The 3 most common financial mistakes young people make

Investing
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Pretty good list.

2
  1. Not buying a home
  2. Investing in low yield things
  3. Marrying someone at a significantly lower income level and having kids, without making an adjustment in lifestyle

Edit: number 3 CAN be done right. For example, I knew a lady who probably made 400K total comp. Her husband made a LOT less, he had a job working with his hands and probably made <50K. They bought a home in Fruitvale. Though they hadn’t had kids yet, it sets them up well to live within their income level. The more common scenario I see is the expectation that they should be able to buy somewhere like Noe.

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Two biggest sources of arguments between couples:

  1. Money
  2. Kids
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Add one more: Not investing or staying away investing is also a mistake.

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So the two people that sold their stocks and went to cash said:

  1. Investing in low-yield things
  2. Not investing

What does cash in a savings account earn these days?

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It is an old one, not current and also cut & Paste from web.

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  1. Not taking care of their body
  2. Not taking care of their mind
  3. Not taking care of their soul
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Really good ones. How many have you taken care of?

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None… :sob:

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The low income guy should retire and do everything that the high income doesn’t want to do.
High income spouse = Focus on making money. CEO of the household.
Low income spouse = Resigned. Do everything else that CEO doesn’t want/ no time to do. COO & everyone else.

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One of them is wise enough not to sell her investment in AMZN, right?
And the other bought house :slight_smile: right?

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Thought we are all taking care of the mind and soul by being here? Debating keeps our mind sharp. Having online buddies keep our soul alive.

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Yes but it’s too late. We are talking about when we were “young”… :slight_smile:

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Night is young :slight_smile:

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Does that include being a sex toy to the high income one? :rofl:

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No need to spell out all the tasks that the other spouse needs to do.
The critical success factor is the inferior one must be willing to be subjugated.

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:rofl:

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I think in this scenario the guy likes working! He repairs bicycles and is skilled at it. I do wonder if they would have chosen fruitvale if the roles were reversed. It feels like he didn’t feel comfortable not contributing a good chunk of the mortgage, and that might be a more common feeling for men?

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(Only applies to people who don’t have rich parents) - The biggest financial mistake is not to save, hence not build capital to invest that will over the next 30-40 years give great returns.

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