Comments on: The well-paid poor http://totalcandor.com/blog/2007/11/the-well-paid-poor/ A Conversation About Income, Wealth, and the Steps in Between Sun, 22 Apr 2012 14:08:55 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2007/11/the-well-paid-poor/comment-page-1/#comment-1683 Michael Mon, 26 Nov 2007 18:58:17 +0000 http://totalcandor.com/blog/?p=94#comment-1683 Yes, there's definitely a shift from spending more than you make to spending less. It's a change in monetary habits to be sure, but also a fundamental change in mindset. So I'm with you all the way until the end. Is choosing to save "giving up something for nothing in return?" Almost. Rather, you're choosing to forgo something today in exchange for something (likely quite larger) in the future. When you think of it that way, the change in mindset becomes much easier to accept. Those who are already saving will be happy to verify that for you. After all, you also get peace of mind along the journey. Yes, there’s definitely a shift from spending more than you make to spending less. It’s a change in monetary habits to be sure, but also a fundamental change in mindset. So I’m with you all the way until the end. Is choosing to save “giving up something for nothing in return?” Almost. Rather, you’re choosing to forgo something today in exchange for something (likely quite larger) in the future.

When you think of it that way, the change in mindset becomes much easier to accept. Those who are already saving will be happy to verify that for you. After all, you also get peace of mind along the journey.

]]> By: AJ http://totalcandor.com/blog/2007/11/the-well-paid-poor/comment-page-1/#comment-1671 AJ Sun, 25 Nov 2007 21:52:21 +0000 http://totalcandor.com/blog/?p=94#comment-1671 Interesting points. I'm interested in the transition period between living beyond your means to living beneath your means. I think this is the proverbial crunch where in order to make this shift, they are essentially turning their cash flow in the opposite direction...right? So, I think there are two shifts here. The first is pulling back on spending initially to be equal to your income....essentially eliminating the "burn". The second is moving from where the inflows and outflows are the same to where the inflows are 5% higher than the outflows. So, assuming the first shift was 5% and the second shift is 5%, it's a net change if 10% "loss" at some point during the turnaround that you will never recapture.....right? It's no different than when someone went the other direction and gained something (maybe a new wardrobe...etc.) that they didn't have the money for at the time but put on a Ccard. At the time they gained and didn't pay...now they have the opposite shift to deal with. Is it this shift that makes the change more of a battle...essentially giving up something for nothing in return? Interesting points. I’m interested in the transition period between living beyond your means to living beneath your means. I think this is the proverbial crunch where in order to make this shift, they are essentially turning their cash flow in the opposite direction…right? So, I think there are two shifts here. The first is pulling back on spending initially to be equal to your income….essentially eliminating the “burn”. The second is moving from where the inflows and outflows are the same to where the inflows are 5% higher than the outflows. So, assuming the first shift was 5% and the second shift is 5%, it’s a net change if 10% “loss” at some point during the turnaround that you will never recapture…..right? It’s no different than when someone went the other direction and gained something (maybe a new wardrobe…etc.) that they didn’t have the money for at the time but put on a Ccard. At the time they gained and didn’t pay…now they have the opposite shift to deal with. Is it this shift that makes the change more of a battle…essentially giving up something for nothing in return?

]]> By: Michael http://totalcandor.com/blog/2007/11/the-well-paid-poor/comment-page-1/#comment-1485 Michael Thu, 08 Nov 2007 23:08:30 +0000 http://totalcandor.com/blog/?p=94#comment-1485 You're absolutely right. It takes a conscious effort to go against the grain of today's society and knowingly choose to live beneath your means. But if you can pull it off, it really pays. You’re absolutely right. It takes a conscious effort to go against the grain of today’s society and knowingly choose to live beneath your means. But if you can pull it off, it really pays.

]]> By: dong http://totalcandor.com/blog/2007/11/the-well-paid-poor/comment-page-1/#comment-1484 dong Thu, 08 Nov 2007 23:01:36 +0000 http://totalcandor.com/blog/?p=94#comment-1484 Nice post. I think it's easy to think only if I was there, and then there you are. Even when you have your financial house in order it's hard not to think if only I had a little more. Nice post. I think it’s easy to think only if I was there, and then there you are. Even when you have your financial house in order it’s hard not to think if only I had a little more.

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