Common definition of disposable income: The amount of income left to an individual after taxes have been paid and that is available for spending and saving. Disposable income may either be spent on consumption or saved.
Commonsense definition: Money you burn and later regret!
I have seen people trade their perfectly good car every two years because they want the newer model. Worse, they trade in the vehicle to get the new one. Talk about burning your money for your ego.
Don’t be pressured by peers or family. It’s your money and who are you trying to impress really? Who cares what they think? Most probably you are the last person they are thinking about.
1. Only one third of workers have any idea of how much money they need to retire.
2. The average social security check benefit for retired workers is about $900/mo.
3. Social security benefits represent 38% of the income of the elderly.
Where are you? Choose to save now so you don’t have to make bad decisions in the future. If you live a simple life style and are not trying to impress your neighbors you will find that you really do not need that much income to live comfortably on upon retirement -providing that you are debt free.
Every year that you procrastinate about your saving priorities is another year that you put your retirement on the back burner. By the way, retirement is not found in the Bible.
You might retire from you present work but you should be looking at being productive your entire life. That’s what life is all about.
Get started!
Jacques
CreatingWealthThatLasts
2 comments:
Jacques, The car is a good example, but how about the house that people stay in for a few years and move to another one and do it again and again. When they are 70 and still have to work because of the house payment and it is nowhere close to being paid off. You are so right. It does not matter if it is a car or a house. A lot of people are not very smart about the money that they do have. They try to keep up with the Jones family, they are about to go under but the Smith family does not know that. Now they are right there also.
Dan and Deanna "Marketing Unscrambled"
Hi Jacques .. the Walmart owner was a good example of this - wasn't he? Kept his old car all his life - I'm sure I read.
A new car - & you lose 20% immediately you drive off the forecourt.
Much better to keep your cash for your future.
Thanks Hilary Melton-Butcher
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