It all depends on your lifestyle. Having a family and kids is of course a major responsibility (One that I would only consider once I am 100% financially secure). At the same time, there is personal responsibility (That has less to do with spending your money on "necessitates (there are those who live on less than 5000 dollars a year)" and more to do with keeping out of debt and only spending what you really need.) Creativity and imagination are extremely important assets to have when it comes to living within your needs. Someone can make 50k a year and spend all of it partying every weekend. Or someone can make 10k a year and spend all but 1k on what they need to survive. The difference? The second person saved that 100 dollars a month before ever even spending a dime. Who do you think will be better of in 50 years?
I dont think people realize their spending habits actually form around how much they make. You could make an extra 5,000 dollars a year, but what would the the point if you started spending 5000 dollars a year? Your needs didn't go up, but your WANTS did. We have way too many things we WANT. You know what I WANT? I want to be financially secure enough so that I don't have to work my entire life. I do this by only spending what I have too and not putting anymore responsibility on myself than needed. I could go buy a new house, a new car, get a job, get a family, buy everything with credit cards and live the American dream. But I choose not do put un-needed responsibility on myself and instead choose to save most of the money I make and reinvest it so that in the future I can be secure. Security is way more important than cars an material goods. I am lucky enough not to have a big family to support (only child, help my dad take care of the house.) and instead of taking advantage of the situation I am spending everyday learning how to make money so I that I don't have to depend on a job (which by my definition is the worst steam of income) in the future.
People do not realize that the traditional way of thinking in America (Go have kids, buy a house, get a car, pay for it with a job, live paycheck to paycheck, buy materialistic things because that is your duty.) is a TRAP. You don't have to do ANY of those things to survive. All you need to survive is clean water (found freely because we where lucky enough not to be born in a 3rd world country), Shelter (which is really cheap if you're creative and realize the big house with a big mortgage and a big yard with a big electric bill is more of a burden than an asset), and food. By food I mean what you need to survive. You don't need meat everyday. Rice, dried beans, pasta, eggs, and raw vegetables are very cheap. 30% of the food in this country is thrown away because we buy a lot more than we need. Our idea of "poverty" in this country is a joke. Homeless people in our countries live better than WORKING people in some other countries.
If you want things, learn to SAVE your money first then buy them later. If you cannot afford your wants then you need to take a look at your needs. Here is what you should use your money for:
Start by giving yourself 10% or more of what you make.
Pay your basic necessities for bare survival (this can vary depending on your needs but if you are creative you can find a way to live on 10% less income)
Pay your bills (Bills and necessities are NOT that same thing. Bills include debts, electricity, car, insurance, house)
Buy your wants.
Once you have saved enough to pay for 6 months of living (This is why I say 10%, because in 5 years you should have this. The more you save the sooner you reach this point.) Take any extra and put it towards making money (don't spend it unwisely, use it to improve yourself or invest it into something.) You can pay for college if you think an education will get you the life you want, or invest it into something you have knowledge of. The internet is great because the earning potential with little investment.
Community Forum
Topic: low income (Read 6527 times)
September 10, 2015, 09:01:56 am
