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What do you mean by "converting cash into social capital"? I can understand that you'd be prioritizing relationships, but how is cash entering this picture? In

What do you mean by "converting cash into social capital"? I can understand that you'd be prioritizing relationships, but how is cash entering this picture? Interested to hear more about this as I also have MS and share your concerns of having a time-limited career.

Mezzie 5y ago
It's kind of similar to building a traditional portfolio in that you want to diversify; basically the overall 'goal' is to make it so that in the future when I need help, there will be enough people around with good memories of me/who owe me favors that I will get through it. The way cash enters into this: - Find some very small local non-profits or charity organizations. Find out what their average donation is, and then give them double for the next X years. Bonus points if it's a non-profit or organization that does something you might need in the future. Often you'll get to know their leadership. This is by far the main one. - I'm upper-middle class but from a working-class background, so I help people with things like legal expenses, because a lot of people get screwed but can't do anything about it. Likewise, I might kick in for a deposit somewhere if somebody's living in unsafe conditions but can't move because they can't come up with an extra ~$700. This kind of thing you only do if the person's legit, obviously. - I buy things that I can lend to other people/make relationships over. Have a snowblower? Lend it to my neighbor. Same with tools. I try to make myself a good neighbor to have. (Not just with cash, but that's one asset I have). - Join spaces that put you in contact with others. Co-working spaces, maker spaces, etc. Take classes, get to know people. Bonus if the classes are something that will allow you to barter in the future if you're income-limited. Convert your cash into skills you can retain and barter with in the future. This stuff also increases your network radically, which can be helpful if you need to suddenly make a career switch, or drop down to part-time. This is easier to do in a small town or city, for obvious reasons. Standing out in NYC or SV probably isn't as possible on a software dev salary, but it is in plenty of smaller locales. I don't know how it's going to work, but obviously the standard advice is less applicable in our situation. This also allows you to easily shift how many assets/how much cash on hand you have, which can be key for affording financial assistance through a relapse, since so many programs will bleed you dry first and then be shocked you continue to need help.
- giantg2 5y ago
  "Find out what their average donation is, and then give them double for the next X years." Eh, I would think volunteering would be a better in. You build connections with the organization more than just being some number in their books. Save that money. If you're lucky it'll be a pay it forward moment, where they've seen you help others and are willing to help you. If not, you have the money to pay someone for help.
- horns4lyfe 5y ago
  Gotta be honest, aside from learning skills you can barter with, that sounds like a wildly speculative strategy.
  - krageon 5y ago
    > wildly speculative They're describing making friends. Granted, putting it next to a financial investment as some sort of equal is unconventional but it makes sense. It's not like having a wide social safety net is some sort of modern untested phenomenon.
    - horns4lyfe 5y ago
      Yes making friends is a great way to live, no doubt, and has a much bigger effect on happiness than money does. As a long-term financial strategy, it absolutely does not make sense. They’re talking about using their money to make friends, which will not go well.
  - Mezzie 5y ago
    It is. So is investing in the stock market when I can't choose when to pull out. Working for another year or two to wait out a bad marekt and planning when to retire and therefore when/how to shift my investments from riskier assets to more secure ones like bonds aren't an option. Given that the stock market is highly volatile (and I don't see that changing within the next 20 years), putting money in when I can't choose how and when to take it out is insanity. Plus a lot of assistance programs I'll need once I'm permanently disabled won't help me if I have assets. Saving up 200k is no good when I'm going to end having a relapse at 45 and spending it all on healthcare. (Versus spending it on things now which will continue to bear returns and then be eligible for help later). If I save money, odds are I won't actually get to use it. It will all go healthcare corporations/the government/care homes. I would greatly prefer something more stable (and this isn't my sole financial strategy - I specifically moved back somewhere with a very LCOL so I could buy and pay off a house in <10 yrs, for example, but that's less relevant); I'm a pretty risk-averse person. I mentioned it not because I think it's a good strategy for everyone, but because it's worth thinking of alternative systems in general. Currency is useful because it can be exchanged for other things; if currency is unobtainable for whatever reason, seek alternatives.

