The great irony about planning for the long term (which every financial planner in the world, as well as just about everyone who gives you any kind of advice will tell you to do) is that it is just shy of impossible. Even the billionaires of the world are only able to accurately work ten years ahead in their plans. Beyond that time horizon, no human being can predict what is going to happen. Could anyone in the 1970s have seen downsizing and the shift in the global workforce which has occurred since then? Most likely not. Could anyone have figured out half of the new types of jobs and … [Read more...]
Budgeting and Futility
Budgets do not work. If anybody has told you to make a budget for yourself, your household, or (even worse) someone else to follow, they are giving you some generic advice which logically sounds good, but that no one will ever follow. Have you ever built a budget before? Have you ever actually stuck stringently to a budget? If both of those answers are yes, then you are in the vast minority in this world. For the most part, making a budget for anything is at best giving yourself a framework to orbit around. Think of it like speed limits. Now, if one were to go logically by the term "speed … [Read more...]