Ask Lemmy

(*) may not apply in elections where the Republican wants to start a profit-conflagarating civil war

And compare your expected expenses to your actual expenses. Those occasional small things here and there can add up.

This x100. I literally never worry about bills anymore.

Serious version. Probably mostly US-centric:

Credit cards are a tool. Just like any other tool, they can be useful or they can cause damage when improperly used. Educate yourself on how to wield a credit card effectively.

It's been 4 hours. What's supposed to happen?

To add to this, also research ETF and mutual fund fees! Sooooo many are more than willing to charge a "small" 1% fee that will cost you thousands of dollars or more. Others are bold and charge even more. Look for fees in the 0.01% - 0.03% range for your trusty index and targeted retirement funds. Some even have 0%, though those harder to come by.

Absolutely this, people paying cash and with debit cards end up just subsidizing points redemptions. Merchants aren't eating card fees (typically 1.5-3% of a purchase), they just baked it into prices.

With a stable income, watching what you spend, and auto-pay, carrying a card balance is super easy to avoid these days.

i don't know anyone who can keep their living expenses at 30%.. is this finance tips for well-off childless people?

And then don't do anything with it other then invest it some more

Don't buy anything unless you're u can pay for it in full cash, you don't need to use cash but it's a good way to be prepared

I treat my accounts like hit points in a game. The higher it is, the more health i have.

Every expense delays your retirement. If you need $60k per year to retire, and you buy a $60k car in your 30's, congratulations, you just delayed your retirement by over a year. Very few people think about that stuff in their 20's and 30's, but I promise that your 40's and 50's are just around the corner, and you'll be thinking about it a lot by then.

When I was younger, cars were unreliable pieces of shit. I'd never buy a car between four and eight years old, that's when they really started needing work. After that, most dodgy bits had been replaced and rust was the biggest killer.

Now, even cheap cars are astonishingly reliable, and will easily last 20 years if taken care of.

Manufacturers know this,and have spent the last decade convincing people they need to lease a brand new car every three years

They've convinced mugs that cars are a subscription service

You will have a hell of a time trying to finance a Happy Meal.

I don't know much about finance, but don't do this!

You sure about that? I have a friend who thought that too but found out 7 years later that only a bankruptcy will disappear after 7 years, not just idle delinquint accounts. He needed to actually file for bankrupcy to make it go away. This was in Usa, NY; maybe it's different other places.

As a second "data" point: I have some accounts on my credit report that have not been touched in a decade+ yet they are still there (they are not delinquent).

Credit cards are an excellent tool IF you are responsible with credit.

I almost created one but I do not have the time or temperment to moderate a community that will likely get very big

If we could get 3 or 4 other people to agree to mod, I'm game

I was mod of a large personal finance community on reddit. I know very little about non US personal finance though.

G'day all :) What are your money saving tips? Thought I'd share some of mine in case they're useful. But beware - I'm not qualified to give financial advice! Seek professional advice.

1 - Internet costs. If you get fair mobile reception, and have light to moderate Internet needs, you might find a 4G or 5G service will suffice. Belong has a data sim starting from $15 a month for 20 gigs. If you go over, it'll still work at 1.5Mbps which is slow but still usable if you're patient. On the other end, $70 for 400 gigs is hard to exceed. Aldi has similar offers but with data rollover, but at slightly higher rates than Belong. Depending on your usage patterns, it might be better value. 4G and 5G modems are quite expensive, but you can actually recycle many Telstra NBN smart modems by putting the sim card in them. They sell on ebay for about $50. The local towers have been upgraded but evening slow downs may still occur.

2 - Mobile Plans. Hard to beat Aldi for value in our area. $19 a month is probably all you need if you're not doing a lot of video watching. Most other bargain offerings from Boost, Amaysim have been discontinued. You might know of a better deal? As an aside, smart phones around $300 are now perfectly fine to use with the caveat of mediocre cameras.

3 - Electricity. If it's working, try energymadeeasy.gov.au to compare offers. At the moment Red seems to be one of the best value options but this can change. If you have solar but no battery, consider over-heating or over-cooling your home when the sun is shining. That way you're using your home as a sort-of battery. If you're not home much during sunlight hours, investing in solar might not be worth it at the moment. Upgrading to an induction stove and reverse cycle air-conditioning might be a better investment. Where possible use an air fryer instead of a big oven. An air fryer is just an oven with a stronger fan in it. You can also get a bench top induction hotplate for around $100. These can be great if you're used to cooking with gas, as they are faster and give better control compared to a standard hot plate.

4 - Home and Contents Insurance. Shopping around may be your only option to find good deals. Some insurers won't allow you to under-insure your home. Some, like Honey, will give you a significant discount if you install smart sensors that monitor doors, moisture, temperature.

5 - Car insurance. If you drive old bombs like me, you might only need third party property insurance. You need this in case you obliterate a Mercedes.

6 - Universal insurance. Perhaps my most controversial suggestion. If you have the discipline to do so, consider having savings reserved as an investment which can double as an insurance policy for random stuff like vet bills, breakdowns, etc. If you can't afford private health insurance, this might also cover surgery out of your own pocket. It perhaps sounds counter intuitive, but having savings as a universal insurance policy allows you to use it for whatever need comes up rather than having separate insurances for pet, contents, car, funeral etc. If you think of the money you're putting away as being an insurance premium - which is pretty much what insurance is anyway - it might be easier to understand. It's all a risk of course - a big enough hit could wipe you out so for those things you probably need actual insurance.

