#the American education system failed Gen X so bad

[hamletthedane]

No greater psychological worldview adjustment than realizing both of your parents somehow made it 50+ years without ever hearing of Schrödinger's cat

[the1975attheirverybest]

the point about throwaway terms is very fucking valid like i am fucking sick of seeing stuff about intrusive thoughts when it is just impulsive like intrusive thoughts are like "what if i poured boiling water on my cat" (not a literal example but that kind of thing) and they fucking suck and you feel horrific not just being silly and goofy

but i think the thing about gen z not being able to define itself it interesting as well because with social media there is no one thing you sit down as a generation and watch or take part in. there isnt really a top of the pops or a similar culturally defining piece of media other than say tiktok. but its also very easy to look at tiktok and see it as the face of gen z when i find most of the time it represents a small demographic of rich americans as opposed to the majority of gen z. like as a British person social media is very clearly dominated by americans

i also think there is something to be said about criticising gen z for being critical of older generations but consuming the media when we as a generation have been constantly harped on for being shit, have dealt with social media and being conscious of every political happening all at once from the age of 12, the housing crisis, brexit, the shortcomings of the education system, covid, and i could probably go on but all before even leaving school? and yet we are the generation that gets the piss taken out of us? like yes we fucking suck but also like come on. im not trying to say look at us we have it so hard because we didnt deal with world war two or the cold war or the 2008 financial crisis or 9/11 but we were also like 14 and witness to war nearly being started because of twitter and laying in bed at 15 watching black people being violently murdered and 16 trying to sleep after being told on the internet that if we dont post about everything happening ever you are a bad person, but our problem is not being able to define ourselves culturally? or trying to find an alternative to the present by looking back to the past that has been glorified by previous generations? like i dont think i can explain how mentally damaging waking up to find out that a bill allowing oil drilling in the arctic which will destroy the earth has been passed but still having to get up, go to school and pretend that fucking a levels matter before having any sort of life achievements is

sorry if this comes off as preachy but im just a little tired of older generations being seeming incapable of empathy sometimes - 🐸

No, you’re right! I mean, it’s very easy for us older folks who have done most of our growing up already to look back and say “they should be doing X or y” when….if that were true then we wouldn’t have “failed” before y’all even came along, haha. I think when we criticize gen z, there are two types of criticism:

1) where it’s just old people being afraid of change. Like, espcially socio-politically. It’s clear that the systems we have no HAVE FAILED CATASTROPHICALLY otherwise there wouldn’t be a recession, so much fascism etc. and it’s time for something radically different and older people don’t get the urgency of that as much as younger people do. Which is a cheap kind of criticism. Like, if you won’t support the kids then get the fuck out of their way. Cuz they’re gonna change the future with or without you. You’re just making it slower/harder for them.

2) criticism that recognizes some gen z movements as overcompensation or over correction of something that we ourselves have tried to fix before. It’s no huge secret that every generation develops its beliefs, aesthetic preferences, political ideals, etc in response to what came before it. Not just gen z. We millennials did it, too. And so did gen X and boomers…I think all the way back to at least the Reagan administration, here in the US anyways, things have been…on the downhill HAHA. and each generation tries to do something about. Then the next one comes along and is like “alright they tried X and failed, what if we try Y?” And sometimes we recognize the younger generations mistakes cuz we have made them, too and we just wanna be like “bro, no, no. Trust me. That’s not gonna work. You’ll see it when you’re older and you’re looking back at the generation after you too.” Those criticisms, I think, are fair. And might even help future kids if they listen.

But, at least for me, and I won’t speak for my entire generation or for those before me, my criticism doesn’t mean I don’t empathize. One of my fav Notes tracks is “People” purely because of the “stop fucking with the kids.” Young people have always been the face of change. They are usually the demographic that votes one party in and the other out. Conservatives always win only when they oppress the youth and appeal to the fear of old people. They’re on the edge of fashion, art, pop culture. So, I know better than to be dismissive of young people! Never! It’s just, sometimes I see the mistakes happening and I’m like “ohhh noooo stop before it’s too late” haha.

