The title is one of my favorite quotes from The West Wing...When I was talking to one of my friends today about my blog, she told me money really wasn't her thing. She didn't really care about finance or investing. Now, I know the average person doesn't have the time to spend everyday watching hours of CNBC or Bloomberg and looking at their finances and investments, but her general apathy is indicative of why so many Americans face huge money management issues and large debt in life. Data from the VIP Forum in Washington D.C. breaks down credit card debt in America.
-
Only 29% of households owe $1,000 or more on their cards.
-
21% owe $2,000 or more.
-
6% owe $8,000 or more.
-
4% owe $10,500 or more.
-
1% owe $21,400 or more.
If you want to be a successful investor, you only have to spend a few hours per week following general market news and researching your investments, more if you are invested in individual stocks. I hear my same friends who don't care about finance or investing talking about being rich one day. Working a normal job will not be enough money to make you rich. You have to invest to supplement your income and make you the additional money that is just impossible to make working because there are only so many hours in a day.
Almost all the wealthy people I've ever met were very disciplined savers. Most had the same things in common. They saved close to 20% of their income per year, even if that meant they had to live a very simple lifestyle early on, and they invested that money in a variety of asset classes such as stocks and real estate. You don't have to save that much if it doesn't suit the lifestyle you are trying to live, but you should make a conscientious decision about the lifestyle you are living and how they align with your future goals. The best thing about saving and investing is that it is completely flexible depending on what kind of lifestyle you want to live. You can't be indifferent about your money and hope everything just works out in the end. If you chose to save no money, its fine as long as you have thought it out and are aware of the consequences. Just look at the entry on August 11th, and you will realize just how much money a few years of not saving can cost you!
Make sure you think about your investment decisions.
Best,
Monte
