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I don't think it's only about having enough money, it's also about knowledge to know why it's important and how to do it. My friend is an HR director at a small company. She said the % of the people who work there who take advantage of the company 401K is very small. These guys just don't understand why it's important, not that they don't have enough $$ to contribute.
Knowledge is power.
Someone with as little as $100 saved can 'invest' that money in an exchange traded fund. No minimums needed for many of the funds. People manage to rationalize their purchases for concert tickets, jewelry, clothes they don't really need, coffee at $tarbuck$... the list goes on and on.
My aunt was crying poor at dinner tonight because she's facing $$$$$ in upcoming necessary dental procedures. She's far from poor, btw. Turns out she purchased a bracelet on one of those home shopping channels and just ordered a watch that was shown... "only $20/month for 4 months!" In her case she can afford it and she does invest her money. But how many people do you think make spontaneous and unnecessary purchases? Millions of people everyday.
I think it's an excuse that anyone who works a full-time job can't cobble together $100 in savings over time and then invest that. I just don't believe it.
Most of you don't think that people should do anything with their lives other than put cash into investment funds, then go home and read library books or play chess.
Libraries are pretty amazing places, by the way. They are among the best institutions of knowledge and even entertainment, all for free. My children are learning how to read literally by reading a whole bunch of library books.
I feel lucky to have them (children and libraries).
They have no interest until it is too late to start.
They have no desire to learn.
They have listened to other financial failures who tell them investing is gambling.
They are waiting for the bell to ring signaling it is all clear to invest. Kind of like waiting for that perfect man and ending up single when you didn't want to be.
They never get jobs that pay them enough
I'll just add to the list:
--They come from families where living payday to payday and financial illiteracy is the norm.
--They are too caught up in short term thinking to save or invest.
To say one's job has nothing to do with one's ability to save is hyperbole. But Flava's point is well made. Most people really can save something if they want to. Even a lot of poor people blow lots of money on things that are wasteful and even harmful (soda, junk food, tattoos, cigarettes, alcohol, drugs). Like Mathjak says, some people find a way, others just find excuses.
And spending money now is always more fun than saving it for later.
Not always. I actually prefer to save and invest money rather than spend it. I have always been like that since I was a little kid. It took me a long time to realize that other people didn't find saving gratifying. I still can't wrap my head around it sometimes.
Mathjak and his cult don't know what they're talking about.
How many people are earning these high figures??
I don't earn high 5 figures and I live in a high cost area, and I have typically saved 25% to 30% of my gross salary over the last 15 years.
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