Why do people fall for the trap of seeking to get the next nicest/biggest car/house/whatever instead of getting things that do the job and then making more money to save/invest so that losing a job/one bad investment doesn't kill them/put them on the back step?
I mean, I get it, it's nice to be rich, but isn't the needless pursuit of the appearance of wealth and opulance counterintuitive?
Because 90 percent of people are morons and don't understand that the fucking tortoise in the hare explains everything you need to know about personal finance. People would rather try to get rich from gambling than putting money away for the future because the latter is BORING and they don't want to show their friends am IRA, they want to show them a Ferrari. But basically, Yah, people are stupid
Why do people watch sports? Why do people own pets? Why do people eat nice tasting food? Why do people do anything but eat fuck and sleep?
Point is, people are mostly retards, and not everything has to make sense.
Btw Dave Ramsey is a fag who should be gassed because he doesn't live by his own advice. He got ultra-rich selling common sense to working class people, so he doesn't have to worry about budgeting and debt himself.
Its in the title, the 7 BABY steps.
Once you're a financial adult and check your own math most of this shit is ridiculous.
but most people are simply overgrown infants.
His audience is conservative and risk averse so this message works.
Also his pitches are fantastically well tailored and polished. Watch his videos a couple times from the different time periods and you'll have an excellent benchmark for a good info product.
they fell for the memes. turn on the jewtube and observe how every nog is bragging about their bling and expensive car. normies buy into it whole heartedly. and boomers lived their whole lives in easy prosperity so they never had to learn shit about personal finance.
It confuses me.
I know I'm not likely to ever be 'rich' (in the sense of being a millionaire, at least), but I'm pretty sure I'd be squirreling away money like hell as a rich person so that if shit ever went south, I'd be able to live comfortably for the rest of my life in some standard above 'slum'.
One of the downsides of a demand-based economy is that saving is implicitly discouraged by society. Compound this with the fact that people still want to live a life better than their parents without the actual ability to do so and readily-available and advertised debt and you're set up for disaster.
It's literally just the inability to step back and go "wait. Maybe I don't need to buy this giant house. Maybe the off-brand is just as good. Maybe I should save incrementally for a cruise next year instead of blowing my entire paycheck on it right now."
And yeah, it's a personal issue, but it's affecting the country at such a macro level that it needs an institutional solution. What that is, I'm not sure.
For sure. But when the debt the idiots are accruing and the government they elect is gathering starts to weigh the economy down, it turns into a problem. The government isn't quite there yet but it will be soon enough and the people have been there for a while now.
frugality can be a drain as well, but it really depends. Germany, for instance, is a very frugal nation but their economy is set up in a way that saving is encouraged. I really think an issue is this idea that the only option out there is the current form of American capitalism. I think it's pretty clear that we should keep the parts that work but be critical of the parts that don't. Everyone can't just keep borrowing infinitely.
Regardless, since (favorable) change likely won't come in my lifetime, I'll prepare myself to have enough money to survive my twilight years, whether I live into my fifties or seventies.
And that already puts you ahead of the majority of Americans who don't even start thinking about retirement until they're 50.
My grandparents fucking retired in their late 50s with 200k. I think they were told the 90s were going to last forever so they could live off the interest. Needless to say they have 2 years left before they have to sell their house and rent a cheap apartment.
Unfortunately, I've worked out that I'll need $1 mil to retire twenty years ahead of time (assuming I retire at fifty planning to live until seventy).
I plan on committing suicide (preferably in a way that can be classified as 'misadventure' or 'accident' so life insurance can be still be paid out) rather than becoming a burden to my family if my retirement money runs out, but I'm hoping it doesn't come to that. I might get lucky like my grandparents and be healthy well into my eighties (though dementia has been an issue in my family that I am worried about).
But that's a long time down the line. I'm only 25, and the plan would be to retire by sixty at the earliest unless something changes.
My dad worked hard his whole life, but he did one thing right aside from constantly learning new trades so he could work just about anywhere: save. Save like a motherfucker.
He kinda fucked up with not paying child support for my half-sister, but he saved far more money than he ever ended up owing for her.
I'm intending to put $500 monthly in and S&P fund for the foreseeable future. I'm graduating this spring so I'll be starting this hopefully in the summer. Given even modest returns, that should give me well over 1 mil by 65, though given the average returns it'll be about 2, and I'm sure I'll increase the monthly amount and what I invest in as i become more established.
