Current Events > Rich white man says to only buy dumb shit with passive income.

(+) Yeah! (+)

https://www.youtube.com/watch?v=z5ycNDTRnmg" data-time="

Tldw; Use your earned income from your job to pay your bills and expenses, retirement, and investments. Use your passive income to buy dumb shit (expensive cars, watches, mansions, etc). If you're using your earned income to buy dumb shit, you'll be broke in no time.

Is it possible to learn this power?
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close your account, welch king
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live within your means. There guys, I saved you 8 minutes

I dont have "passive income"
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I don't know what passive income is

Like credit card rewards points?
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PatrickMahomes posted...

I don't know what passive income is

Like credit card rewards points?

Dividends from your stock portfolio + the rent from that tenement you own just outside of downtown
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Chicken posted...

I dont have "passive income"

If you're putting in money into your retirement or ira, thats a passive income. Its the slowest but easiest passive income to get.

PatrickMahomes posted...

I don't know what passive income is

Like credit card rewards points?

An automated job or tool that earns you money without working. That includes revenue from youtube videos, ebooks, rental properties, websites, etc. Initially they require a lot of work but after it becomes successful, you dont need to touch on them again and money starts coming in from ads or sales.

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.
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21WIVES_welch
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Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

I paid off all my debt, so I'll buy what I want, thanks

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sylverlolol posted...

21WIVES_welch

For anyone wanting to confirm:

https://gamefaqs.gamespot.com/boards/2000208-sports-and-racing-nba/77824222

TC has no fucking heart.
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21WIVES_CHILL posted...

Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

People in debt and struggling dont typically have passive income.
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Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

This.

Poor people who don't have passive income have every right to spend their paychecks on fun and entertainment. Just not all of it. All work and no play will drive a person insane. And nothing wrong with low income workers buying expensive cars if it will be used as transportation. Life is short. Saving money will only get you so far when your career choices are limited.
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neets dont understand
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Or you could forget the dumb shit and instead plow passive income into your investments to increase your passive income. Why waste money on dumb shit?
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1337toothbrush posted...

Or you could forget the dumb shit and instead plow passive income into your investments to increase your passive income. Why waste money on dumb shit?

Because people generally want to enjoy life and a lot of people like buying stuff. It's cool if it's not your thing, but it's not wrong to buy stuff sometimes if you can afford it.
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if I had enough "passive income" to buy mansions and expensive cars I would retire
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Live within your means and not the means of those you want to impress
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Master_Bass posted...

1337toothbrush posted...

Or you could forget the dumb shit and instead plow passive income into your investments to increase your passive income. Why waste money on dumb shit?

Because people generally want to enjoy life and a lot of people like buying stuff. It's cool if it's not your thing, but it's not wrong to buy stuff sometimes if you can afford it.

"Dumb shit" would imply something that at most gives you a fleeting moment of amusement. Hey, if a series of dumb purchases is how you enjoy life, go for it. Me, I'd rather free up time by retiring early and using that free time for pursuits that aren't so expensive but more satisfying. An attitude of tying money spent to enjoyment experienced is how one stays poor. Tying it only to passive income is somewhat of an improvement, but true financial freedom lies beyond that.
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Master_Bass posted...

1337toothbrush posted...

Or you could forget the dumb shit and instead plow passive income into your investments to increase your passive income. Why waste money on dumb shit?

Because people generally want to enjoy life and a lot of people like buying stuff. It's cool if it's not your thing, but it's not wrong to buy stuff sometimes if you can afford it.

Problem is most people cant afford the expensive shit. They have the money for a down payment for expensive shit and finance the rest off, but they dont have the money to actually buy the thing. My general rule of thumb is if you cant pay off the cost thats 2x or 3x of something you want, then you cant afford it.

Tbqh the only expensive thing you should finance is a home.

kirbymuncher posted...

if I had enough "passive income" to buy mansions and expensive cars I would retire

People on CE say you can retire with only a million dollars post tax.

You assume I make enough money for savings period.
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cuttin_in_farm posted...

21WIVES_CHILL posted...

Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

People in debt and struggling dont typically have passive income.

You can't build wealth if you have personal debt.

So first move, figure out how to get out of debt
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Solid Snake07 posted...

cuttin_in_farm posted...

21WIVES_CHILL posted...

Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

People in debt and struggling dont typically have passive income.

You can't build wealth if you have personal debt.

So first move, figure out how to get out of debt

Lol OK bud.
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pres_madagascar posted...

