Make $20000 a month and still broke
By scheng1
@scheng1 (24649)
Singapore
November 29, 2015 7:29am CST
I read some books about investing, and some of the authors were big income earners in the corporate world before they become investors.
They make $20000 a month, and yet they are still broke before the end of the month.
It seems impossible to us who are making much lesser than them.
We always think that we have to make a hundred dollars more, a few hundred dollars more, and our money problem will be gone.
That is not true at all.
When you make $2000 a month, you are broke, then when you make $20000 a month, you will still be broke.
That is due to the money spending habit.
If you manage to spend all your earnings at your current income, you will not break the spending habit when you are earning more and more.
It all boils down to your spending habit, and your value of money.
13 people like this
11 responses
@kaka135 (14994)
• Malaysia
30 Nov 15
Yes, I agree with you. I have heard many young people complaining how little they are earning and it's definitely not enough for living with such little money. But, there are many families with even lower income, with more family members are able to survive, and still living happily and gratefully, whereas most young people just need to spend for their own and think they do not have enough. I think when these people earn 20K a month, they might still think they do not have enough.
1 person likes this
@scheng1 (24649)
• Singapore
30 Nov 15
If they make 20k a month, I bet they will be in debt for 100k.
They cannot just drive a second-hand car when they make so much money, and they cannot just buy bags and clothes from night market.
They have to eat well, because they have to maintain the image of a highly successful young professional.
1 person likes this
@SinfulRose (3527)
• Davao, Philippines
29 Nov 15
Oh, yeah, I know what you mean.
My first year at my job wasn't the very best for me. From July 2014 until Jan 2015, I was in depression because I had no investments made at all. And I always find myself lacking of money after every month--that's why I was depressed at all.
But ever since I determined to turn the tables--like literally turned the percentage of my expenses to my assets and vise versa--I was able to secure quite a lot of money
1 person likes this
@scheng1 (24649)
• Singapore
30 Nov 15
Yes, you are different because you make yourself see the foolishness of not having any saving and investment.
Most young people who are professionals making good money do not have such sense.
They know that they have to protect their image, and in the end, they are deeply in debt because they have to live in private condo, drive nice car, and dress well.
1 person likes this
@SinfulRose (3527)
• Davao, Philippines
30 Nov 15
@scheng1 That sounds like some of my workmates who are in my age group. And when I show them how to save up money, they go like 'woah' as in budget and following through is alien to them. Or they go, "the love of money is the root of all evil".
I can't blame them with this kind of mentality though because they're too young and not yet aware of these things compared to those who're already at their 30s and have families of their own. Besides, schools never teach these things.
I do applaud and appreciate those who really want to learn. One of them being one of my close friends at work. And so far, I must say she's doing well, even though she still ended up broke.
I guess we just need to keep on reminding them about these things. If they don't listen, it's their loss.
@birjudanak (14316)
• India
29 Nov 15
you say right that we have to plan with salary we earn.In country a person earn 1000 $ per month live and 20000 $ per month person also live and both are happy because they do good planing and use money proper way. But one person 40000 $ per month person may not be happy because his needed more and he is not satisfied with situation so he want more.so all depend on us how we use money and for what we spend money.
1 person likes this
@scheng1 (24649)
• Singapore
30 Nov 15
All of us have a tendency to make friends with those who earn about the same as us.
if we make $20000 a month, we are not likely to go lunch with those making just $1000 a month.
We will not go to the cheap shop that sells office wear for $10.
1 person likes this
@birjudanak (14316)
• India
30 Nov 15
@scheng1 no i not make that kind of different with friends because we are human so i go with them and they also come with me.
@shellyjaneo (1076)
• United Kingdom
29 Nov 15
I read this as $2000 at first and thought yes I would still be broke after bills but $20000 no I don't understand how people can waste that much money it is crazy x
1 person likes this
@scheng1 (24649)
• Singapore
30 Nov 15
it is not crazy from their standpoint.
If you know of someone making $20000 a month, and still shop at thrift shop, you will look down on him too.
You expect him to shop at somewhere that sells quality things at higher place.
It is this kind of social norm that forces many high income earners to dress well, as if they are very successful when they have put on $1000 suit.
1 person likes this
@shellyjaneo (1076)
• United Kingdom
30 Nov 15
@scheng1 I think those attitudes are changing though, I have more respect for someone who is thrifty than someone in an expensive suit. Having expensive things don't make you a better person and I think people are realising that more and more lately. Especially in the UK x
@salonga (27775)
• Philippines
29 Nov 15
No matter how big you have if you don't know how to spend wisely, you will end up broke.
@UmiNoor (4521)
• Malaysia
30 Nov 15
That is so true. No matter how large your salary is if you spend more than you earn, you will always be broke even before month's end. I once read an article about Burt Reynold's wife whom he claimed spent $50,000 in half an hour! That is how easy one can spend but earning back the money is hard; truly hard.
1 person likes this
@Cristi_Ichim (3750)
• Bucharest, Romania
29 Nov 15
Well being rich also has something to do with your way of seeing life and the so called "kindness of your heart". I know that this seems hard to believe for some people but it is true. Money is not everything: as long as I have money to survive I am happy: it does not matter that others gain more than me and that they waste them on useless stuff. That is their problem not mine. I just hope that they will find happiness too.
1 person likes this
@scheng1 (24649)
• Singapore
30 Nov 15
It is always peer pressure.
When your colleagues tell you that there is a new restaurant serving great food, you want to try it for yourself.
Those who make $20000 a month will make friends with those who make the same amount or more, and in the end, they go to the same place to eat, drive the same type of car, live in expensive house, and buy from the same high end shops.
In the end, all of them are as broke as ever.
