Why I want to teach about Investing and Wealth Accumulation
Note: The following will read a bit oddly because I removed some personal family data, such as name, etc…
Reason 1, What happened in the recent past, a brief family history:
The Great Depression and our recent family history
Before Great Grandma was born, life looked pretty promising for her family! Grandma’s dad was a middle manager at some company (I’m not sure of the name of it), along with his wife, who was a housewife. He made pretty decent money on his salary since he was a manager. Back then it was common for the man to work and the wife to be a housewife.
Unfortunately, Grandma’s dad died while driving a dog to across the state to his extended family. His car stalled or got stuck on railroad tracks, and as he continued to try to save the car, the car was struck by a train and he was killed in the accident. Grandma was 1 years old when her dad died, then shortly afterwards they got hit the “Great Depression” in 1929. The Great Depression was a time of high unemployment for the United States and some families suffered because if it. Unfortunately, since my grandmother’s dad died when she was 1 years old, her Mom, two sisters and her brother had a hard life as kids. You see, they had no income or accumulated wealth to speak of. So part of my desire to teach you kids is to better prepare you guys for such unforeseen accidents of life.
Reason 2, the future is complex and foggy.
With so the expansion of automation and robotics in society today, it’s good to have something to fall back on, just in case finding a job is more difficult in the future. This might not come to be, after all, I can’t totally see the future (I have no crystal balls, honesty). That said, Oxford Martin School estimated 45% of jobs today will be automated in 20 years. Of course, they really don’t know either, but I do know what I’ve been able to automate either partially or entirely. For instance, using a site I created and coded called (I stripped this out too). The code reduced the time for the work performed from about 15 manual “human” hours to 5 seconds via code (I timed this too, so this is true). The site had scale too. By this I mean that had my business partner signed up more clients, and if the “human hours” increased to 100 hours, my site would have still automated the entire work load in 5 to 10 seconds. Huge time savings!!! This is just my own personal experience… I’m sure others are automatic things that I couldn’t even imagine!
Reason 3, is to enjoy life while you are young (or Income smoothing as I like to call it).
The idea is that you have a more enjoyable life by creating an income stream so you have money while you are young and can enjoy doing things that I couldn’t afford. When I was young, to many young people are broke (like I was) or in debt (which I wasn’t) so they miss a lot of cool opportunities that require money. By experimenting with (stock dividends and investing) you’ll be able to use a small stream of cash from such investments so that you can more fully enjoy those opportunities, but at the same time continue to grow your wealth.
Well, that’s the start of my wealth accumulation lessons I’m teaching to my kids and the start of the intro to my future book, there is more but I’ll include that in the next post.
Thanks for reading,