I know other people who are 'saving' for their next big whatever. I think savings is all in the eye of the beholder from their reference point. I know a few multimillionaires who are spenders and don't really believe in savings, because they just have investments always coming in, but they don't put any more aside for retirement, they just spend less than what comes in.
There really is no reason to get stressed over something you can't control. You don't know the whole story, and how does someone over spending really impact you.
BTW... my parents came here with nothing, and would be considered 'poor' by our standards, but they had a great work ethic, some smarts, and would no longer be considered poor. Nor are any of my siblings and I.
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Both of us have immigrant parents who worked their asses off to get to where they are, but there is a huge difference in our attitudes towards money. My parents saved up in the 70s, living on one income while saving the other, and were able to buy a house with cash in 1981. To a large extent I have adopted their attitude towards money. I have a phone that was out of style 8 years ago and none of these fancy gadgets, but I have an investment portfolio approaching 40K and steadily growing.
It's a tradeoff, and down the line you'll be much better off than the guy blowing two year's salary on a car. I don't need the newest gadget because in 3 months it will be replaced and cost a fraction of what it first did. My co-worker however, will never have money because the more he makes, the more he spends.
You got to remember,the "guy" thats working for a car for the next 2 yrs,doesnt "see what you see" nor does he care to,your thoughts on money and his thoughts on money are different-you see,and can foresee what kind of problems he is setting him self up for,your viewing his decisions from your perspective,he doesnt have your view point.(your thoughts are not his thoughts and vice versa)
Plus,id bet you have high standards for yourself,and have high self confidence and self worth-hence your investments ect,your stragies on how your going to build them ect,thats kind of how i think about it....im not a whole lot older than you but we are on the right path,i like your chances over his for growing your assets,nest egg ect.20 yrs from now that guy will prob be telling his kids what an idiot he was when he was 25 and bought a car for a 2 yr salary.Like everybody says the only person you can control is you,its actualy a weakness in you if your jelous,because you know better not to be,but you are if that makes sense...i struggle with comparing myself to others to and it one thing im working on,self improvment is hard.
Dmoney, you could be my younger Brother, when He dies his Daughter will inherit several millions of dollars.
I used to think I'd love to inherit millions, or win a huge lottery, but I now feel that being gifted huge sums of money is not nearly as fulfilling as earning it yourself.
Although at the same time, I wouldn't say no to either...
I think alot of the time it is a conscious decision about how you want to live your life. My wife and I choose to save 4 -5k per month instead of "living it up". Part of me yearns to buy a 60k Audi (I am a car guy), a big house with a pool and a hot tub, and honestly we COULD... but we have chosen not to pursue that lifestyle. Simple as that. It is either live like "millionaires" with all the trappings and work until 65 or beyond to pay for it all, or live a good (but not flashy) life and retire in our forties with actual "millions" in the bank. Needless to say we are shooting for the latter.
Seems like a simple rationale to me.
Not enough income = no savings + increasing debt loads.
If the economy is to continue growing, wages have to keep up with inflation.
On an inflation adjusted basis, people can buy less goods with their money today than they could 20 years ago.
Take away the opportunity to borrow against future earnings, which is all that debt is, and the economy would have collapsed a long time ago.
The government knew this, and that is exactly why they lowered barriers to credit.
Unless wages go up dramatically, there are only two ways it can go.
Personal debt will continue to rise, or spending will stop and the economy will slow down.
Last edited by sags; 2011-05-12 at 09:42 PM.
I agree with a lot of what has been said in this thread.
In general, I believe that people need to take responsibility for themselves and not complain when they are "broke" or in debt, yet continue to eat at restaurants everyday, buy the Ipad2, buy a car instead of taking the bus, etc.
The people with the mentality I have suggested are the most financially secure.
"ohhhh but everyone else is getting the Ipad2".
Last edited by bmckay; 2011-05-14 at 04:11 PM.