One of them here, although I'm working on it. There is a lot of things here going on, and I don't think you can just stamp this with "lol how reckless these people are"
- Separate investing and frugality/budgeting. I guess a lot of those people do actually one of those, but not the other.
- You talk about high earners/engineers. In most of they earning life they never knew the need to ration, or lacking funds - so with the trajectory they see in early adulthood, especially if they like what they do, and they're successful, there simply isn't any recognizeable need to save for later (or even retire early)
- Maybe you like dealing with money, watching stock news early in the morning - I hate it. I hate the thought of dealing with this. It's an active aversion. Of course, the majority of investments should be "set and forget", but it's not always apparent how (especially outside US) and you need quite some research beforehand.
- Coupled with this, you put your life savings in a thing that you don't understand, won't follow. There may be a not entirely unfounded fear of South Park's "aaaand it's gone"
- There is something absolutely tempting about money sitting directly available on an account. Especially when you're young and single, you have no idea what happens with you next year, or what you will probably spend on. Walling away your funds is a critical and worrysome thought.
Sure, you can sum this all up as "financial illiteracy", but they are still cemented in valid concerns or life experiences, instead of mere negligence.
> Of course, the majority of investments should be "set and forget", but it's not always apparent how (especially outside US) and you need quite some research beforehand.
I really wish things like annuities or pensions were available for the 21st century economy. So many people don't want to deal with investing and understanding markets (which change!) and avoid making smart decisions.
There should be a way to just put money in a magic box that pays a little bit back each year, and every time you put money in it grows a bit more.
- Separate investing and frugality/budgeting. I guess a lot of those people do actually one of those, but not the other.
- You talk about high earners/engineers. In most of they earning life they never knew the need to ration, or lacking funds - so with the trajectory they see in early adulthood, especially if they like what they do, and they're successful, there simply isn't any recognizeable need to save for later (or even retire early)
- Maybe you like dealing with money, watching stock news early in the morning - I hate it. I hate the thought of dealing with this. It's an active aversion. Of course, the majority of investments should be "set and forget", but it's not always apparent how (especially outside US) and you need quite some research beforehand.
- Coupled with this, you put your life savings in a thing that you don't understand, won't follow. There may be a not entirely unfounded fear of South Park's "aaaand it's gone"
- There is something absolutely tempting about money sitting directly available on an account. Especially when you're young and single, you have no idea what happens with you next year, or what you will probably spend on. Walling away your funds is a critical and worrysome thought.
Sure, you can sum this all up as "financial illiteracy", but they are still cemented in valid concerns or life experiences, instead of mere negligence.