3 Types of People (financially)
I had a conversation with a friend the other day about goals and how he felt about finances. This led me to talk about three basic types of people financially.
Those looking to survive.
A lot of people fall into this category, living paycheck to paycheck, trying to keep food the table the lights on and the rent paid. If surviving is your only mindset then you'll probably survive, and only survive. Not that surviving is bad but that shouldn't be your only goal. Now, sometimes this is thrust upon us because of the loss of a job, unexpected expenses, etc. However, there are people in this category that don't need to be here. I'm talking about those that make more than they NEED but they refuse to budget and they cant see more than 5 minutes in front of their face. You know these people, everybody knows somebody like this, they will be given 20$ and spend 30$. The concept of saving is lost on these people.
And the worst offenders here are the ones that give welfare a bad name. the ones that live (survive) off the government. No I'm not saying your a bad person for getting on it if you NEED it in a hard time. But the ones that get on it and stay on it because its "easier" than working are the worst type of "survivalists" they get just what they need to live so they are content so sit on their asses.No, not everybody is like this, but I mention it because there are some people that are perfectly content with just surviving...
Now if you find yourself thrust into Survival mode I'm not jabbing at you, I only give the evil eye to those that SHOULDN'T be here. If you find yourself suddenly in Survival mode from one of the other Types, fear not you can get out. Just don't get stuck in a cycle of survival. Set GOALS. use that math stuff you learned in middle school and make a budget. keep track of your expenses and put money away in savings.... and leave it there until you NEED it. *note, that 10th new pair of shoes or shiny TV isn't a NEED*
If you keep this up you will eventually find yourself in the next echelon.
Those looking to be secure.
Those who master the art of saving will hopefully find themselves here. People here don't worry if there will be food on the table, if the lights will be on, if they will have enough gas, its been budgeted. People here are looking for a lack of worry, a state of Zen if you will "at peace" with your finances. If your here you probably know how much money your making every month and your making sure you spend less than you make, your putting money away into savings for a rainy day and hopefully retirement, Your preparing for your future, your ready to weather the loss of a job or a sudden or unexpected bill. Most people here are putting barriers in place so they do not fall back in to Survival mode. Hopefully if your in Survival mode your looking to get here or higher. To me being at LEAST secure is a necessity. If you strive for something, you'll have a muuuch better chance of getting it than if your sitting around waiting for it to happen. I'm currently focusing on FIRMLY entrenching myself into a Secure lifestyle as I move on to the third and final level.
Those looking to be Free
Only a select few of us will make it here, total freedom. The ability to say "I'm bored... I'm going to tour Europe this week" or "I'm hungry... I want Italian.. I'll get plane tickets, we can be there in 10 hours". To be able to do what you want when you want because you can. You have WAY more money than you need. Maybe you started your own company, Maybe you invented something, to be here you probably set up some passive source of income (see earlier post) or you got some inheritance that borders on the ridiculous (rare). I think we all dream about getting here, to have everything we could want and to be able to do anything at a whim. who wouldn't?
Now these big three are a little subjective, where one might see a person who is free another might see somebody who is just secure. There is no clear cut line between them, you can be MOSTLY secure but not totally, and what you might consider secure another might not. You might be totally secure and every now and again you bust out and do something big and random, because you can. your not TOTALLY free but your getting there.
How much do you need to be Secure? that's up to you. Me personally, I think about what would happen if I lost my job, my car exploded and my house caught fire on the same day then you found out you had cancer. You prepared?
I'm finally getting to a point where I can say I'm feeling rather Secure. I'm not rich (I don't think I am) I don't have a lot of very nice things, but I'm not worried, I've hedged my bets and things would have to get very bad all at once for a long time to push me into survival mode. I will keep building until I am totally secure. Maybe in the process I will find myself Financially free, I would like to end up there, I am striving for it, I think wanting to aspire to be more than you are is virtuous.
Those looking to survive.
A lot of people fall into this category, living paycheck to paycheck, trying to keep food the table the lights on and the rent paid. If surviving is your only mindset then you'll probably survive, and only survive. Not that surviving is bad but that shouldn't be your only goal. Now, sometimes this is thrust upon us because of the loss of a job, unexpected expenses, etc. However, there are people in this category that don't need to be here. I'm talking about those that make more than they NEED but they refuse to budget and they cant see more than 5 minutes in front of their face. You know these people, everybody knows somebody like this, they will be given 20$ and spend 30$. The concept of saving is lost on these people.
And the worst offenders here are the ones that give welfare a bad name. the ones that live (survive) off the government. No I'm not saying your a bad person for getting on it if you NEED it in a hard time. But the ones that get on it and stay on it because its "easier" than working are the worst type of "survivalists" they get just what they need to live so they are content so sit on their asses.No, not everybody is like this, but I mention it because there are some people that are perfectly content with just surviving...
Now if you find yourself thrust into Survival mode I'm not jabbing at you, I only give the evil eye to those that SHOULDN'T be here. If you find yourself suddenly in Survival mode from one of the other Types, fear not you can get out. Just don't get stuck in a cycle of survival. Set GOALS. use that math stuff you learned in middle school and make a budget. keep track of your expenses and put money away in savings.... and leave it there until you NEED it. *note, that 10th new pair of shoes or shiny TV isn't a NEED*
If you keep this up you will eventually find yourself in the next echelon.
Those looking to be secure.
Those who master the art of saving will hopefully find themselves here. People here don't worry if there will be food on the table, if the lights will be on, if they will have enough gas, its been budgeted. People here are looking for a lack of worry, a state of Zen if you will "at peace" with your finances. If your here you probably know how much money your making every month and your making sure you spend less than you make, your putting money away into savings for a rainy day and hopefully retirement, Your preparing for your future, your ready to weather the loss of a job or a sudden or unexpected bill. Most people here are putting barriers in place so they do not fall back in to Survival mode. Hopefully if your in Survival mode your looking to get here or higher. To me being at LEAST secure is a necessity. If you strive for something, you'll have a muuuch better chance of getting it than if your sitting around waiting for it to happen. I'm currently focusing on FIRMLY entrenching myself into a Secure lifestyle as I move on to the third and final level.
Those looking to be Free
Only a select few of us will make it here, total freedom. The ability to say "I'm bored... I'm going to tour Europe this week" or "I'm hungry... I want Italian.. I'll get plane tickets, we can be there in 10 hours". To be able to do what you want when you want because you can. You have WAY more money than you need. Maybe you started your own company, Maybe you invented something, to be here you probably set up some passive source of income (see earlier post) or you got some inheritance that borders on the ridiculous (rare). I think we all dream about getting here, to have everything we could want and to be able to do anything at a whim. who wouldn't?
Now these big three are a little subjective, where one might see a person who is free another might see somebody who is just secure. There is no clear cut line between them, you can be MOSTLY secure but not totally, and what you might consider secure another might not. You might be totally secure and every now and again you bust out and do something big and random, because you can. your not TOTALLY free but your getting there.
How much do you need to be Secure? that's up to you. Me personally, I think about what would happen if I lost my job, my car exploded and my house caught fire on the same day then you found out you had cancer. You prepared?
I'm finally getting to a point where I can say I'm feeling rather Secure. I'm not rich (I don't think I am) I don't have a lot of very nice things, but I'm not worried, I've hedged my bets and things would have to get very bad all at once for a long time to push me into survival mode. I will keep building until I am totally secure. Maybe in the process I will find myself Financially free, I would like to end up there, I am striving for it, I think wanting to aspire to be more than you are is virtuous.