Financial choices and the prospect of achieving Financial independence

[Mubs]

Hello there. If you don’t know me, I’m Pokesartoolcay. I’m pretty much a 14-year-old second-generation immigrant whose been on smogon for about a year and a half, which I’ve never really thought about at face value, but I do appreciate the opportunities given to me by my parents. I want to utilize the stuff available to become financially independent.

Enough of “That David Copperfield kind of crap”, I came to cong for a reason, to discuss the prospect of making good financial choices and achieving financial freedom. Due to the lack of lower educative presence on that subject / I'd like to get into cong and this is a topic that interests me, I posted this here. Do remember that this is not professional help in any way, shape, or form.

First off, I'd like to hear all your thoughts on a 3-6 month emergency fund, which I personally believe in. I'd like to engage in fun and meaningful discussion, and as always, thank you for reading and have a nice day.

 

[GatoDelFuego]

First off, I'd like to hear all your thoughts on a 3-6 month emergency fund, which I personally believe in.

Uh.....you should have one. Case closed

 

[Myzozoa]

https://www.theguardian.com/money/s...o-to-pret-25-signs-reached-financial-maturity

"25. You have incredibly rich parents. I know that this is the third time I’ve mentioned this, but, well, it definitely seems to help."

 

[Stratos]

More importantly, what the hell is your username? Pokes ar tool cay? poke sartool cay? pokes art oo lc ay? what do any of these mean?

 

[Jerry the great]

More importantly, what the hell is your username? Pokes ar tool cay? poke sartool cay? pokes art oo lc ay? what do any of these mean?

Hey, at least it ain't something like "abajsndjsnsn" or something in that regard

 

[THE_IRON_...KENYAN?]

Watch this video

 

[Ohmachi]

Starting an emergency fund is an outstanding idea. However at your age there isn't much you can do to earn money. Also day trading on speculation is gambling I don't recommend it.

What your can invest in are practicle skills. To follow up THE_IRON_...KENYAN? *Learn how to cook. * This skill will save you so much money and you can use it to impress your friends. Do it.

 

[orch]

Having emergency fund is a nice idea to have immediate liquidity for whatever situation, but it does nothing for financial independence. In fact, holding a inflatory currency will only degrade your financial indepedence. Try to keep this small as possible. 10k-20k should be enough for most of situations.

Rest of wealth should be in deinflatory assets. Assets can vary from stocks to gold to luxury purses.

Generally, if you want to generate wealth, it's better to directly make something and sell it than to try to make money from markets. To be successful in markets, you need to get data first and apply it before everyone else with enough liquidity to impact markets.

 

[Thatsjustpeachy]

Not to discourage you from your quest but financial independence is not just making a few tweaks to your lifestyle in order to make it happen. Unless everything is handed to you on a silver platter (rich parents, inheritance, lottery), even the advantaged ones need to take risks and invest a lot of time (daytrading, starting a business, becoming a CEO) for true financial independence. What might be better is just making smart decisions so you can live comfortably. You might have to work for most of your life but you can travel where you want to travel, eat what you want to eat, and buy what you want to buy within reason.

If you have to take on debt for school, be frugal and mindful of how much debt you can take on. Maximize your 401k contributions and always get the company match. Create a budget so you can set some spending caps and track where your money is going. Don’t lend money to others. Oh and a decent career path will go a long way. This sounds like obvious information but we have a debt crisis and quite a few people with hardly any savings/liquid cash who figure it out too late.

Also for emergency funds, 10k is more than enough. Focus on taking care of any debt first though. Any additional funds above that I would just open a brokerage account and throw it in index funds. If you are well off enough to do that and still relatively young, that money will survive any recessions.

 

[McGrrr]

You're so young that at this point in your life the best things you can do are to prepare your future self:

* Get into good habits - e.g learn to cook
* Learn basic financial discipline - e.g budgeting, saving
* Avoid vices

 

[Diophantine]

Get good at maths or computer science or both. These are two very employable degrees. You'll be raking it in, there's no risk that you have to take, and these things are pretty fun to do anyway. If you're not good at these, get good. I have the belief that anyone can score highly in High School maths exams at least. If these aren't what takes your interest, don't worry. You don't have to do these for a degree - you just have to have a good understanding of them, and be able to show it in a job interview.
Learn skills outside of academics. I used to cook and sell curries to teachers at my school once a week by myself, and while that only got me enough to fund what I needed, someone I personally know did that and turned it into a full on catering business.
Don't fall for any "get rich quick" schemes. They are pretty much all scams.
Learn some basic politics, economics and finance, and get up to date with current affairs.

