Living rich while being broke
Growing up, my parents sacrificed alot to ensure i could secure a good future. my mum, would go without certain luxuries she was rightfully entitled too to ensure that not only did i get a good education but the best education she could afford. This, i remember her saying was her investment. I hear
my friends tell of similar stories.
Now am all grown up, and i look around i see a different culture developing. Young people seem more interested in investing satisfying their present wants, wants that constantly change with the seasons. The only investments i hear of are investments in a few good boots, nice bags and weaves that can last a " lifetime" or until the next big sale, which ever comes first. People are totally consumed by this consumerism culture, of having everything that we can't afford.
It's a sad view, when you see a young adult looking fabulous head to toe dressed in the latest designer gear yet unable to afford a decent meal. Its even sadder when you see their peers living in secret envy of that persons lifestyle.
Has the appearance of fabulousity as I like to call it become more important than saving for a rainy day?
When did credit become the new debit?
And budgets become the minimum spend?
this viscous cycle not only happens among peer-pressured youths like us, but also with companies aswell, and can be to blame for the credit crunch.
I remember when i was broke and job hunting, people constantly encouraged me to make use of my credit card under the banner of it improving my credit limit. Not remebering to advice how i would afford to pay it back with no income, then i heard i could do balance transfers and all sorts. I had to stop and think, is my so called friend actually setting me up for a fall? Why would i spend money i didnt have and had no idea where i would get it from anytime soon?
It seems our generation are prefere to invest in the present appearance, in clothes and things which will end up in bins, charity shops or the back of our wardrobe, living each day for today which no thought for tomorrow.
I blame the media, we are constantly made to think that looking fabulous is the only wo way to be.. am not saying we shud be dressed in sack clothes and look dull or unattractive, I do think we shud have the fine things in life aslong as we can afford it.
over the years, ive picked up a simple rule that has helped me manage my money effectively, which i am willing to share.
It's give, save and live!
Firstly, i have 2 accounts, a current and a savings account.
then each month, i give 10% to my church or towards charity/ people less fortunate
i put 30% into my savings account
leaving me 60% to live on for the month.
If you dont pay rent, then, your monthly expenses should not exceed 60% each month
If you do pay rent, your rent and bills should not be grerater than 37% of your income. if it is your living above your means. this will live you with 23% for transport and food, anything left can be spent on 'luxury' (assuming you don't have any debts to pay off).
If you have dept and intend on paying it of, i will suggest, you save 15% and put 15% plus any 'extra luxury money' towards paying it off.
In life there is a balance,
Let's not let other peoples opinion become our reality.
Copyright Sweetest ruby 2013