When was the last time you felt rich? How would you feel if you made four times what you spend? Would you feel better if you had a little more breathing room? Someone making 100k but spending 120k won’t feel relaxed for long. But making 90k with typical expenses of 30k a year will give you plenty of comfort and options. The difference between what you earn and what you spend is the key to feeling rich.
When I was a teenager I worked at a summer camp as a counselor. We got paid less than minimum wage but our housing, food and entertainment was provided. Not only that, being quarantined at camp (not too unlike the military) provided little opportunity to spend any of the money we actually made.So, after a few weeks of work we received our checks and promptly went to the bank to get them cashed. 18 with no expenses and $700 cash. I felt rich. Do you feel rich? Even if your income has increased over the years, have you increased or decreased your margin? There is a strange but observable tendency for Americans to increase their expenses even as they grow their income. This net effect can often lead us to feel financial pressure despite growing incomes. Continue reading Margin: The Key To Feeling Rich