I’ve lately started reading a bunch of personal finance blogs that are written by people under 30. Their blogs are linked together forming a nice community of people under 30 who watch and care about their personal finances.
I enjoy reading these blogs because it really reminds me of how I was when I got my first job and began working. My mindset was based on saving money, buying and paying off my home and investing in stocks and mutual funds. I remember I used to have an excel spreadsheet calculated that I would input my savings into every week. It would extrapolate what my networth would be when I turned 30, assuming a 10% return on my paper investments (I was 23) and I would continuing saving $1,000 a month (by living at home).
I don’t know why, but that just seems silly to me now. I think it’s because things change, shit happens and nothing ever goes as planned. Maybe I didn’t want to live with my parents at the age of 30, maybe I didn’t want to stay at the job or I’d get laid off 5 times and maybe the stock market would crash in 1999…
I know that in the personal finance world that there is a big difference in the mindset between investors and savers. I know that my mindset has changed to an investor. Many of my friends are still savers. Here is a link to one of the blogs I read. You can find many others from her blog links.
While I don’t think that saving is bad, I just think that there are better ways to get to your financial goals. And with all the members on these blogs being under 30, they have time to take a risk or make a mistake. Time is on their side.
As an example, I sent an email out last night to some contacts because I had some cash I was thinking of investing as a hard money lender. Here are some responses that I got:
- 10% on a 1st’s for SFH
- 12% on a 1st on commercial bldg
- 12% and 2 pts (14%) on apartment complex
- 10% on a 2nd for 6 months
That is double the going rate at ING, HBSC or Emmigrant. Yes, there is more risk but life is about risk and rewards.