[ejm513]

FAIRY TAIL NEXT GEN CHILDREN-NALU EDITION

DISCLAIMER: 

1-I know there is now a cannon child for edo Nalu and edo Gruvia with names and everything. I also know that Gajeel and Levy have twins and Levy is currently pregnant in 100 Years Quest.  I love it and their names and everything about those precious babies-but I’ve had these ideas and characters and backstories growing and developing in my head for years so I’m being the stubborn Taurus that I am and sticking with it. 

-Also please forgive any misspellings and grammar mistakes as I am dyslexic and my school failed us at teaching spelling and grammar. I did my best. 

Hello my lovelies! I am back with the Fairy Tail post and starting with a bang! 

I’m working on my next gen story and am determined to make it work this time... so I’m making very detailed profiles for my OC’s that are going to show up and it was so much fun I thought I’d share them with you! 

Because of how unwieldly the document was getting I’m going to break it up by pairing staring with Nalu!!! 

God I love them...

RANDOM FACTS:

-After the less than stable childhoods the members of the guild had, when they started to have children, they decided to give them as normal a life as possible.

That means the following:

-Many of those who have kids choose to stop taking the longer and dangerous jobs-or at least don’t do nearly as many of them. This is so they can be there for their children and not reduce the risk of not coming home. That doesn’t mean there still aren’t adventures and that these dangerous missions don’t happen, but many of them are weary of the risk. Except for Natsu and Erza… they are always the exception.

-Naturally, the kids are members of the guild from the moment of their conception. However since they live much more stable lives and don’t need to work and take on jobs as children they don’t become official guilds until 13.

-Most of them start taking on summer jobs or small jobs during the school year with their parents starting then and as they get older-like with in a year or two-they start going on solo jobs.

-And yes I said school year because they make their children go to school like normal kids and get the education that most of them never got. (Please note if I mention anything in particular about school or schooling system it is going to be heavily based on the American school system as I went through that system and somehow came out the other side, so that’s what I’m familiar with)

-All of the children suffer from the same illness the Ultear did as child to varying degrees of severity because of how strong their parents. I say varying degrees of severity because some were able to handle it better than others, but none actually died (obviously

 THE DRAGNEELS: (NATSU X LUCY)

 Lila Dragneel:

Birthday: January 17th, 797

Magic type: Fifth Generation Fire Dragon Slayer; a dragon slayer who was taught and trained by first or second generation dragon slayers

Appearance:

-Height: 5’4 (about the same as Lucy)

-Hair color: Strawberry blonde-or more specifically Lucy’s blonde mixed with Natus’s pink

-Eyes: Exact carbon copy of Natsu’s-large and black.

-Has Natsu’s smile and more of athletic build but she is still uh… gifted

 -Otherwise is Lucy’s clone

IMPORTANT FACTS:

-She got the name the name Lila because it’s close to Layla, and for whatever reason I like to think Layla would have liked Lilacs so it’s from the flower too.

 -She fell victim to the same illness Ultear did. Because she’s been so strong from the beginning, she handled it relatively smoothly.

-She’s known for her physical strength

 Personality:

-Warm and bubbly

-A little whiny

-Loyal to a fault

-Stubborn

-Blunt like her father

-Very childlike and innocent like her father

-Very intelligent like her mother, but can be naïve and dense like Natsu

-She loves books and reading like her mother but is no writer.

-Unlike her father she is not the type to go out and seek fights… However… as Marie from the Aristicats said;

  -She was always a good student-particularly excelling in Literature and languages and anything physical (AKA she dominates PE and dodge ball is terrifying with her)

-Though not one to start a fight she does have a tempter and has gotten a number of detentions and at least one suspension for her reckless and destructive tendencies.

-Though if you ask her it’s never her fault because someone kept bugging her until she snapped and they deserved it.

Relationships:

-Extremely close with her mother

-Super close with her father and just seems to click with him more than Lucy. She’s a bit of daddy’s girl and will proudly admit it.

-Also close with her brother. They get along but he more than anyone else can push her buttons. They can fight and because they are Natus’s children it gets physical fast. But they’re still close and love each other.

