12-29-2021, 05:22 AM
You never know who is living paycheck to paycheck. Whether you have a $50,000 portfolio, a $250,000 portfolio, or higher, we are way, way ahead of most people.
In my case, for a period in my 30's I was living paycheck-to-paycheck with a very high (for someone that age) net worth. Was almost funny in retrospect. I had put my money into property, all using the bank's money to help me buy. But it all paid rent which helped with payments and where I had a good handle on things.
It was when I bought a house where I wasn't receiving revenues, just incurring more expenses, where I got, not in trouble exactly, but where I really had to scale my lifestyle back. I was a classic "asset rich, cash poor" case. If I had the chance to live two lives it would have provided me with a very good lesson.
Worked out in the end though and I learned that the savings from bringing my lunch to work instead of going to a restaurant, even fast-food, really did add up. And made me healthier, I'm sure.
In my case, for a period in my 30's I was living paycheck-to-paycheck with a very high (for someone that age) net worth. Was almost funny in retrospect. I had put my money into property, all using the bank's money to help me buy. But it all paid rent which helped with payments and where I had a good handle on things.
It was when I bought a house where I wasn't receiving revenues, just incurring more expenses, where I got, not in trouble exactly, but where I really had to scale my lifestyle back. I was a classic "asset rich, cash poor" case. If I had the chance to live two lives it would have provided me with a very good lesson.
Worked out in the end though and I learned that the savings from bringing my lunch to work instead of going to a restaurant, even fast-food, really did add up. And made me healthier, I'm sure.