League Circles wrote:I'm undisciplined with regards to spending, saving and investing myself, but nonetheless I'd highly, highly recommend to everyone to save and invest as much as you can. You are likely to live decades longer than you think, and quite likely to be economically unproductive for the vast majority of it. Nothing from the economic experience of the last couple generations should really guide us.
Most of us just burn through money on poor choices, myself included. It will be a catastrophe for us and is likely to result in desperation on wide scales.
It's an interesting question, do you spend for when you are in your best health and can enjoy it, or do you want to have a safer landing when you are elderly rather than relying on a system which will likely be questionable?
I'm fortunate enough that my wife and I both have high level jobs and aren't choosing between those two outcomes, but for many people that really becomes a choice. I think we save about 30% of our net income every year, but I get that isn't possible for many people.
I don't think it's a safe assumption that one's health and ability to enjoy spending money will meaningfully decrease in the future. As you alluded to, it's very plausible that we may live hundreds of years or indefinitely. And it's also plausible that having real capital will be the only way to survive in such a world, at least during a transition period of indeterminate length.
My goal is to save and invest enough such that I can live relatively comfortably off of the interest of my wealth invested as conservatively as possible. Not that I plan to necessarily eventually be ultra conservative with investments, but if society changes to the point where doing so is prudent, I want to be able to do so effectively and live off of it indefinitely to the extent anyone could (to the extent that there are stable investments paying positive dividends or interest).
So basically imagine being 100% invested in treasury bonds, and making perhaps 0.5% - 3% return. As such, my goal is to amass something in the range of 3 - 20 million dollars in today's money. IF I continue to increase my earnings, am way more prudent than I have been in life with spending, invest aggressively and successfully for the next 30-40 years til I "retire", I might have an out side shot at the very low end of that range.
It's a goal not an expectation, but I don't plan to stop until:
1. Society's future structure becomes much more clear
2. I physically or emotionally cannot handle working anymore
3. Society doesn't need me anymore (I have no opportunities left)
I'd suggest everyone get good at all sorts of indoor and outdoor gardening too. Cause while I think we won't have to work anymore within the next few decades, I do think food, especially desirable foods like fruits and vegetables, will be hard to come by. I can easily imagine a world where we all have robot butlers and flying cars but basically all have to eat pooridge mush every day.
I just want to be ready for the uncertain future to the extent I can for as long as a I can. But like I said, I talk a good game. My habits are just like most of us. It just concerns me more than it does most people.