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Abstract

r Unforeseeable Expenses</h1><p id="2fb4">According to <a href="http://press.careerbuilder.com/2017-08-24-Living-Paycheck-to-Paycheck-is-a-Way-of-Life-for-Majority-of-U-S-Workers-According-to-New-CareerBuilder-Survey">CareerBuilder</a>, 78% of Americans are living paycheque to paycheque. Moreover, nearly 1 person out of 10 making $100,000 or more is living this way as well. It’s safe to say many people are in dire need of financial education.</p><p id="a1e7">Some of us have exceptional circumstances. You can’t expect a single parent to be working for a minimum wage to have a lot in savings. Those taking care of sick or disabled individuals may also struggle financially. Students aren’t always prepared for unexpected bills. However, a good percentage of people have decent jobs and the ability to accumulate a nest egg. Most of us don’t need luxury items, yet we opt in to buy them.</p><p id="8169">If you live below your means, you can take care of a broken car, medical bills, sick pet and many other sudden expenses. If you spend everything you earn, you can’t do that.</p><p id="8bea" type="7">Being prepared for an unexpected hardship means keeping the roof over your had and not going hungry if things go south.</p><h1 id="fc60">Consumerism Dictates We Should Spend All Our Money</h1><p id="0bd1">We live in a world where everyone tells us to consume goods and services. The Internet is attempting to sell us useless products, the malls are full of unnecessary items, and even your dog’s vet will try to push you towards buying toys and vitamins. Most of the time, those purchases are useless. You may need to buy a pair of pants if your favorite ones ripped, but you don’t need to get the 27th blouse.</p><p id="d575">Don’t listen to people telling you to spend money on meaningless things simply because you have cash. Let them spend their money themselves. You choose where your paycheque goes.</p><p id="176d" type="7">78% of Americans are living paycheque to paycheque. Moreover, nearly 1 person out of 10 making$ 100,000 or more is living this way as well.</p><h1 id="b69b">Getting a Raise Doesn’t Mean You Should Buy a New Car</h1><p id="8b5c">You got a raise — congratulations! Prepare to defend your choice not to change your lifestyle. People will start telling you how you can now move into a luxury condo, or buy a BMW, or pay for a membership at the exclusive gym. Guess what? Your apartment is excellent, you’re happy with the ol

Options

d car, and no one should be paying $200 for the gym, Karen.</p><p id="91bc">Resist the influence of people who mindlessly spend all their money. They are the ones who struggle the most when a crisis hits. You should stick to your old budget and pocket the difference. And better yet, invest that difference. Be smart with your money.</p><p id="356a" type="7">It doesn’t matter how many Gucci bags you have if you cannot afford to buy bread and milk.</p><h1 id="24ed">No One Expected the 2008 Financial Crisis. But Not Having Savings in 2020 is Appalling</h1><p id="16cd">Again, individuals in particular circumstances are out of the question. Those dealing with hardships are also not at fault. But what about those who simply chose to waste their cash buying extravagant stuff?</p><p id="2fc0">The financial crisis of 2008 fueled by sub-par mortgages should have been a wake-up call. It showed us you need to be prepared for the worst; otherwise, you’re risking ending up on the street. How come individuals with stable jobs and decent paycheques didn’t set aside any money for the rainy day? Why did people set themselves up for failure?</p><p id="aa6d">Look at the good examples and shape your life accordingly. It doesn’t matter how many Gucci bags you have if you cannot afford to buy bread and milk.</p><h1 id="ee26">Emergency Fund is the Absolute Minimum</h1><p id="339f">If you don’t wish to save your money, at least set aside an emergency fund. It should cover your expenses for 9 to 12 months, with 6 months being the minimum. Once you have that — spend away.</p><p id="6c9f">Ideally, you should be saving between 10 and 70% of your income each month. Try to save something. It might seem challenging, but once you look at your expenses, you’ll find where to cut corners. Taking Ubers a dozen times a week and buying sushi every other day is not a necessity.</p><p id="47ec">The goals are to be financially prepared for anything and learning to adapt to changing circumstances. You don’t need to give up things that make you happy along the way.</p><p id="7e4b">Find good examples of financially cautious people — and follow them. Knowledge is power. Money is stability and security.</p><p id="e755"><i>This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.</i></p></article></body>

What Happens When You Don’t Live Below Your Means

Or how to ensure you don’t end up hungry and homeless

You will always find someone suggesting to spend your money. Some will advertise you the idea of a fancy brunch at a posh downtown restaurant; others would go as far as “selling” you a car. Purchases should be smart and bring you value, not take it away. Unfortunately, you will always encounter people who try to influence you with their luxury lifestyle, even though most of them can’t even afford it.

