty much agree with the content. This is a motivation for me to start side hustle which I am already being process of equipped to upskill. Thanks for highlighting money part since bad debt and good debt exist and we need to study and make informed decisions about the money. One of the good decisions that i took is to stick to 5 year old fixed interest rate for my current mortgage. One of the bad decision is to rely on credit cards and paying a lot of interest rate and lot of lessons learned for sure
Honest question - where are you doing deep research on stocks? For years I worked in a field where I legally could not buy individual stocks and am now finally (yay!) able to
But I feel so unconfident!!
Love it, can‘t think of any of the general ideas I disagree with and I‘m an old git with enough experience to judge
When Tim talks money, I listen. I agree with all points so maybe I’m biased but my favourite point is the charity. Someone finally has the guts to call them on the fact that donations might not make it to where it needs to go.
PS thanks for the article on liquidity cycles and elections 📈
Most of these are older than time when it comes to money. Not now concepts.
Reading any historical biography of wealthy families gives the same insights.
Saving money in banks is a new thing, old money families rarely used them. For good reason.
Anyway, glad you wrote it for those who needed it