Why am I further behind financially than my peers? Here are 3 reasons…potentially.
Why am I further behind financially than my peers? We hear this question quite often at Eager Investors, especially when working with new customers. Most times it comes up at the very beginning of our interactions and is a major concern. Through our own research and analysis we’ve come up with the top 3 reasons below.
1) Lack of proper financial education growing up
It’s no secret that education system in America is behind in comparison to other countries. Aside from math and science discrepancies, another glaring weakness of ours is lack of financial education within our curriculum. Every HS student learns the basics of chemistry and geometry – courses that aren’t necessary helpful to the daily lives of most Americans. And it’s not just us, the problems go back generations. We have an epidemic in this country where the majority of people have been brainwashed to believe that finances should be left in the hands of the experts. Financial literacy is more important than ever, not only because it is imperative skill in managing a healthy financial life but also to keep you protected during economic downturns and recessions. Some studies have suggested that lack of financial literacy costs Americans billions of dollars each year. Let that sink in.
2) Priorities
The second reason why most people feel like they are further behind financially than their peers is prioritizing. To put it simply, most people don’t put financial or investment literacy high enough on their priority list. Instead, they cloak it with excuses like, I don’t have the time to dedicate to it. We’re calling B/S here. The average American male ages 25-40 spends roughly 3 hours/day watching TV. Think about that! That’s 21 extra hours a week you could be spending on actual investing or your financial education. Time is the most valuable resource we have, so why not make your time more productive and as Tony Robbins says “turn your shoulds into musts.” Make your financial well-being a priority.
3) Lack of capital
The third reason has to do with lack of capital, or a perceived lack of capital required to begin investing. The truth is, you don’t need a lot of capital to begin. By budgeting a bit, you can reallocate some of your funds to your income investment bucket and your retirement bucket simultaneously. So, the next time you get paid, don’t automatically behave like a consumer and think about what shiny new object you want to buy. Instead, think like an intelligent investor. Consider the time value of money. This is the idea that money available now is worth more than the same amount in the future due to its potential earning capacity. What’s worth mo/contact-usre to me, the new Call of Duty video game or setting myself up now for comfortable retirement down the road?
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