Johnathan J Ness

Teaching financial literacy to young and old. Follow me for daily doses of finlit knowledge, from basics to advanced. Let's build your future together.

[Johnathan J Ness @KnowMoneyYesMon]

Get a room(mate). A 1BR apartment in Houston is $1,300, w utilities/internet $1,550. You can rent a room in a house for $700, w those included. Invest that $850/mo difference from 18 to 25 at 10%. By 67, you'll have $1M, after taking out inflation and taxes. 1 change, 7 yrs, $1M.

[Johnathan J Ness @KnowMoneyYesMon]

@shaguncrypto Nope. I lived below my means for years. Have a family. Have the means to live for years without another dime while I grow my business, which is also my passion.

Financial literacy and discipline = freedom

[Johnathan J Ness @KnowMoneyYesMon]

The most important numbers in finance are:
1. Your savings rate (% saved of net paycheck)
2. Your growth rate
3. Your age

Start early, make sure your investments are likely to outpace inflation, and save aggressively. If you want to retire early, that's your roadmap.

[Johnathan J Ness @KnowMoneyYesMon]

Change your lifestyle -> change your life.

Works for getting in shape, improving relationships, money, career, etc.

You can't control what others do, only what you do. Change yourself and you change your future. If you don't change, you accept your present.

[Johnathan J Ness @KnowMoneyYesMon]

@BillDuffy_Jr @ChiSoxFanMike Massive overreaction. I question some of Venable's in-game calls, but nobody expected them to be where they are. It's largely because of the clubhouse culture Venable's created. I'm not getting rid of that over batting a slumping slugger too high.

[Johnathan J Ness @KnowMoneyYesMon]

@ChiSoxFanMike I wouldn't bump Mune that far. Feels more like a demotion than a reshuffling to take pressure off. Put him 5th. But before that, give him a day off, preferably for an unfavorable matchup. Agree on Antonacci and Peters at top. That should've happened a while ago.

[Johnathan J Ness @KnowMoneyYesMon]

@ChiSoxFanMike Mune needs a day or two off to just get out of his own head. I'm as sure as I can be (without being there) that he's putting in the work, but if you're in your own head, it doesn't matter.

[Johnathan J Ness @KnowMoneyYesMon]

@marco__reed You've forgotten a few details other than stock market timing: cost of selling a home, buying one eventually, two moves, and the fact that you'd have to rent a place in the meantime. Plus, most don't own their home outright. If they sold, they'd have $50k to invest, not $450k.

[Johnathan J Ness @KnowMoneyYesMon]

If you don't like your situation, stop doing the things that got you there.

If you don't change, nothing changes.

Identify and admit your faults, then work your butt off to fix them.

[Johnathan J Ness @KnowMoneyYesMon]

"Don't sweat the small stuff."
Problem is, that small stuff adds up. Little habits totaling $400/mo can add years to being in debt, which means years you aren't investing, which means years longer until retirement.
1 purchase of coffee doesn't matter. 365/yr do.

[Johnathan J Ness @KnowMoneyYesMon]

Bonds are (usually) safe. Banks are safe.

But safe investments = low returns

5% bond return - 3% inflation = 2% net. With the Rule of 72, that's 36 years to double your money.

10% stock return -> 7% net -> ~10 years to double your money.

Higher risk = higher potential reward.

[Johnathan J Ness @KnowMoneyYesMon]

@itsbullionaire_ If my wife and I had $1M and no mortgage or kids, we could retire off that. Invest in the S&P 500 and Nasdaq 100. Average ~11% returns, 8% net of inflation. That's $80K to live off of. And yeah, we could get by on half that. We're just frugal.

[Johnathan J Ness @KnowMoneyYesMon]

@SelfMadeMastery Tried being an author for a bit. I love writing, endure editing, and hate self-promotion.

Before you pick any career, think about the worst days on the job, not just the best ones.

[Johnathan J Ness @KnowMoneyYesMon]

Make a budget and stick to it. If you don't tell your money where to go, it'll go somewhere and not bother telling you.

[Johnathan J Ness @KnowMoneyYesMon]

@shaguncrypto Inflation. Rising interest rates killing your ability to sell the bonds.

Plus, why bonds when the S&P 500 and Nasdaq 100 have done much better? Put your money in ETF's, or at least split it.

Idea isn't to match expenses, but to beat by 3% of nest egg.

[Johnathan J Ness @KnowMoneyYesMon]

Money priorities:
Contribute to your employer's match on a 401(k)
Build an emergency fund of $500-1,000
Pay off high-interest debt (in order from highest interest to lowest)
Finish building emergency fund
Invest

In that order.
#FinancialLiteracy #FinLit

[Johnathan J Ness @KnowMoneyYesMon]

@souplady88 @ChiSoxFanMike Agreed. I feel they're going to burn out their pen before the playoffs. Having their supposed "innings-eater" Castillo unable to go more than 4 most of the time isn't helping, either.

[Johnathan J Ness @KnowMoneyYesMon]

@moroisatoru @ChiSoxFanMike I still don't view the Sox as true contenders, but yeah, in the postseason, anything is possible. They probably have to beat the Yankees, then Rays, then the NL winner. Not an easy run. ~3% chance sounds about right.

[Johnathan J Ness @KnowMoneyYesMon]

@scottmerkin Coming into the season, I thought their odds of making the playoffs were less than 2.8%. No matter how it ends, it's been an incredible season.