Personal finance thread

[NASSIR]

I agree, we need this type of thread. IA, if brother Libax Sankatabte opens this thread for us, I will indeed contribute.

[Baashi]

Wildy is back. Awoowe now you know.

 

Admin take a note there are enough of Ali beysteen -- not sure what that means but since Wildy thought that characterization is worthy of my cyber character I'm positive it is a good thing -- members wanting a room to count their cents.

[Pujah]

LG 3-5% APR on few dollars is not going to make you rich it will only take the baraka out of your money since that will be mixed up with your hard halal earned money. The way to financial freedom is investments in the stock market, having your own business or real state. Obviously you have to do your research to make sure who ever you invest in is not involved in unholy activities.

[-Serenity-]

Do you guys get the feeling the more you earn, the more you HAVE TO spend?

 

I remember a time when I used to save £500 a month of a £1,200pm. And live contentedly.

 

But now...

[Baashi]

How about saving lil here and there first. Investing 30% of that lil saving in biz with respectable profit margin let say in Africa or in UEA -- Somali run biz that is.

 

The profit margin of the biz in East Africa for instance is 30 to 40%. Can't beat that. Hold your horses if you wanna say something about risky. Friends risk is the name of the game. No pain no gain soo ma ahayn.

 

Wax ha la tabco akhyaarta that's one of the ways of getting somewhere in life.

 

Ambition, fire in the belly, something other than womanizing, overdressing, partying, pulling all nighter in khat session!

 

Kujecli,

Ur Awoowe.

[-Serenity-]

What should one do - pay off debts first and save or do it simultaneously by dividing the money into repayments and savings?

[Pujah]

^ First build your emergency fund then start aggressively paying all your debts starting with the highest APR. I would start thinking about investments and such once you have no credit card debt. Mortgage and student loans are ok as they don't cost you as much.

[Baashi]

If I may Qallanjo pay the debt first. Save monies to fall back on -- not for profit -- in the unlikely event you lose your current job. For instance three month rent, three month insurance, mobile bill monthly payment about four month to keep up with interview and what not during job hunt.

 

Pay them up as soon as possible for they are charging you all sorts of fees and interests and you will probably end up paying the interests before you got to the principal. Pay them dhuubo.

[Pujah]

Originally posted by -Serenity-:

Do you guys get the feeling the more you earn, the more you HAVE TO spend?

 

I remember a time when I used to save £500 a month of a £1,200pm. And live contentedly.

 

But now...

Of course, your taste always matches your income.

[-Serenity-]

You're right awoowe except I've an interest free overdraft that I always end up treating like its my own money. It feels like an extension of my own money.. Its the worst kind of debt and the easiest to get back into.

[-Serenity-]

deleted.

[LayZie G.]

LG 3-5% APR on few dollars is not going to make you rich it will only take the baraka out of your money since that will be mixed up with your hard halal earned money. The way to financial freedom is investments in the stock market, having your own business or real state. Obviously you have to do your research to make sure who ever you invest in is not involved in unholy activities.

Pujah, sweetie, First take the halal out of the equation.

 

Secondly, the average reader or investor has to start somewhere, ING direct is an example and having measley 3%apr on a few dollars is better than paying your local bank a fee so they can keep your hard earned dollar in their banks. You need to look for businesses that will pay you to keep your money.

 

There are other options out there, ways you can earn a bigger cut, such as locking a large sum of dollars for a certain period of time, the higher the rate for that amount would be at the end of the term, either way, its a win win situation for the investor.

 

You can't just advise any farah and xalimo to invest in stock market. Not everyone here is a risk taker, so give them all the information that you know thats out there, and let them make the decision. Steer them in the right direction, thats all.

 

Another thing is, look for unionized banks, stay away from the big players in the market. If you must bank with an established bank, know your options, find out what the competitors are offering you. Remember, they need you just as much as you need them.

[Nephissa]

I'm bad at saving money! Lacag meel ii taalo oo aan ogahay maba fadhin karo. Can't keep 5 bucks in my pocket. I live in the day and let tomorrow take care of itself. Hadaan beri ka dhinto ka waran from decades of saving? Illaahoow waxan haysto aanan cunaha is qaban. Beri Illaaaha loo qabaa. The best of both worlds just isn't an option for some.

[Pujah]

Pujah, sweetie, First take the halal out of the equation.

Whether it's halal or not is the first thing I look at when it comes to money making schemes. And like I said before you have a lot more option to build wealth than investing in CD or ING savings earning minimal amount while they get much bigger return using your money.

[ElPunto]

^Pujah, you sound esperto - tell us where to put our money.

 

Personally I think this is the biggest problem Somalis and other Muslims have. Somalis generally don't spend and consume at western levels but moneys saved tend not to be invested simply because the options are so limited.

 

Baashi - can you guarantee me the 30% margin in East Africa and I will give you 5%? Honestly the number of swindles perpetrated is too many to count. And family is among the worst.