Yes, exactly. One of the things I hope to do through my writing is to get people to see past the shiny. To understand the difference between real, serious wants and mere passing fancies before they spend the money, rather than after. I talk about this in Needs, Wants, and Not Even Wants.
I didn't say you couldn't have a higher standard of living if you worked at a job. Obviously you can, especially if it's a good job.
What I'm saying is that choosing that higher standard of living is choosing to put yourself into a trap. Once you've embedded the related costs into your household's financial structure--the mortgage payments, the car payments, the property taxes--you quickly find that you have very little flexibility. There are only so many jobs that will pay you almost six figures.
Someone who lives comfortably within his or her means quickly accumulates some capital--money that can be invested for a return or drawn on in an emergency. Someone who chooses a low standard of living will find that there are many more ways to cover household expenses than the one job that pays the most money.
Obviously the path that gives you the most freedom the quickest is to take the high-paying job while living at the low standard of living. Then you're always free to dump the job if you don't like it, but in the meantime you're accumulating capital that can make the job unnecessary. That's kind of what I did. But I've come to believe that it would have been even better to make a go of doing what I loved sooner, by choosing a standard of living that was low enough that I could have supported it with my writing.
Still, I'm not trying to tell anyone what to do. I'm trying to educate people about the options, and get them to at least give the matter some real thought, rather than just go with the default option of debt supported by the highest-paid job they can find.
Even if you were to break free of the "wave slave system" you would by default be enrolled into the "survive or die system" like the rest of the natural world. Most animals have no shelter, no bills, no shopping, nothing but free time for hunting and procreation. Humans don't need really need 97% of the stuff we get, but we "want" stuff so we make the trade off and end up disgruntled once the shininess wears off our brand new toyota corolla.
It's the baking soda in some toothpaste that takes the burning sensation out of the burnt flesh. Severe burns are still severe burns and will need medical attention. But does toothpaste stop burns from burning? The answer is yes, as long as it has baking soda in it. Do you have baking soda in your house? Maybe, maybe not, but most people have toothpaste, so check the ingredients, because it works and it works quickly.
I don't know. It's a good theory, but I'm not sure everyone can do this.
Yes, picking up garbage or digging ditches are jobs worth doing.
But really, how many people would be willing to do these jobs, especially for the salaries they would earn doing them?
Seriously - think about it.
If I could earn as much as I do now (I'm a nuclear engineer) digging ditches, I just might consider it.
Who's willing to pay me almost 6 figures a year to dig ditches?
Or pick up garbage?
Or work at McDonalds, serving burgers? That sounds like fun for a cool $100k a year.
Will anyone pay me this much, so that I can do what I like to do?
Any takers?
(And before anyone says, "but why do you need this much money", I have four children, and I enjoy a comfortable standard of living. I'm not quite ready to start shopping at the second hand store for everything.)
If you work for yourself, surely you still must be doing *something* for *someone* who pays you, right?
You're a freelance writer? Well then, you're still sort of a slave to your clients.
Yes, you can choose to stop working.
Well, so can I.
At any time.
I could quit my job tomorrow, if I so desired.
In this regard, I am no different from the self-employed.
I also enjoy flex hours, I have 20 days paid leave a year (and can take more, unpaid - just like a freelancer), and I have paid sick leave.
Sort of sounds the same, in many ways, doesn't it.
I am one of those who is actually stressed out by spending money at all. I used to stress-spend, after I got my first job but before I had to worry about things like rent, car insurance, or student loans. Now that I do have all those things to worry about, my budget is much tighter, so I keep careful track of my money with a spreadsheet; whenever I'm at the store I have to actually tell myself that it's OK to spend money sometimes, even if I'm only buying necessities at the time.
I am, however, an emotional eater, so I definitely understand how stress can bring on the urge to spend money, which then creates a vicious stress-cycle.
I received an email after registering for a mystery shopping company by the name of charest evaluation inc. It told me that my first assignment would be to evaulate WalMart and Money Gram. I am to spend $100 for myself, keep $200 and wire over $1500 to somewhere in South Africa. They told me I would receive an package in the mail that would include the money and evaluation forms. Well today I received two money orders for $1000.00 each but no evaluation forms.
