Jake's journal

Where are you and where are you going?
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Jake9870
Posts: 21
Joined: Sun Feb 12, 2017 1:22 am
Location: Under the Great White North

Jake's journal

Post by Jake9870 » Mon Apr 17, 2017 6:03 am

Hi all,

I'm Jake, the kind of guy you'd want to get a beer with. I'm the dreaded (or so seems around here) ENFP personality type with a strong affinity to surround myself with logical and highly capable people. As an ENFP I am an affluent social networker, I love people. I connect people like it's my job and one day I hope it is. I've been on an ERE mentality since January. Growing up was hard with a mom who could never save money, so I've always had a scrappy side financially.

Like many others I needed a structure for my thoughts and then I found you guys. Truth be told I haven't read the book, all that many blog posts, or even a fraction of the forum... But! I'm at a perceived rate of at least 60% savings this year. I have not been keeping great track, but Mint has been an awesome help. My bank account in December hit $-49. My current income is 75% in cash and the balance today is $6,000. Let's say maybe 1% to my goal of FI? So rough estimates if I keep saving as such I'll be FI in approximately 25 years. That doesn't have a great ring to it.. We'll figure that part out.

Anyway guys I love the community here and hope to become a part of it. If you're expecting some hard numbers in this journal you're not gonna be happy with what comes next.

Cheers,

Jake9870
Posts: 21
Joined: Sun Feb 12, 2017 1:22 am
Location: Under the Great White North

Chapter 1? Maybe?

Post by Jake9870 » Mon Apr 17, 2017 6:26 am

I grew up in Cincinnati with a struggling single mom (undiagnosed bipolar) with massive A.D.D. and a very hard working entrepreneur dad (remarried). I lived with mom growing up, and took care of her emotionally and increasingly physically and fiscally. Through high school mom had a traveling job so 4/7 days a week I had the house to myself. Debauchery reigned, but It didn't help that mom smoked more pot than I did.

I started getting my act together around 16 when I met the love of my life. Looking towards the uncertain future and being so young I was easily (well lots of screaming helped) dissuaded from traveling the world and (in some words picking bananas in Costa Rica) and geared towards college. I wanted a change of scenery so I was westward bound. Montana got my eye through scholarships and the great outdoors. The only issue was that I'd been dating an amazing girl for two years, but I was eighteen and afraid of commitment (who isn't?) and there was so much to be discovered! We broke up after a long night of tear shedding and star gazing as we packed up the Sleigh (Hyundai). Mom and I drove out to Montana with my mind ahead of me, not yet looking back..


The first day I woke up in the dorm to my Roommate hungover and naked. He had smoked and drank both for the first time on his first night of college. We had some teaching to do :). Roommate proved to be the most capable, thought provoking, and stubborn friend I'd had to date (INTP). A real smart guy, naturally ERE minded: refusing to get a cellphone, owned two pairs of shoes, wore exclusivley white t shirts with jeans, and made/scavenged everything he could. He's being a real stubborn bastard right now and not reading ERE even after getting recommendations from me.

Many friends made, flings had, and experiences learned.. But creeping doubt (insecurity) came back. I missed her.. whole heartedly, undoubtedly, and it tore at me. After two breaks back home and a handful of heart crushing rejections I won her back!! I returned to MT and we assumed a de facto open relationship where neither of us were actively seeking other partners, but were not confined by the pressure of having to be monogamous. The rest of the year comprised of making new friends, memories, and saving up a bit of money. The best way an old soul with good social skills and rich freshman with parent's allowances around him knows how.


Took two
Important classes. A liberal studies class with the title: Intercultural Competency, and my writing 101.

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Dragline
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Joined: Wed Aug 24, 2011 1:50 am

Re: Jake's journal

Post by Dragline » Thu Apr 20, 2017 10:48 am

So which college in MT? You a Grizzly hanging out at Paul's Pancakes in Missoula? Or that goofy record store/head shop?

For an interesting discussion of the history of various religions and money, there is a decent chapter in this book you might like to check out: https://www.amazon.com/Coined-Rich-Mone ... +shaped+us

One of the interesting speculations/observations the author makes is that a number of religions appear to have emerged around the time coins or money became in widespread use in their societies, and perhaps as some kind of "counter-weight" in part:

"Anthropologist David Graeber points out that influential religious leaders like Pythagoras, Buddha, and Confucius all lived during the sixth century BC in areas where coinage was invented—Greece, India, and China. He suggests that it’s not a coincidence that from 800 BC to AD 600 both money and several lasting religions were created. It’s plausible that some organized religions spread as a response to the rising importance of the marketplace. Many of Jesus’s earliest followers, for example, were poor and receptive to his paradoxical, liberating wisdom regarding material wealth."

