RobertN

I have one friend who contributes to a 401(k) because it is offered, and he has a decent head on his shoulders. He sets aside no other money for retirement other than his employee sponsored 401(k).

I have another friend who contributes to a 457, and will have a government pension. He has discussed with me for many years the desire to invest in addition to the above, but has not done so yet.

I have yet another friend that has NO retirement account, not through work, nor has he set up a Roth IRA. He has basically ZERO savings, no emergency fund, and refuses to start saving or investing. “I want to spend it now, not locked away wher I can’t touch it for years. I want to have fun now!” is what he says. He slways says he has no money to invest, not even $50 a month. But he does have a brand new Harley, new jetskis, snowmobiles, new truck JUST to pull the aformentioned toys. Some of these were bought AFTER telling me hes has no extra money. :{

The last friend is my best friend, and I worry for him. To this day, I am convinced that he will be working until the day of his death.

I am a firm beleiver that you are programmed how to handle money. You get this programming from your parents, or close relatives that you might have grown up around. When I started thinking that way, it was easy for me to see why I thought I needed a new truck every three years, or why I needed the best and most expensive “XXXX” when the cheaper “YYYY” would have worked just as well, or why I couldn’t understand why I couldn’t have a certain toy when I wanted it.

I was duplicating my parents spending habits! And they are terrible! Their spending habits are not conducive to wealth building!

They never were taught to live below your means, get debt free, and invest in assets. They instead live by the motto “spend money you haven’t yet earned (credit), on things you don’t need (too many brand new vehicles), to impress people (their brothers and sisters).

I want my kids to be hard workers at whatever they do, respect money, but more importantly, know how it works. I am trying to be a good role model and teacher in showing them how money works and what not to do with it.

Something I always wanted to do. So, now I have a new electric guitar, and a donated acoustic guitar. Still haven’t started…...