Often I hear the same things from people and read the same things in the news. The ‘middle class’ are trying to juggle debt, retirement savings, college savings (if they have kids), maintaining some sort of lifestyle, careers, free time, etc. The quote I hear frequently is that people don’t feel that they are making progress at all financially – despite their best efforts.
If I were to ask, I think everyone would say most of us were taught to get a good education and then a good job. You may not be doing what you love, but most people I deal with at least like their jobs with ‘decent’ pay.
So if that’s the case, then why aren’t people making progress financially?
Do you work hard for your money?
I don’t think there is anyone out there who would say no. But what I described is true for almost everyone.
But does your money work hard for you?
What happens if you call in sick? Or take a leave of absence? After some period of time, if you’re not at work, you probably won’t get paid.
Think about this – when was the last time your money called in sick? Has your savings account called you and said it didn't feel like working for you today? When did your mortgage call and say that it was going on vacation so you didn’t have to pay for a while? How about that car loan saying not to pay because it was going on extended leave?
Money works for you everyday, 24 hours a day. It doesn’t take vacation and it doesn’t call in sick.
And I’m not just talking about shooting for some astronomical return by finding the next hot stock. How is your money helping you reduce interest you have to pay? Or reducing taxes you have to pay? Aren’t those things just as worthwhile?
If you work hard for your money, don’t you want it to work hard for you? What if money could accomplish some of those life goals listed at the beginning for you?
Answer to last week’s trivia question: D – 37%. This is a peculiar finding because finance involves basic math. And if people took a moment to simply think, apply some basic math, they could do a lot better financially.
This week’s trivia question: According to a survey by the Society of Actuaries, the top risk in retirement perceived by pre-retirees (people not yet retired) is affording adequate healthcare (69%). What are current retirees worried about the most? Is it?
A – Inflation
B – Affording long term care
C – Affording adequate healthcare
D – Maintaining a reasonable standard of living
