...."The reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money....but never learn to have money work for them" -Robert Kiyosaki

I strongly recomend Rich Dad, Poor dad
http://www.amazon.com/gp/product/044...books&n=283155

 

Absolutely. ALL enjoyment comes with a cost EXCEPT the most important kind and that is LOVE (which comes with its own intangible costs). Outside of human emotions, everything has a price.

(just kidding)


I am not sure your statement is correct. planeguy is trying to explain it. Everyone is trying to help the originator ... Lets look a bit closer at what you just said ... "you make the bulk of your money when you're over 45"

You can look up the references in the Dept of Census website

lets suppose Joe Average Guy is retiring now. When he was 18 it was 1959. At 45 it was 1986. The median income for an male individual at 18 was about $6K or less. (we can only discuss averages here). Lets suppose he got a 5% raise every where ... That one is easy to figure out, after 45 years its about $56K ... a lot more than the median income today which for males is about $38K. Its now easy to plot his salary over the years ... any web interest calculator will show you the graph. How much money did he make until 45 and how much after?

I'm sure Matt knows ... I'm pretty sure its the integral under the curve but if you just look at the graph, its pretty simply to see that, at a minimum, he makes more money between 45 and 65.

Unfortunately, thats not the whole picture. What it doesnt show is that the CPI in 1959 was 29 and today is 199. It doesnt show that inflation betwen 59 and 86 is up about 300%.

Now look at this chart in http://www.census.gov/prod/2002pubs/p60-218.pdf, figure 2 for males.

Look carefully and you will see that the average males salary in terms of 2001 dollars is about identical to 1971/72. So what does that mean? Simply that the buying buyer of his dollars years ago EQUATE to his current salary in 2001 which means ... (the sum of money he makes after 1986) is worth FAR less than what he made 25 years ...

I aint a math nut so have no idea what the exact numbers will be but I would bet you do NOT make more money, on average, for the average guy, after age 45.

Remember, this is average, not the exception on both ends of the normal curve not tax issues, etc. I note this out because I believe these arguments about enjoying money while young are just so full of holes. Since money today is always (without deflation) worth more than money tomorrow, planeguys saving points are right on the money.

 

FH-

Buy used and try to keep your debt to a minimum while saving cash. Debt when you are young sucks.

 

Good suggestion. Kiyosaki I heard was the only writer to have several in the Top 10 Sellers list at the same time. Takes an open mind though as the elements he talks about are things most have never heard of, let alone their parents. And schools are useless in this regard. Even in college they taught a career but never taught about how to open and run a business in that career, unless you went to business school too.