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I don't think that's true at all. I think the main thing for young people to learn is that being frugal, avoding luxuries, is probably more important to financ
by hsitz 9y ago
I don't think that's true at all. I think the main thing for young people to learn is that being frugal, avoding luxuries, is probably more important to financial well being than earning a lot of money. Also that as your income rises you need to be aware of (and fight against) the natural urge to spend (and often waste) more money. Need to fight against the urge to "spend what you earn" and develop habit of saving money every paycheck.
Our society encourages outrageous consumption of unnecessary goods at ridiculous prices. It's not hard to live much more cheaply if you can get over (difficult) psychological hurdles of (1) disregarding marketing that we're bombarded with every day, and (2) getting out of the competition for social status. What's more, you will tend to lead a happier life if you can do this. A good book that I don't think was mentioned in the linked page is "Why Smart People Make Big Money Mistakes".
Also, my mind has been boggled by what people seem to take from even good books on finances. For example, _The Millionaire Next Door_ is a good book. But I have friends who have read it, claim to believe it and try to adopt some of its advice, but the life they lead is ridiculously extravagant, not at all consistent with the book. Self-awareness of bad psychological attitudes towards money is not always easy.
- matwood 9y ago> Also that as your income rises you need to be aware of (and fight against) the natural urge to spend (and often waste) more money. This is probably the most important thing to remember. For many years every time I received a raise, I just upped my savings/retirement by the same amount. My take home never changed, so it was easy to stay at the lifestyle I had become accustomed to. Perspective is also important. I did not have much growing up, so while what I have now is modest it is way more than I ever thought I would have. Another trick is to listen to old rap ;) In the 90s it was extravagant to have 50" TVs and game systems.
- nasredin 9y agoPlus now when you pager beeps people think you are a on-call doctor rather than a drug dealer.
- bradleyjg 9y ago> Self-awareness of bad psychological attitudes towards money is not always easy. How true! This comment shows that you'd awful at giving advice since you seem completely unable to introspect on your own preferences, see them as preferences, and understand that other people have other preferences that lead to different optimizations.
- eli_gottlieb 9y ago>I don't think that's true at all. I think the main thing for young people to learn is that being frugal, avoding luxuries, is probably more important to financial well being than earning a lot of money. Also that as your income rises you need to be aware of (and fight against) the natural urge to spend (and often waste) more money. Need to fight against the urge to "spend what you earn" and develop habit of saving money every paycheck. My being 28, sorry, but I wouldn't call this good advice. My dominant expense is and always has been rent. I can cut everything else to the bone, and it won't make half as much impact on my savings rate as finding a way to just live somewhere less obscenely expensive -- and yet having work for me to do.
- nojvek 9y agoI am super grateful to Microsoft. They moved me to Seattle + moving expenses and paid me enough so I could save to buy a house and applied for my green card. For someone from Kenya, I am very grateful for the life I lead.