Discussion in 'Economy' started by Toro, May 1, 2010.
The American Familys Financial Turmoil |
Americans are abysmally stupid when it comes to finances.
Maybe instead of teaching high school kids how to put condoms on bananas we should be teaching them finance.
Its not just Americans.
I was a stock broker in Canada shortly after I left university. I was shocked at how little people saved. I remember having a conversation with this couple in their mid-50s who had $9000 in the bank, and they wanted me to turn that into enough for them to retire on. Stunning.
Funny but is it only people who were in the finance business for a period in their lives that save?
My wife and i are compulsive savers and i see none of our friends saving. I hate when people ask me advice when they know I used to be a financial adviser. I no longer give any advice because it has actually created friction between some of my friends and me.
I've found that it's easier to ask a client or friend if his wife is good in bed than it is to have an honest dialogue about their finances.
Is the cup half full half empty or .....
Every time I dive into history I get the sense we have no clue how well we have it, and if we could just adjust things a bit we could all see the cup as at least a bit full. There should be universal law that everyone starts poor, appreciates the simple things, and then grows gradually into adulthood cognizant of real life.
Life has never been so good for our species - Los Angeles Times
"Given these facts, and many more quantitative measures, it would be perfectly sane to decline a trip in a time machine to any point in the past if you had to actually live out your life there. These are the good old days, and without neglecting problems that still need solving, it's high time we recognized that it is a better life for more people in more places more of the time."
Britain is pretty much the same. Most people in the UK are 2 months from financial disaster. In other words, if they lost their job, they could survive for only 2 months before they were seriously in the shit. Pathetic.
No savings, no retirement account, no this, no that..
Yet, the average American family seems to have 2-3 mortgages on ther house, has an ATV, big screen TVs, takes vacations every 6 months, throws parties, and has not a care in the world.
I think managing money is easy but investing is hard. If it were simply a matter of saving your money and earning decent interest, it wouldn't be so bad but you have to learn so much about what, where, when, why to invest and earn well from it.
I have savings and a 401k that I keep up with and always wanted to learn to better invest but never enough time.
Maybe that's an American problem, I don't know...
The no time excuse has never held water for me.
I bet if you really tried, you could find time to read a few books on investing or to even take a class.
Hell if you wanted to, you could look up Warren Buffets portfolio on line and just copy his choices
When people find out what I do, they sometimes ask for stock tips. I tell them "don't take tips from strangers."
I'm happy to give out financial advice. Its always the same. "Save more. Spend less."
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