How much savings do you have?

[LongBombFromOutside50]

I think you're making a good case for equity financing over debt .

Nah, debt financing at the project level means a lower equity ticket. Also means debt holders can be paid later (provided they agree to a longer notional tenor and favourable debt service coverage ratios), so more distributions to equity holders can be made sooner which means a higher equity IRR. Not to mention the cost of debt will always be cheaper than the cost of equity.

But yeah you're right lenders have a low risk appetite so will ensure adequate hedging is in place to reduce cash flow volatility or will ensure a large (70%+) percentage of revenues are contracted with an investment grade offtaker in order to minimise the risk of the sponsor being unable to meet its debt payment obligations.

The issue I have with Bitcoin is it will be caught up in trade/ currency wars, taxation and crime

I think you're view is a little outdated here... Bitcoin hasn't really been used for crime since silk road was seized.

Bitcoin is by default governed by the US and China, as any transaction that used US and Chinese currency needs to comply with the US and Chinese laws. So if China or the US decide to lock up the founders, the top 100 bitcoin owners or system of Bitcoin, where is the market confidence in the platform?

You obviously don't understand bitcoin if you think that will happen (that's ok, not many people do). Let's just say good luck to them if they tried to do that.. They would need it.

No government is going to attempt to ban bitcoin right now. It's too small. It has a 700 billion dollar market cap, the bond market by comparison is a 40 trillion dollar market cap. Once it becomes a similar size to the bond market, then it will be relevant to them, but by then the genie will be well and truly out of the bottle. I would argue that it is out of the bottle now with the mass adoption and all the network effects. Also, governments have tried to ban gold in the past and how did that work for them?

 

[sabre_ac]

Nah, debt financing at the project level means a lower equity ticket. Also means debt holders can be paid later (provided they agree to a longer notional tenor and favourable debt service coverage ratios), so more distributions to equity holders can be made sooner which means a higher equity IRR. Not to mention the cost of debt will always be cheaper than the cost of equity.

But yeah you're right lenders have a low risk appetite so will ensure adequate hedging is in place to reduce cash flow volatility or will ensure a large (70%+) percentage of revenues are contracted with an investment grade offtaker in order to minimise the risk of the sponsor being unable to meet its debt payment obligations.

I can't argue with any of that, if I was a CEO in this environment, my preference would be debt financing over equity considering the lower interest rate environment.

My comment with Power Reid was specifically in relation to hedging which I'm generally against when it comes to revenue, I'd argue hedging should only be considered for costs.

 

[Billy ray]

So if i had $1000 i just found in an envelope under my bed and dont care if i lose it (as i never knew i had it), and have high risk appetite, what should i do?

 

[maryjames]

Don’t save. Unless you are investing.

Holding Money is pointless when you have big governments like the Biden’s in control and inflation going up 5% in a month..

 

[Deliverance]

So if i had $1000 i just found in an envelope under my bed and dont care if i lose it (as i never knew i had it), and have high risk appetite, what should i do?

Put it on the Hawks tonight. Jaeger is back and we are due.

 

[LongBombFromOutside50]

I can't argue with any of that, if I was a CEO in this environment, my preference would be debt financing over equity considering the lower interest rate environment.

My comment with Power Reid was specifically in relation to hedging which I'm generally against when it comes to revenue, I'd argue hedging should only be considered for costs.

Agreed, however it also depends on the risk appetite of the sponsor and the financier. Plus an important point is that unhedged or fully merchant revenues would require a much higher equity return, so it all really depends on a multitude of factors.


Sent from my iPhone using Tapatalk

 

[Deliverance]

So if i had $1000 i just found in an envelope under my bed and dont care if i lose it (as i never knew i had it), and have high risk appetite, what should i do?

Put it on the Hawks tonight. Jaeger is back and we are due.

 

[Seeds]

So if i had $1000 i just found in an envelope under my bed and dont care if i lose it (as i never knew i had it), and have high risk appetite, what should i do?

The 1000 dollars is no different to the 1000 dollars you earned from work. It doesn’t matter where it came from.

 

[owen87]

So if i had $1000 i just found in an envelope under my bed and dont care if i lose it (as i never knew i had it), and have high risk appetite, what should i do?

Bitcoin is on sale right now. Bargains.

 

[BuddysBiggestFan]

Best way to save money on a weekly basis without being able to touch it no matter what? Had 4 bank accounts with ING per the barefoot investor but find myself always transferring money between accounts. Any savings accounts like this apart form term deposits?

