Author Topic: Living Pay Check To Pay Check And Getting Ahead  (Read 858 times)

readytoretire

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Living Pay Check To Pay Check And Getting Ahead
« on: October 09, 2018, 09:28:15 PM »
Hey just looking for some insight. Here is my situation.

After years of working retail (in the city) and not getting ahead in life I took a course (didnt spend much) so that I could get ahead. Now I have a "real job" (in a town) I'm still sick of living pay check to pay check. The reason its pay check to pay check is because my rent is 60% of my earnings and mandatory expenses are remainder 40%. At the end of the day I don't have anything left. I am very serious about saving money and getting ahead. So much so I've never been in debt, live frugal, dont drink alcohol or coffee, sold almost everything I own (living unfurnished), and most importantly, significantly lowered the amount of time I do my hobby (the one thing that makes me happy). I also Stopped spending time with people cause entertainment, driving and even taking transit costs money. The biggest thing for me is, its WAY cheaper to buy a house in the city and work a chill job and pay a mortgage. But if I were to do that, that means sacrificing my "real job", because I would have to move. Now your probably wondering "why not buy a house in your town". Well its so expensive. And finding my "real job" in the city is almost impossible.

Some experts would say I should make more, but as we know when you make more you spend more. Ive been told (generally speaking) that 33% of your budget should be rent/mortgage, 33% expenses, and 33% savings. How do people achieve saving 50-70%, like others do to be F.I.R.E? Let me know what your thoughts are. Thanks

Freedomin5

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Re: Living Pay Check To Pay Check And Getting Ahead
« Reply #1 on: October 09, 2018, 09:52:23 PM »
Post a full case study, so we can help you better. Here’s the link: https://forum.mrmoneymustache.com/case-studies/how-to-write-a-'case-study'-topic/

By the way, there are several assumptions in your post that are not accurate. Here are a few from a quick glance at your post:

1. You need to work a “real job”. —> You actually just need to make more money, regardless of how “real” your job is. I Don’t even know what you mean by a “real job”.

2. Rent is 33% of your budget. —> Our rent is 0% because job provides housing. Others here have also househacked by having roommates or whatever to bring their housing cost to $0.

3. You can’t save money by working a chill job. —> My job is not chill but it is only 3 days per week. I save money. A lot of money. About 80% of my earnings.

But anyway, first post a case study. Maybe we will find that your “mandatory” expenses aren’t quite as mandatory as you thought, or there may be less expensive ways to meet your mandatory needs. And we may be able to give you ideas to lower your housing expenses.

In addition, if you haven’t already done so, read through the MMM website. Start at the beginning. Read all the posts. Mustachianism isn’t about depriving yourself. It’s about living a full and gratifying life in a financially responsible way.   

MDM

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Re: Living Pay Check To Pay Check And Getting Ahead
« Reply #2 on: October 10, 2018, 12:37:55 AM »
...as we know when you make more you spend more.
Who is "we"?

Many here don't know that at all. ;)

marty998

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Re: Living Pay Check To Pay Check And Getting Ahead
« Reply #3 on: October 10, 2018, 12:50:18 AM »
...as we know when you make more you spend more.
Who is "we"?

Many here don't know that at all. ;)

Was going to post the same thing. If I earn more it just means I put more in investments - what I earn has absolutely no bearing at all on what I spend.

Also I'm not really sure what you're trying to get "ahead" of. Yourself? Other people? The Joneses?

No point destroying your mental health to save a few bucks and have a bigger bank balance.