The Importance of Dumping Depreciating Assets
ฝัง
- เผยแพร่เมื่อ 21 ม.ค. 2022
- If you are aiming for FIRE, reducing expenses and increasing income is the main factor of hastening your goal. However, expenses come in many forms. One is the depreciating value of all the assets that you hold. This includes consumer electronic products, cars, and things you buy in general. The more that you hold, the larger the total drain from your net worth. Minimizing this can then allow you to accumulate wealth that much faster.
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So many great points in this video. Limit the number of things you have to touch on a daily basis. Less to take care of. Dump junk as quickly as possible that is depreciate and that you do not need. Buy more assets that will increase in value. Like signed CDs, rare legos, Pokemon cards, real estate etc. Spend more money on life experiences.
BTB, I like the new set. Looks cool and I feel like it's you. Good job.
:D
So used to seeing BTB in his living room. My mind kept wondering why there's a giant tool box in the living room. lol
I had an old Blu-Ray player that I bought new for about $200 many years ago. I recently sold it for $18 on eBay 😥
Practical Psychology brought me here. I just subscribed!
Good video! I prefer to buy things and use them until they die as a digital nomad. I never really cared about having the newest thing as it doesn't add any extra value to my mobile lifestyle. Using an item until it dies is getting the maximum value unless the features of the new product will really make one's life more convenient.
Welcome! Sounds like you have to be a minimalist due to the mobile lifestyle.
Smart advice thank you!
Awesome workshop
Something to think about for sure!
Well stated. Thx!
Keep it up and hope you get better soon!
Thanks will do!
I love the new set.
Brilliant!
This is why I'm subbed. This is so deep into savings thinking, it's insane lol
It's not worth me haggling with people on Craigslist or Facebook Marketplace wondering if they will show up or not. But maybe I will take a month and list a ton of old stuff on eBay and take it to the post office in a few trips.
I don’t know where you are but I do like this current backdrop 🤞🏾
This is the name of the game. Nothing like owning a good item, using it for a year then selling to then adding a few hundred to own the top tier thing.
once I switched to trying to save money; I have been selling items I don't use any more (and return things I shouldn't have bought!)
Returning is key I save hundreds by not throwing crap away that's no good!
Enjoyed your vid, thx !!!
Glad you enjoyed it
Nice background BTB!
The video triggered me to sell many items including my boat. Thank you
Makes sense. The less you own the lower your burn rate. A decent argument for minimalism.
BTB, so let's say for example (made up):
I got a S10 for 1000$
every year Samsung brings out a new version (so S11 etc.)
I buy 5 years later (or so) an S15.
Will it be worth to sell the initial S10? (because the worth left is like the scrape value you will get when giving it back to Samsung i.e.
It might be so worthless that it isn't worth the effort. But the low residual value represents the current market value. Sell it before its worth even less.
U mean s22 , there's no s15
@@ayman.ibrahim it was hypothetical
I have a lab at home were i do my electronic projects. Please give us a tour of your lab. I cleaned out my lab which I placed all cat-5 wire and misciluens wires which i made boundless. I stored hardware at warehouse which I might need it.. I do my best.. I also do security cameras which old cameras are obsolete, i still am holding on, why why. Need your help…..I also have old computer towers why do I hold to them. I use an ipad today….
Blue collar BTB?? The Craftsman flex
i buy used hi-end stuff to devastating effect:
I bought a used saddleback leather briefcase for $420 (retail $900).
Sold it 2 years later for $400.
Bought another one in a different color right away for $440.
Did this one more time. Kept the last one for 7 years now.
Priced it on ebay (not selling)...selling price: $450.
Overall, I've spent maybe $60 over 12 years and walk around with nearly a thousand dollars worth of high end briefcase for work.
No brand new Iphone or Samsung flagship smartphone here. I take into account what I need and for that kind of device, a Samsung A20 bought 3 years ago works fine and is still going strong. Not replacing it until it breaks or no longer works due to planned obsolescence. Just like most of my belongings. Maybe taking that attitude would benefit many with the mental gymnastics required to do more with less. Which means having less depreciating liabilities. The term assets, I reserve for things that grow or maintain its value. Just don't buy stuff you don't need and if you haven't used it in a year, maybe you don't need it.
I suppose need is a bit subjective. If you need the new functions of some phone AND you use it all the time then you could make an argument for the newer phones.
My iphone 7 plus is almost 5 years old and still working.👍
Funny u mention Lego. Outside of my index funds I’m really enjoying Lego investing. Not really crazy about how much space they take up tho, lol
This video really got me thinking - thanks for great content like this!
The LEGO investing market is somewhat cyclical … the past couple years were great for collectibles, but these growth rates will likely cool off as the world opens up more and as economic factors evolve.
Storage of Legos costs money too. It also may make moving harder.
@@BeatTheBush yes, proper storage (at proper humidity level), and storage cost in general (due to relatively large size of LEGO items) is a legit drawback ... which is why some of the OGs in the sphere stick to the smaller sized stuff that's rare -- but then it can become quite niche and low liquidity.
Trading cards, comparatively, are way less expensive to store & transport/ship (volume/weight-wise).
We kinda seen what happens when u do t have to work we just waste time and spend more money. It was basically a experiment when covid hit it was like ubi . People were making more money on unemployment around 4K vs working around 2k . The funny thing is people went into more debt
When I read depreciating assets I thought about my dropping etfs and bitcoin 😅 oh you did not mean that
Lmao same
Whose garage is this shot in :)
The only depreciative asset is your car and you NEED IT to live. Just pay it cash.
The consumer products you talk about here are not "assets." They are just electronic products.
