Their money concerns are misplaced
“This couple is going to be extraordinarily wealthy over the course of their life,” Sethi said in the newsletter. “If they simply left that money in the market and did nothing else, it would turn into many, many, many millions of dollars at a conservative 7% return rate.”
This couple is far from being in a precarious financial situation. So why the fear?
Their attitudes about money aren’t aligned with the reality of their objectively secure position. Anything can happen, and the couple mentioned fears like artificial intelligence making their jobs obsolete. Still, “they are playing life on defense,” Sethi wrote.
“They are so far ahead of almost anyone else and yet they still feel worried.”
DON’T MISS: The ultimate guide to earning passive income online
‘They have already won the game’
Their living expenses including their mortgage payment, child care, food costs and more, totaling $18,305, come out to about 40% of the couple’s net take-home pay. Since they have around $70,000 set aside, they’re not regularly contributing more to their emergency savings. That, Sethi says, is fine.
The bulk of their income goes toward their investments — to the tune of about $25,000 a month, between retirement savings, taxable brokerage accounts and a 529 savings plan for their child.
At the time of the newsletter’s writing, their investments were worth around $1.5 million. Since they still don’t feel financially secure, Sethi believes that’s coming from their cultural backgrounds. The partners are both immigrants from India, a culture Sethi says he understands well.
“They’re probably going to go the rest of their life worrying about money, thinking they’re behind, agonizing over tiny expenses and never actually zooming out and recognizing that they have already won the game,” he wrote. “They could get laid off and they would be fine and that in and of itself is unlikely to happen.”
They don’t yet know ‘how to spend money meaningfully’
The couple…
Read the full article here
