You Can't Take It With You.......

But you don't have to live like you can't!!!

It's obviously more to being financially secure than setting and meeting goals, budgeting, and even saving money. But I certainly like to talk about spending vs. saving, so lets do it.

It's  many people that make over $100,000 a year and should be able to live a comfortable life and save that do not and there are people that make under $50,000 and are able to live comfortably and save....the real question is why?

I feel some people make a certain amount of money and then allocate nearly each penny to a bill... New Iphone/Android once or twice a year, other gadgets like ipads, computers, luxury car, overpriced clothing, a home at the top of their price range that is fully furnished with huge TVs and expensive furniture. This is a personal choice but it really affects more of us than we realize. How many times have someone whom drives a car that's nicer than yours, lives in a beautiful home, and/or makes more than you... asked you for money? Most people even high earners that are poor savers have pride and would avoid asking even in dire need. For many the items that they possess are a cover-up to show financial success in it's most shallow sense. Luxuries and excess doesn't equate to success nor financial security.

Spending above your means is not a uncommon problem. And honestly frugality isn't the answer for everyone but what does spending over saving really do? If you lose a job or a business fails without you having any savings how long would you be capable of paying a mortgage/rent, car loan, and other living expenses? So many don't think of these things until something serious happens. Having your net worth in your closet doesn't do much good when it comes time to eat. Some people are spenders others are savers but it's not impossible to change from a spender to a saver.

Let's look at it this way if a person does make $100,000 a yr and saves $1,000 for emergencies and personally invests $5,000 in a retirement fund and spends every other penny every year, and another person makes $40,000 and saves $4,000 for emergencies, and invests $4,000 in retirement, personal trading funds are $2,000 every year. Who is most likely to play the lottery frequently? All jokes aside and speaking from experience people who are careless with their money and don't respect it think something magically has to happen to "fix" their financial issues. Now I can go into sending habits in details, living expenses, and so on but the key is pointing out differences in savers vs. spenders. If you so choose to think about this more in depth about half of the income (generalization) is going to taxes and living expenses..rent or mortgage. The person that makes $40,000 has about $20,000 after the largest 2 expenses and can choose to put money in savings after the other bills and expenses are paid, or just blow it on "things" like a decent percent of the population. Most people that don't save aren't unintelligent or struggling so bad they can't.... they simply choose not to.

You make the choice saver or spender?