Sure they are. Anything that has value.
The only depreciation assets I like to acquire these days are rental properties. Depreciation in IRS point of views => tax write offs!!!🤣
Hello BeatBush! Do you think 69k was this bitcoin top?
Maybe. Give it a few years to recover.
I have saved your channel since the last bullrun you were the only one that sold st the 2017 ATH 😊 thats why I ask you now do you believe in lenghtening cyckles?
What do you think of the remarks made by that Grantham guy? Reckon the crash is coming soon?
Interesting comment on Lego as well, I read an article saying that Lego is actually a good investment lol.
Hope you feel better soon too!
I would be paranoid that the Lego gets stolen or demaged by natural problems. Our lego was tripple packaged until we had enough paranoia to sell in 2020 with 20% win.
Everything I have is cheap and I use until its broken.
Owning some nice things is good too, just have to pick and choose.
Invest in Philippines stocks. USA and other developed countries stock market are in extreme bubble
Damn I thought this would be about the stock market, considering current market sell-off.
The biggest depreciating assets are those common expensive cars, and dogecoin
Lol, it could be! But they might appreciate later.
How’s your dogecoin bro ?
New tax law. $600. How does that work? Every time i get paid from work , I have to fill out a form. ???? Please let us know…. Thanks…
Yes. In addition, the government will require you to send a copy of the form to seven different federal agencies in a specific order, and two state ones. There is a 48 hour deadline (but don't worry, you can file it digitally). However each file must be accompanied by a digital fingerprint (all 10 fingers) that must be kept up to date every 3 weeks. If the deadline falls on a Thursday, you must file in reverse order, except on months that end with "y", where the paperwork must be submitted in person wearing a navy suit and a red tie to your nearest county clerk's office. If the amount earned is greater than $1,000, but less than $1,900, filings can only be submitted on Tuesdays, Wednesdays and Saturday after 2 p.m. unless there is a full moon out, in which case you must submit it five minutes before midnight. Each filing also requires a Covid anal swab, performed by a qualified physician, or a Starbucks barista. Your choice. The government doesn't want this process to be onerous.
I think you’re talking about contact work making over $600 where you have to fill out a W4
Humans as in so called friends are assets................... Thanks for the video.
Hope your health gets better.
Your laptops make (lots of) money - you are a youtuber, right?! So, it is a win-win, after all.
By the way, you should think about selling your next depreciating asset - your Tesla...
If you only knew how much I floor that thing and how much I love it.
@@BeatTheBush Depreciation is a silent killer... ;-)
Why not sell the toolbox behind you?!?
It’s not mine to sell.
@@BeatTheBush convince them to sell.
I shove it and forget about it, but I secretly tell myself I will sell it one day lol
People are so busy these days!
@@BeatTheBush beat the bush you seem like a nice guy, how come no girlfriend? Have you tried dating outside of the Korean community (it can be very insular). Maybe a fun living Filipina or something. I think if you move from California mainly Bay Area you will find a nice girl. You just seem like a really nice smart guy who would find a nice girl who would find your money saving endearing but would also help loosen you up a bit. Two brains better than one ☝️. Sometimes being around family can make it hard especially if you have sisters , they may not allow your relationship to grow or you may feel judged by family.
Mr Bush - please don't forget that we ourselves are depreciating assets even though we do all we can to try and forget this - one of the things we do is accumulate appreciating assets - it gives a false sense of immortality.
Very true. Limited time. Not just that, gradual degrading health too as you get older.
@@BeatTheBush Gradual degrading is the best outcome - the best.
Should I tell Mummy the truth?
I always bought used smartphone, my Pixel 3a XL is still going strong
Second
Second!
Thanks for being 2nd!
I thought you were talking about girlfriend at first : D
Does this work for girlfriends too? :D
First
Thanks for being first!
a.k.a. wives
Husbands
How to be efficient? Sell DOGE at $0,7 😉
Lol
Your examples are too easy like Apple products and it just contributes to hoarding. How about a set of unused clothes or unused computer parts. Theoretically you could sell on Facebook marketplace but really you should either donate it or put it straight to the garbage rather than wasting time selling new junk.
Sell your Tesla and buy a Toyota. Toyota's hold their value MUCH better and you will incur less depreciation while owning the vehicle.
You didnt do your research huh 😂
The Tesla not only held its value, it has increased the past two years. Toyotas don’t do that.
@@BeatTheBush I mean, the past two years have been during a global pandemic where essentially almost all used vehicles have increased in value due to the shortage of new ones. This is extremely rare and I'm interested to see if your statement holds up over the long term. Sorry if I offended anyone, I know people can be very passionate about their vehicles. Cheers!
You what? Tesla is the only appreciating mass production car. Not sure where you got this little incorrect fact.
@@Zaerki that’s factual incorrect. The other car manufacturers used cars have gone up due to chip shortages, that’s a simple supply chain issue that is transitory. Do some research don’t just make up facts. Teslas go up in value after being purchased new they have more demand than supply and it’s real demand not demand created by chip shortages.
It’s Econ 101
Fake News, there is no depreciating assets anymore. Inflation is 15% a year..... Just Kidding. Or am I?
Bro, you didn't say "MOO!" disliking.
maybe you should use airpods less? use less wifi?
I'm not too worried about low powered bluetooth RF energy.
@@BeatTheBush but we have been under 2G 3G 4G now 5G will be soon 6G - i dont like to have wifi on and i keep my cell airplane moded -- for sure people will get cancer as they are older money sucked away health problems -- i bought extra life insurance on my sister in case - everyday dangerous covid variants omicron and wireless == people need life insurance asset