Other people on this site has received cashier checks and regular checks. Anyone out there heard about this company? Should I report it to the ploice department?
Maybe I'm misinterpreting it but, the article makes it sound as if business people are laying awake at night worried that everyone will suddenly stop working or become debt free. Or that business owners somehow consciously choose to keep the workers 'enslaved' in debt & work just to keep them subservient or something. I don't think anyone is worried that people will stop work nor lose incentive to work. I don't think most businesses or businesspeople feel any dependency on their workers or customers being in debts. (with the obvious exception of lenders)
Usually, its my time that's in short supply, so I buy more expensive things to compensate, i.e. ready-to-eat meals or take out as opposed to cooking from scratch. Or, if the place is messy, because I haven't had time to clean, it seems more fun to go out & invaribly I end up spending. And then I do feel stressed because the bills are high, and I feel the need to spend more time working to make more money. So, what I do is I take my take home pay (after retirement, taxes, etc are subtracted), divide by a 40 hour work week & get an actual hourly rate for what I earn. Then I decide if whatever I'm going to buy is worth X number of hours at work of my time. It takes me 40 hours/month to pay for the house--one week a month to pay for something I live in 100% of the time--that's reasonable. 40 hours for some gadget that I'll lose interest in after a year or so? 3 hours to pay for a fancy dinner that lasts 1 hr? Nah, not so appealing now. 30 minutes or less to pay for a 2 hour movie? Sounds good!
With the actual $/hr rate, I don't stress over smaller items & it makes it clear on larger items if its worth the costs.
I don't let myself shop online when I'm stressed. It's so easy to do, it's where I will do the most damage. If I notice I am browsing things more often (or buying them more often!), I just don't buy anything at all online - the urge passes.
There are alternatives, and I'd love to see more discussion on this.
Colleges: instead of pushing our kids to get into debt up to their eyeballs, how about some honest talk on how to get an education without debt: community college and transfer credits, choosing affordable colleges, AP/IB credits, studying on their own and testing out of courses, letting them work summers in high school to help pay for college. I'm pushing my kids to get through college debt-free.
Choosing to live without debt doesn't mean you've got a crappy job and a crappy apartment. It means that you *wait* before you buy that fancy car. You get a high paying job, you save that money, and then buy the car with cash. You don't buy the car as soon as you're given a job offer.
Living debt free gives you freedom, especially if you're married and have kids. I didn't panic when my job disappeared, I decided to tighten my belt and enjoy being with my kids. My spouse loves his job teaching high school. Sure, I'll take a great, high-paying job when it comes around, but until then, we're doing fine.
I'd love to see some discussion on mortgage v rent - we've only been able to buy one house with cash. You've gotta live somewhere - so other than living with the parents, what are some good options for living in safe neighborhoods?
i'm self-employed (barely employed based on my recent income) and i know how spending can be self-medication and a temporary stress reliever. i broke the cycle by backing out of the weird consumer-driven lifestyle (as much as possible) and embracing simplicity: home-cooked meals from natural foods (cheap in the bulk section!), walking to work (reduces stress and saves money), and realizing that i just don't need all that 'stuff' that i've been told i need.
my 'wallet' is my driver's license and a little cash (for unexpected needs, e.g. bus fare home, etc.). my debit and credit cards stay home so i'm not tempted by unplanned purchases.
and lastly, nothing creates stress like the unknown, so i stay on top on my finances (or lack of) by using quicken. i know how much/little money i have, and where it needs to go.
"Way to generalize" was the best way describing how crappy this article really is.
I really enjoyed this article, and will be sure to keep these tips in mind for the future.
@ Jimbo:
Yes, exactly. One of the things I hope to do through my writing is to get people to see past the shiny. To understand the difference between real, serious wants and mere passing fancies before they spend the money, rather than after. I talk about this in Needs, Wants, and Not Even Wants.
@ Brett Legree:
I didn't say you couldn't have a higher standard of living if you worked at a job. Obviously you can, especially if it's a good job.