Solid Snake07 posted...

cuttin_in_farm posted...

21WIVES_CHILL posted...

Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

People in debt and struggling dont typically have passive income.

You can't build wealth if you have personal debt.

So first move, figure out how to get out of debt

Lol OK bud.

Laughing at basic financial common sense isnt going to get you out of debt
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Solid Snake07 posted...

pres_madagascar posted...

Solid Snake07 posted...

cuttin_in_farm posted...

21WIVES_CHILL posted...

Darmik posted...

It's good advice for people who are already rich.

If I ever somehow end up on a fortune of money I'd do that too but unfortunately I do not.

No, its a way to get out of debt and become wealthy. Reason most people are in debt is because theyre terrible with handling money.

People in debt and struggling dont typically have passive income.

You can't build wealth if you have personal debt.

So first move, figure out how to get out of debt

Lol OK bud.

Laughing at basic financial common sense isnt going to get you out of debt

No, I'm saying that's not going to happen any time soon for a gigantic chunk of American populace.
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RedWhiteBlue posted...

Passive income is dumb since by the time you're 60, old, not able bodied, too creepy to hang with people in their 20's and 30's, brain giving out, congrats you made 1 million fucking dollars that you have nothing to spend on but medical bills and doctor visits. It's one thing to be smart with your money, it's another to think you're being smart for letting it sit for 40 years making little interest, when you could learn a skill to make money faster, or just spend enough to have fun but not go broke, as well as not regretting how much you missed out on for hoarding your 100 dollars in a Roth Ira or some shit until retirement.

You don't have to wait until 60 to make a passive income. You mentioned not to "go broke" well a great way to do that is to have emergency savings. Let's say you have $50k in emergency savings, you can throw that in a high-interest savings account of about 2% and get an extra $1000 a year. If you're really that poor, that would go a long way. You don't have to wait until you're 60 to accumulate $50k in savings. There will be multiple economic downturns during your lifetime. If you don't have those emergency savings, look forward to being broke as fuck and probably heavily in debt, if not regularly than because of an economic downturn or other unforeseen emergency.

This doesn't mean eating rice, beans, ramen, and lentils and not having fun until you're 60. Having significant savings means not having to worry when losing your job. It means not having debt collectors constantly ringing you up. It means a sudden emergency doesn't wipe you out. It also means not having to desperately cling to your job like your life depended on it. This makes it so you can make career moves with a clear mind and perhaps advance more easily. All these things make it well worth it. Plus the lack of stress will go a long way towards keeping you healthier for more years.
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Shablagoo posted...

close your account, welch king

I read that as Welsh king
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1337toothbrush posted...

RedWhiteBlue posted...

Passive income is dumb since by the time you're 60, old, not able bodied, too creepy to hang with people in their 20's and 30's, brain giving out, congrats you made 1 million fucking dollars that you have nothing to spend on but medical bills and doctor visits. It's one thing to be smart with your money, it's another to think you're being smart for letting it sit for 40 years making little interest, when you could learn a skill to make money faster, or just spend enough to have fun but not go broke, as well as not regretting how much you missed out on for hoarding your 100 dollars in a Roth Ira or some shit until retirement.

You don't have to wait until 60 to make a passive income. You mentioned not to "go broke" well a great way to do that is to have emergency savings. Let's say you have $50k in emergency savings, you can throw that in a high-interest savings account of about 2% and get an extra $1000 a year. If you're really that poor, that would go a long way. You don't have to wait until you're 60 to accumulate $50k in savings. There will be multiple economic downturns during your lifetime. If you don't have those emergency savings, look forward to being broke as fuck and probably heavily in debt, if not regularly than because of an economic downturn or other unforeseen emergency.

This doesn't mean eating rice, beans, ramen, and lentils and not having fun until you're 60. Having significant savings means not having to worry when losing your job. It means not having debt collectors constantly ringing you up. It means a sudden emergency doesn't wipe you out. It also means not having to desperately cling to your job like your life depended on it. This makes it so you can make career moves with a clear mind and perhaps advance more easily. All these things make it well worth it. Plus the lack of stress will go a long way towards keeping you healthier for more years.

None of this is bad advice (well being able to have 50k in emergency funds means you're doing pretty okay) but even in that scenario that's not enough to live off passive income. You'd need to save a lot more.

On top of that people have mortgages to pay off if they own a home.
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Darmik posted...

1337toothbrush posted...

RedWhiteBlue posted...