Mezzie 5y ago

It's kind of similar to building a traditional portfolio in that you want to diversify; basically the overall 'goal' is to make it so that in the future when I need help, there will be enough people around with good memories of me/who owe me favors that I will get through it. The way cash enters into this: - Find some very small local non-profits or charity organizations. Find out what their average donation is, and then give them double for the next X years. Bonus points if it's a non-profit or organization that does something you might need in the future. Often you'll get to know their leadership. This is by far the main one. - I'm upper-middle class but from a working-class background, so I help people with things like legal expenses, because a lot of people get screwed but can't do anything about it. Likewise, I might kick in for a deposit somewhere if somebody's living in unsafe conditions but can't move because they can't come up with an extra ~$700. This kind of thing you only do if the person's legit, obviously. - I buy things that I can lend to other people/make relationships over. Have a snowblower? Lend it to my neighbor. Same with tools. I try to make myself a good neighbor to have. (Not just with cash, but that's one asset I have). - Join spaces that put you in contact with others. Co-working spaces, maker spaces, etc. Take classes, get to know people. Bonus if the classes are something that will allow you to barter in the future if you're income-limited. Convert your cash into skills you can retain and barter with in the future. This stuff also increases your network radically, which can be helpful if you need to suddenly make a career switch, or drop down to part-time. This is easier to do in a small town or city, for obvious reasons. Standing out in NYC or SV probably isn't as possible on a software dev salary, but it is in plenty of smaller locales. I don't know how it's going to work, but obviously the standard advice is less applicable in our situation. This also allows you to easily shift how many assets/how much cash on hand you have, which can be key for affording financial assistance through a relapse, since so many programs will bleed you dry first and then be shocked you continue to need help.

giantg2 5y ago
"Find out what their average donation is, and then give them double for the next X years." Eh, I would think volunteering would be a better in. You build connections with the organization more than just being some number in their books. Save that money. If you're lucky it'll be a pay it forward moment, where they've seen you help others and are willing to help you. If not, you have the money to pay someone for help.
horns4lyfe 5y ago
Gotta be honest, aside from learning skills you can barter with, that sounds like a wildly speculative strategy.
- krageon 5y ago
  > wildly speculative They're describing making friends. Granted, putting it next to a financial investment as some sort of equal is unconventional but it makes sense. It's not like having a wide social safety net is some sort of modern untested phenomenon.
  - horns4lyfe 5y ago
    Yes making friends is a great way to live, no doubt, and has a much bigger effect on happiness than money does. As a long-term financial strategy, it absolutely does not make sense. They’re talking about using their money to make friends, which will not go well.
- Mezzie 5y ago
  It is. So is investing in the stock market when I can't choose when to pull out. Working for another year or two to wait out a bad marekt and planning when to retire and therefore when/how to shift my investments from riskier assets to more secure ones like bonds aren't an option. Given that the stock market is highly volatile (and I don't see that changing within the next 20 years), putting money in when I can't choose how and when to take it out is insanity. Plus a lot of assistance programs I'll need once I'm permanently disabled won't help me if I have assets. Saving up 200k is no good when I'm going to end having a relapse at 45 and spending it all on healthcare. (Versus spending it on things now which will continue to bear returns and then be eligible for help later). If I save money, odds are I won't actually get to use it. It will all go healthcare corporations/the government/care homes. I would greatly prefer something more stable (and this isn't my sole financial strategy - I specifically moved back somewhere with a very LCOL so I could buy and pay off a house in <10 yrs, for example, but that's less relevant); I'm a pretty risk-averse person. I mentioned it not because I think it's a good strategy for everyone, but because it's worth thinking of alternative systems in general. Currency is useful because it can be exchanged for other things; if currency is unobtainable for whatever reason, seek alternatives.