Before you say anything.. I have been talking about money over the years with many, and the pattern always ends up being something like that.
It is rare that I meet someone who doesn’t fit into this generalization and for that I am THRILLED. I love discussing money with equally like-minded, smart people.
What I don’t enjoy however, is them asking me what to stock to — if I knew, I’d be a millionaire….. —- oh wait. I will be quite soon. *ahem* Better revise that to billionaire.
Just for reference..
My past 12 months of my net worth growth:
I was at $580,767 a year ago.
Little Bun’s past 12 months:
He was at $22,374 a year ago and is at $27,168.
He is on track to have about $100,000 by the time he is 18 and ready for school.
In very BROAD sweeping generalizations, I have found over the years the following….
Women & Money
- Don’t even want to talk about money with me, feel nervous, skittish…
- Don’t really understand what the difference is between registered retirement accounts (tax-deferred or tax-free)
- Tend to store their money in savings accounts or things like GICs with low interest rates even under their registered retirement accounts!!! (KILLING me over here…)
- Two extremes: Great at budgeting and knowing what they spend but bad at investing, OR they cannot budget to save their lives and don’t really care to and are also bad at investing
- Tend to avoid stock markets completely – if they invest it is in mutual funds
- Focused on concrete goals: Clearing a debt, a mortgage, a card, but abstract goals are out of their reach
- Tend to give their money to others to invest – spouse, family member, banker
- Tend to not know what they are invested in and very little about their money situation in general
- Think they need to be a certified-by-someone-else hedge fund manager before they are qualified. Imposter Syndrome, really.
Men & Money
- LOVE to join in on a money convo ASAP. Like, excited, and very into it…… until we start getting into the details. Y’know?
- Has a slightly better grasp on registered retirement accounts but this is not a stellar percentage of men I talk to
- Can’t budget to save their life – not many guys know what they spend but do love to spend their money
- Bad at saving money – love to spend it though, so they think spending = as good as saving it
- Like to talk like they know how to invest and what it means but haven’t read basic finance books (see list below)
- Tend to go with whatever you propose as a hot stock to buy if you can talk louder than them and out-bluff them
- Think they are doing the best job they can by investing in trendy things like marijuana stocks, and aren’t really very open to being a bit more conservative
- Focused on abstract goals, and may have basic things like savings and clearing their debts in mind, but it isn’t as prominent
- Tend to have have their money 100% in the stock market but not necessarily with any plan or strategy
- Are most interested in get rich quick schemes and easy money (cryptocurrencies anyone?) <— SURPRISING amount of guys are into these scams and schemes; it boggles my mind
And, both men and women procrastinate and stifle their education on learning how to invest and what it means.
This is the worst for me when they tell me: “I don’t have time, I’ll do it later…”
You’re never going to “find the time one day” to invest. The time is now and on your side if you’re on the good side of 45-50 years old.
I’m not surprised. Investing has a steep learning curve but it is quick once you get over the idea that you can’t do it.
IT IS NOT THAT DIFFICULT.
Taking control of your money is easy AF but you need to have conviction and believe that you can do it.
…but you need to have your basics down
- How much do you make?
- How much do you REALLY make? (Net amount deposited into your bank each month)
- How much do you spend and where? Don’t know this? Time to start budgeting.
- Are you in debt? By how much? And how much interest are they charging you?
- How much do you save yearly?
- Where do you put your savings? In what investment vehicles (RRSP/401K, TFSA/Roth IRA)..?
- What is your investing strategy and tolerance? Conservative and low steady returns? Risky?
If you don’t know the answers to the questions above, you need to know.
Some Money Books to start you off…
Starting from light –> heavier:
- Your money or your life,
- Millionaire Next Door
- Investing like a Boss
- Millionaire Teacher
- Market Masters (Canadian-centric but great in general
- 12-step recovery program for active investors
Today is the day, the time is now, JUST START.