Sehgal, Kabir. Coined: The Rich Life of Money and How Its History Has Shaped Us (p. 203). Grand Central Publishing. Kindle Edition.

Jason
Posts: 239
Joined: Mon Jan 30, 2017 8:37 am

Re: Jake's journal

Post by Jason » Thu Apr 20, 2017 3:41 pm

Despite OJ Simpson level of evidence to the contrary, I am a Christian. I read a book about money and early Christianity when I was studying the ancient church. The issue back then, similar to the issue now, is that the church, requires private financial support, so much like politics, special interests become a constant threat to religious integrity and commitment to being a faithful witness to its doctrine. Once Constantine acknowledged Christianity as the state religion (it wasn't exclusive, he just wanted all the Gods on his side and the country remained syncretic) many church leaders found themselves sipping tea with rich ladies in order to extricate funds.

I don't know about other religions, but majestic temples and altars are usually not financed by the subject they serve to honor.

I did not mean to hijack Natti Jake's thread with religious bullshit. He just mentioned not reading Jacob's book. I haven't either, but I have read some reviews.

Jake9870
Posts: 21
Joined: Sun Feb 12, 2017 1:22 am
Location: Under the Great White North

Re: Jake's journal

Post by Jake9870 » Sat Apr 22, 2017 3:17 am

I'm in Bozeman, although admittedly Missoula is much cooler if you're not a

1) skier
2) ice climber
3) cowboy

So the go to here is Granny's donuts, record shop is Cactus Records, and for a good laugh from a retired biker is the Grateful Shed. Missoula is one of the better combinations of nature and a small city. Super hipster, but If you're not a cowboy in the NW, I guess you've got no choice :).

Jake9870
Posts: 21
Joined: Sun Feb 12, 2017 1:22 am
Location: Under the Great White North

Re: Jake's journal

Post by Jake9870 » Sat Apr 22, 2017 3:45 am

I think I'll jump ahead to current day for a little while. I need to round up some pictures for the next bit of the story and that requires me getting my laptop back from my mom ah!!

I've got some questions looming ahead of me some further out than others, but important nonetheless. This is going to take awhile...

1) I'm amidst a gap year in my education right now. I found an incredible source of income for low to no skill labor that pays almost all in cash (any guesses?). I'm tracking the amount I make every time I work and I'll be posting when I have a full month of data.

A few things:

- A gap year has been a hugely positive experience for me and could not recommend it highly enough. For anyone thinking about it its a great way to ease pressure and remind yourself that there's a world and a life out there for you.

- I'm signed up for classes about start uni up again. Studying business management. Boring, but it's a decent looking degree.

- I'll be trying to continue to worka around 30 hours a week while taking classes. (Working nights which is what I do now, but I'm working anywhere from 30-60 hrs/week.

2) I'm amassing quite a bit of untaxed cash. This worries me. I've been depositing most into a non interest accruing checking account. But I'm coming up on the 10K mark and am wondering what else I can/should be doing.

- I've been depositing around $125 monthly into an automated stock market account. Anyone heard of Wealthfront?

- I'd like to use my cash for a down payment on a rental property, maybe a 4 plex?

- Save the lump sum of cash until this bubble of the US stock market crashes then invest heavily and watch the rebound $$$?

Where should I put my cash? How can I make it work for me?

Jason
Posts: 239
Joined: Mon Jan 30, 2017 8:37 am

Re: Jake's journal

Post by Jason » Sat Apr 22, 2017 8:32 am

RE: Wealthfront, I "use" Future Advisor i.e. I don't pay for the advanced services but use it as a glorified calculator and receive enough free investment recommendations to make it worth my while.

From what I know, Wealthfront, Future Advisors - all robo advisors - are militant Bogelheads. I believe the idea came from two Google or Facebook employees who didn't want to use financial advisors, so they created the technology and then hired financial experts. It is the ultimate millennial play. Any person suspected of having a grey pube is not to be trusted.

I think they are useful to encourage consistent savings in low fee instruments. They are going to push on ETF's as opposed to mutual funds or individual stocks.