There is a smart way of spending money and a foolish one. You need to make sure you’re in the “smart” league. Otherwise, you may end up paying off your debts for decades, not having a proper retirement fund, and never becoming truly financially stable.

Living Below Your Means Equals Being Prepared for Hardships

If today everything is going well, there is a guarantee it’s going to be the same way tomorrow. You may have a high-paying job with perks one day, and then lose it the next one. And you may not be responsible for it! The reasons for ended employment are countless:

The company decided to cut costs and lay off a part of the workforce.
Your employer realized they don’t need as many workers.
The company was struggling and had to make a difficult choice.
The economy is terrible, and your organizations simply shut down overnight.
The company was acquired by someone else who has their own team of specialists.
The office is moving to another state, and all the current staff is laid off.
Your boss doesn’t like you and found an excuse to fire you.
You may have made a mistake after all and lost your job.

Keep adding more to the list! Most individuals don’t expect to go jobless overnight, yet it happens. And if you’ve been spending 100% of your paycheque — you are now in deep trouble.

Being prepared for an unexpected hardship means keeping the roof over your had and not going hungry if things go south.

You are Ready for Unforeseeable Expenses

According to CareerBuilder, 78% of Americans are living paycheque to paycheque. Moreover, nearly 1 person out of 10 making $100,000 or more is living this way as well. It’s safe to say many people are in dire need of financial education.

Some of us have exceptional circumstances. You can’t expect a single parent to be working for a minimum wage to have a lot in savings. Those taking care of sick or disabled individuals may also struggle financially. Students aren’t always prepared for unexpected bills. However, a good percentage of people have decent jobs and the ability to accumulate a nest egg. Most of us don’t need luxury items, yet we opt in to buy them.

If you live below your means, you can take care of a broken car, medical bills, sick pet and many other sudden expenses. If you spend everything you earn, you can’t do that.

Being prepared for an unexpected hardship means keeping the roof over your had and not going hungry if things go south.

Consumerism Dictates We Should Spend All Our Money

We live in a world where everyone tells us to consume goods and services. The Internet is attempting to sell us useless products, the malls are full of unnecessary items, and even your dog’s vet will try to push you towards buying toys and vitamins. Most of the time, those purchases are useless. You may need to buy a pair of pants if your favorite ones ripped, but you don’t need to get the 27th blouse.

Don’t listen to people telling you to spend money on meaningless things simply because you have cash. Let them spend their money themselves. You choose where your paycheque goes.

78% of Americans are living paycheque to paycheque. Moreover, nearly 1 person out of 10 making $100,000 or more is living this way as well.

Getting a Raise Doesn’t Mean You Should Buy a New Car

You got a raise — congratulations! Prepare to defend your choice not to change your lifestyle. People will start telling you how you can now move into a luxury condo, or buy a BMW, or pay for a membership at the exclusive gym. Guess what? Your apartment is excellent, you’re happy with the old car, and no one should be paying $200 for the gym, Karen.

Resist the influence of people who mindlessly spend all their money. They are the ones who struggle the most when a crisis hits. You should stick to your old budget and pocket the difference. And better yet, invest that difference. Be smart with your money.

It doesn’t matter how many Gucci bags you have if you cannot afford to buy bread and milk.

No One Expected the 2008 Financial Crisis. But Not Having Savings in 2020 is Appalling

Again, individuals in particular circumstances are out of the question. Those dealing with hardships are also not at fault. But what about those who simply chose to waste their cash buying extravagant stuff?

The financial crisis of 2008 fueled by sub-par mortgages should have been a wake-up call. It showed us you need to be prepared for the worst; otherwise, you’re risking ending up on the street. How come individuals with stable jobs and decent paycheques didn’t set aside any money for the rainy day? Why did people set themselves up for failure?

Look at the good examples and shape your life accordingly. It doesn’t matter how many Gucci bags you have if you cannot afford to buy bread and milk.

Emergency Fund is the Absolute Minimum

If you don’t wish to save your money, at least set aside an emergency fund. It should cover your expenses for 9 to 12 months, with 6 months being the minimum. Once you have that — spend away.

Ideally, you should be saving between 10 and 70% of your income each month. Try to save something. It might seem challenging, but once you look at your expenses, you’ll find where to cut corners. Taking Ubers a dozen times a week and buying sushi every other day is not a necessity.

The goals are to be financially prepared for anything and learning to adapt to changing circumstances. You don’t need to give up things that make you happy along the way.

Find good examples of financially cautious people — and follow them. Knowledge is power. Money is stability and security.

This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.