Are you being financially foolish? It’s time to get real with yourself if you want to accumulate wealth.
Every so often, I come across examples that really make me question people’s financial decisions. Take, for instance, a personal finance blogger who, after disclosing a net worth of just $55,000, splurged on a $60,000 luxury car. It’s baffling, isn’t it? It’s as contradictory as a minimalist hoarding Apple gadgets, a health enthusiast smoking, a vegan wearing leather, or a philanthropist embezzling funds.
I once asked why someone would spend more on a car than their family’s total net worth. Another person tried to justify it by saying the blogger was trying to avoid having leftover money to spend each month. What a strange way to save, right?
Let’s Stop Being Financially Foolish
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The barriers to entering the financial advice field are incredibly low. You can find countless discussions about bad financial moves yet these platforms often have a substantial following.
Take, for example, Ramit Sethi, who wrote a book on getting rich at just 26 and now sells expensive online courses. His success underscores a key point: don’t wait to become an expert to start sharing your knowledge—begin now and learn along the way.
You could criticize homeownership without owning a home or call out politicians for misusing funds without ever having been in their shoes. Why not start your own blog and potentially build wealth from it?
One of my own regrets with Financial Samurai was thinking I needed direct experience in everything I wrote about. I’ve learned it’s more effective to start writing and bring in experts as needed.
There are countless blogs about blogging, and even more making money by teaching others to do the same. It seems everyone online is an expert these days, even those who haven’t walked the walk.
My Financial Missteps and More
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I personally enjoy posts about financial blunders because they’re relatable and often hilarious. I’ve written about absurd ideas like having children to avoid layoffs—obviously, kids are not just an unemployment benefit!
I’ve suggested implementing a flat tax for everyone to contribute fairly, which stirred up a lot of controversy. Some of my proposals, like creating a long-term unemployment program humorously named “Stay at Your Ass” (SAY), highlight my frustration with government spending.
More Ridiculous Financial Ideas
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Why save when you can spend everything now, given life’s unpredictability? And who in their right mind would voluntarily pay more taxes to a wasteful government? It’s vital to recognize these ludicrous ideas for what they are.
Individuals contributing to a Roth IRA might think they’ll be wealthier in retirement than they are now, expecting to have amassed 20-40 times their average lifetime income. Meanwhile, others make public rants that could alienate potential employers or entire communities.
And yes, I’ve made my fair share of pricey blunders. Like the time I thought a $350 massage chair session was a steal, only to find my car towed, costing me dearly in tow fees. Or when I lost $30,000 betting on natural gas stocks—a painful lesson in risk concentration.
So, if you want to get ahead, don’t just be financially literate; be smarter and more cautious than the next person. And remember, everyone makes mistakes, but not everyone learns from them.
Is it time for me to buy a $2.6 million Bugatti as a business expense? What do you think?
Final Thoughts on Building Wealth
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Managing your finances wisely starts with tracking them. I recommend using a robust financial tool to monitor your net worth, assess investment fees, and plan for retirement. Staying on top of your finances is crucial for building lasting wealth—far more effective than splurging on liabilities or following questionable financial advice.
