biophase
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This past year I’ve started playing pickleball and have met all new people of various age groups. I’m making this post because I’m somewhat amazed at how little younger people understand money and finances. I’m talking about 30-40 year olds.
As an example I met this guy who makes a decent $50k salary. He’s pretty frugal and tries to save money for the future.
Anyway we got to chatting and he showed me his 401k which is managed by another company. Surprisingly they stuck him in 60% stock and 40% bonds and he’s 35. He’s been averaging under 10% returns these last 4 years! I convinced him to go 100% sp500 index.
He also has his savings in a .5% savings account! I convinced him to switch banks into a 4.5% interest bearing account!
I just increased his annual income by 10%. I told him that he’s always trying to save money by being cheap and he’s leaving thousands of dollars of free money on the table.
One person only uses a debit card and gets no benefits of 2% cash back or any miles.
So now I have other people in the group asking me about money, finances and investing. I’m kind of shocked at the types of questions though. They are very basic. For example I’ll ask them, what’s your car insurance deductible? Or do you need that much coverage?
Making money is only the first level. It’s what you do with it that determines where you will be financially in 10-15 years.
As an example I met this guy who makes a decent $50k salary. He’s pretty frugal and tries to save money for the future.
Anyway we got to chatting and he showed me his 401k which is managed by another company. Surprisingly they stuck him in 60% stock and 40% bonds and he’s 35. He’s been averaging under 10% returns these last 4 years! I convinced him to go 100% sp500 index.
He also has his savings in a .5% savings account! I convinced him to switch banks into a 4.5% interest bearing account!
I just increased his annual income by 10%. I told him that he’s always trying to save money by being cheap and he’s leaving thousands of dollars of free money on the table.
One person only uses a debit card and gets no benefits of 2% cash back or any miles.
So now I have other people in the group asking me about money, finances and investing. I’m kind of shocked at the types of questions though. They are very basic. For example I’ll ask them, what’s your car insurance deductible? Or do you need that much coverage?
Making money is only the first level. It’s what you do with it that determines where you will be financially in 10-15 years.
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