 

[faint]

Get good at maths or computer science or both. These are two very employable degrees. You'll be raking it in, there's no risk that you have to take, and these things are pretty fun to do anyway. If you're not good at these, get good. I'm have the belief that anyone can score highly in High School maths exams at least. If these aren't what takes your interest, don't worry. You don't have to do these for a degree - you just have to have a good understanding of them, and be able to show it in a job interview.

hard disagree. There's little to no reason to invest that much into compsci if you're not planning to get a degree in it or move to a related field. At that point he's guiding his career based solely on what pays well as opposed to what he may actually enjoy. Additionally, a sales person who puts python on their resume isn't going to be earning more than the sales person who doesn't know python. There's little to offer in the realm of "it's about teaching problem solving!" when you're suggesting he puts a large amount of time into this.

anyway, OP, I wouldn't be worrying about this kind of stuff at 14. This isn't one of those things that you can "get ahead of" in life. Until you have a job and a budget and all that other stuff, you can't really begin to think about financial freedom. Do what McGrr said.

 

[orch]

Hard disagree with faint. If you can spend there and there on the market now, rather than later then you will make dramatically more money due to compounded returns. Earlier, the better. This is something that you definitely can get ahead with.

This is true for any skills, if you have found your passion. Chase it and hold on with it.

 

[tcr]

what? faints post had nothing to do with investing but discouraging away from wasting time learning career specific skills like coding. Unless you’re going into a compsci field coding is pretty useless to put on a resume (beyond the standard “microsoft excel proficient”)

at 14 the kid should not be worrying about the far future as his actual career won’t start until hes doubled his age

 

[orch]

what? faints post had nothing to do with investing but discouraging away from wasting time learning career specific skills like coding. Unless you’re going into a compsci field coding is pretty useless to put on a resume (beyond the standard “microsoft excel proficient”)

at 14 the kid should not be worrying about the far future as his actual career won’t start until hes doubled his age

acquiring skills that you already know that you like will give you a massive advantage over your peers at older ages. speak for yourself, some people do know what they like at younger ages.

 

[Diophantine]

There's little to no reason to invest that much into compsci if you're not planning to get a degree in it or move to a related field.

discouraging away from wasting time learning career specific skills like coding. Unless you’re going into a compsci field coding is pretty useless to put on a resume (beyond the standard “microsoft excel proficient”)

Anyone in professional industries can tell you just how automated developed economies are becoming. Stock traders, and yes even people that work in sales in markets, (using this example because it's the one I know most about but can be applied to many technical professional industries without loss of generality) are being pressured to keep up their coding skills in fear of being less competitive. Some traders are even being replaced by literal robots. It's an increasingly important skill to have to the point where, in some industries, not having it reduces your chances of getting a job dramatically. At the very least, it opens a vast range of jobs to get in computer science in many different industries like marketing, music, etc.

At that point he's guiding his career based solely on what pays well as opposed to what he may actually enjoy.

He asked how to make money, so I told him a great way to make money.

There's little to offer in the realm of "it's about teaching problem solving!" when you're suggesting he puts a large amount of time into this.

From first hand experience, many of the typical "problem solving" questions asked at interviews are trivial in the face of someone who develops strong problem solving abilities through stretching themselves with difficult maths. Problem solving is a general skill and can be translated to pretty much any job. Take this from someone who has work experience in several different industries

at 14 the kid should not be worrying about the far future as his actual career won’t start until hes doubled his age

This is probably the worst piece of advice I've heard yet. You need to get your skills up (no matter what those are) while you have time as a teenager/child in order to become a) a more well rounded individual b) develop character like discipline etc c) become way more employable in the future.
So many people my age kick themselves because they're less impressive on the resume than their peers because they flaked out of doing things when they were younger.

 

[toshimelonhead]

OP would probably get a good kick out of Dave Ramsey's stuff. He's famous for getting people out of debt and one of his "baby steps" to financial peace is having a 3-6 month emergency fund. I would say the best investment at 14, though, is in self awareness. Exploring as many opportunities as possible will open yourself up to career opportunities 10 years from now that don't exist today. Use these next few years to find your interests and strengths to use them to your advantage when there's less financial pressure.