-Her best friends include: Hazel Redfox and Eliza Fullbuster.

-And Happy. Always Happy

 -She tried to be friends with the older and therefore seemingly cooler Aurora Dryer but stopped said friendship after a nasty incident with Aurora and little Eliza.

-Her closest friend is Nick Fullbuster.

-They have somewhat of banter like Natsu and Gray in the sense they’re competitive with each other

An example of a banter:

“Spicy pink head!”

“Ice fairy princess!”

“Destructor!”

“Stripper!”

“Whiny pants!!”

“Pretty Boy!”

“Oh so you think I’m pretty huh?”

“SHUT UP!!”

It’s all-in good fun though.

-It’s also obvious that especially as they get older there is a HEAVY amount of romantic/sexual tension in this banter.

-Everyone but Lila is aware of this. It doesn’t become clear to her until it more less it’s her in the face.

Jude Ingeel Drangeel- Nickname Iggy

   Birthday: September 3rd, 802

Magic type: Celestial Magic.

Appearance:

-Height-5’7 (same height as Natsu)

-Hair: Spikey like his Natsu’s but blonde like Lucy’s

-Eyes: Natsu’s Eye Shape and Lucy’s color

-Same build as his father

-More or less a clone of his father with a few differences

-IMPORTANT FACTS

-His name is Jude Ingeel because both Natsu and Lucy agreed that Ingeel Drangeel was a little too much.

-He’s named after both grandfathers, because even though Jude Heartfillia was an ass hat to Lucy they left each other on a positive note and I like to think had she been able to she would have reconciled with him.

-He got the nick name Iggy because his sister thought Jude was stupid and boring and just started calling him Iggy and it stuck.

-Also known for his physical strength

-Also got the same illness Ultear had and like his sister got through it with relative ease

Personality: 

-Loud

-Boisterous

-Loyal to a fault

-Protective to a fault

-Scary energetic

-Extremely warm and kind

-Stubborn

-Blunt

-Loves reading and writes like his mother.

-More willing to start a fight than sister, not as bad as his father. He knows there’s a time and place… most of the time

-Most of the fights he starts are with his older sister and Eliza (the later being with words)

-Extremely intelligent and not as dense and naïve as his father or sister.

-He only did okay in school because he was bored most of the time and just didn’t really try... he was also a familiar face at detention.

-He excelled at anything physical (again dodge ball is terrifying with this kid), anything involving writing and oddly music. No one knows where on earth he got it from.

Relationships

-He considers everyone in Fairy Tail his friend

-Very close with his mother, has been called a mama’s boy on occasion but swears he’s not

( *cough cough* he is  *cough cough*)

-Considers his father one his best friends

-Close with his sister but he does enjoy pushing her button a little too much which causes a lot of arguments that more than not escalate into physical fights.

-He also likes just tossing her over his shoulder to piss her off and because he can.

-He’s friends with Nick Fullbuster and Simon Scarlet by association but… they’re more like the annoying older brother’s he never asked for.

-His best friend in the whole world (besides his father and Happy) is Eliza… though their relationships can take on more of the trappings of the rivalry of their parents. It doesn’t turn physical because he knows better and doesn’t want to turn into a human popsicle, but it’s a little more heated than Nick and Lila.

-Everything jokes they’re going to end up together like they’re older siblings and to that Iggy said;

“Listen I love Eliza, she’s like my sister. Heck I like her more than my sister sometimes! But I would never, ever, ever never ever ever ever ever… EVER date her.”

-He then proceeded to get blasted into oblivion by a jet of water

-He does however have a bit of a crush on Rose Scarlet.  

And there you have it! Hope you like it! Next up is my personal favorite and OTP-Gruvia!!

[giancarlonicoli]

An exclusive excerpt from Scott Galloway’s new book, ‘Post Corona’

The logical alternative to capitalism is socialism, and on its face, there is a lot to like. Socialism is rooted in altruism and humanism; it seeks to build up community rather than the atomized individual. These are noble goals. But the sacrifice in productivity is immense, especially with the compounding effects of time. Capitalism creates dramatically many more spoils, so any of those noble goals have more to work with.

