ME: “Why did you get a 3-bedroom apartment? Why not a one or 2-bedroom?
GUILTY PERSON: “There weren’t any one-bedrooms, and the 2-bedrooms were only $100 cheaper.”
Just wait until you hear this…
ME: “Ok, but you don’t have much wiggle room here. After all your expenses, you’re left with $64 at the end of the month.”
I’ve had some wild encounters on Financial Audit, but this one always sticks out to me…
Amitie was spending $1,450 per month on rent for a 3-bedroom apartment when she didn’t need the extra room.
Let me say that one more time:
She DIDN’T NEED THE F**KING SPACE.
She could’ve saved $100 every month that she could put towards:
✅ Debt
✅ Savings
✅ A week’s worth of groceries
✅ A tank of gas
That’s an extra $1,200 per year.
But instead, she was spending it on an empty room.
This here is what I like to call ✨ American consumerism ✨
It’s this idea that’s plagued most Americans to want things:
- More
- Better
- Bigger
This is how most people end up dying on the Walmart floor. DEEATTTTHHHH.
Everything’s bigger in the US.
Our houses, our Big Macs, our drinks, our closets… EVERYTHING.
But it’s not NECESSARY.
A lot of people don’t know this, but some other countries are “poor” and “not well off”. They don’t make a lot of money and don’t have easy access to credit/loans.
They only buy and have what they need. And that’s it.
That includes apartment space and housing.
In fact… there are some cultures where families sleep 10 people in a 2-bedroom home. They split and share everything.
Meanwhile, Amitie is getting a 3-bedroom apartment for herself and her son!
The problem with this (and American consumerism as a whole) is that people tend to bite off more than they can chew – and end up choking.
Especially when it comes to mortgages and apartments.
People care A LOT about where they live, how much space they have, etc.
But the reality is…
If you don’t make enough to afford a house/apartment that’s big and expensive, then you don’t make enough to afford a house/apartment that’s big and expensive.
It’s that simple.
If you’re:
- Spending more than 33% of your income towards rent/mortgage
- Having trouble making payments
- Broke after you get through making payments
…Then you have to consider downsizing into a more affordable living space.
Live in an apartment? Get a few roommates to split the rent with or go live somewhere smaller.
Live in a house? Get a few roommates to split the rent with or go live somewhere smaller.
If you’re with your family… live somewhere smaller.
You can find a space that can meet your needs and help you cut back on your expenses…
AND it won’t last forever. It’s just temporary and people do it all the time.
Sacrifice now for later.
Spend less now to have more in the future.
It’s simple.
All you have to do is make the decision.
Taquitos,
Caleb Hammer
P.S.
Another simple f**k up people always make is blowing their money instead of putting it away or investing it.
And by this, I mean sacrificing your current income for more in the future.
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Securities are offered through Moomoo Financial Inc., Member FINRA/SIPC. The creator is a paid influencer and is not affiliated with Moomoo Financial Inc. (MFI), Moomoo Technologies Inc. (MTI) or any other affiliate of them. The experiences of the influencer may not be representative of the experiences of other moomoo users. Any comments or opinions provided are their own and not necessarily the views of MFI, MTI or moomoo. Moomoo and its affiliates do not endorse any trading strategies that may be discussed or promoted herein and are not responsible for any services provided by the influencer. This advertisement is for informational and educational purposes only and is not investment advice or a recommendation to engage in any investment or financial strategy. Investing involves risk and the potential to lose principal.