 

[faint]

Anyone in professional industries can tell you just how automated developed economies are becoming. Stock traders, and yes even people that work in sales in markets, (using this example because it's the one I know most about but can be applied to many technical professional industries without loss of generality) are being pressured to keep up their coding skills in fear of being less competitive. Some traders are even being replaced by literal robots. It's an increasingly important skill to have to the point where, in some industries, not having it reduces your chances of getting a job dramatically. At the very least, it opens a vast range of jobs to get in computer science in many different industries like marketing, music, etc.

while I'm aware the market is largely driven by AI this post comes off as tales from my ass. what stock trader is actively being pressured to learn a programming language? can you find me a job description that points to this? you seem to be conflating a stock trader as someone that is completely automating their portfolio when I can almost guarantee you that person is not a full-time trader. likewise, what marketing gig is looking for coding skills?

He asked how to make money, so I told him a great way to make money.

well, no. you can argue semantics but OP is asking how to obtain financial independence. that in and of itself does not mean the same thing as making money.

From first hand experience, many of the typical "problem solving" questions asked at interviews are trivial in the face of someone who develops strong problem solving abilities through stretching themselves with difficult maths. Problem solving is a general skill and can be translated to pretty much any job. Take this from someone who has work experience in several different industries

i'm not arguing problem solving is not an important skill. i'm saying the problem solving that one obtains from programming or taking advanced math classes is likely not worth the time unless you are consider going into one of those fields. you are going to learn problem solving skills from any subject you take the time to learn and from life itself. lastly, if i'm being blunt i can't imagine that you're much older than me so your final sentence in there just comes off as someone with an inflated ego.

This is probably the worst piece of advice I've heard yet. You need to get your skills up (no matter what those are) while you have time as a teenager/child in order to become a) a more well rounded individual b) develop character like discipline etc c) become way more employable in the future.

So many people my age kick themselves because they're less impressive on the resume than their peers because they flaked out of doing things when they were younger.

so this is where you completely lose me. the OP is 14. what you are encouraging is absolutely a double edged sword. OP can follow your advice and look back in 10 years and say "well, i kinda wish i spent more time being a teenager and forming relationships than being locked in my room programming all day." the behavior you describe is more often associated with people saying they wish they took their early 20's more seriously. his current priority should be to finish and make the most of high school. he alludes that he has fairly wealthy parents and therefore isn't in some situation where he literally cannot afford to enjoy his life. he very likely has college paid for him whether he knows that or not. he should be using this time to develop as a young adult and do what brings him enjoyment. literally NOBODY is saying they wished they began x at 14 because it would put them ahead of the curb because NOBODY knows what they want to do at that age. you are taking hindsight advice that you've heard from your peers and applying it to an actual kid which is ridiculously concerning.

Hard disagree with faint. If you can spend there and there on the market now, rather than later then you will make dramatically more money due to compounded returns. Earlier, the better. This is something that you definitely can get ahead with.

This is true for any skills, if you have found your passion. Chase it and hold on with it.

i never said investing early in life is a bad idea. however, OP is literally not even old enough to do half of what you're encouraging him to do. when he has his own money and can afford to put some money aside, yes, I would absolutely encourage him to open a roth or invest in a 401k early, but that's not what my post was about.

 

[Diophantine]

while I'm aware the market is largely driven by AI this post comes off as tales from my ass. what stock trader is actively being pressured to learn a programming language?

I was a trader and I was pressured to learn one...

likewise, what marketing gig is looking for coding skills?

Marketing companies, like many others, need data scientists. It's not just about writing articles or making adverts. Spotify, Apple, etc too all need them. They still get involved with the business's output and is a far more fun job than you'd imagine.

well, no. you can argue semantics but OP is asking how to obtain financial independence. that in and of itself does not mean the same thing as making money.

"Financial independence is the status of having enough income to pay one's living expenses for the rest of one's life without having to be employed or dependent on others." However, in order to make money without being employed, you need to raise capital. That's why I gave him a risk-free way to make a lot of money.

you are going to learn problem solving skills from any subject you take the time to learn and from life itself.

Ok, I understand.

lastly, if i'm being blunt i can't imagine that you're much older than me so your final sentence in there just comes off as someone with an inflated ego.

