Right, because the SUCKERS like me who spend far less than they earn and keep their money in a savings account with the highest interest rate they can find (at essentially NO risk) were hurt so badly last time the economy crashed. Right?
Having the freedom to make that happen, especially when nearly everybody around me is burdened by debt, is incredibly valuable. I couldn't do this if I had spent all my money on 'enjoying' myself all the time.
True, you shouldn't wall yourself off from the world, but at the same time, spending every penny you earn, when you earn it, is just folly.
Spending lots of money is the opposite of freedom, at least for me. I'm glad I have small expenses and monthly payments, because I value my financial security and freedom a lot more than shiny gadgets.
It might be a cliché, but I'd rather not become a slave to the things I own.
Personally, I have done well with a S&P500 index fund. But I still like to have a big chunk of money immediately available, so if I need the money I can get at it without worrying that today is a "down day".
(People will argue that this is a waste, because inflation outpaces whatever you earn from interest, but this is not entirely true. Other people will enter into similar "money-losing" agreements with me; my rent will cost the same number of dollars every month for 2 years. So while I'm technically losing money, I still have the ability to pay for the same stuff. Compared to actually losing money by buying into whatever fad is popular today, I prefer this one...)
Huh? Gold (and commodity metals in general) has been the trade of the decade.
> Gold does not have a lot more intrinsic value than anything else.
You can go any time in history any where in the world and buy a decent suit with an ounce of gold. Gold has always preserved wealth in the long run. Not true of any other asset class. Everybody should be at least a few percent in gold. It's cheap catastrophe insurance.
In the real world it's done the opposite. Golds gone up in value as we've printed more money.