Money Lies

There are a lot of self-help books, podcasts, and YouTube channels about how to achieve financial independence. A lot of them have useful information about how to avoid common financial traps. Often frugality is presented as the way to become a millionaire. There’s no doubt that living below your means is a proven method of acquiring wealth. 

What almost all of them gloss over is the fact that there’s no substitute for high income. All the frugal tips in the world won’t help you if your income is too low. Imagine you have a $2000 car bill. Because you didn’t save much of anything from your low paying job you only have $100 to put towards it. Imagine that by living on noodles you were able to save $1000. That still doesn’t fix the car. Lets say you had a good run and did save the $2000. That problem is solved and it’s a good thing too as your rent just doubled. Now you have to live in your car. 

Having a high income doesn’t solve all your problems either. Let’s say you are a professional at a major business in a large city. Your income could be well into the six figures but you won’t necessarily be able to save a ton of money. A professional has to have a certain look and that costs money. Shopping Walmart sales and tying your hair back in a pony tail won’t cut it. Living expenses will be high in the big city. 

We also had a good long run where investments did well. Those days are probably over, at least for a number of years. The financial guys love to point to the years when just about any investment did well. Nobody shows numbers from the Great Depression. 

It’s a sad truth that most of us will not get rich. The best indicator of wealth is having wealthy ancestors. Money doesn’t guarantee happiness. Then again, extreme poverty doesn’t either. 

What we can strive for is a level of income vs expenditures that won’t keep us in a constant state of stress. One thing that has helped is remote work. People are able to take their big city income out to the low cost rural areas. Too bad so many companies want people back in the office now. It’s like the system wants us to be in constant stress. 

You know what people constantly on the edge of financial ruin are called? Normal. 

If you accept that you’ll never be the millionaire next door you can adjust accordingly. Look for something that gives you a decent work/life balance. Be aware of the expenses that come with certain jobs and work locations. Cut yourself some slack when things outside of your control bust the budget. There is no shame in downsizing. Sometimes you have to do the best with the cards you are dealt. 

-Sixbears