What does me having experience in several industries have to do with my ego? I started working as a model, then when I was a teenager I worked in the marketing team (and once with strategy) of an investment management firm writing up articles for different audiences. I spent time at a law firm, I've worked in trading for a while and I'm a teacher right now. So yes, despite my age, I got a lot done.

OP can follow your advice and look back in 10 years and say "well, i kinda wish i spent more time being a teenager and forming relationships than being locked in my room programming all day."

You're assuming that you can't do both, which is not true.

literally NOBODY is saying they wished they began x at 14 because it would put them ahead of the curb because NOBODY knows what they want to do at that age.

Which is why you should try things to broaden your horizon and gain insights to decide what you want to do later on.

you are taking hindsight advice that you've heard from your peers and applying it to an actual kid which is ridiculously concerning.

No, I'm talking about what's worked for me.

 

[MikeDawg]

I could be wrong, but I'm pretty sure OP is talking about independence from his parents. Not about making enough money to never work again.

 

[tcr]

I think obviously if you enjoy a specific activity then nurture it and potentially pursue it as a career. If he wants to get his toes wet and learn HTML or java or c++ or something then let him but I would most definitely not encourage him to seek out those skills arbitrarily as they are a huge timesink with little gain for a lot of career paths. When I said at 14 he shouldn't be too concerned about his future and financial security yet this is not bad advice. At 14 you should be making friends, developing social skills with peers and overall attempting to tackle those social milestones rather than worry about career and financial milestones. Re: he should focus first and foremost on developing a solid foundation of interpersonal skills he can laud during future job interviews. 75% of career stability in your future is networking, and you build networking by being a normal teenager, not overstressing about being financially independent in your early 20s (a task basically impossible unless you come from a really white collar family). He should most certainly not be holed up in his room learning to code in a variety of languages with no expected guarantee of a return on that investment. I never stated that he shouldn't "build character or discipline" or that he "shouldn't become a well-rounded individual," more that coding in particular is highly specific to job fields and is hardly just a "passing hobby" the same way sports or music is.

I can tell you right now in my field (social work) that knowing how to code something in Python is a beyond useless skill for anything except HR / tech help for companies, and that as someone who previously majored in computer science, the problem solving skills that are gained from learning computing languages is highly specific to the field and not easily generalized. As faint said you build your problem solving skills intrinsically by just living life, not through attending hackathons

idk what orch is on about with investing in stocks and shit. the op is a literal kid who probably hasn't gone through puberty, any major investment is an absolute mistake. keeping track of robinhood isn't going to magically make him money, more likely it'll lose him money

 

[Mubs]

Yeah I feel I should intervene at this point, though a few things are quite funny here, no offense. I actually made the thread to talk with other people about finances in general as I felt it wasn't a well talked about topic, and wanted to like have a thread of discussion I could go back to later on, and maybe introduce some of my topics, such as the fact that a ROTH IRA is better than a A 401(K) unless the employer matches your contributions due to your end product already going through the taxing phase, which I thought I clarified in saying this:

to discuss the prospect of making good financial choices and achieving financial freedom.

I guess it turned into an advice thread, which I'm fine with.

Get good at maths or computer science or both. These are two very employable degrees. You'll be raking it in, there's no risk that you have to take, and these things are pretty fun to do anyway. If you're not good at these, get good. I have the belief that anyone can score highly in High School maths exams at least. If these aren't what takes your interest, don't worry. You don't have to do these for a degree - you just have to have a good understanding of them, and be able to show it in a job interview.
Learn skills outside of academics. I used to cook and sell curries to teachers at my school once a week by myself, and while that only got me enough to fund what I needed, someone I personally know did that and turned it into a full on catering business.
Don't fall for any "get rich quick" schemes. They are pretty much all scams.
Learn some basic politics, economics and finance, and get up to date with current affairs.

I do all of these on a daily, though I'd like to work on my culinary skills. I'm very interested in both the math and CompSci fields, though I prefer computer science. I already got most of my credits already planned; I'm planning on taking AP Java, AP CS Principles, AP Calc, and AP C++ (depending on some factors) and I still have friends and develop social skills

As always, thanks for reading and have a nice day.

 

[MikeDawg]

Quick comment: "AP Computer Science" is the only AP computer science course. Are the others you mentioned dual-credit classes w/ a community college or something?