 

[Cruyff14]

Best way to save money on a weekly basis without being able to touch it no matter what? Had 4 bank accounts with ING per the barefoot investor but find myself always transferring money between accounts. Any savings accounts like this apart form term deposits?

Discipline.

 

[ash_1050]

Best way to save money on a weekly basis without being able to touch it no matter what? Had 4 bank accounts with ING per the barefoot investor but find myself always transferring money between accounts. Any savings accounts like this apart form term deposits?

Set up term deposits with 6 or 12 month durations. From memory the minimum is $1k and you're locking the cash away to prevent it being spent. Downside is you get very little to show for it at the end, but if you're lacking savings discipline it's an effective method.

 

[BuddysBiggestFan]

Set up term deposits with 6 or 12 month durations. From memory the minimum is $1k and you're locking the cash away to prevent it being spent. Downside is you get very little to show for it at the end, but if you're lacking savings discipline it's an effective method.

Yeah but you can’t add to these week to week?

 

[ash_1050]

Yeah but you can’t add to these week to week?

You cannot, but you can open up a new one each time you hit $1k in savings. If you're struggling to hit that $1k without dipping into it set up an account at a different bank and deliberately don't set up internet banking so you need to go into a branch each time you want to get the cash out.

 

[owen87]

Best way to save money on a weekly basis without being able to touch it no matter what? Had 4 bank accounts with ING per the barefoot investor but find myself always transferring money between accounts. Any savings accounts like this apart form term deposits?

Not quite as extreme as the other suggestion, but a bank account with a separate bank, and not carrying the card with you.

I don't mind his suggestions as a baseline, but you don't need to set the accounts up in exactly the way he says, adapt it to what works for you and your situation. If you need a dozen bank accounts with three different banks to get the best outcome for you, then so long as you're not paying fees, go for it.

Also as has been mentioned, discipline helps a lot.

 

[Deliverance]

Best way to save money on a weekly basis without being able to touch it no matter what? Had 4 bank accounts with ING per the barefoot investor but find myself always transferring money between accounts. Any savings accounts like this apart form term deposits?

Don't know all the details, but you could look at The Vault from Great Southern Bank.

 

[Scotland]

Each to their own but I hate the idea of having multiple accounts.

As above it is 100% discipline. Ongoing expenses vs regular income is one thing, but discretionary purchases are another.

 

[Deliverance]

Each to their own but I hate the idea of having multiple accounts.

As above it is 100% discipline. Ongoing expenses vs regular income is one thing, but discretionary purchases are another.

100% this. Discipline and a line of credit set me up in life.

 

[Scotland]

100% this. Discipline and a line of credit set me up in life.

I just don't spend more than I earn and prioritise important purchases. The same basic principle that worked when I was 16 earning $7/hr still works now.

 

[Deliverance]

I just don't spend more than I earn and prioritise important purchases. The same basic principle that worked when I was 16 earning $7/hr still works now.

“Annual income twenty pounds, annual expenditure nineteen nineteen and six , result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery”
Charles Dickens

 

[owen87]

Each to their own but I hate the idea of having multiple accounts.

As above it is 100% discipline. Ongoing expenses vs regular income is one thing, but discretionary purchases are another.

Multiple accounts can simplify things quite neatly, the more discipline one has, the less accounts they need.

But really, whatever works for the individual is the most important thing. If you aren't good with discipline, and need a dozen accounts to get the best outcome, do that.

 

[maryjames]

I find this insane. From 2019.

Be lot worse now I assume.

Millions of Aussies live in total financial despair — and it’s getting worse

Millions of Australians are forced to live pay to pay, with many unable to financially survive for more than a month if they suddenly lost their job.

www.news.com.au

 

[owen87]

I find this insane. From 2019.

Be lot worse now I assume.

Millions of Aussies live in total financial despair — and it’s getting worse

Millions of Australians are forced to live pay to pay, with many unable to financially survive for more than a month if they suddenly lost their job.

www.news.com.au

Doesn't surprise me in the slightest. The median wage is around $53,000. That's not a huge amount when cost of housing is what it is.

 

[FRUMPY]

Bitcoin is on sale right now. Bargains.

would be worth about $1500 today, almost two envelopes worth Billy ray

 

[Taylor Moss]

Exactly like the thread title says.
So how about it? Also how long did it take to save that much?
Also has it been hard to make the sacrifices? Any tips for a newbie saver?

Accessible $300,000

Really tied up hard to get: Maybe $1.2

Grafting for 30 years man. But enjoying life too. All about balance. Hope to spend it the last cent the day I die. As Shaq says “we ain’t rich. I’m rich”