The only caveat I would provide is that their ascension (very recent) is contiguous with a great bull run. They have not earned their stripes in a bear market. I do believe there was some slight controversy when Wealthfront stop trading during the Brexit drop.

RE: Waiting for US Bubble to burst - I suggest reading JL Collins The Simple Path To Wealth, specifically the chapter on market timing and Dollar cost averaging. Actually, just go to his website and read his blogs. The basic ideas are there. And by ideas I mean the challenges and the challenges he places on the challenges.

Investors are houses divided and by divided I mean there's a part of you that has a lit match wanting to burn you own fucking house down. It's about identifying your inner arsonist who can often present himself in a passive manner.

halfmoon
Posts: 538
Joined: Mon Nov 07, 2016 10:19 pm

Re: Jake's journal

Post by halfmoon » Tue Apr 25, 2017 6:45 pm

Jake9870 wrote:
Sat Apr 22, 2017 3:45 am
2) I'm amassing quite a bit of untaxed cash. This worries me. I've been depositing most into a non interest accruing checking account. But I'm coming up on the 10K mark and am wondering what else I can/should be doing.

- I'd like to use my cash for a down payment on a rental property, maybe a 4 plex?
I'd be worried also. If you're working under the table, putting your cash earnings into a bank account (interest-bearing or not) is a big neon flag to the IRS (think tax, interest and huge penalties). You might like the idea of avoiding Social Security and Medicare tax because many believe those programs will be greatly watered down by the time your generation hits retirement age. BUT you're also letting your employer off the hook for providing:

-- His/her half of Social Security & Medicare tax. Chances are very good that some form of SS/Medicare will endure, and you're missing a 100% employer match.

-- Federal and state unemployment insurance.

-- On-the-job injury and disability insurance. I don't know if every state has this, but Washington does. It's not important until you hurt yourself.

-- Any voluntary benefits that an alternative employer might provide.

Regarding using your cash for a down payment on rental property: if you don't have documented earnings, you won't get a loan. You'll need to pay cash for the full purchase price. Even if you had that kind of cash: raise the neon flag again.

I don't intend this to be at all judgmental; merely informative. Keep in mind my aging accountant perspective. ;)

Jake9870
Posts: 21
Joined: Sun Feb 12, 2017 1:22 am
Location: Under the Great White North

Re: Jake's journal

Post by Jake9870 » Thu Apr 27, 2017 1:33 am

I absolutely appreciate the criticism, Halfmoon. I'm quite happy to see you posting here, as your first journal about just posting and not worrying about perfecting it made me create this journal.

My occupation: I work as a casino attendant. For those of you unfamiliar with small quirky casinos they're a great way to amass a small fortune through cash tips (and a great way to lose Money gambling). In the past two weeks I have made somewhere to the tune of around $2000. I normally average 150 a night in tips, this gets me somewhere around 1200 normally. On paper I am paid 8.15 an hr. This gets me 400-500 every two week period depending. So the majority of my wealth is created in cash.

I usually deposit this cash every week into a checking account.. What can I / should I do differently?

Side note: the other night I got a $500 tip from one very lucky patron. That was awesome.

halfmoon
Posts: 538
Joined: Mon Nov 07, 2016 10:19 pm

Re: Jake's journal

Post by halfmoon » Thu Apr 27, 2017 10:30 am

Jake, what you can or should do depends on your goals and comfort zone. If you intend to continue with not declaring your tips, you should do some reading on the subject of cash income; there are lots of books and websites that discuss this. With current money-laundering rules, it's hard to hide an ongoing cash influx unless you're willing to stash it all and watch inflation erode its value.

Another option would be to declare some or all of the tips and deposit the cash. If you declare the tip income to your employer, the casino is required to report it to the IRS, withhold your half of SS/Medicare taxes, and to pay the employer half of those taxes. This documents your income in case you ever want a mortgage or even to qualify for many rentals. It increases your eventual Social Security payout on retirement and your unemployment or disability benefits should that ever be an issue. It also keeps you legal, which is just easier.

Think long and hard about whether you want to take the risk of tax evasion. Again: no judgment whatsoever. I'm not arguing that it's your moral duty to pay tax. I'm just concerned that you've been pretty open here about the situation and hope you don't discuss it with people you know in real life. It just takes one person who is envious or angry or morally outraged to report you (think ex-girlfriend, for example).

I would also stop putting the cash in your bank account.

By the way: I'm glad that my journal encouraged you to start this one! It's an interesting read, and I'm still waiting to hear more of the story you started. :)

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