Lifestyle and social validation - It's high time to take a look at where our money goes.
We have never seen the game of survival we are seeing now. Living costs are all-time high in most parts of the world. It's up to 40% in some places in my country now. The gap between the upper and lower class is too visible which is hurting our eyes.
There's a saying that, there will be no middle class in the more modern era. And I believe so. This time made me believe this because I can compare this to my life literally.
It's vital in survival to track where our money goes. The surprising thing is, that the money flow is on the side of discretionary spending! We spend around 30% of our money on non-essential. It's working like self-sabotage. It's easy to say that, there's no such thing we can't live without. Like our morning coffee. But when we try to apply this in our daily life, it's hard to swallow.
How many of us can sacrifice the lifestyle we have now? How many of you can get rid of the mentality to seek social validation? Maybe some new boomers can do a few but for Millennials, it's in their DNA. I'm not pointing out that they are not smart or anything but this is what it is. Because this is how we grew up and we never knew the alternatives.
It's high time to segregate our expenditure. Mandatory spending, discretionary spending, and interest on the debt; take a look at where your money goes before it's too late. Housing, followed by groceries, utilities, and health; these are the major sectors we need to put our money on, otherwise, there will be no room for us to survive. It's for our best if we can cut the costs on the vehicle, luxury lifestyles, and sometimes entertainment too. If you don't make a few deposits to your retirement plan, then I'm telling you, you will be out of the game very soon!
Things are getting harder and it will be much more in the future. It's important to note, that additional discretionary expenses are as high as 30% according to some research. If you are not rich enough, this strategy will not help you survive the risks of inflation.
Hard to take it, we go crazy about being mentally poor. But this should be in our minds now. I'm talking mostly about the middle class who doesn't have much as a backup. If you don't cut the additional costs on lifestyle and social validation, you can't survive in the future.
Point out what can you go without and beyond your actual need.
Many of us survive paycheck to paycheck and maintain a 'good' lifestyle. The truth is we are just one paycheck away from falling over our own house of cards.
Thanks for reading my blog.
