How to Have Enough Money
Sure, the government touts a low “unemployment” rate but that hides the percentage of jobs that are low-pay or temp, not to mention the millions of people that have given up looking. Few Americans have enough savings to last even a few months.
In such an environment, how can I assert that you can have enough money. Of course, no guarantees, but here’s my best shot.
Non-essential spending yields less benefit than investing.
Living parsimoniously is worth it. Your gross personal happiness will decline little if you buy generic brands, eat low-cost healthy foods like fruits, veggies, chicken, and peanut butter. Avoid status everything — restaurants, clothes, and car brands. Status is ethereal, mainly manufactured marketing hype. So, for example, drive an old Toyota — with a mechanic checkout first, you may well get another 100,000 low-cost miles. Live in modest digs — The hell with the Joneses. And if you’re spending to live in a neighborhood with “good” schools, consider my opinion as a Berkeley Ph.D. specializing in the evaluation of education: It’s rarely worth the money: Genes and friends matter more. Take driving day trips rather than expensive flying vacations.
That should enable most people to invest a fair amount. I am NOT a licensed financial advisor, but most would agree that you should first invest in a 401K or IRA — They’re tax-advantaged. If you have additional money, on the day you’re aware you have at least a few hundred bucks to invest, buy shares of a low-cost all-in-one fund, such as Vanguard’s. All-in-One funds come in flavors to match your risk tolerance. Personally, I’m a little less conventional. I believe, alas, that America is in decline and that this is Asia’s century. So I invest a good percentage in Vanguard’s Emerging Markets ETF. By not trying to time the market, you automatically end up buying more shares when the price is low, fewer shares when the price is high.
Einstein called compound interest — -earning interest on your interest — the eighth wonder of the world. So, if you invest $100 a week starting at age 25, by age 55, it will be worth more than $350,000.
So, that’s my best shot at how to make enough money.
I read this aloud on YouTube.
Dr. Marty Nemko is an award-winning career and personal coach and author of 34 books including How to Do Life, which I’ve priced ridiculously low: $5 paperback, $1 Kindle. You can reach Marty at mnemko@comcast.net
