How do these people have so much money? February 8, 2006
Do you ever wonder how people have so much money to spend? How does someone buy a house or apartment in NYC or LA and have huge mortgages and still go out to eat most nights of the week or go out to a bar and spend hundreds of dollars? I used to go out and buy rounds of drinks for friends but that was when I was young and didn’t worry about how much things cost. I still go out and have fun, but my priorities have changed. Now that I’ve set a goal and created a budget, I think about the consequences of buying things or going to a restaurant.
For the people who actually have a lot of money to spend, have they already funded their retirement account? Or do they have an emergency account of 6 months? I have some friends who work on Wall Street and although some of them make a lot of money, they spend whatever they earn on housing, entertainment, and nice things, especially with their huge Wall Street bonus this year. But some don’t worry about the future.
For those who don’t work on Wall Street and get $125,000 bonuses, we have to think about living below our means and putting away as much as we can to reach our goal of financial freedom. You can either save more or make more. For many, making more money involves a lot of planning and searching for a new job, so an intermediate step is to save more. No more bottle service at the South Beach bars!
- Posted in : Living Below Your Means, Income Gap, Savings
- Author : Kyle
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