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Moving out...first time on my own

Discussion in 'BlackHat Lounge' started by cashcorp, Apr 11, 2008.

  1. cashcorp

    cashcorp Jr. VIP Jr. VIP

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    Im moving out in roughly 2 months, and Im rather nervous. I have killer credit (Im on a payroll for my stepdads company. It shows up as him giving all kinds of payday advances and me paying him back, as well as artificially inflating my income. I cant get into the details here, but it doesnt hurt me (very badly) in the tax department.)

    So here I am, a 19 year old with the credit of someone with an income close to $500k a year. In reality Im only pulling in around 75k right now, which is wayyyy more than I need to live on my own. But none the less, its something Im nervous about. Working for yourself has an insane amount of benefits (for example the amount of money I make) but is also slightly less secure than working a traditional job.

    Any advice guys?
    Anything would be great, furniture, moving, utilities, taxes
    just any screwups you guys experienced that you could help guide me away from!
     
  2. blanko

    blanko BANNED BANNED

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    I'm 21 now, but I moved out with I was 19. I was in the same boat you were. I had banked around $200k online when I moved out. I got an apartment, lived there for 2 years, now I'm in a house. I would say the best thing for you to do is get an apartment. There's no need to be nervous. The freedom is great when you live on your own. Just make sure you hang out with your friends alot, or you could get lonely.
     
  3. Maxell

    Maxell Regular Member

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    my advice will be, NOT always share this info with EVEN your CLOSEST friends, money is EVIL you know, just stay calm and invest this in something solid, like buying apartment, land or anything.. go our with your friends and live a normal life :) dont act like a hero, it will save you headaches..

    .00001 cent..
     
  4. loclhero

    loclhero Supreme Member

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    Take it from someone in his 50's:

    1 - Never assume anything. That includes your 75k income. I'm sure you're smart enough to always do well but if it's internet income it's always iffy.

    2 - Save a minimum of 40% of your earnings to pay your taxes and be sure and file your quarterly self employment tax. I'm assuming you already know and do this.

    3 - I'm not sure who told you what or quite what you're getting at but your income has nothing to do with your credit. ZERO. There are other factors. I know people that have a FICO score in the high 700's that make 30k a year and I know people that make over 250k a year who couldn't even get a car loan because their credit sucks. You might have stellar credit but until you get your FICO you have no way of knowing. Also, at 19 I would find it unusual for you to really have any credit, good or bad.

    4 - STAY AWAY FROM CREDIT CARD DEBT. It's a fools game and one of the biggest legal scams this country has to offer (this country being the US).

    5 - Enjoy life but keep partying to normal levels. Don't blow your wad on stupid shit.

    6 - After you set aside your tax money every month, set aside another 15% of your net in some kind of savings account or Roth IRA so that you can start a fund for a down payment on a house at some point.

    I could go on forever but won't. Just play it smart.
     
    Last edited: Apr 11, 2008
  5. cashcorp

    cashcorp Jr. VIP Jr. VIP

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  6. Oakley

    Oakley Regular Member

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    cashcorp, 19 eh, no wonder we had a little spat, your just a baby.

    A grass hopper with money, oh to be so lucky.

    hey no harm, no foul, no grudges on my part.

    If I was 19 and I'm 46 I would say get yourself a financial adviser, I'm sure your step dad can help you on that, tell your adviser you want to be financial comfortable by what ever age you want to be comfortable and let them crunch the numbers.

    Then live your life how you want after you pay that monthly retirement fund.

    I did it all right minus that retirement speaking for myself, this is not going to be an easy feat to accomplish but I wish you the best if you choose to do it..
     
  7. dabandit

    dabandit Junior Member

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    Good advice from loclhero.

    Those payday advances are similar to a "signature" loan at a credit union (as long as it was reported to the credit bureaus). If so, and there is no negative items on your credit, your FICO should be out of the ballpark. I took out 4 $500 "signature" loans and 1 $2500 loan and paid it back in less than a year by the time I was 19.

    That was one of the ways that lead to me buying my first car. I financed my purchase selling name brand cigs and chewing tobacco on my ship when I was in the Navy (mom shipped 2 cartons of the major name brands every two weeks). The look on my dad's face when the loan officer told him that I didn't require a co-signer was priceless (I already knew I wouldn't need him).

    What to do with your earnings? Five words for you: Foreclosed homes. Auctions. Rural areas. Most experienced guys at auctions won't bid more than 1/5 of the tax value. A couple grand to your JOATs* to get everything presentable and you'll make your investment back on most deals within 5 years. After that, residual income into perpetuity with renters.

    * = Jack Of All Trades
     
  8. Essential Clix

    Essential Clix Executive VIP Premium Member

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    When I first moved out I was making $7.50 at a hotel and ate more Ramen noodles than any human being should ever consume. You'll be fine. If all else fails, the Army/Navy is always hiring =)
     
  9. ukescuba

    ukescuba Senior Member

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    bricks and mortar... especially now with all the houses going on sale, i was looking at some house that where sold last month and people where dropping 50 to 100k on the original price just to sell....

    if you can afford it the houses will eventually go back up... wish i had done that in the UK - 15 years ago when i had the opportunity but decided to go working around europe instead!! LOL no regrets though you live and learn...
     
  10. GoldenTiger

    GoldenTiger Junior Member

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    As you're making 75k a year, I doubt you would have any serious problems moving out. Heck, I moved out when I was 17, making around $13/hour as a telemarketer and never had much problems (financial or otherwise).
    A bit of advice I can give you, is not to go overboard with spending, which is especially true with young people. I know many people that make around 1/3 of what you do, yet they waste money buying expensive electronics, $400 jeans, have 3 cellphones, go partying ever night, etc... And then when the bills come... they are the same ones that say "Whoops.... I have no money.... can I borrow $300 my friend? Please??"
    I agree 100% that earning income online, especially BH methods, is not the most stable kind of business. Thats why even when I reach my goal to make an extra 2 or 3k a month online (hopefully soon!), I still plan to keep my "regular" job, although probably part-time.
    Just make sure you have enough savings (if youre making 75k, and dont have kids or a family to support, this shouldnt be much of a problem anyways) so that you can keep your head above water if the income from BH methods suffers a temporary setback.
    Pretty much the best advice I can give you, is again not to overspend... I'm not saying to live like you are on welfare, just Dont rent an apartment for 3k/month, drive a Mercedes S-Class & go out wearing 10 gold chains like you are in some rap music video. Not only will doing this attract unnecessary attention to you, but you will quickly end up in trouble if the BH business drops for a while.
     
  11. GoldenTiger

    GoldenTiger Junior Member

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    Very true... If you make a lot of money, you might have a lot of people around you... but for the wrong reasons.