How To Ruin Your Financial Life is a topic that I hear about every day, and have been meaning to write about for a long time. Unfortunately, the actor and economist Ben Stein got to the topic before I did. And man, is it a great topic!
Every day, we have calls from men with wives 20 years younger than them looking for lifetime income for both… Or we get calls from individuals with $200,000 saved, looking for an investment that pays them $100,000 a year in retirement income… For life! Hah! Both are total pipedreams, and both represent ruined financial lives.
Ruining your financial life is not hard to do. While I have not received the book from my Amazon order yet, I suspect this book is peppered with good humor, and good wisdom. This very short video interview on the Wall Street Journal is worth 4 1/2 min. of your time, because the fundamental principles Mr. Stein talks about are absolutely infallible.
He talks about human capital and financial capital both. Ruining your financial life by not leveraging your human capital in your early years to create sufficient financial capital to support your latter years is all too common. People squander their ability to earn, show up, do a good job, and make money… I know I have made decisions that set back my financial capital.
While this book’s title may be tongue-in-cheek, the short amount of economics that I heard in that interview make me believe it is well-founded. I have written in the past about Zvi Bodi, Moshe Milevsky, and Paul Samuelson… I heard echoes of each of these economists in this brief video.
I look forward to reading this book, and if you’ve read any of it, tell me your thoughts in the comments below.