After the last few posts you guys deserve a rest, and this is going to be a short one. So here we go: saving is better than earning. There you go, lesson over.
Oh, you wanted more? Ok, I’ll explain why I say that. I tend to think of it in the Vicki Robin Your Money or Your Life sense. (NOTE: all these numbers will change after 08/15, but those will be relatively minor changes.) I make $58,000 per year so my gross income per month is $5834 and my net income (after pre-tax deductions, taxes, etc.) is about $3405 per month. My gross hourly rate (at 50 hours per week) is about $30/hr, net is about $17/hr. All of this means that in order to spend $20 I need to work for 1.7 hours and earn $34. So to indulge in a middling meal with drink and tip (for myself only) I need to work 1.7 hours. That’s too much work for an overdone burger and some soggy fries.
And this is the simple version! If you actually read the book (which I could not recommend more highly) your hourly rate is actually likely much, much lower – after you account for hair/makeup, commuting time/expenses, professional clothing, etc. So save your money, because then not only are you saving $20, you’re saving the extra $14 it costs you to earn that $20.
Love and Smooches,
Dumpling