The toxic cocktail, however, is to combine the worst of both systems. For the last 40 years, we’ve been doing this in the United States. We have capitalism on the way up. If you can create value in this country, you can be rewarded with spoils vastly beyond anything comparable in history. If you can’t create value — if you’re born into the wrong family or you catch a bad break — you’ll likely live on the edge and pay dearly for your mistakes. A Hunger Games economy.

Should you reach the heights of wealth (or more likely, be born into them), circumstances change. Despite our rhetoric about personal responsibility and freedom, we’ve embraced socialism — at the top and on the way down. We don’t tolerate failure here in our socialist paradise. Rather than let companies fail — a defining and essential feature of capitalism — we have bailouts. But bailouts are hate crimes against future generations, sticking our children and grandchildren with the resulting debt.

Crisis after crisis, our rationales vary: After 9/11 it was national security. In 2008 it was liquidity, and in 2020 it was protecting the vulnerable. But our response is always the same. Protect the shareholder class, protect the executive class. Keep these firms on life support so their owners and managers don’t suffer. Pay for it with debt, a burden to be borne by middle-class taxpayers and, ultimately, by our children. However, history tells us, nearly every bailout, whether it’s Chrysler or Long-Term Capital Management, only creates a moral hazard that results in a bigger failure and a more costly bailout. Every time, we’re told “this is different, historic, and requires intervention” and that taxpayers should bail out shareholders.

Corporations are simply abstractions. They feed nobody, house nobody, educate nobody.

But so too is an 11-year bull market a historical event. That was the unique event that accrued unprecedented wealth to a fraction of the population. And the corporations that benefited didn’t save for a rainy day — which always comes — or pay it out to their workers so they could build up a protective cushion of wealth, or invest in capital projects that would grow the economy. Instead, they poured it into dividends and stock buybacks, juicing executive compensation (from 2017 to 2019 the CEOs of Delta, American, United, and Carnival Cruises earned over $150 million in total compensation) and shareholder returns. Since 2000, U.S. airlines have declared bankruptcy 66 times. Despite the obvious vulnerability of the sector, boards and CEOs of the six largest airlines have spent 96% of their free cash flow on share buybacks. That bolstered the share price and compensation of management but left these companies dangerously exposed to a crisis.

Now that the crisis is upon us, this small population of rich people has found socialism, and they have their hand out. That hand should go back in their damn pocket.

The virtues of failure

Failure, and its consequences, is a necessary part of the system. Economic dislocation and crises have real costs, but they are also opportunities for renewal. Old relationships are severed, assets are freed up, and innovation demanded. A forest fire brings life as it destroys — so too, economic upheavals create light and air for innovation to flourish. The 1918 influenza epidemic was devastating, but it was followed by the Roaring ’20s. The strongest businesses are those that are started in lean times. Wages rise after disruptions like pandemics — if the natural cycles of disruption and renewal are allowed to function.

We’ve let ourselves confuse corporations with the things they own and the people they employ. Corporations are simply abstractions. They feed nobody, house nobody, educate nobody. When a corporation fails, those who have risked their capital to support it lose their investment, but the workers are still capable of work, the assets remain available, and whatever need the corporation was filling remains.

Letting firms fail and share prices fall to their market level also provides younger generations with the same opportunities we, Gen X and boomers, were given: a chance to buy Amazon at 50 (vs. 100) times earnings and Brooklyn real estate at $300 (vs. $1,500) per square foot. As Thomas Piketty has pointed out, the high growth recoveries that follow economic shocks are periods of real wage growth, whereas slow and steady growth tends to favor the wealthy.

Once the government gets into the business of propping up the losers, you can predict who will be first in line for the handouts: the people with the most political power — corporations and rich people. It’s not just a matter of their lobbyists and their lawyers and their press flacks, though that’s a big leg up. There’s also something more insidious: cronyism.

Cronies gonna crony

The federal government’s response to the pandemic has been true to form. Under the cloud cover of “protecting the most vulnerable,” we’ve handed trillions of dollars to the most powerful.

