Basic Financial Literacy

I talk about personal finance, investing, and how to make more money. Quoted in @time, @financialtimes, @businessinsider and @usatoday

[Basic Financial Literacy @LiteracyBasic]

Warren Buffett is shaking his head at how many stupid people are going to lose money because of this.

[Basic Financial Literacy @LiteracyBasic]

Deflation is one of the worst things that can happen to an economy.

You’re seeing it play out in China right now, and it’s a slow bleed that can take years to reverse.

Here’s why deflation is such a problem, in simple terms.

1. Prices fall.

Sounds good, but it’s not.

When prices drop across the board, people wait to spend because they think things will be even cheaper later.

Less spending means less revenue for businesses.

2. Businesses respond by cutting.

Lower revenue leads to layoffs.
Lower wages.
Lower investment.
Lower growth.

3. Debt becomes heavier.

If your income falls but your debt stays the same, that debt gets harder to pay.

Households, companies, and entire governments get squeezed.

4. The whole economy slows down.

People spend less.
Businesses earn less.
Banks lend less.
Everyone pulls back at the same time.

That’s the deflation spiral.

So what exactly is deflation?

It’s the opposite of inflation.
Inflation is when prices rise.
Deflation is when prices fall for a sustained period.

A one-off drop in the price of eggs is not deflation.

A broad, long-term drop in prices across the economy is.

Why China matters here:

China’s consumer prices have been falling.

Its property market is collapsing.

People are saving instead of spending.

Businesses are pausing investment.

Local governments are buried in debt.

This is exactly the type of environment where deflation takes hold and gets harder to escape.

Deflation is dangerous because it changes behavior.

People stop spending.
Businesses stop hiring.
Debt gets heavier.
And the economy drifts downward.

Once that mindset sets in, it becomes extremely difficult to reverse.

[Basic Financial Literacy @LiteracyBasic]

You can end up a multi millionaire by following what Ramsey (and any other finance personality) says:

“Spend less than you make and invest the difference”

Can an average household hit $10 million+ by investing 15% of their income?

No. The numbers are inflated to catch your eye and spark a debate and engagement.

But the principles are correct.

[Basic Financial Literacy @LiteracyBasic]

Dave Ramsey says if you invest 15% of your income, you’ll retire with $11.6 million dollars.

Let’s break down the numbers to see how true this is:

[Basic Financial Literacy @LiteracyBasic]

Is investing $987 a month or making $79k at age 20 realistic? Probably not.

Is a 11% return realistic? Also no.

7-8% (especially when you factor in inflation) is a better estimate

The verdict:

[Basic Financial Literacy @LiteracyBasic]

Bottom line:

You might get a $2,000 check.

To me, this feels like a response to election results and the number one issue on American’s minds:

affordability

[Basic Financial Literacy @LiteracyBasic]

Breaking:

Trump just posted every American will get a $2,000 “tariff dividend” funded by import tariffs.

He added: “not including high income people.”

Here’s how that would actually work (or not).

[Basic Financial Literacy @LiteracyBasic]

There are also questions:

Who counts as “high income”?
When will it be paid?
Does Congress approve it?

Right now, no one knows.

[Basic Financial Literacy @LiteracyBasic]

@grantpaulsen I love Jayden, but he’s starting to feel like a high end sports car that constantly needs to be at the mechanic.

[Basic Financial Literacy @LiteracyBasic]

Running out of money in retirement is a legitimate fear many people feel.

To help you, I put together a free guide:

The 10 Most Expensive Retirement Planning Mistakes (and how to avoid them)

Download it in my profile link.

[Basic Financial Literacy @LiteracyBasic]

If you’re 50 or older and afraid of running out of money in retirement…

You’re not alone.

Even people with $1–2 million saved feel it.

Because in this economy, even that might not be enough.

There are 3 numbers that decide if your money lasts or runs out too soon—->

[Basic Financial Literacy @LiteracyBasic]

Your Guaranteed Income

Social Security is your safety net…not your plan.

The average couple gets around $4,000–$5,000 a month combined.

For most, that barely covers essentials.

[Basic Financial Literacy @LiteracyBasic]

It’s the mistakes that drain your savings before you even get there.

That’s why I put together a free guide:

“The 10 Biggest Retirement Planning Mistakes”

👉Download it in my profile link and avoid the errors that keep most people stuck.

[Basic Financial Literacy @LiteracyBasic]

Are you on track for a comfortable retirement?

Most people aren’t…and the numbers prove it.

Median retirement savings in America (Federal Reserve SCF):

•Under 35: $18,880
•35–44: $45,000
•45–54: $115,000
•55–64: $185,000
•65–74: $200,000

Sounds okay… until you apply the 4% rule.

[Basic Financial Literacy @LiteracyBasic]

That’s how much you can safely withdraw from your investments each year without running out of money:

•$115,000 → $4,600 per year
•$200,000 → $8,000 per year

That’s barely enough to live on.

For many households, the real goal isn’t $200K.

It’s $1–2 million+, depending on your lifestyle, location, and healthcare needs.

The biggest danger isn’t the number