2 ms·
Most people are astonishingly bad at savings and investments, and this includes some really smart people who fail to make a good recurring income out of windfal
by kamaal 12y ago
Most people are astonishingly bad at savings and investments, and this includes some really smart people who fail to make a good recurring income out of windfall scenarios.
I tend to see this as failure of humans in general to visualize large structures. There fore similar things like large timelines, growth scenario's, compounding. One would be surprised how common this is. People can think of probably a couple of years, but their understanding fails them when they have imagine of scenarios 2 or 3 decades from now. Some times its so bad, they even totally avoid thinking about it.
I know a lot of people who made a fortune in the 1990's when they were in their 20's, but are now back to where they were when they are in their 40's. And you don't have to even to win the start up lottery to do this. A good savings and investment strategy will get you there. But that very rarely happens.
Most people can at most simply maintain the status quo all their lives.
- jacquesm 12y agoI've never had a very large amount of cash at my disposal, up to now it was mostly 'cash flow' and I buried as much of it as I could in stones and land. Now that is changing and I'm back to school because I realize that managing any amount of money is a risky operation and it is too important for me to consider outsourcing the job to so called experts the majority of which appear to be at least as clueless as I am when asked some pointed questions. So so far the lack of capital has kept me from seeing just how deficient I am in this respect, I was so focused on achieving a certain goal that I lost sight of what to do once it was achieved. Luxury problems, that's for sure, but still, they are problems and I'm fairly determined not to go down the route you sketch. Thanks for the underlining and implicit warning.