Travel Budget, Money Matters, Financial Talk Mom, can I borrow ten grand?! Gimme yo mastercard! How the heck can I pay for my trip?! Ideas for making money. How much dough do I need?
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View Poll Results: Who thinks this is possible????
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No fuckin way!!!
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77.78% |
\Maybe/
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22.22% |
Hell Yeah!!!
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01-09-2006, 03:47 PM
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#1
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Join Date: Dec 2005
Location: NYC
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"Just an Idea"
I think I figured out a way to save money and make money by saving it!!!
***CD Accounts***
Most banks have CD Account around 5% (4%-7%)
If I kept $50,000 in a CD account @ 5% Intrest a month.
5% of $50,000 = $2,500
$2,500 a month for 12 months = $30,000
I could put the $50,000 back into a new CD Account every year and Keep the $30,000 for just leaving my money alone for 12 months.
THAT'S $30,000 A YEAR FOR DOING NOTHING!!!!
I totally think i'm going to do this!!!!
I could totally travel for the rest of my life and never have to work again!! I mean $30,000 a year isn't a whole lot.... I won't be rich, BUT I will be able to backpack for as long as I wish and never have to worry about getting a job or money ever again.
I could also keep more then $50,000 in the CD Account -
Example..
5% of $100,000 = $5,000
$5,000 a month for 12 Months = $60,000
$60,000 a year for JUST letting money sit in an Account!!!
Same thing... put the $100,000 back and do it again every year!
THATS $60,000 A YEAR FOR DOING NOTHING!!!!
It sounds to good to be true... I know I'll run into some problem with this and it won't really work out that well... But if it does "WATCH OUT ROAD, HERE I COME" I'll be backpacking for the next 20 years... lol
I want to see what some other people think about this, please leave your thoughts...
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01-09-2006, 03:49 PM
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#2
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Uh, good luck with that. I know nothing about that crap, but have at it!
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<span style=\'color:red\'>Matrin Luther King Jr
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01-09-2006, 03:54 PM
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#3
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To Smart For Mensa
Join Date: Jul 2004
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dude im pretty sure that's 5% a year....
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Adventure needs to be as much about discovering yourself as it is about discovering the world.
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01-09-2006, 03:54 PM
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#4
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dude first you have to save the $50,000...
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http://www.travelblog.org/Bloggers/Danieljh/ <--- pictures of from eastern europe trip
Where ive been: Cộng Hňa Xă Hội Chủ Nghĩa Việt , Preăh Réachéanachâkr Kâmpŭchea, Bundesrepublik Deutschland, Česká republika, Slovenská republika, Magyar Köztársaság, Republika Slovenija, Republika Hrvatska, Bosna i Hercegovina, Republika Srbija, Republika Balgariya, Türkiye Cumhuriyeti, România, Rzeczpospolita Polska, Lietuvos Respublika, Latvijas Republika, Eesti Vabariik, Republiken Finland
MY NAME IS
Daniel
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01-09-2006, 03:57 PM
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#5
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TPunk Emeritus
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Well, a CD with 5% interest compounded monthly would certainly be...too good to be true.
More likely, a 1 year CD might offer a 5% simple interest rate - which means that after 1 year you get 5% interest added. And if you withdraw your funds prior to the maturity date - you may even get penalized for it.
Sorry!
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01-09-2006, 04:05 PM
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#6
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5% a month! BAD ASS. Show me where. 5% a year is hard enough to manage, which give you about $200 per month, minus taxes.
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01-10-2006, 12:16 AM
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#7
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An Optimistic Realist.
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Yeah, boss that is 5% a year... so investing $50k would get you a little over $2500/yr. being that it would be compounded daily. To earn $30k a year with an investment return of 5% you would have to invest $600k. Although if you had that kind of cash, the least you could do is invest it in a REIT that offers at least 6.5% return with monthly payout. But that is a whole different story.
Anyways, the idea is fetched up the wrong tree. Sorry man.
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.~Sijuki~.
2009-2014: February - Mexico (Cancun x 3, Cozumel x 1, Mazatlan x 2
2014 : Europe: Norway, Denmark, Hungary, Czech Rep, Germany, France, England
2015 : US:Yellowstone, Grand Teton, Joshua Tree NP, Salton Sea, Grand Canyon, Petrified Forest, Mt. Rushmore. 20 states. Europe: Stockholm, Barcelona, Madrid, Prague, Krakow, Warsaw, Ireland (month driving around), Northern Ireland, Edinburgh.
2021: Europe?
Need a Railpass for that Trip to Europe?
Or Maybe a Hostel Reservation?
Frog Creek Brewing -- Upcoming Microbrewery
Sijuki@gmail.com
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01-10-2006, 05:45 AM
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#8
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TPunk Emeritus
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^ What are some good REITs - and what are their minimum buy-in prices and RORs? Are they just like mutual funds openly traded on the stock market?
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01-10-2006, 05:46 AM
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#9
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Hey.. you're kinda sounding like "how to become finacially indendent through real estate" books... I like them RETIRE AT 30!!!!
atleast that is kinda my plan... or become an archeolegist in the middle east (ok, I just watched something on Lawrence Arabia)
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01-16-2006, 08:48 PM
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#10
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TPunk Recognized
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Yea its 5% per year. You divide the number of days by 360 (not sure why, but thats it) and that much of 5% is the amount gained. If you start saving now, IRA, CD, 401k stuff, bank accounts could be monstrous when you are older.
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01-16-2006, 09:29 PM
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#11
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Sorry but I have to agree with everyone else, 5% a month is more than a lot of day traders make. I have 2 CD's and it's just like everyone else said, compouned over a year, you can only touch it once your CD matures otherwise you get a big chunk taken out. The good news is 5% is a decent return (I'm only getting 2.94) and average inflation is 3% a year, that means your money will be worth more at maturity, while mine roughly stays the same (vs someone who keeps their money under a mattress who actually loses money when you account for inflation).
Welcome to the financial world (remember reward favors risk, little risk, little reward)
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It's a dangerous business going out your front door. You step onto the road, and if you don't keep your feet there's no knowing where you might be swept off to...
Flags on the backpack: Greece, Italy, Switzerland, France, Monaco, Vatican City, Scotland, Denmark, Bahamas, Mexico, Guatemala, USA, Canada
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01-17-2006, 09:00 AM
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#12
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T-PUNK SPECIAL FORCES
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Working in the field.... Its 5% a year my friend, im sure you just saw that HSBC commercial and got all excited. Go for some ETF's or a diversified mutual fund package (much much lower risk). Remember, investing is for the long term, not short term, think 3-5 years.
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FABIO
"To be old and wise you must first be young and stupid"
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01-24-2006, 06:35 AM
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#13
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To the original poster who confused months and years, even with the magic of compounding, your $50,000 is going to double every 14.4 years.
Not exactly the holy grail.
Quote:
Sorry but I have to agree with everyone else, 5% a month is more than a lot of day traders make.
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Popular belief that something like 90%+ of traders make a loss. 5% a month would be incredible especially if liquidity didn't kill you as your positions got larger.
Quote:
(I'm only getting 2.94) and average inflation is 3% a year
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Why would you "invest" your money if you knew you were making a real loss on the "investment"? Top off your 3% inflation figure with the fact that the actual inflation figure is much higher than what the fed serve up to us as a result of their botched calcs that keep the politicians happy and you find yourself going backward real fast.
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Visit my travel blog! http://bvlblog.ath.cx (Well, there won't be much travelling to put on there until Feb, but you can use your imagination in the mean time)
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