7 - Investing. This is largely a follow-on from the above - and you maybe shouldn't be taking advice from a guy who drives old bombs and who is not too far above the tax free threshold! Being diversified is probably wise. Cash under the mattress or in the safe is comforting, but because of inflation, it's effectively stolen from you over time. Things with limited supply such as gold, silver, certain older cars / collectibles may be a hedge against inflation but not guaranteed. Regarding metals, beware of fraudsters. Some cryptocurrencies (which are often speculative assets with an inherent limited supply) may be a good hedge against inflation, but the relative value compared to regular currencies is highly volatile. Stick to the larger Australian exchanges and remember the key phrase 'not your keys, not your crypto'. Also consider the tax reporting requirements. Services like Koinly will take care of that for you at minimal cost. For the a more conventional low risk option, my limited research suggests index funds are one of the safer investment options. Superannuation is probably also good to be aware of, but I'm not up on all the tricks for this other than avoiding having multiple funds. Government co contributions are also a thing. Your bank might have a high interest yielding deposit product that is simple to set up and still gives you easy access. Regional Australia Bank's S30 for example. If you're a home owner, you already have a massive head start at this time - although bubbles are still a risk and you can't exactly sell off bits to do the shopping! I have no experience with investment properties etc so can't speak to that. Likewise, I have no stock market experience.

8 - Cars. Generally, if you maintain your car it'll last a long time. Change the oil at least as often as the manufacturer suggests. Get the transmission serviced as per schedule. Don't trust a 'lifetime transmission' claim though. Lifetime = warranty period. On most cars, changing the oil yourself isn't too difficult and YouTube has guides for most cars. I can't really speak to the reliability and safety of modern cars vs older - that's a choice you'd need to look into yourself. YouTube is handy for this stuff. I'm a bit concerned that some cars are made with an intentionally limited life span. I'm NSW your rego fee is based on weight. A smaller car will cost you less to run and rego, but probably won't be as comfy. As an aside, driving at 80kph uses up to 20% less fuel than 100kph. If you don't have someone behind you and you aren't in a hurry, consider slowing down to save some money. Also, apps like PetrolSpy and NSW Fuelcheck may help you save a little on fuel - but consider your rewards schemes as well as this might change the equation. (bp rewards, flybuys etc.)

9 - Yourself. Keep a little bit active if you can. Use it or lose it is a good rule of thumb. (Although I might have already lost it!) I reckon as long as you get a bit of walking in, that's not a bad effort. A treddy in front of the tele is a good incentive for wet days. You probably should do more, like lifting and stuff, but meh. Try to eat some real food every day. (Fruit and veg.)

10 - Subscriptions. Lots of streaming services competing for your attention. However, all the tv catch up services are free, and so is YouTube. Some will sign up to a service, binge a show, then cancel that subscription. Podcasts are also generally free. A good VPN may allow you to watch the free TV stations from other countries. Useful particular if you've come from another country and miss 'home'.

11 - Vinnies and ADRA etc. Don't need to buy new? The local charity shops have a good range of clothing and occasionally furniture as well.

12 - Heating. Already covered under electricity, but here's some more. The most energy efficient heating is a reverse cycle air conditioner or split system, using under half the power for the same amount of heat compared to any type of electric heater. At temperatures below freezing some brands may struggle. Research before buying, and remember you can always supplement with another heater. All other electric heaters are rated in watts - a 1200w bar heater gives the same heat as a 1200w column heater or a 1200w fan heater. An expensive panel heater will be no warmer than an equivalent fan heater. The only caveat here is that a small bar or halogen heater placed strategically will heat what's in front of it rather than trying to heat the room - so you might be able to get away with just 400 watts under the desk and still be nice and warm while you're there. Gas and wood fires are nice, but unless you have your own supply they are probably the most expensive option. Electric blankets cost a pittance to run.

13 - Computers. Computers generally haven't improved much over the last ten years. If you have a computer that takes ages to wake up but is fast once it's been awake for a while, you might be able to greatly boost its speed by replacing one part only - costing typically $100 to $150 with installation. (An SSD). But if it's randomly turning off for no reason, it's time is probably up.

14 - Groceries Shopping by unit price may save you a lot. In other words, price per kg, price per sheet etc. Most stores have these prices displayed below the item's purchase price. For the local stores in particular, watch for specials. If travelling to Armidale etc, weigh up the fuel costs vs shopping locally. Some shops charge a fee to tap and pay vs insert / swipe / eftpos. You might need to experiment to see which is the cheapest at each store. Or use cash...

15 - Teeth You only need to floss the teeth you want to keep. Xylitol based chewing gums are also great at killing the bacteria that causes tooth rot. Unfortunately Kirk's no longer stocks any. Beware that Xylitol is toxic to dogs.

16 - TVs. Generally speaking, reduce the brightness in order to increase the life. It's usually heat that kills TVs. You can turn almost any TV into a smart TV by adding a ChromeCast for about $60. Also useful if your 'smart' TV isn't as smart as it should be. Side note: Many smart TVs use a technology to report what you're watching back to the manufacturer. If you don't like this, don't connect it to the internet.