Trying to choose a career one of the factors is looking at how much you earn. The more you earn the more you can save, right? Or is it not that straight forward?
The truth is if you earn more you have more that you are capable to save. But what is more important than how much you ‘could’ save is how much you actually save. Choosing certain jobs will change your future plans unconsiously. Take for example an insurance salesman. They meet new people to try and sell them insurances. They need to be well dressed, which has a small cost. But preferably they also have a nice car. All of theese requirements make the money you make go straight onto keeping these goods in a good shape.
There are two ways to have a nice car as a salesman. Either you buy a nice car or you get it from your company to improve your sales. The biggest cost of this is the next car you will buy. We never tend to decrease our lifestyle. So when getting rid of the car you are very likely to go for a similar car on your own. The next phone you are buying will be an expensive one, you will be going more often to restaurants. Before you know it your expenses has far increased above your expectations.
Saving was slow and painful. – William Christopher Handy
When you want to avoid everything above you got to pay more attention to what you are doing with your money. Whenever you want to buy something consider the effect it can have on your future expenses. Be aware that anything you buy can improve your life, but it can also negatively effect it.
Think about it like this: Every dollar you save is worth 2 dollars you earned. People always compare how much they earn. But that amount is so unimportant. What matters is what you do with the money. Compare someone earning 1500 vs someone who earns 3000 dollars a month. The one earning the double amount doesn’t neccessarily has everything they want. When earning this at a young age you are more likely to spend it all on temporary pleasures. Compared to the one earning a lot less who will be thinking a lot more where to spend their money. Some have a low income and save all of it. Others earn so much more but they live from paycheck to the next one.
No matter how you want to live atleast consider saving some more money. Keeping some money will making your life easier the further you go. Live the cheap life now to live like a king later.