🤑 𝗘𝗹𝗼𝗻 𝗠𝘂𝘀𝗸 𝗮𝗻𝗱 𝗜 𝗛𝗮𝘃𝗲 𝗮𝗻 𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗼𝗳 $𝟭𝟯𝟱 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗔𝘀𝘀𝗲𝘁𝘀—𝗦𝗼 𝗪𝗵𝗲𝗿𝗲'𝘀 𝗠𝘆 𝗬𝗮𝗰𝗵𝘁? 🤑
Did you know that Elon Musk and I have an average of 𝗮𝗯𝗼𝘂𝘁 $𝟭𝟯𝟱 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 in assets? Yep, you read that right. Based on my 𝘢𝘷𝘦𝘳𝘢𝘨𝘦 assets, I should have a massive investment portfolio, be heavily invested in startups, and own multiple pieces of real estate all over the world. Maybe even a private jet or two. You know, the usual. But somehow... 𝗜 𝗱𝗼𝗻'𝘁 𝗳𝗲𝗲𝗹 𝗮𝗻𝘆 𝘄𝗲𝗮𝗹𝘁𝗵𝗶𝗲𝗿. Weird, right? 🤔
Let's be honest: Giving financial advice based on average assets is absurd.
But why do we do this so often—giving financial advice based on average values that don't reflect most people's realities?
Take this other example: Germans supposedly have an average of over €𝟳𝟬,𝟬𝟬𝟬 just sitting idly in their bank accounts. Every newspaper says, "Germans should invest more of their money!" 🚑
But the 𝗺𝗲𝗱𝗶𝗮𝗻 assets in Germany are actually €𝟭𝟴,𝟳𝟯𝟯 (which, by the way, is 3 times lower compared to the US). A bit more realistic, right?
Speaking of realistic numbers, let’s take a closer look at what the average German household might actually need. The average net income in Germany in 2023 was €𝟮,𝟰𝟯𝟬 per month. Personal finance wisdom tells us we should have an emergency fund of 3-6 times our net income. That’s about €𝟳,𝟬𝟬𝟬 𝘁𝗼 €𝟭𝟱,𝟬𝟬𝟬. This amount would help an average family survive for about three to six months in case of a crisis.
€𝟭𝟱,𝟬𝟬𝟬 might be a decent cushion for most of us, but let’s be real—for someone like... Mario Götze (just because I saw a post from him 5 minutes ago), it would probably last two weeks. If someone in his income bracket followed the "rainy day fund" rule, they’d have way more than €𝟳𝟬,𝟬𝟬𝟬 readily available to cover expenses for 3-6 months. Sure, he probably has plenty invested elsewhere, but for someone like him, having €70,000 sitting in a bank account wouldn’t exactly be a problem, right?
So next time you hear about how Germans have €70,000 lying around doing nothing, take it with a grain of salt. Averages are misleading. 🤷♂️
Now, if anyone knows where I can get a document proving my $135 billion in average assets, I’d love to use it to get a loan for some real estate. Imagine the interest rate I could negotiate! 😂
#FinancialEducation #ElonMusk #PersonalFinance #MoneyWisdom