What I'm saying is that choosing that higher standard of living is choosing to put yourself into a trap. Once you've embedded the related costs into your household's financial structure--the mortgage payments, the car payments, the property taxes--you quickly find that you have very little flexibility. There are only so many jobs that will pay you almost six figures.
Someone who lives comfortably within his or her means quickly accumulates some capital--money that can be invested for a return or drawn on in an emergency. Someone who chooses a low standard of living will find that there are many more ways to cover household expenses than the one job that pays the most money.
Obviously the path that gives you the most freedom the quickest is to take the high-paying job while living at the low standard of living. Then you're always free to dump the job if you don't like it, but in the meantime you're accumulating capital that can make the job unnecessary. That's kind of what I did. But I've come to believe that it would have been even better to make a go of doing what I loved sooner, by choosing a standard of living that was low enough that I could have supported it with my writing.
Still, I'm not trying to tell anyone what to do. I'm trying to educate people about the options, and get them to at least give the matter some real thought, rather than just go with the default option of debt supported by the highest-paid job they can find.
Even if you were to break free of the "wave slave system" you would by default be enrolled into the "survive or die system" like the rest of the natural world. Most animals have no shelter, no bills, no shopping, nothing but free time for hunting and procreation. Humans don't need really need 97% of the stuff we get, but we "want" stuff so we make the trade off and end up disgruntled once the shininess wears off our brand new toyota corolla.
It's the baking soda in some toothpaste that takes the burning sensation out of the burnt flesh. Severe burns are still severe burns and will need medical attention. But does toothpaste stop burns from burning? The answer is yes, as long as it has baking soda in it. Do you have baking soda in your house? Maybe, maybe not, but most people have toothpaste, so check the ingredients, because it works and it works quickly.
You can also buy them for less than $6 each including shipping at Amazon Marketplace
I don't know. It's a good theory, but I'm not sure everyone can do this.
Yes, picking up garbage or digging ditches are jobs worth doing.
But really, how many people would be willing to do these jobs, especially for the salaries they would earn doing them?
Seriously - think about it.
If I could earn as much as I do now (I'm a nuclear engineer) digging ditches, I just might consider it.
Who's willing to pay me almost 6 figures a year to dig ditches?
Or pick up garbage?
Or work at McDonalds, serving burgers? That sounds like fun for a cool $100k a year.
Will anyone pay me this much, so that I can do what I like to do?
Any takers?
(And before anyone says, "but why do you need this much money", I have four children, and I enjoy a comfortable standard of living. I'm not quite ready to start shopping at the second hand store for everything.)
If you work for yourself, surely you still must be doing *something* for *someone* who pays you, right?
You're a freelance writer? Well then, you're still sort of a slave to your clients.
Yes, you can choose to stop working.
Well, so can I.
At any time.
I could quit my job tomorrow, if I so desired.
In this regard, I am no different from the self-employed.
I also enjoy flex hours, I have 20 days paid leave a year (and can take more, unpaid - just like a freelancer), and I have paid sick leave.
Sort of sounds the same, in many ways, doesn't it.
Or I could be wrong :)
I am one of those who is actually stressed out by spending money at all. I used to stress-spend, after I got my first job but before I had to worry about things like rent, car insurance, or student loans. Now that I do have all those things to worry about, my budget is much tighter, so I keep careful track of my money with a spreadsheet; whenever I'm at the store I have to actually tell myself that it's OK to spend money sometimes, even if I'm only buying necessities at the time.
I am, however, an emotional eater, so I definitely understand how stress can bring on the urge to spend money, which then creates a vicious stress-cycle.
Nice to see that another BBC series has been transplanted to the USA!
The best way to save money: pay cash. It also gives you more bargaining power in my opinion.
when I'm stressed I eat, when I'm depressed I feel the need to shop. Avoiding shopping is MUCH easier than avoiding the desire to nibble.
Hi. This blog is Drupal platform ?
I received an email after registering for a mystery shopping company by the name of charest evaluation inc. It told me that my first assignment would be to evaulate WalMart and Money Gram. I am to spend $100 for myself, keep $200 and wire over $1500 to somewhere in South Africa. They told me I would receive an package in the mail that would include the money and evaluation forms. Well today I received two money orders for $1000.00 each but no evaluation forms.
