>be 21 years old
>graduated college back in May
>have a job making $52k a year
>realize it's not great but it's better than anyone my age that I know personally
>save and invest my money
>budget myself
>never really enjoyed going out to bars and parties and shit
>all of my friends are fucking stupid when it comes to money
>when I tell them I invest my money they assume that means I'm super rich or have some secret inheritance or something
Does anyone else here know this feeling? I met my gf's coworker's boyfriend last night. The guy told me that he doesn't have a bank account and just uses prepaid visa card and check cashing services. I asked him why he would do something that stupid and he went off on a rant about how banks just want your money because of overdraft fees.
I guess I've just come to the conclusion that most people really are stupid. I work for a lending institution and I see loans every day that I can't understand why someone would agree to. They take out these high interest rate loans to buy that new car or whatever and then don't pay shit and destroy their credit. My job requires that I have access to our collection notes(I work in the fraud department, often times people don't even realize they've committed a crime and will admit to it when we call asking for money) and it's clear that these people have no idea what they were signing on.
Why /biz/, why is it that the majority of Americans are financially illiterate?
Also, where can I find people my age who aren't completely retarded when it comes to this shit? I feel like I can't even relate to my friends anymore.
>>1007625
They don't teach you shit in high school, and most parents are descended from people whose livelihood were ruined by improper use of the stock market (my parents are Baby Boomers).
I've discussed the stock market with my mother and she's like 'man you own a revolver you can play better odds giving that a spin and then putting it to your head'.
I don't have enough capital to stock market yet, but I know it's not THAT much of a crap shoot if you're careful.
>teachers unioins and federal education systems
>>1007625
Yes, I have the same frustrations as you OP. My friends admittedly don't have high incomes, but make enough to save a couple thousand dollars over a year. Instead they spend all of their discretionary income on video games, weed, alcohol, cigarettes, fast food, and other shit they don't need. Then they have the lack of self-awareness to complain about how poor they are and how Bernie Sanders is the answer to all of their problems. It's sad and pathetic. I have a background in finance and they come to me asking questions about budgeting and saving, and I tell them EXACTLY what they need to do (set aside an emergency fund; pay off high-interest debt first; open an IRA) but they never listen to me.
Some people seem determined to be victims.
>>1007635
It's really not a crap shoot at all if you have some idea of what you are doing. The stock market is not the only thing you can invest in. There's bonds, money market funds, CD's, REITs, real estate in general, etc. Common stock is really just one more investing tool, and you can play it safe with that too if you stick with Index funds and/or ETF's.
>>1007638
You would think they could at least teach the simple concept of not spending more than you make. I think part of the problem is that these same people who are uneducated about personal finance are also teachers. It's kind of a taboo to talk about how not to go into crippling debt.
>>1007647
Oh I know. I've done SOME research, but all of my research tells me that paying down my debt is more important than investing right now.
They were talking about how saving in high school was important but all fo the figures they quoted involved banks giving 10% interest.
>>1007625
Because people actually prefer to complain about their money that actually do something about it.
They'd rather go on satisfying themselves in the short term with trivial purchases to distract them from their inability to make money.
They know they could read a book, ask for help from a relative or watch some youtube videos, but when Josh calls him up to get pissed that night, he won't care about the future
>>1007668
People go to bars instead of buying the bottle, too.
You can drink and make money, you just can't waste money for 4 bucks a fucking shot for a twenty dollar bottle.
>>1007646
>hey did you know you can save 3000 bucks a year for EMERGENCIES?
>all you have to do is not spend your money on anything you love
>no vidya
>no tasty food
>no things that drown out the soul-crushing monotony or the regrets you made in the past as you scrape a living by, knowing that, even if you were to save something, one bad day is going to ruin you for good and no one cares
>because reasons, reasons you made yourself, lies people told you, whatever, you just want to drink and forget about it for a while, a couple hours, please GOD, just let me forget how much of a piece of shit I am
>GODDAMN SOMETIMES I JUST WANT TO TAKE A KNIFE TOY MY FAT FACE NAD JUTS CUT AND CUTE AND CUT
I HAD ALL THE GODDAMN OPPURTINUIES AND I PISSED THEM AWAY
THERE"S NO WAY OUT OF THIS, YOU SMARTY BASTARDS, DONB'T YOU FUCKING GET IT?!?
I AM A SCREW UP AND EVERYTTHING I DO IS TO FORGET BOUT IT FOR AWGHILE
>>1007671
Well exactly. When I was 18 I started to fall into this trap. I worked basically full time during my gap year, making money just to spend it on the local attractions: bars, clubs, shit food.
You hate your job so you spend spend spend to make yourself happier just trying to get through the months, not realising time is the most valuable resource.
Money can be gained and lost, time can only be lost. We live like our existence is never ending. This day you have lived today will only be lived once. How did you spend it? Did you gain anything of significance? Knowledge? a friend? or did you just sit around watching netflix, reading the shitty news and buy a pack of fags?
People at these ages aren't taught these lessons on general life - I blame the school system for that.
>>1007675
You can still spend your money on those things asshat. You just have to budget and not buy everything on a whim. It's not that hard.
>>1007625
Know that feel. I don't spend as much as my friends and so they assume that I am poor
>>1007675
Rational emotive behavioral therapy friend. Google it
>>1007740
I dont jave money for a quack
>>1007732
Any bank before like 2007 basically.
>>1007659
If you have low interest debt and can make a safe return elsewhere, it can be more beneficial to keep the debt.
Say you have a 5k student loan for 3% interest and you have 5k that you think you can get 5% with. You may as well keep the 5k earning the 5% and pay off the student loan more slowly. After all, you're making net positive money off the interest in the investment.
