Project Tpunk Bank - Page 2 - TravelPUNK Backpacker College Student Budget Travel Message Boards!

**bluepea** · 12-07-2005, 12:04 PM

I need to find a $250 one!! Damn.

**omisan** · 12-07-2005, 12:20 PM

NOBODY MOVE! EVERYBODY DO AS I SAY, AND NO ONE GETS HURT...

Now slowly hand me all of your shoe boxes. This is the Batcave Bank's first robbery.

**benna2** · 12-07-2005, 12:36 PM

Well considering this is only the first full day of us saving our coins, I am guessing that your booty from the batcave robbery will be pretty pathetic!! But if you are in desparate need of some money Omi, I will toss a few quarters your way!

**pinion** · 12-07-2005, 01:23 PM

Hey Omi, I have a bunch of shoe boxes...and ironic enough...they have shoes in them! Knock yourself out!

**omisan** · 12-07-2005, 01:54 PM

Hey, I'm up for any booty - pathetic or otherwise

**pinion** · 12-07-2005, 02:09 PM

Quote:

Originally posted by omisan@Dec 7 2005, 01:54 PM
Hey, I'm up for any booty - pathetic or otherwise*

[snapback]91536[/snapback]

Hey man...I offered you used shoes, not a booty call!

But since we're on the topic....

**TheJake** · 12-07-2005, 02:45 PM

To loop it around to the right topic again i taped up a big ole shoebox today and dumped all my loose change in there. Emptied out the car even and put it all in.

Now i just need to start making more money to pay off my debt and save my dollars!

**travelpunk** · 12-07-2005, 02:56 PM

Quote:

Originally posted by voyd@Dec 7 2005, 11:06 AM
What about I bonds?* I've been toying with buying some as a relatively high-ROR safe investment.

They currently offer a "semi-variable" 6.73% ROR with a 1 year minimum term of ownership and if you cash out in under 5 years, you only forfeit the last 3 months' interest.

Not bad for a bond.* Or any good CDs, anyone?

[snapback]91509[/snapback]

That doesn't sound too bad, but I'd still do real estate. You will be taxed on your capital gains when you pull out your money.

If you put your same money into a piece of real estate that produces positive cash flow, you will create passive income. Which means, you won't have to do any work, but money will come in.

Plus, rents increase each year (FYI Texas is a very strong rental market).

There are 4 ways to make money in Real Estate.

-Rental income
-Depreciation (write offs on on the property itself)
-Appreciation (when your property increases in value...and, if you buy it right, it will)
-Taxes

However, when beginning to build a portfolio, try to always come in with little or no money down. The more leverage you have, the less your risk is. And, if you bought it right, your ROI (or Return On Investment) will be greater.

ie: If I bought a house for $200,000 cash and sold it for $300,000 cash, I would make $100,000 profit or 50% return on my money.

If I bought that same house using the banks money or some other type of creative financing, and then sold it for $300,000, I would still make $100,000 profit but my ROI is now infinite.

**U2fan** · 12-07-2005, 03:58 PM

Go team! I can't wait to hear about all the trips that are going to be financed partially or entirely from this idea!!

**travelpunk** · 12-07-2005, 07:22 PM

Omi, if I had your money, I'd throw mine away! You big high tech Google type employee, you

And Lauren, we are all doing this so we can hit the road traveling, like you seem to do... every other month

!

Good job, Jake! Save a lot ASAP, while paying the minimum on credit cards...for now. Don't pay off the cards for now. It is harder to build cash reserves that can ulitmately make you heaps of money that you'll be able to pay all of your debt and have lots more to invest. Suze Orman just tells you guys one side of the picture.

Financial literacy is key, and unfortunately, schools don't teach us this.

BTW, another deposit in my box

. Who's with me

?

**beergal** · 12-07-2005, 07:32 PM

im saving mine for the tpunk camping trip well towards it anyway ha ha! Is this still going ahead?

**kingcrazylegs** · 12-07-2005, 08:11 PM

Quote:

Originally posted by beergal1@Dec 7 2005, 07:32 PM
im saving mine for the tpunk camping trip well towards it anyway ha ha! Is this still going ahead?

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YES!!! I know we haven't talked about it in awhile - but we will soon, promise!

**bookofkels** · 12-07-2005, 08:21 PM

i was wondering about the camping trip also

**voyd** · 12-08-2005, 06:32 AM

Quote:

Originally posted by travelpunk@Dec 7 2005, 04:56 PM
That doesn't sound too bad, but I'd still do real estate. You will be taxed on your capital gains when you pull out your money.

If you put your same money into a piece of real estate that produces positive cash flow, you will create passive income. Which means, you won't have to do any work, but money will come in.

Plus, rents increase each year (FYI Texas is a very strong rental market).

There are 4 ways to make money in Real Estate.

