6 Reasons to Shut Up About Your Problems and Save: Our Cuppa Joe Discussion
It’s Thursday! That means your favorite post of the week, where we discuss whatever opinion I’ve formulated in my little brain. This week, I’m addressing a search term from yesterday. Before we get to that: whoever kept finding my site (and reading several pages) by Googling “Oompa Loompa,” two things. First: WTF. Second: Thank You.
“The truth is the safest lie” – Anonymous
On Google Analytics any day, I love to browse the search terms that lead people to our little TFFA site. Yesterday there were many of the obvious queries about forgetting to file your taxes or making too much to contribute to the Roth IRA. I’m a little creeped out by the searches that are an unintended consequence of our old “Boner of the Week” posts, (where we’d discuss stupidity in the press or blogosphere…probably not what they’re asking to find, although this picture still makes me laugh).
I understand those.
A search this morning was for “boomer retirement headwinds US economy.” This could be a student completing a paper or a journalist hoping for inspiration. I don’t know. But I don’t think so. I’ve heard this story too many times.
Here’s what I think it is:
My Opinion:
In my experience dealing with clients “back in the day” for 16 years, this could have easily been the search term of someone who’d spent their entire life avoiding saving money and is now hoping for a good story to tell. It’s like that time you were already running late to an important dinner and you happened upon a car accident. You didn’t have to lie about your tardiness because some truth jumped in the way.
If you’re looking for reasons why Baby Boomers–or hell, even Gen X or Y savers and beyond–are going to possibly hear that giant sucking sound coming from the 401k statement, let me count the ways….
1) The Chinese economy is in trouble. CNBC has been chock-full of analysts preaching doom for this export based economy. Here’s a good story from WSJ Online about banker’s fear of loaning money to Chinese companies: China Finds Shrinking Appetite for Loans.
2) The housing situation, regardless of short-term good news (yesterday Reuters reported April housing starts numbers rebounded), is still bound to be weak. Analysts expect a long road to normalcy because so many potential buyers are stuck underwater in their current home.
3) There are over 7 million non-starting 20-somethings in the USA living at home with parents. One out of every two young college graduates is unemployed (Huffington Post). You’re competing with 7 million people who are motivated to find a career (well, many are motivated) and are probably willing to work for less money than you.
Not enough?
Here come three more:
4) When the Fed raises interest rates (and at some point the Fed WILL have to raise rates), this great deal on debt we’ve had for over two years will end.
5) President Obama has made it clear that the $2 billion problem at JP Morgan is going to become a political issue, potentially causing new lawsuits and handcuffs on free market economics. I’m not saying this politically and financial planning isn’t about whether it’s good or bad: this is just the reality of the current banking situation.
6) Europe isn’t done imploding.
This is the minefield boomers will have to navigate during retirement. Is it frightening? Of course it is! Is it a great story? It’s wonderful fodder for anyone hoping for a financial car wreck to explain why you’re not where you rightfully belong with your financial picture and retirement dreams.
But if you’re going to win, understand this important point:
Everyone is playing under these same conditions!
It’s a story, but not a valid reason why you didn’t reach your goals.
Here are some truths:
- Millions of people will succeed despite all six of these problems above. How? They’ll work faster, smarter, more creatively. Some will take the stupid way and work (gasp) hard.
- There will be opportunities in the financial markets. While everyone is looking at the latest, greatest, most frustrating website IPO on earth, someone else is taking the road less traveled and thinking independently at other opportunities.
- There will come a time when you’ll need money and won’t be able to work. Your story isn’t going to help you on that day.
So, Mr. or Ms. searching Google for an excuse, we’ve gotcha covered above. But that time you wasted searching for a story to weave someone else was spending on moving forward.
Got some other good reasons we’re all bound to fail? Let’s extend this pity party into the comment section.
