Was chatting with a friend the other day trying to figure out why the middle class is always feeling "broke" We talked about how a few years back Millennials and now Gen Z were being made fun of for buying $5 coffees, and $12 avocado toasts....well those arenât whatâs killing people financially. Itâs the: â $750/month car payment â $1200/month credit cards â $300/month subscriptions â $800/month student loans â $2,500/month rent Thatâs why six-figure incomes still feel broke. Math doesnât care about your salary.... My motto for key to wealth is always Live on less than you make and invest the rest.
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56 Comments
Philippe @flipflopfinance ¡ 6mo
I never made more than 100k in my life. But Iâve also never had a car payment, never paid interest on a credit card, never had a subscription payment, never had a student loan. Itâs funny because, likewise, I have a friend who makes 150k a yr who is dead broke & in debt and then another friend who makes 40k a year who has 100k in the bank and no debt. Your spending Will definitely dictate your future investment outcome.
Joe @1ironborn ¡ 6mo
The subscriptions for everything is destroying people financially. $10 Apple monthly so they donât delete your pictures off all devices. Iâve since started backing my photoâs up on an external hard drive after they tried to delete my wedding photoâs like they were their property.
Le Corb@lecorb ¡ 6moEdited
The concept of a $100K income has been around since I started working 30 years ago in 1990. INFLATION has eroded $100K, itâs no longer the benchmark for moderate middle class living and hasnât been for sometime now. The equivalent purchasing power would be $220-240,000 in todayâs dollars.
J @icallbullshit ¡ 6mo
The problem I find/see is that people do not do what is best for them. They just blindly follow society...
Crazy Canuck Investor @crazycanuckinvestor ¡ 6mo
Reading the comments reminded me of my own experience when I moved from Alberta to an in 2003 I went to school in AB and spent 10 years building my lifestyle. I managed to buy a condo and got a full time job. My first car was a 1976 Pontiac handed down from my grandfather. My second car wasnât gifted to me by my parents a Honda prelude. After about 10 years I needed a career change. My new job took me to BC. I had to take a big pay cut to do this. I sold my condo and made a little money. Although I used the first time home buyer program to buy it so I didnât have very much. But what I did have made me believe that I could afford to buy a similar place in BC I was wrong. In 2003 I tried to buy several places. They were an hour drive away from work. They were 20 plus years old and on the 3rd floor of a building. Not what I had in AB. Iâm the end budding wars occurred and I was priced out each and every time The dream of owning evaporated. I ended up renting. And even that was tough. I was in an illegal basement suite over an hour from work. Still driving the used car my folks gave me. In fact the rain destroyed that car and one day it just died. It took me 5 years to get back to the salary I was making in AB. In the meantime I worked a time of OT. In the time I manger to find a rental closer to work but I had to have a roommate to afford it. I walked or ride my bike to work. Eventually I was able to save up enough to buy again. Oh never mind my parents had to help with with some money as well. That was in about 2007 and yes I was in my mid 30s. Finally I bought back into the market. This time it was a townhouse. But again I was an hour drive from work. Same old car. Fast forward to today. I met my wife got married and had kids. We sold our townhouses and bought a house. We both worked full time and even at that time we didnât see our money going very far. So we sold and moved to improve things. We ended up moving times. In fact we ended up in a very small town where we rented for 3 years. Through all of that we still worked OT and finally bought our dream house. During all of that we did very little investing. We didnât spent outrages amounts of money. We could have reduced spending you always can and still have a good relationship with money. We could have not taken a few trips or made other conical decisions to build our net worth. You always can. I am now 52 and we are finally building our net worth. All Of those moves and family decision helped with that. Each move helped us build our net worth. Whatâs my point. Well throughout my life I have always thought that we didnât have enough. But if you look at our net worth we actually do. Wills post points out that you to Save as invest the rest. He is right. If at the age of 19 I started investing $100 a month we would be so much further a head. $100 a month is achievable for many peopleânot everyone, but many. The hard part is seeing through the fog and making it a priority. No one handed me what we have today. It came from decades of work, trade-offs, moves, and persistence. Inflation is real. Housing is harder. Iâm not denying that. But the idea that nothing can be done because âtimes are differentâ can quietly rob people of the one thing that still matters: starting where you are and doing somethingâhowever smallâconsistently.
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