After reading this post from the POPs at Planting Our Pennies I realize that everyone’s Twerking. Until Miley Cyrus performed it at the VMAs I didn’t realize how huge twerking is. It seems everyone’s been talking about her performance, as there usually are thousands of comments whenever news sites run the stories. Being entertained is placed at a much higher level than retirement and planning for your future. The question is:
Do you know the difference between Twerking and an ETF? After Miley Cyrus I would imagine most Americans have now heard of twerking and can somewhat explain it. But ask them what an ETF is and what it does you probably going to have a blank stare. Often the easiest things provide us the lowest value. Entertainment and television is “easy” you just watch and gossip. Investing and saving, my head hurts from all that thinking so why bother?
Paying attention to low value things is the biggest reason people do not build their net worth.
A few weeks back I was drinking beers with a couple of guys. One of them was proud of the truck he bought from someone. He was a truck guy, didn’t drive anything else. He researched the model, looked on craigslist for similar vehicle and met with a few owners. Armed with the knowledge he found a truck he liked and negotiated a $3000 savings. He was extremely proud of his purchase, by having the right information he saved thousands! That’s a lot of beer money, no keystone beers for us.
The conversation then turned to the new condo he had purchased for $425,000. I asked him what his interest rate was. He had no clue. I asked if it was a fixed or variable. No clue. Because he was a truck guy he valued the purchase of that truck more than a home which costs 20 times the value of the truck. He was proud he saved $3000, not realizing that if he applied the same due diligence in his home purchase he would save hundreds of thousands of dollars.
I’ve read blogs where someone was recommending washing Ziploc bags and making hand soap at home. Considering soap costs around 50 cents a bar and the time it took to make it your labor was worth 25 cents an hour. Yet they can save a few thousand in a savings account because they were fearful or didn’t know how to invest. The time it took to make the soap they can open a Vanguard account, set up automatic deposits, and invest in the STAR fund. That 20 minutes will earn you several hundred a year, and over time it will compound to thousands. Start Investing And Keep Investing.
I understand trying to save money, but channel that same effort by reading blogs or financial magazines on how to start and safely invest. It’s ok to throw those Ziploc bags away, and go ahead and buy that bar of soap because you have better things to do than work for 25 cents an hour.
Do you like to Twerk and are you good at it? Do you agree that people value the wrong things?