(photo credit: Buddha quote: ifindkarma, Flickr; World’s Biggest Liar, Alan Cleaver, Flickr)
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Funancials just posted a great post this morning about the statistics about the financial shape of people in our country. Link: http://funancials.biz/staggering-financial-statistics/
Basically it just shows that we’re all dumb and prefer to spend all of our money living life today instead of being financially responsible and saving for our future. That will be our ultimate demise…what is going to happen when the government has to increase social security because nobody has saved for it? Taxes will continue to go up to support that program (along with many others) thus further strapping individuals’ budgets and making things harder to live life now while saving for the future.
Cheers!
Jason recently posted..Recipe: Meatless Meatloaf
That’s depressing. My post was meant to be a wake up call, but that looks downright scary.
I’m an optimist, Jason. I think people are starting to get it, no matter what it looks like at Walmart on a Tuesday afternoon.
People may be slowly getting it, but the government needs to wake up also. Spending now and not thinking about the future is exactly what it’s doing.
As you mention Joe, China is in trouble. If they slow down on the purchase of our debt, that’s even less money for us to borrow.
I think the people will ultimately force the government to change though.
JW @ AllthingsFinance recently posted..Don’t Pay Full Price For Anything
Like Jason said, too many of us are focused on instant gratification. The virtue of patience is a commodity these days. No one cares about how they will feel later, the just want to feel good now. This is a huge problem and not just financially speaking. People these days make all kinds of impulse decisions, including getting married, buying houses, changing jobs. The only way people’s lives will improve in general is if they start pausing and stop acting.
Miss T @ Prairie Eco-Thrifter recently posted..The Prairie Eco-Thrifter Giveaway Extravaganza: 2nd Anniversary with an iPad 3 and over $200 Cash To Be Won Plus a Bonus Prize
Miss T I think you mean the virtue of patience “isn’t” a commodity. We’re not patient at all. I’m with you. We don’t think beyond the next check. Sure, there’s going to be bad things happening in the future, but let’s move!
I certainly hope we are not BOUND to fail! But it is definitely the direction we are heading. Things can only get better right? I sure hope so. I actually wrote about this in my latest post – and I really think that a lot of us young ones were blindsighted by the false hope that our parents gave us. Do well, make money, end of story. What is happening is that we are all too expectant of what we should be doing; but we shouldn’t be basing our lives off of that. Every case should be different, and everyone has a choice to make their lives successful.
From Shopping to Saving recently posted..When a Recipe for Success Fails
There certainly is hope! I think I was too harsh with my headline
I agree: people thought they deserved to be great. We all do, but only if we work for it. Great post on your site, btw.
Although I wouldn’t call unintended traffic unwanted, I too mistakenly used suggestive language. I never thought of the search implications until after the fact.
Roshawn @ Watson Inc recently posted..Is Money Real?
I think this country will re-invent itself. Manufacturing jobs aren’t coming back though. Chinese economy in trouble? By ‘Wall Street’ analysts? China has a population of a bil, it is next to another country with another bil., makes products not just for the US, but Europe and Asia – pray, tell me how is their economy in trouble?
Heck, if India and China decided to tap into their 2 billion market, they wouldn’t even need the rest of the world!
US has a much more open system. People are creative. We’ll find a way.
Moneycone recently posted..The Five Minute Retirement Plan
Exactly on point, Moneycone! Focus on your own world, not on Wall Street.
There is no such thing as a get rich quick scheme. The only people that make money on get rich quick schemes are those that sell them and lawyers. Slow and steady wins the race – especially in the investment game. Warren Buffett is one of the riches men in the world because he uses compounding over time. He isn’t a trader, and doesn’t look for get rich quick schemes.
I saw a good John Stossel show once, James, that showed the “Robber Barons” largely had it right: create products people need, compete in your industry and create jobs. The show asked why we call them “Robber Barons” when there are tons of scam artists on infomercials all night long who’ve never added a job, created wealth or products people need?
I think too many people expect the government to take care of them or improve the economy. Which I don’t count on either one of those things to actually happen. I think people just need to take responsibility for themselves. Like Erika said, everyone has the choice to make their life successful.
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