I think the reason most people feel the need to spend so much and save over 1 million for retirement is that they feel that security is achieved by owning houses with multiple beds/bathrooms (fortresses) built around garages that house full cars or large SUVs sometimes in the way military vehicles. This trend toward larger and more reinforced buildings has been especially strong since 9/11 and certainly easier financing has helped this trend. On the other hand, the status is shown by the things (medals?) they wear. Bigger/newer TVs, bigger/newer fridges, bigger/newer furniture, bigger/newer kitchen, bigger/newer balcony, bigger/newer toys. In terms of MBTI, this behavior is mainly driven by those with the SJ “protector” personality.
The SP “player” personality has been sold on the desire for instant gratification. Take a day. Live in the moment. Just do it! Carpe Diem. They need to buy whatever they want when they want it without comparison shopping or price considerations. They are usually good for a laugh, but personally I think they should be stop taking this gift so seriously and start living a little tomorrow
Either way, both lifestyles are expensive. It is very expensive.
SJ and SP nerves cover more than 70% of people. Therefore NT and NF intuitives tend to gravitate towards this way of life as well. Humans are social animals. We show herd behavior to some extent.
However, many The NF “unpleasers” are drawn away from the herd and towards the causes: Save the animals, save the planet, stop eating. There are many nut cases in this group of very good people, but usually the NF “enjoyers” are the ones who are most attuned to the fact that the above lifestyles cause damage as a side effect.
The “editors” of the NT have it all figured out. Most financial bloggers are “editors”. On the road, you have a 15% chance to run into NT. On a personal finance blog the chances are almost 50%! I used to think I was weird having a full six figure income before you make more than $45k and before you turn 30. Yet for NT personal finance bloggers, this is apparently the norm. We have solved the personal finance puzzle and thus spend time telling people how to game the current system with ROTH IRAs, 401ks, emergency funds, college degrees, career tracks, etc. in order to increase the cost and use.
NFs are like canaries in the coal mine. Whenever they are unhappy, things are bound to change. Therefore NTs should not only solve the current personal financial problems but try to predict and plan for the future that the present time will transform itself to face the differences between people. If history is any guide things will look very different fifty years from now just as they looked very different 50 years ago.
Those who plan ahead will be ahead. Although those who have been optimized according to current standards will eventually be beached and complicated.
So from now on I will try to cover what I think the mid-year future (2030) will look like and how to prepare for it. I think focusing on 401ks,.., home ownership, and leverage is the financial equivalent of preparing for the ultimate war. eg racing the best and most impressive horses against early mid-century tanks. Current techniques work for those aged 50+, but for those younger, things will be different. Perhaps very different.
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First posted 2008-02-26 07:22:41.
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