Passive income is dumb since by the time you're 60, old, not able bodied, too creepy to hang with people in their 20's and 30's, brain giving out, congrats you made 1 million fucking dollars that you have nothing to spend on but medical bills and doctor visits. It's one thing to be smart with your money, it's another to think you're being smart for letting it sit for 40 years making little interest, when you could learn a skill to make money faster, or just spend enough to have fun but not go broke, as well as not regretting how much you missed out on for hoarding your 100 dollars in a Roth Ira or some shit until retirement.

You don't have to wait until 60 to make a passive income. You mentioned not to "go broke" well a great way to do that is to have emergency savings. Let's say you have $50k in emergency savings, you can throw that in a high-interest savings account of about 2% and get an extra $1000 a year. If you're really that poor, that would go a long way. You don't have to wait until you're 60 to accumulate $50k in savings. There will be multiple economic downturns during your lifetime. If you don't have those emergency savings, look forward to being broke as fuck and probably heavily in debt, if not regularly than because of an economic downturn or other unforeseen emergency.

This doesn't mean eating rice, beans, ramen, and lentils and not having fun until you're 60. Having significant savings means not having to worry when losing your job. It means not having debt collectors constantly ringing you up. It means a sudden emergency doesn't wipe you out. It also means not having to desperately cling to your job like your life depended on it. This makes it so you can make career moves with a clear mind and perhaps advance more easily. All these things make it well worth it. Plus the lack of stress will go a long way towards keeping you healthier for more years.

None of this is bad advice (well being able to have 50k in emergency funds means you're doing pretty okay) but even in that scenario that's not enough to live off passive income. You'd need to save a lot more.

On top of that people have mortgages to pay off if they own a home.

Passive income doesn't mean income you can live off of. However, it is a good idea to eventually make up a passive income you can live off of since that's what you'll be living off of in retirement.
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Chicken posted...

I dont have "passive income"

Then don't buy dumb shit.
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Rich guys tries to give advice to people he has nothing in common with.
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Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Following the advice of the rich won't make you rich, generally. Most of their advice requires you to have a great amount of capital (or at least a great income) in the first place.
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Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Rich white guy who cannot comprehend that poor people have no disposable income tells poor people how to spend their disposable income.
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Tupacrulez posted...

Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Rich white guy who cannot comprehend that poor people have no disposable income tells poor people how to spend their disposable income.

so poor people don't spend money on luxuries (i.e. what he's saying disposable income is good for)? the argument is the poor people shouldn't be buying these things because they can't afford to. instead they should work on building wealth, and then buy these things down the road with the passive income they develop (rather than spending what little they do have on things they can live without)

compounding passive income through reinvestment is probably a better idea tbqh

but it's a good point either way
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Fam_Fam posted...

Tupacrulez posted...

Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Rich white guy who cannot comprehend that poor people have no disposable income tells poor people how to spend their disposable income.

so poor people don't spend money on luxuries (i.e. what he's saying disposable income is good for)? the argument is the poor people shouldn't be buying these things because they can't afford to. instead they should work on building wealth, and then buy these things down the road with the passive income they develop (rather than spending what little they do have on things they can live without)

You still don't get it.

Your average person couldn't handle can extra 300 bucks being needed for something urgent that is unforeseeable.

This guy doesn't understand what that even is.
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1337toothbrush posted...

Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Following the advice of the rich won't make you rich, generally. Most of their advice requires you to have a great amount of capital (or at least a great income) in the first place.

It has to start somewhere. Actively rejecting or opposing advice from rich people guarantees that you will stay poor.

Annihilated posted...

It has to start somewhere. Actively rejecting or opposing advice from rich people guarantees that you will stay poor.

It's a matter of being realistic. A lot of the "advice" is just mockery telling people to do things like "stop buying avocado toast" in order to afford a house. Most Americans live paycheck to paycheck and a major part of that is that they just don't earn enough. People like to wag their fingers and laugh about "avocado toast" but after necessities, a lot of Americans don't have much left. Additionally, our economy is built on spending. It's stupid to promote an economy based on consumption and then scold people for consumption.

There's a major difference between saving up when earning $100k a year and earning $30k a year.
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1337toothbrush posted...

Annihilated posted...

It has to start somewhere. Actively rejecting or opposing advice from rich people guarantees that you will stay poor.

