Newbie;330100 wrote:
The way I see it, the biggest driver of wealth destruction often stems from lifestyle choices as much as it does about volatility in the markets. New found wealth generally leads to increased lifestyle (and fixed costs) despite the wealth actually being able to fluctuate. So perhaps a better option maybe to look at what you actually need and focus on that, both in investing and lifestyle choices.
Re: emotionAs every good horror director knows: people fear what they don't understand. Fear is always an abstract that lives in the shadows. Give a killer an origin story, and you're not watching a horror film. I think when people actually understand how bonds work, that cash is just another volatile asset class, etc. you don't worry about what prices do – they're all relative. It just helps you make decisions.
Re: lifestyleThere are very good arguments for frugality. Classic example was a librarian who saved every penny and retired at 50 a millionaire. The key point is: she was still a librarian.
As a counterpoint, when I see a bright young man parking an average, sensible car (Vauxhall, Nissan) in my carpark, I know he'll be working 40 hours a week forever. When I see a mixed race girl with a degree in communications (i.e. no real education) parking a new Mercedes A-class, probably leased, with the newest iPhone. I know she doesn't have anything in savings, but she'll be on 6-figures by the time she's 40. Or she'll have married wealthy. The car you drive, phone you use, clothes you wear... do dictate one very important thing:
what you're willing to accept. Where you're willing to settle. I see an attractive female in a Ford, Honda, Fiat, etc. I know her husband's going to be the guy in the Vauxhall.