Quote:
Originally Posted by KSigkid
I think a lot of (maybe most) people have a poor concept of the time/money element. In other words, they think they need money now, and are unable to budget or adjust their budget to take advantage of long-term thinking. It's why people put all of their money in their checking account instead of putting some in savings, or investing some of it. They assume that they'll need it all at some point. That's probably just a long way of saying that people don't know how to budget properly, for the short or long-term.
Plus, it's kind of a weird concept; I'll be honest, I didn't know a whole lot about it until I took my Federal Income Tax class.
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I was very fortunate to have grown up with someone (my father) who knew a lot about these matters. I now provide free budgeting sessions to people I know. It's incredible to me how a little knowledge changes things so drastically. I helped a coworker understand credit/credit card companies as well as how her 401k works. Unfortunately, it was too late to save her a lot of money, but she's digging herself out of the hole pretty quickly.