The only bipartisan action is reckless spending that benefits rich people while throwing some funds at the neediest for optics.

The $2 trillion relief package passed in March 2020 was a theft from future generations. Personal income was 7.3% higher in Q2 versus Q1 of 2020 because of stimulus payments and extra unemployment benefits. The personal savings rate hit a historic 33% in April, the highest by far since the department started tracking in the 1960s. The relief package included a $90 billion tax cut that benefited almost exclusively people making over $1 million per year. The richer you were, the more you gained. At the beginning of August, U.S. billionaires had increased their wealth by a total of $637 billion. It appears, as has been the case for decades, that the only bipartisan action is reckless spending that benefits rich people while throwing some funds at the neediest for optics.

Not every dollar will be wasted. Maybe a third of it will go to the needy. But the majority of the money we are asking our children to repay has done nothing but flatten the curve for rich people. Rich people have registered disproportionate benefit, their preexisting relationships with banks getting them to the front of the line. Look no further than the refusal of the administration to reveal who is getting the money — until after the election, of course.

Instead of letting market failures play out, we propped up the shareholder class using money stolen from the next generation. “We’re all in this together,” they tell us. Bullshit. The really ugly truth is this: For the wealthy, the pandemic means less commuting and emissions, more time with family, and more wealth, with markets at all-time highs.

Cronyism and inequality

The obscene $2.2 trillion Covid relief package was just a symptom of our cronyism. The systemic flaw is that our government is no longer keeping capitalism’s winners in check. Instead, it’s a co-conspirator in their entrenchment.

The wealthy have done well over the past few decades, in a supernova kind of way. A ton has been written on this because the data is abundant. There is shocking data at the extremes: The top 0.1% now own more of the nation’s wealth than the bottom 80%. The three richest Americans hold more wealth than the bottom 50%. And there is bad news in broad strokes as well: Since 1983, the share of national wealth owned by lower- and middle-income families has declined from 39% of the pie to 21%, while upper-income families have increased their share of national wealth from 60% to 79%.

No entrepreneur starts, or doesn’t start, a business because of the tax code.

For purposes of self-preservation, you’d think the rich would be concerned with this level of income inequality. At some point, the bottom half of the globe by income realizes they can double their wealth by taking the wealth of the richest eight families, who have more money than 3.6 billion people. Here in the U.S., the bottom 25% of households (31 million families) have a median net worth of $200. Most recently, a group of protesters built a guillotine outside the Manhattan home of Jeff Bezos to commemorate his wealth passing $200 billion.

This trend is only getting worse. Once, we elected leaders who cut the tops of trees to ensure saplings get sunlight. Today there is less and less sunlight. A recent study of historical tax-return data concluded that the uber-wealthy paid a tax rate of 70% in the ’50s, 47% in the ’80s, and 23% at present — a lower tax rate than the middle class. Whereas poor and middle-class tax rates have largely stayed the same.

My own experience provides a case study in how the wealthy lock in their gains. When I sold my last company, L2, in 2017, I paid an effective tax rate of 17%–18%. I paid 22.8% federal, but the first $10 million were tax-free, thanks to Section 1202 of the tax code. Section 1202 is a tax break for early shareholders, meant to encourage startups. Only it’s nothing but a transfer of wealth from other taxpayers to venture capitalists and founders. No entrepreneur starts, or doesn’t start, a business because of the tax code. It takes a special kind of crazy to start a company and a lot of talent, work, and luck to build it to be something you can sell for millions of dollars. The decision has nothing to do with the tax code. Tax breaks for the successful are just another way we deepen inequality.

Once people make the jump to lightspeed, advantages like this let them pull away. Access to more resources, investment opportunities, lower taxes, tax specialists, political contacts, friends who can help your kid get into school, and the wheel spins. It’s never been easier to become a billionaire, or harder to become a millionaire.

[mrjohnhthompson]

Why Do Gen Ys Struggle With Their Money?

