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Home > The Problem with "Rich" People...

The Problem with "Rich" People...

April 26th, 2010 at 07:46 am

...is that they live at or above their means.

I make just around $860 every month at my part time job. I also make at least $500 every month on ebay (although if I have a particularly amazing month, it's closer to $1600 ). The paychecks from my part time job go to bills and I always have a little left over (around $160 but I allot $100 for spending money). The income from ebay goes directly into savings.

I have a roommate who makes $500 a week. He also blows through his paycheck in one week. The rent and a couple of other bills are due and he doesn't have the money for it. I said to him yesterday "Do you know what I could do with $2000 every month?! I'd be rich!". It's true. I'd be able to put more than $1000 in savings every month! The problem with people who make more money is that they also spend more. People who make $50,000+ a year also will buy a bigger and more expensive house than they really need. They buy more extravagant things. It is way too easy to spend your entire $2000 biweekly paycheck on things that you don't need.

This is all coming back to what my older sister said about me not being able to afford a house. Her and her husband live comfortably. For a Valentine's Day gift for her husband, my sister bought a $1300 TV. They easily spend $200 EVERY WEEK on groceries for just the two of them. I don't even spend $100 every MONTH! They go out to eat and order soda and steak. I go out to eat and order water and one of the cheapest things on the menu. And the thing is, I'm still happy.

The problem with "rich" people is that they don't know how to manage their money. With the way the job market is right now, it is way too common to hear about people losing their jobs and not being able to pay $1000 or $2000 worth of bills every month. The problem with "rich" people is that if they lived below their means, they would have been able to save thousands of dollars a month that could be put towards the bills if someone in their household were to lose their job. The problem with "rich" people is that many of them have trouble paying their bills even though they make 4 times more than I do. I know a grocery store manager who tells me all the time that she wishes she could manage her money the way I do.

If I made just $2000 every month, I'd be rich, man.

5 Responses to “The Problem with "Rich" People...”

  1. creditcardfree Says:

    Have you considered looking for full time employment that would pay you $2K per month, so you can be 'rich'?

    It's great that you know how to keep your expenses low, that will take you far.

  2. Broken Arrow Says:

    22 years old eh? Not bad. Good that you're keeping expenses low.

  3. misstina87 Says:

    creditcardfree-Honestly, I never liked the idea of working full time. My roommate who makes $500 a week also works 60 hours. IMO, life's too short to be working all the time. I'd rather have the hours I want, certain days off, and make $1500 a month rather than work all the time and be miserable for an extra $500. And ebay is actually pretty easy and profitable for me so I'd like to stick with that for as long as I can. In a couple of years, I'll look for something full time. For now, I'm doing ok.

  4. Broken Arrow Says:

    Are you still in school full time?

  5. whitestripe Says:

    I think as people get older their views change. Something that you might not spend money on now may become more important in a few years time. It is always a good idea to keep your expenses lower than your income, though.

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