If, however, you could only get 2% on your 5k, it would be a decent idea to pay off a decent sum of the loan. This is because now the 5000 you have invested is earning a net -1%. Most situations are probably closer to this. It really all depends on the interest rate on your debt.
>>1007625
>work in the trades
>make 80k a year net from job
>whenever i explain to the guys i work with how im morgtgage free, they say i play the stocks aka. Roulette
>they literally think it's like Roulette and that im going to lose 100% of my money on stocks, like they will just go up in smoke
>>1007675
are you me?
>>1007647
No one with financial literacy will ever be a teacher, because it's a poor career choice for anyone seeking a financially secured future.
>>1007788
That's a tactic for experienced people who can make their own informed view of the market. Not a college student during unprecedented economic circumstances. Anon should pay off his debts first. Besides, his student loans are probably 6-9% interest rate in the USA these days, the options they give to these uneducated kids are shit.
>go to college for a thing that isn't taught in highschool
>study this thing in my freetime
>get a job regarding this thing
>wonder why people who don't study this thing or didn't go to college for this thing don't know anything about this thing
u r dum
>>1007859
I can understand that excuse for not investing. I mean, if you know nothing about investments, then it's a daunting topic. However, I do believe that at some point there needs to be a basic level of financial literacy. You don't need a college degree to understand how a car loan works. You don't need a college degree to understand that you are losing money when you have no bank account and just cash your checks at some gas station. You don't need a college degree to understand that you shouldn't be living paycheck to paycheck.
The list could really go on. I didn't go to dental school but I still know to brush and floss. I didn't go to med school but I still know smoking cigs is bad for you. You don't need a degree in Economics/Finance/Accounting/Business to understand how basic budgeting works.
>>1007788
Not factoring in 20-30% tax on that 5% gain
>>1007646
>set aside an emergency fund; pay off high-interest debt first;
Simple shit.
>open an IRA
How do I do that? I'm a dumbass and I wanna learn.
I have friends I work with that make the same as I and have less bills. I live on my own and pay my own bills. They live eith mom and dad or some relative.
I have saved up about 7k in one year where they have saved about 1k.
I eat out everyday, have a gf who I take out at least twice-three times a week, and still have plenty of money left to invest, save, etc.
When they say stuff like "I cant go to lunch I dont have enough" it pisses me the fuck off to the point where I'll argue with them. How the fuck do you have money to eat out once a day when we make the same and you have two bills to your name and free rent.
I dont know why but it literally pisses me off bad. When I asked some girl she goes. "Well I pay $160 for hair treatments monthly so its tough"
WHAT. THE. FUCK. BIZ.
>>1007625
get used to it.
realize that sadly, nobody in your circle of friends will want your advice. even if its the best advice they will ever get.
only talk to people about money goals when they bring it up explicitly. more times than not when someone tells you their problems, they just want someone to listen. thats it.
gj buddy. im 29 at about 52k +year bonus of 12-25%... just hit 100k networth and my family is pretty horrid with money so it can be annoying
Most young people were raised by a generation that won the housing lottery and saw huge gains in personal wealth for no real reason at all. So their kids are comfortable getting huge mortgages because RE always goes up! I'd also blame the low interest rate environment that is not pricing risk appropriately and it screws with people's psychology when their buying power gets fucked and they see nearly everyone around them carrying debt so they think they should too.
Like Don Draper said, most people are so desperate to be told what to do they'll listen to anyone.
>>1007946
Why am I dumb?
>>1007911
Why are you lying? Who are you trying to impress here?
>>1008146
Not lying at all, what would I boast about. my 7k? That ain't shit.
>>1007911
Tfw I save abt $$50k per year and still eat out 10+times per week (often lunch and dinner) and never feel like I'm missing out on anything other than owning a Lamborghini and possibly snorting cocaine off of hookers
Why does it cost people so much to live? I'm Scottsdale Arizona where image is everything, rent is $1500, car Inc insurance is $400, food and bills and all other expenses for me wife and daughter is an extra $500... At MOST it's $3k per month to live in the most affluent part of this god forsaken desert yet there's still people living in $500pm rentals with $100 car payments complaining about affordability. Fucking scum. Even $10ph for a couple with maybe a 2nd job can afford my lifestyle so what's the fucking problem??
>>1008222
Why live in Scottsdale move to tempe. Cheaper and newer building
>>1007896
talk to your bank
>>1007896
Vanguard yo
>>1007625
You're now aware that the public has generally been dumbed down so that they can be more easily controlled/profited from.
Congratulations for noticing, you may be in the top 10% of the population intelligence wise, though the fact it took you as long as it did means you're probably not top 5%.
>>1007625
> implying any of this shit matters anyway
It's just stuff.
i make net 39k a year
1100 to rent
500 to food
still have enough to lease bmw4 (whjch i dont but might but i know its r3letarded but koreans bitches r shallow and i want phsussy)
>>1008772
It's pretty much the only way an average person can amass personal autonomy, safety and power in general without joining some gang/govt org/political party/etc. or having a million kids and hoping some will take care of your old ass. Oh, also it puts the food on the table.
So no, it's a question of survival and being able to protect your loved ones, actually.
>>1008794
>lease
>bmw
LOL you're not gonna make it far man
>>1008772
It's survival, anon. If you don't have 6 months of finances available, be prepared to die early.
>>1008846
idk man BMWs are solidly built, I think he could drive pretty far.
>>1008611
How does this work?
>>1008864
Wonder if he also financed the yearly maintenance.
>>1008846
The only reason I'd mock leasing a BMW is the huge up-front payment they want ($5k+)
Lexus are far more reasonable and, at least in my person experience, far more aggressive at earning your business.
>>1008864
Not too far, once he goes over the mileage on the contract it's .25 a mile :^)