I get this question all the time, so I finally decided to write this one. It’s partly about timeless fundamentals of personal finance, but I also included some thoughts about the future, and lessons from the past.Everybody’s got problems, but those that plague young people are unique in a few ways. Let’s go through them one by one:

1. Personal finance education 

Most “adult” people I know still have a surface-level understanding about money. Unfortunately, this applies to people of your age too. If you’d like to test your knowledge, try this basic financial literacy test. It’s just five very short questions, and you get to see if you’re financially smarter than two-thirds of the world (who failed). Why isn’t personal finance a mandatory subject in schools and universities? I don’t know, but that’s surely one of the biggest failings of our education system. Instead, young people are left to learn finance from websites, guest speakers and gulp, their friends and families. It’s not that self-learning is a bad thing. It’s that sometimes even your well-meaning friends and parents could be teaching you poor money habits. And let’s not get into “friends” who “teach” but are actually trying to make money off you. So your biggest problem really is: No one taught you personal finance. And even if someone did, was he/she teaching you the right things?

2. The changing world of jobs

When you were younger, your parents likely told you a version of the same advice they told me: “Study hard, get good grades — and you’ll have a secure job.” But of course, the world has changed since our parents’ times. Today, the world of secure jobs isn’t so secure anymore. There’s no such thing as lifetime employment. And with huge advances in Robots and Artificial Intelligence every day, the world of jobs is going to continue to change rapidly. It really scares me, but here’s the prediction some experts are making: we’re going to have much less traditional jobs in the near future. So you’re now living in an uncertain job market with an even more uncertain future. It’s getting harder to have secure income. “I might be smiling here, but I think robots are going to take away your job.” [caption id="attachment_29129" align="aligncenter" width="537"] “I might be smiling here, but I think robots are going to take away your job.”[/caption]

3. Cost of living and inflation

In the 1980s, you could probably buy a double-storey house in Kuala Lumpur for about RM60,000. And your starting salary might have been around RM 1,000. Today, try buying a RM500,000 (US$112,000) apartment on your starting salary of RM2,100. The oft-quoted guideline from the World Bank is this: To be considered affordable, the price of your home should be less than three times your annual household income. In other words, if your annual household income is RM54,600 (RM2,100 monthly salary x 13 months x 2 people), an “affordable” home for you costs RM163,800 and below. That RM500,000 apartment is nine times your annual household income. The World Bank would call it “severely unaffordable.” You and I call it something less savoury. Here’s some more scary data. Because it’s not just the Malaysian economy that’s screwed up. Let’s take a look at the economic miracle known as the USA. Well, our young friends there aren’t doing so well either. The Atlantic  reports that over the last few years, real (inflated-adjusted) income has fallen for most Americans aged between 18 and 34. And here’s some data from the Bureau of Labor Statistics: [blockquote type="light"]“Average income for Americans aged 18-35 has gone from US$36,000 (in 1992) to US$33,000 (today).”

James Altucher[/blockquote]

You’re rightfully angry at the rising cost of living. Things have gotten more expensive over the years, and salaries (especially for young graduates) have just not kept up.

4. Student debt

Most of you have some form of student loans to pay off too. But here’s the good news: Malaysia — for better or for worse — is an extremely forgiving country. I’m not suggesting you don’t repay your PTPTN education loan and beg for forgiveness from the immigration officers at KLIA before your annual vacation. What I am saying is if you have the will to pay your debts, the environment here makes it easier to pay. We have all kinds of discount schemes; plus when was the last time you heard of someone getting hauled to jail because they missed an education loan payment? Of course, student debt is still a problem. And I understand how hard it is to plan for your future when you have a big sum of money hanging over your head. I’ve been there too and it did not feel good at all. But with that in mind, let’s take a look at the other side. It can’t be all doom and gloom; so what are some advantages that young people have instead?