It seems to me you just need to take a plan and follow through with it--especially when you're young.
Idk, even if I make 30k, I can swing the 500 given I live with a roommate and spend very in terms of discretionary spending.
I'm anticipating 40-50 though given my current prospects.
>just 1k for emergencies
>owning a house
only step 2 and 3 kinda make sense the other ones sound like tips the average baby boomer would give. Same people that watch mainstream media and think obama, bush, clinton, rubio are great
we are going to get into negative interest territory, like it or not. So its dumb to have that money sitting on the account. Unfortunately you have to take risks, do the research and do the work these days.
PS. if it has a kike name like "roth" in its account, you are getting scammed. That "retirement" money is what gets most used and abused with corruption. Just ask Kasich
>we are going to get into negative interest territory
A. A negative FFR doesn't mean banks start charging people to hold their money in savings accounts
B. The real interest rate for savings accounts has already been negative for the past decade at least. .1% growth - 2% interest = -1.9% growth.
The problem today is that having a normal life is too expensive for most. A 30 year old ranch home along most coasts (except the SE where hurricanes go to graze) is 300k at least, and the average person is graduating with 25k in debt on 5% interest. On the average salary they can stay at home with their parents and pay that off by 25, then spend 26 buying a used car, then spend 27 saving up an emergency fund, then spend 28-34 saving the down payment on a house plus closing costs and immediate repairs, then spend 35 saving for a ring and wedding, then spend 36-38 saving for the new expenses of kids, and then they finally have their finances in order and make their first real dollar around 40.
Luxury life used to be the expensive, overly ambitious dream. Now regular life is.
Except in reality most costs have only gone down. Housing isn't nearly as dire as you say when you account for inflation, and most goods and services are cheaper than ever.
The problems are education, which you mentioned, health care, and a few other things which have gone up in cost and gone up fast. Wages simply haven't had time to catch up.
Also, I don't buy your point about spending years saving one single thing at a time. That's poor budgeting.
I've got a sick car fetish. Always have, probably always will, got bit by the bug early. One thing that took me a little while to figure out but glad I did is the power of the two used car model. Basically I flip high quality 10 to 15 year old cars and hold two of them at a time. Right now I have a 2004 Pathfinder with the luxury package and a 2003 BMW X5, both ridiculously clean and religiously maintained. People think they're a lot newer than they are. The reason you want two is so that if one is in the shop for repairs, maintenance, or other improvements to its value, you still have one to drive. Also you keep the mileage down that way. I've found that the magic number for still holding value is to stay under 160,000 miles. Once it's getting close to that, it's time to flip it for something else. Best part is I haven't had a car payment in years and I get a new car every year, whichever one is closest to 160k goes away and I replace it with something with lower mileage. A neat benefit of this is that you always feel like you have a new ride because you actually do, you still get that feeling from an older car if you get a different one every two months.
I don't know if this is helpful to anyone else, but if there's anyone else out there like me, it's super easy to start. Just save up enough for 2 early 2000's Acura/Lexus/Infiniti etc with lower than avg mileage, then bring them back to life and take care of them as needed. All you need is like six grand to start. There's tons of good deals out there everyday.
no shit sherlock, dont know what are you trying to do with your 101 economics posts dumbass. My point is that savings is pointless with 0 to negative interests rate, sure they dont take money from your account, but that money is taken through inflation.
Real housing price for the US hasn't changed since 1980. Let's not pretend like inflation hasn't happened, m8.
Last year was one of the only times the US dollar was deflated. Why are you using Yellen talking about a negative FFR as evidence for deflation, anyway, when low FFRs are sharply correlated with inflation?
I don't even know how to speak down to you. You're saving savings is a bad thing, holding is a bad thing, and no shit that stocks are a bad thing.
Let me guess, all your money is in ethereum. Just finish what your mom started during conception and drink yourself to death.
40 grand a year when you already have your house presumably paid off and no children to support can support a pretty good middle-class life.
Don't forget inflation, sure. But don't forget social security, either.
Middle class? I mostly plan just to have a very modest house. I'd call it upper lower class or lower middle, because the regular 'middle class' life style requires a lot more money to support.