Why is it so hard to save money? | Animal Spirits - Episode 123

In this segment from "Animal Spirits," Michael and Ben discuss why people are being forced to work longer, what do to if you got a late start to retirement savings, our problem with the FIRE crowd and why some people will never be able to save.

Check out the full episode to hear Michael and Ben discuss living for today, why millennials own such a small piece of the real estate pie, why investors trade more than they used to, why older people will be working longer, FIRE backlash, the Fed's role in stock valuations, the finances of ditching your car, why people are drawn to apocalyptic thinking and much more.

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[davidoh]

MIchael, some of the most introspective thoughts and insightful questions you have ever done in a video. Keep it up!

[rossmacintosh]

I thought the comment about peak maturity was insightful. I believe most of us think like that, not really being mindful that we will in all likelihood continue to grow. That lack of mindfulness can result in taking a path that we might ultimately regret (like not investing enough for our future selves). The conversation made me think about a friend who is a Buddhist nun. While her whole life seems focused on growth, she lives in the moment. It's not one or the other. Her example suggests we benefit from understanding ourselves as a whole people. While living in the moment, the child we developed from is still a part of us just as the old person we will become is intrinsic to who we are. Perhaps recognizing that continuum can help us make decisions now that can improve our outcomes later in life.

[FinanceOptimum]

It's interesting: in our debt based monetary system it is kind of required that we continue to get into more debt (as debt IS money). If too many are financially independent, the economy falls apart and it is harder to maintain societal control via debt slavery 😂

[QuinnanScott]

This is a really good show keep up t he great work

[Zero_ss]

The problem with people who try to show off their FIRE journey is that, quite often they already have significant financial advantage over the average person and could have retired normally down the line anyway. 100k+ jobs or parents that have a big house they can live in rent free etc etc. It comes off bad when they are telling someone who makes like 40k a year that its super easy and anyone can do it. I see stuff like "Hey I'm 22 with 150k saved up" " 28 with 700k" - its just not possible for the average American.

[Hawking]

FIRE is a mental escape when work is annoying.

[chang]

You guys ever heard of Morris Smith? He was the original FIRE follower before it was known as FIRE. 10 years at Fidelity, the last 2 years running Magellan after Peter Lynch, retired in 1992 at the age of 34 to study the Torah. Also a Queens College grad.

[brandonderrick]

Such valuable financial forward-thinking, yet still no airpods haha. My approach is to aggressively invest in stocks, income streams and my kids until I am 45. Then, spend a large part of my savings (that isn't getting passed onto kids) until age 55. The last thing I want to do is wait until age 60 to enjoy my money. Life kinda sucks when you're that old plus I don't want all my hard earned money getting wasted on healthcare. If you raise your kids correctly and invest in their education, they should be able to take care of you as you age. But even if they don't, you should have the house paid off by then and can do a reverse mortgage or spend your SS check in the casino and ride it out.

[sailorforlifebestti]

why do people with kids push everyone without kids to have kids? MIKE!