Other people on this site has received cashier checks and regular checks. Anyone out there heard about this company? Should I report it to the ploice department?
Thanks
Maybe I'm misinterpreting it but, the article makes it sound as if business people are laying awake at night worried that everyone will suddenly stop working or become debt free. Or that business owners somehow consciously choose to keep the workers 'enslaved' in debt & work just to keep them subservient or something. I don't think anyone is worried that people will stop work nor lose incentive to work. I don't think most businesses or businesspeople feel any dependency on their workers or customers being in debts. (with the obvious exception of lenders)
@Dave the links in the article refer to the sources
Is there any study, evidence, or proof of these claims? Some reference to that would make this article much more valuable.
Thank you!
The bald-guy-from-another-dimension empties the whole pots of pepper into his sandwich, and he's super strong, kids!
Usually, its my time that's in short supply, so I buy more expensive things to compensate, i.e. ready-to-eat meals or take out as opposed to cooking from scratch. Or, if the place is messy, because I haven't had time to clean, it seems more fun to go out & invaribly I end up spending. And then I do feel stressed because the bills are high, and I feel the need to spend more time working to make more money. So, what I do is I take my take home pay (after retirement, taxes, etc are subtracted), divide by a 40 hour work week & get an actual hourly rate for what I earn. Then I decide if whatever I'm going to buy is worth X number of hours at work of my time. It takes me 40 hours/month to pay for the house--one week a month to pay for something I live in 100% of the time--that's reasonable. 40 hours for some gadget that I'll lose interest in after a year or so? 3 hours to pay for a fancy dinner that lasts 1 hr? Nah, not so appealing now. 30 minutes or less to pay for a 2 hour movie? Sounds good!
With the actual $/hr rate, I don't stress over smaller items & it makes it clear on larger items if its worth the costs.
@Traveling Hippo:
I've written a number of posts on home ownership and the alternatives:
And, on the topic of safe neighborhoods, I can point you to my most reviled post ever:
I don't let myself shop online when I'm stressed. It's so easy to do, it's where I will do the most damage. If I notice I am browsing things more often (or buying them more often!), I just don't buy anything at all online - the urge passes.
Stress and spending are an angel/devil kind of thing with me: angel wins: I exercise; devil wins: I buy junk food.
There are alternatives, and I'd love to see more discussion on this.
Colleges: instead of pushing our kids to get into debt up to their eyeballs, how about some honest talk on how to get an education without debt: community college and transfer credits, choosing affordable colleges, AP/IB credits, studying on their own and testing out of courses, letting them work summers in high school to help pay for college. I'm pushing my kids to get through college debt-free.
Choosing to live without debt doesn't mean you've got a crappy job and a crappy apartment. It means that you *wait* before you buy that fancy car. You get a high paying job, you save that money, and then buy the car with cash. You don't buy the car as soon as you're given a job offer.
Living debt free gives you freedom, especially if you're married and have kids. I didn't panic when my job disappeared, I decided to tighten my belt and enjoy being with my kids. My spouse loves his job teaching high school. Sure, I'll take a great, high-paying job when it comes around, but until then, we're doing fine.
I'd love to see some discussion on mortgage v rent - we've only been able to buy one house with cash. You've gotta live somewhere - so other than living with the parents, what are some good options for living in safe neighborhoods?
i'm self-employed (barely employed based on my recent income) and i know how spending can be self-medication and a temporary stress reliever. i broke the cycle by backing out of the weird consumer-driven lifestyle (as much as possible) and embracing simplicity: home-cooked meals from natural foods (cheap in the bulk section!), walking to work (reduces stress and saves money), and realizing that i just don't need all that 'stuff' that i've been told i need.
my 'wallet' is my driver's license and a little cash (for unexpected needs, e.g. bus fare home, etc.). my debit and credit cards stay home so i'm not tempted by unplanned purchases.
and lastly, nothing creates stress like the unknown, so i stay on top on my finances (or lack of) by using quicken. i know how much/little money i have, and where it needs to go.