1. Access and technology

When I was a fresh graduate, I had to call the TM Streamyx guys to come to my home every few months — because my copper wire DSL modem would periodically get fried by lightning. Not only was my wired Internet connection slow, it was unreliable. Today, the cheapest data plan on your mobile phone is five times faster than my lightning-rod DSL connection of 2007. And as you’re probably aware, the amount of knowledge available for free on the Internet continues to grow exponentially. What I’m getting at is this: you’re privileged to live in an era of cheap devices and free information. Access to knowledge is not a problem anymore. It’s so common that you and I don’t even appreciate how wonderful it is; that with a few clicks of your mouse — you can check how cheap Malaysian car prices were in 1985. You don’t even have to open your mouth to ask anyone anymore. With technology, you can learn from the world’s greatest minds for (you guessed it) free. If you know what this is, you’re old. [caption id="attachment_29130" align="aligncenter" width="640"] If you know what this is, you’re old.[/caption]

2. The freelance economy

Growing up, I wasn’t street smart. I did pretty well in school, but I was never the entrepreneurial kind. Maybe the whole “established path” of school >> university >> corporate job was too well-drilled into my head. So the only way I knew how to make money was to work for a company and have a boss. Silly me. Of course, you’re smarter and braver than me. So you’ve likely done some kind of work in your free time during your college days. You probably already know how to leverage your skills and connections to make money. Which is a great thing. Did you know that freelancers now represent 35% of the US workforce? I couldn’t find detailed statistics from Malaysia, but it’s a growing trend worldwide. And it especially suits people like you and me who like to work from home in our underwear. Your ability to use access and technology makes freelancing an easy option for you. You know how the Internet and social media work. Plus with globalisation, you can earn some high-value USD if you sell internationally. All of us are entrepreneurs. I wish I’d learned that earlier in life; but for you young Padawan — the world is yours to conquer.

3. Time

Time is your greatest advantage of all. And here’s an example from history’s most storied investor: Warren Buffett, who’s now worth about US$73.9 billion. Did you know that 99% of Warren Buffett’s wealth was made after his 50th birthday? Read that again. Even the greatest investor we’ve known made the majority of his fortune after he was 50. He started when he was 11, but it took him 45 years to become a billionaire. Of course, that’s not what people want to hear. Everyone wants to become the next Mark Zuckerberg — billionaire at 23 years old.  But it’s not going to happen for most people. Most people need time to achieve significant things in their careers. And most people need the magic of compound interest over long periods of time — to really let their money grow. I’ll give you a typical example here: Let’s say you earn RM2,200 and contribute the bare minimum into your EPF retirement fund. Keep contributing as normal for 41 years (till you retire), and you’ll have a cool RM1 million by the end of it: [caption id="attachment_29131" align="aligncenter" width="500"] Assuming 6% returns[/caption] And that’s even before you factor in any promotions and salary raises. You’re young; you have time. But do you have patience?

So, what should young people do with their money? 

1. Budget and automate If I could sum up personal finance in one sentence, it’d be this: spend less than you earn, and invest the rest. Sounds great, but of course then you start getting tempted by how great the latest iPhone looks, and that unbelievable holiday deal from AirAsia. Which is precisely why you need a budget. Because if you spend your money freely without planning — you’ll be bankrupt one day. And that day would come sooner than you think. You can read further details on how to create a budget, but the most important thing about budgeting is that it helps build discipline. Without which you will never achieve financial success. Here’s a final tip on budgeting: Because most of us are so horrible at controlling our impulse to buy things, automate your savings and investments. Set your bank to automatically deduct your salary and invest that money immediately every pay day — so you can’t easily touch it. Because if you can easily get to that money, I suspect you’ll have a new iPhone soon.

2. Be ruthless about expenses

If you were a company, there are two ways to become more profitable: make more money, or reduce your costs. Both are important, but which one do you have more immediate control over? Assuming you’re not extremely poor, and your family isn’t totally dependent on you — most young graduates have room to reduce their expenses. “But I need trendy clothes and hipster cafes to maintain my image,” you say. “And I need vacations overseas to be happy.” I’m never going to be the guy who says you should give up your overpriced Starbucks lattes or stop traveling. To each his own. But if you’re really going to control your expenses in today’s economic environment, I guarantee you’d need to make some tough decisions. You’re not going to get everything your heart desires. Life is about trade-offs. In time and in money. So spend on those things which are really important to you. Spend more on them and cut out everything else. Ruthlessly. Hint: When you get to my age, you’ll probably realise a lot of things you thought were important aren’t. So choose wisely.

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