Opportunity Costs and Pessimism

GenerationYFinance

betterment.com/invite/kylerademacher

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When you decide to do something you have to take a look at what options are being presented to you. Everyone and I mean everyone has problems and situations they just wish that they could make disappear. I have a good friend who only looks at the positive side of things. I don’t hang out with him all the time because we have completely different lives and schedules but he is one of the most positive guys I know. He is always volunteering to do something, always looking to help less fortunate, and always smiling. Sometimes I wonder what the hell is going through the dudes head but only God knows. His hashtag is

#staypositive, instagram, keepin_1T_LIT

The millennial generation is one of the most if not pessimistic group of individuals. I used to be extremely pessimistic until I started noticing I don’t have be pessimistic about things. All I ever see on my Facebook wall are negative, degrading, and situations where people want you to feel sorry for them. Im still learning a lot at my young age, but I do think I am pretty wise for my age. I had my epiphany for change this year and started putting my brain to work a lot harder. You can not find out who you are, you have to change who you are. And I have decided that the biggest thing I need to worry about right now is being able to build a portfolio for me to be able to draw from when I am ready to retire. It isn’t a retirement portfolio but saying so and so is only for retirement and so and so is only for savings seems rather contradictory to me. What ever money one puts away into an investment account can be considered retirement money. As I get a bit older I will eventually open one but for now I am just funding two small investment portfolios. I do not put a lot of money into them, I don’t make buckets of money, and my living expenses are rather high since I live in San Francisco. The fact that I am even able to set something aside blows my mind.

My approach is extremely broad compared to what most financial experts would suggest though. The only reason I am able to get away with how I approach investing is the fact that I am extremely good with finances and very rarely miss a beat when it comes to the flow of money. I take my approach in a way or learning and just analyzing different situations that can arise for me as I get older. After all now is the time for me to create a layout. Most financial experts all suggest paying off all credit card debt before even investing. Which this is pretty true I will admit that but I look at the big picture and opportunity costs that await me. When I first started dabbling with credit cards I never even looked at my credit score when I applied for my first two cards. Ive had those cards for maybe 5 years now, but looked at my credit score my once or twice a year until this year. This is the year I started getting an actual understanding for my credit score and what it meant to me. So I was essentially just using a credit card not even aware of the fact that I was actually helping myself. Since I did this I was able to obtain basically the best credit cards on the market. Cards like the American Express Blue Cash , Citi Bank Simplicity, and Discover IT. Ive noticed that pretty much anyone can qualify for a Discover IT card, but they have at least four different types. If you are on the market looking for a card I simply have to say that Wells Fargo and Bank of America have absolutely nothing to offer and you should pretty much avoid opening an account with them.

Now while I am still paying off credit card debt I might as well use the cards and get some cash back rewards right? I just cashed in close to $150 in rewards to pay for a couple things and invested some of it into my Acorns account. Thats free money. And I am going to happily accept free money when ever it is giving to me. And I’m not paying any interest on these cards because I never miss a payment. Ninety percent of my debt is floating on my Chase Slate card which is a 0% APR card so I still have plenty of time to pay it off and don’t really worry about it either way because If I somehow for some unlucky reason have to Ill just transfer it to another 0% APR card with a 0% Balance transfer. It really isn’t that big of a deal.

When I look at my generation it really just amazes me how screwed most of us are. This is just because we as a group can’t seem to see the brighter side of things, we cant seem to learn how to attack wide open situational options we have. And most of us suck with money. We just get so tempted to keep up with the so called Joneses and spend far more than we can even afford or handle. Im really just thankful for the fact that I am getting situated at a young age and not six years from now when Im thirty. And yes we will have the smartest and brightest kids when we become parents. I refuse to think that any other generation will be smarter than our own kids when we start families. People that only look at the negative side of things are the same people who get stuck, the same people who dig holes and have no way of digging themselves out, and the same people who think they deserve the world. The optimistic people are the people who look at situations presented to them currently and situations that will arise into the future, the people who look for positive things, the people who stay on the grind and appreciate what they have.

Update on my Acorns vs Betterment Accounts.

Acorns is currently at $411.70 with $19.79 since pending that will deposit into my account I assume on Monday. I have posted a 4.5% return in only 10.5 weeks. 4.5% may not seem like a lot but it takes a shit on what savings account offer you. Im currently up $17.57. Which is extremely satisfying.

Betterment is currently at $742.20 with $200 posting on monday Im pretty sure. I have to double check my spreadsheets, but Im pretty sure I have $200 more going in on Monday but for sure I have $100 going in on Monday. Betterment altered their returns platform it says I am -0.2% right now since they do time weighted returns now. Im still trying to get an understanding for the time weighted returns, but according to their old platform which is the same as Acorns Im up 4% and have a $27.20 profit so far. Again all in 10 weeks.

I should end the year with a combine total of at least $1500 between the two platforms. And $1600 if I somehow go crazy and find a spare $100.