-Rental income
-Depreciation (write offs on on the property itself)
-Appreciation (when your property increases in value...and, if you buy it right, it will)
-Taxes

However, when beginning to build a portfolio, try to always come in with little or no money down. The more leverage you have, the less your risk is. And, if you bought it right, your ROI (or Return On Investment) will be greater.
ie: If I bought a house for $200,000 cash and sold it for $300,000 cash, I would make $100,000 profit or 50% return on my money.

If I bought that same house using the banks money or some other type of creative financing, and then sold it for $300,000, I would still make $100,000 profit but my ROI is now infinite.
[snapback]91559[/snapback]

Ya, if I was on the Left Coast, real estate would definitely be a no-brainer!

But down here the market is muuch slower - mainly because there's so much open land, you get suburban sprawl instead of bubble housing. And when you factor in closing costs, mortgages and slow appreciation - it's not as easy to flip properties for quick profits, unfortunately.

I didn't know TX was a strong rental market - but that would make sense if less people are flipping units. I'm just a bit wary about being a landlord because my parents are and it has created some hassles with bad tenants, maintenance and really tying you down into an area. However, it does also generate steady income and eventually a lump-sum profit if it appreciates and you can sell it...

Not too familiar with the depreciation and tax methods of making money, but hey I'm just a noob takin' notes from the master here!

If only I had just bought some google stock instead...DOH!

**travelpunk** · 12-08-2005, 11:18 AM

I would definitely be buying in Texas for the positive cash flow and not the appreciation. If it appreciates, it's a bonus!

And yeah, tenants can be a hassle, and proper screening doesn't even protect you fully. But still, hundreds of lawsuits didn't stop Microsoft (or any big company) from becoming a success...if ya catch my drift!

The word on the street is that Austin is the place to be for investing. For example, you buy a house for $100k and rent in out for $1,400/mo. A mortgage will be roughly $600-800 including taxes and insurance, depending on your level of creativity when you finance it.

That's at least a $600 positive cashflow per month. If the property never appreciates, you will still have this cashflow AND rents increase each year! Not to mention tax write offs and yada, yada, yada...

So, do that 10 times and you will add $6,000 per month in positive cashflow. Do it 20 times and that's $12,000 per month coming in without you having to lift a finger (imagine all the trips you can take). Passive income.

And, if only ONE of those properties doubles in value...well then, that's just more gravy, baby.

Yes, you may have a few problems here and there with tenants, etc...But is it worth it for this type of income? Yep!

How many problems with our bosses and co-workers do we have to deal with on a daily basis? Know what I mean

.

Financial literacy is something they don't teach us in school, but is absolutely vital for our future.

In my line of work, I see hundreds of credit reports every year. My customers are doctors, lawyers, engineers, teachers, cpa's, government employees, yada, yada, yada...

Most people do not know how to manager their money and make it work for them.

That's why, the higher their income, the more expensive their toys and the more debt they get into. They have little or no savings and if they do, it's not working for them.

Man, I can go on and on (hmmm..maybe I should start a real estate/ finance forum for everyone to contribute and learn from

)

One year ago, I created a plan for myself and made a long term decision to change my financial future by becoming more financially literate. I had only a shiny car to my name.

12 months later, although it's just on paper...for now

, my assests have increased tremendously.

This is not a get rich quick scheme or a sprint or a race against anyone. It is a marathon and a goal to become a better investor and to live the life that I want to live without having to answer to "a boss" or anyone else.

It truly is working smarter and not harder.

Meanwhile. Anyone interested in improving their financial future, go out and buy the book Rich Dad, Poor Dad just as a start (many more books to follow).

Or read more here- http://www.richdad.com/pages/twodads.asp (on the bottom of each page click on Read More)

**U2fan** · 12-08-2005, 01:44 PM

Wow....just wow.

Godfather, I salute you!

**bluepea** · 12-08-2005, 02:22 PM

Well written and informative. I couldn't help but thinking of some salesman for an MLM or something by some of the wording though.

**TheJake** · 12-08-2005, 02:36 PM

tony i think i have read every book you have suggested on financial smarts and many more besides it has taken me going as deep as the credit companies would let me go before I woke up and smelled the kona.

Now I have my ass in high gear working, yes you heard it here first folks, working multiple jobs to get back on track. It is going to one long ass road but if I pay myself first it will be worth it in the end!

**U2fan** · 12-08-2005, 02:52 PM

Jake, I salute you as well.

**SuDz** · 12-08-2005, 03:34 PM

Alright, I think I am joining in on this one guys. I will grab one of my 5-gallon buckets tonight and a lid and seal it up and just have the one opening at the top and use it to collect some change etc.

I did this once before and it worked out pretty well for me.

I think I am held to just change for a bit right now since I recently bought a house and that is the grunt of my money right now. Pretty soon though once my renters are all settled and stuff I will be able to toss a bit more in at a time.

SuDZ