personal money skills

[DHOHHI]

Quote from Mecro:


The moral of the book was to be cheap. Most of the subjects had like a mil or 2, but were living way below the means and did nothing but save save save. I do not understand the point of having money if you cannot use it.

These are not real millionaires, just cheap and frugal people who do not understand how to enjoy money. In fact, it is as if they are almost afraid of spending money.

So having in excess of $1 million doesn't make you a millionairre just because you might be a responsible person with your money and spending? Wake up ... most people in the US have maxed out credit cards, save virtually nothing, etc. The link below says a lot about how people live. And what's wrong with living below ones means? That's how people get ahead financially ... and they can do it without depriving themselves of the things they need in life. Not everyone has to spend, spend, spend to enjoy life. Those who are caught up having to buy more and more "stuff" to be happy probably have somewhat empty lives. A person can spend in moderation and have a very fulfilled life ... especially if they are connected with people who make their life all it is.

http://www.ombwatch.org/article/articleview/1938/1/198/

 

[Mecro]

Quote from DHOHHI:

So having in excess of $1 million doesn't make you a millionairre just because you might be a responsible person with your money and spending? Wake up ... most people in the US have maxed out credit cards, save virtually nothing, etc. The link below says a lot about how people live. And what's wrong with living below ones means? That's how people get ahead financially ... and they can do it without depriving themselves of the things they need in life. Not everyone has to spend, spend, spend to enjoy life. Those who are caught up having to buy more and more "stuff" to be happy probably have somewhat empty lives. A person can spend in moderation and have a very fulfilled life ... especially if they are connected with people who make their life all it is.

http://www.ombwatch.org/article/articleview/1938/1/198/

Ok well I look at it this way.

You have a job that pays whatever amount of money that stipulates your standard of living. After a while you save up a mil or two and you still have that job. But your standard of living is still the same.

So what is the point of having a million in the bank? To take it to the grave with you?

 

[mrmoose]

When i started in this business an old timer gave me a very good piece of advice ; "in this business live on half of what you expect you make". I have seen alot of traders who based on a short period of success quickly ramped up their spending and got into long term commitments such as fancy Manhattan apartments and car leases. In a few months these usually young traders go into a slump (as every trader does sooner or later) and are faced with no savings, large monthly bills ,and if particularly stupid a looming tax bill for last years trading that was not saved for. Many times I have seen this traders taking on excessive risk and pressing things that are not there at the end of a month in order to "make their nut". We can guess how well that works. Just remember your first 20,000 month trading does not mean you will make 240,000 a year.

 

[DHOHHI]

Quote from Mecro:


So what is the point of having a million in the bank? To take it to the grave with you?

Nope ... unless we're missing each others points I think it's wise to have that money in the bank for down the road (i.e retirement or choosing to retire early). If one spends as much, or more than they make in their working years (as many seem to do given the anemic savings rates, credit card debt and bankrupcy filings) then they'll likely be up a creek when they retire (if they can make that choice and not be forced to keep working).