I have a lot of conversations about money with my 13 year old son. He’s my spender. He get’s money and he finds something to spend it in. Typically electronics and video games.
He also likes expensive things….cars, cologne, food, etc.
So we discuss the possibilities of income and saving.
I spend a lot of time talking about the importance of saving money no matter your income level.
If you make $30,000 and spend $35,000 or even if just spending all that you make at $30,000, you aren’t setting yourself up for the future. There’s no back up plan if you lose your job, or don’t like your job and would like to take some time off and find something new, or travel on a sabbatical.
And that doesn’t change if you make $200,000 and spend at or over $200,000. Or 1 Million. If you keep spending all that you earn, you don’t have financial freedom. You need to keep earning at that level to maintain your lifestyle. Sure, at the higher levels you have more ability to adjust your lifestyle if needed. But do want to be forced to do that, or sell your house, your car etc if you lost your job. That’s not freedom.
Start the habit of savings and spending less than you earn at every level. The more you save, the more financial freedom you have.