It's a matter of being realistic. A lot of the "advice" is just mockery telling people to do things like "stop buying avocado toast" in order to afford a house. Most Americans live paycheck to paycheck and a major part of that is that they just don't earn enough. People like to wag their fingers and laugh about "avocado toast" but after necessities, a lot of Americans don't have much left. Additionally, our economy is built on spending. It's stupid to promote an economy based on consumption and then scold people for consumption.

There's a major difference between saving up when earning $100k a year and earning $30k a year.

If you're at $30k you're not supposed to be saving for retirement or financial independence, you're supposed to be saving to advance in your career. Warren Buffett always says the best investment you can make is in yourself. It might be going to school or getting a license or certification or moving closer to a better job opportunity.

21WIVES_CHILL posted...

Chicken posted...

I dont have "passive income"

If you're putting in money into your retirement or ira, thats a passive income. Its the slowest but easiest passive income to get.

PatrickMahomes posted...

I don't know what passive income is

Like credit card rewards points?

An automated job or tool that earns you money without working. That includes revenue from youtube videos, ebooks, rental properties, websites, etc. Initially they require a lot of work but after it becomes successful, you dont need to touch on them again and money starts coming in from ads or sales.

I really hope my graphics reach that point some day. I'm starting to learn how to make fonts as well. I have one finished (using Fontstruct's website), one almost done (using Gimp and Inkscape), and another one on the way (just using Inkscape). I have ideas for a couple more using another website.
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1337toothbrush posted...

Passive income doesn't mean income you can live off of. However, it is a good idea to eventually make up a passive income you can live off of since that's what you'll be living off of in retirement.

Yeah sure but I don't think many people would be happy with an annual budget of $1k for 'dumb shit' either.
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People are not understanding the idea of this topic. You dont need to be rich or have a lot of money to get started in building wealth. Your first step is to assess your current situation. The guy is literally trying to help people not be broke which is sadly what most Americans are digging themselves into by buying new cars, new houses, maxing their credit cards, etc. with money they obviously dont fucking have. Instead they resort to financing these expensive things with high interest rates And they end up regretting those decisions. Wouldnt you?

Annihilated posted...

1337toothbrush posted...

Annihilated posted...

It has to start somewhere. Actively rejecting or opposing advice from rich people guarantees that you will stay poor.

It's a matter of being realistic. A lot of the "advice" is just mockery telling people to do things like "stop buying avocado toast" in order to afford a house. Most Americans live paycheck to paycheck and a major part of that is that they just don't earn enough. People like to wag their fingers and laugh about "avocado toast" but after necessities, a lot of Americans don't have much left. Additionally, our economy is built on spending. It's stupid to promote an economy based on consumption and then scold people for consumption.

There's a major difference between saving up when earning $100k a year and earning $30k a year.

If you're at $30k you're not supposed to be saving for retirement or financial independence, you're supposed to be saving to advance in your career. Warren Buffett always says the best investment you can make is in yourself. It might be going to school or getting a license or certification or moving closer to a better job opportunity.

That's the problem, employers are getting away with paying less and less. They cry and scream that unemployment is low because they "can't find people" at the bottom-of-the-barrel prices they would get away with and even still wage gains are barely budging.
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Tupacrulez posted...

Fam_Fam posted...

Tupacrulez posted...

Annihilated posted...

Tupacrulez posted...

Rich guys tries to give advice to people he has nothing in common with.

People who aren't rich and refuse to take rich guy's advice still wonder why they aren't rich.

Rich white guy who cannot comprehend that poor people have no disposable income tells poor people how to spend their disposable income.

so poor people don't spend money on luxuries (i.e. what he's saying disposable income is good for)? the argument is the poor people shouldn't be buying these things because they can't afford to. instead they should work on building wealth, and then buy these things down the road with the passive income they develop (rather than spending what little they do have on things they can live without)

You still don't get it.

Your average person couldn't handle can extra 300 bucks being needed for something urgent that is unforeseeable.

This guy doesn't understand what that even is.

not having emergency money has nothing to do with purchasing things you don't need.

in fact, if you didn't spend that money, you'd have more saved up in case of emergency. the argument is that one shouldn't spend their only money on things they don't need. save it up and invest in something, and then use that money (once you build it up) for the things you want.

it's delayed gratification. it's harder for poor people (i.e. takes longer and you'll have less), but it's what's more sound to do. But most people don't have the discipline for that. and so they stay poor longer than if they had better spending habits.

and yes, it's obviously 1000x easier to have the discipline when you have tons of money to invest, and pre-existing disposable income to have a lot of what you want.

Step 1
MAKE MORE MONEY
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