Buying for the Moment
It's what happens when people choose to buy things now for instant gratification than be concerned about the long term impact of those financial decisions in their future. Why save or invest now when inflation, taxes, debt, and wages that couldn't keep darkens your future?
It didn't make sense to me at first because I have a habit of living below my means and just think of the future implications with each item spent. But for people that have less regard for their future self, buying into the experience now is "life changing". Imagining better living circumstances for themselves in this economy is hard.
The inconvenient truth about passive income is how much money you have to front load before you can start living comfortably over passive income stream. It's like spending your 20 million to earn 50,000 monthly passively. But no one from the poverty line or middle class has that money so this advice tends to be a pipe dream.
People eventually adapt their wants and choose the low hanging fruit options to get some control and semblance to the luxury they deserved by opting for liabilities disguised as assets. Instead of save to invest or purchasing assets that would payoff well later in life, people would spend it now while they still have the energy.
Tomorrow isn't guaranteed, and one could just retire from working throughout their life without doing anything meaningful while young. I'd like to invent a new genre and call it economic horror and this is exactly how things will usually play out.
I don't agree with the squander but I understand. This is a systemic failure and a symptom of an economy failing a generation rather than individual choices. Our boomer parents had better purchasing power for the same goods and aren't overworked. How advances in tech now didn't help with the quality of life
As inflation rises, the cost to live gets higher and most of one's wages are funneled to paying taxes or survival costs while the wealth gap inequality ensures those at the top 1% can have an option to be a philanthropist or live life to the fullest. It's not about poor versus the rich. It's a generation living in a time where the system is stacked against them.
So people unconsciously self sabotage their financial future taking on debt for things they don't need and to fill in a void of making sense a life that they have to define the meaning.
And despite all this doom and gloom, I'd still try to own a piece of land and a house because if you want to start building generational wealth, you have to own a real asset to pass onto the next generation.
Thanks for your time.
òtimo post. Simples e direto. Excelente reflexão. Parabéns e Mindfulnes z z z Z Z Z
The thought of saving for later is actually very difficult for humans because of their past living in wild and need to eat the most when they could to survive the days without food.
I think we still have part of it that's why it's difficult to start and then gets even harder to keep saving for the future passive income.
Inflation is a big problem. People usually don't make the math considering it, it's the return minus the inflation then the profit is really small, like 0,5 to 1% in bonds for example.
The system is rigged and people aren't doing themselves a favor by self educating despite having more access to information readily online than ever before. But such is life~
Agree. The more information we have access the less people learn from it.
Yeh. We've only just now started serious investing because we've only just now had the money to be able to do so. J was at least doing smaller amounts before but he wanted to be where we are now 10-15 years ago.
I'm reminded of a conversation I had with my cousins when I was 16/17 (the youngest of which was a year older than me), and they were complaining about their dad who was always insisting that when they were in school they had to study hard to get good grades so they could get into their uni course of choice and there would be plenty of time to have fun later, and then when they got to uni they should be focusing on their studies to get good grades to be able to land a good job and there would be plenty of time to party and have fun later, but when they got into their jobs they should hyperfocus on that so they could get promoted and got more money and they were like when the hell were they supposed/"allowed" to ever have any fun.
I think a lot of the "kids" (that are my kids' ages) feel exactly that too and this is why so many of them have got "bad work ethic".
Currently not the worst of ideas. What I hate are the economies like ours which are built around real estate so "everyone" basically "has" to not only own their own home but also hoover up as many investment properties as possible to rent out to other people and what's happened now is that a lot of young adults are now priced out of owning their own homes and the old people who already own their own homes and seem to be completely oblivious to the fact that house prices have skyrocketed since they bought are horrified that their kids are spending a "house deposit" on a computer or if they can scrape together the money buying in a "bad" suburb and claiming that prices are "ridiculous" and that people are "paying too much" (either pay too much or don't buy at all are your only options if you want to buy here, otherwise it's skip the country and deal with all the problems that brings).
They're challenging a generation with an idea that's proven to screw the next generation if perpetuated yet don't have the means to fully rebel with it without sacrificing an uncertain and probably miserable future. I can't blame them but I do know that being rebellious has it's cost and people with integrity are admired but suffer in misery. I had that spark when I started out but I became prudent not to rock the boat until I get more influence to change things.
Felt this, knows exactly this as a problem. There will be shortages because not everyone could own anything and some people will own more. This is the game and that's why to escape the race is win it better than others or drop out and go with ascetic lifestyle not out of enlightening but alone but a cope to the harsh world. I'm a realist and I accept this is the game being played and some play it better with their families from generations ago built the right moves. I just need to play it better.
Update: @adamada, I paid out 0.382 HIVE and 0.000 HBD to reward 2 comments in this discussion thread.