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dirtystylus : money   35

The Biggest Lie in Personal Finance – Of Dollars And Data
While there are lots of people who are in financial trouble because of their own actions, there are also lots of people with good financial habits who just don’t have sufficient income to improve their finances.    
That’s why the biggest lie in personal finance is that you can be rich if you just cut your spending.  And the financial media feeds this lie by telling you to stop spending $5 a day on coffee so that you can become a millionaire.  
However, these same pundits conveniently forget to mention that this is only possible if you are earning 12% annualized returns (something that is far outside the norm of 8-10% a year).  Even if you could get 12% annualized returns, you would need to earn these returns while holding a 100% stock portfolio without panicking for decades.  Easy in theory, but difficult in practice.     
This is the same financial media who write stories about how people save money by living in a trailer, making their own dish soap, or reusing their dental floss.  Yes, it’s that ridiculous.  But what really gets me is how these examples are provided as “proof” of how cutting spending can make you rich.
Just think about how condescending this message is to the typical American family.   The author of these posts might as well say, “See, you poor bastard.  The reason you aren’t financially free is because you keep buying Tide Pods!”
But most of us can see the trick they are playing on us.  We know that they are using exceptional cases and presenting them as some sort of validation of their lie.  It’s run-of-the-mill financial pornography.  
personalfinance  frugality  money 
7 weeks ago by dirtystylus
Student Debt Is Dragging A Whole Generation Down
“I am so far in debt that will never go away,” she told me, “and all those things people do in life — marriage, travel, homes, a career, not living with your elderly mom who you don’t get along with in a one-bedroom apartment, not being scared all the time — will never come my way. I miss insurance. I have been to the dentist once in 15 years. I’m pretty sure that if I ever get diagnosed with cancer, I’ll just let it take me. What could I do? I couldn’t afford to fight it.”
debt  highered  college  millenials  education  class  money 
may 2019 by dirtystylus
Science teacher: Death and dollars
Kindness won't make you wealthy, and it won't make you powerful.
It's not a marketable skill.
kindness  money 
january 2014 by dirtystylus

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