RE: Here's Why You Are Not Rich!
I think that calculating 2000-1500= surplus 500 is a bit to optimistic for the real life situations of many people, but I would say that is must be possible to set apart in between 10 -100 for most people each month.
The interest rate is so low that it does'nt make sense to put it in a bank savings depot, so you have to DO something with this surplus.
Buying a lottery ticket is the same as praying that Bill Gates will give you 100000 or just throwing your bucks in the toilet and press the flush button.
Lotteries are not an investment.
An investment is someway to put in money and became partial owner of it in a way. Like stocks in a company, or here on Steemit.
I would say that investing your surplus partly each month in steempower is an investment.
And in the long run a good one I hope.
Hey vjbasil,
so I totally agree, yet here is what I mean:
The surplus of $500 is a bit much indeed, yet as explained in the video, I see the surplus as every bit of money left over after necessary costs. So, therefore, clothes, going out for dinner, expensive meals at home, a TV set, but also saving money for a holiday etc in my opinion are all things that people spend money on, yet are not necessary and therefore are paid out of the surplus. If you calculate it like that a 25% surplus is mostly achieved by most people.
However, again, they will usually spend it on new jeans, and getting sushi, and then claim that they get bare necessities, which isn't really the case. Yet this all comes down to how radical you are in creating a surplus :)
But yeah I would say that the investment surplus of someone earning $2000 should be somewhere around the $100 - $150 mark.
Thanks for liking the post and your valid points! :)
Yes right!
I found that I see lots of people who do not earn a lot, just spend it up to the very end. But not wisely: taking taxis, buying at the more expensive supermarket ( and never checking the receipt...)
Indeed if you live wisely there is always a way to gather some surplus.
Yay! :) I will do a video about how to create a surplus soon! :)
The lottery is gambling for people who are not good at math. That's a very apt saying and is very true. Every once in a while when the lottery gets really huge, I'll buy a single ticket for the fun of it. That's it though.
I do not recommend people leave any more money in a bank than they need to pay their monthly bills. The bank will use your money to loan other people money at very high interest rates. You will not get much for doing them that favor either. It just isn't worth it.
Living below your means is the primary thing everyone should focus on from the retiree to the college student. Walk to school and skip the car. Don't eat out all the time and cook your own food. Rent a room in a place with other people, and don't rent your own separate place.
Most people live way beyond their means, and then they are always broke. It really is simple, but few people do it. Usually, people spend as much, if not more, than what they make. That's a disaster. Don't be that person. Then take the extra amount and split it up into many different baskets to hedge against losses.
Never put all your money into one or even a couple baskets. Spread it out to 10 or more. There are lots of ways to spread it out these days too from precious metals, different cryptos, online peer to peer lending, paying bot services like smartsteem, etc.
Yes: I always say to people who think they make a chance of winning at a ( huge ) lotterie: If I had the same chance of getting a terminal desease as winning in this lotterie I would live forever....
Spending beyond your means is only interesting if you are able to get a few million from the bank and lie all the time to them that you will pay them back and they believe you.....
Indeed spreading your risk is a safe way.