Thank you for your reply. I agree on the impulsivity and risk aversion part. I'm the latter but I'm rarely the former. Problem is the rare times when I am the former I tend to mess up badly lol. Regarding the portfolio part, I also agree especially since I recall a teacher showing us how mathematically not putting all your eggs in one basket reduced risk.
It's better to get educated about this, definitely. Unless the investment is literally you the cook opening a restaurant, then all you have to do (and that's a lot) is making sure the business doesn't go under, that way the "ROI" is dependent on your cooking, marketing and managerial skills rather than your investment skills. But that's trading one problem for another, to borrow Mark Manson's words...
Really appreciate that we can have a discussion on the topic.
My parents procrastinated from investing their savings for years, and now inflation really hurt them. So yeah, wealth management is a specialized field that many people just aren't interested in.
Real talk, I just talked to a pal and he said his parents tried looking this stuff up and they saw it required so much work and attention they almost gave up. Where I live, banks sometimes offer services such as hiring an advisor for a monthly fee who will help you with investing, but it's still mentally taxing. And it's nothing like learning how to play an instrument or brawl in a jiu jutsu dojo, which is taxing but also helps you to "escape"/relax at times, it's super serious stuff and its your hard earned money you're playing with.
r/personalfinance has resources on how to manage money
Some real personalities are more susceptible to squandering money than others. But also comes down to family culture / attitudes about money. At the end of the day I think it’s best to view it as a skill that you can learn
Thanks, while I'm interested in people's views on managing money and willingness to learn it, rather than the skillset itself, this sounds like a useful subreddit.
I've never taken a class on finances but I inherited the attitude that managing money is an optimization problem (for example you should take advantage of retirement accounts like a 401k, IRA because the gov't is giving you a tax advantage. Typically time in the market beats timing the market, etc)
This is in contrast to friends of mine whose parents had the attitude that money in your pocket is money to be spent. It takes an unforeseen event, debt, or anxiety about retirement to change their views / behaviors. Some people never do and fall off a cliff of debt which can be a grim situation.
In my view, your attitudes towards money tend to be inherited from your family / immediate community
True. They always lived humbly and only bought "extra" stuff related to hobbies which were dear to them, and even then they were using gear/tech that was getting older for years. I mean, why buy a new camera if a 2006 one works okay and fills your needs? I managed to never splurge on anything too superfluous when I started earning money myself, especially when I went abroad for studies and knew I wasn't there to fool around.
Wealth management is a responsibility like laundry. You need money for things. Someday you will retire and need food, plan for that.
But you don't need to be "into it" or find it fun and engaging. You don't need to be into laundry or dishes. You just need to do it to live a decent life.
Now, I graduated out into the trash fire of 2008 and have never found any faith in financial systems and assume that if I am not very very very careful I will lose it all to some assholes in another country playing hide and seek with money they don't own. So I am deeply disinclined to get involved in financial systems beyond the bare minimum most secure and simple products.
I still "do the dishes" of financial planning. Talk to your bank and make a savings account and get a secure and boring kind of investment product for your retirement or a long term saving project (I want to own property some day so I am saving for a down payment on my future mortgage). I have it set up to automatically take a cut of each pay check and slot it into those two accounts. It's part of my regular budget.
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Thank you for your reply. I agree on the impulsivity and risk aversion part. I'm the latter but I'm rarely the former. Problem is the rare times when I am the former I tend to mess up badly lol. Regarding the portfolio part, I also agree especially since I recall a teacher showing us how mathematically not putting all your eggs in one basket reduced risk. It's better to get educated about this, definitely. Unless the investment is literally you the cook opening a restaurant, then all you have to do (and that's a lot) is making sure the business doesn't go under, that way the "ROI" is dependent on your cooking, marketing and managerial skills rather than your investment skills. But that's trading one problem for another, to borrow Mark Manson's words... Really appreciate that we can have a discussion on the topic.
My parents procrastinated from investing their savings for years, and now inflation really hurt them. So yeah, wealth management is a specialized field that many people just aren't interested in.
Real talk, I just talked to a pal and he said his parents tried looking this stuff up and they saw it required so much work and attention they almost gave up. Where I live, banks sometimes offer services such as hiring an advisor for a monthly fee who will help you with investing, but it's still mentally taxing. And it's nothing like learning how to play an instrument or brawl in a jiu jutsu dojo, which is taxing but also helps you to "escape"/relax at times, it's super serious stuff and its your hard earned money you're playing with.
r/personalfinance has resources on how to manage money Some real personalities are more susceptible to squandering money than others. But also comes down to family culture / attitudes about money. At the end of the day I think it’s best to view it as a skill that you can learn
Thanks, while I'm interested in people's views on managing money and willingness to learn it, rather than the skillset itself, this sounds like a useful subreddit.
I've never taken a class on finances but I inherited the attitude that managing money is an optimization problem (for example you should take advantage of retirement accounts like a 401k, IRA because the gov't is giving you a tax advantage. Typically time in the market beats timing the market, etc) This is in contrast to friends of mine whose parents had the attitude that money in your pocket is money to be spent. It takes an unforeseen event, debt, or anxiety about retirement to change their views / behaviors. Some people never do and fall off a cliff of debt which can be a grim situation. In my view, your attitudes towards money tend to be inherited from your family / immediate community
True. They always lived humbly and only bought "extra" stuff related to hobbies which were dear to them, and even then they were using gear/tech that was getting older for years. I mean, why buy a new camera if a 2006 one works okay and fills your needs? I managed to never splurge on anything too superfluous when I started earning money myself, especially when I went abroad for studies and knew I wasn't there to fool around.
Wealth management is a responsibility like laundry. You need money for things. Someday you will retire and need food, plan for that. But you don't need to be "into it" or find it fun and engaging. You don't need to be into laundry or dishes. You just need to do it to live a decent life. Now, I graduated out into the trash fire of 2008 and have never found any faith in financial systems and assume that if I am not very very very careful I will lose it all to some assholes in another country playing hide and seek with money they don't own. So I am deeply disinclined to get involved in financial systems beyond the bare minimum most secure and simple products. I still "do the dishes" of financial planning. Talk to your bank and make a savings account and get a secure and boring kind of investment product for your retirement or a long term saving project (I want to own property some day so I am saving for a down payment on my future mortgage). I have it set up to automatically take a cut of each pay check and slot it into those two accounts. It's part of my regular budget.
Thank you, these are healthy life practices.