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Why would you choose a job that paid far in excess of your needs and lifestyle choices. Do you know many people with high incomes but super frugal lifestyles?
by dogruck 9y ago
Why would you choose a job that paid far in excess of your needs and lifestyle choices.
Do you know many people with high incomes but super frugal lifestyles? If so, are they a rare counterexample, and not the norm?
Most every person I knows spends in line with income.
- jermaustin1 9y agoFor many reasons: 1. Rainy day fund, because you know one day the high pay may stop. 2. Retirement, because you know one day your ability to work may stop. 3. Estate planning, so that your family will be set up for a life that was better than the one you were given. 4. Investment capital, so you can turn your 100s of thousands into 10s of millions or more. 5. Startup capital for a future venture. The difference between the middle class and the high-earners are that the high earners save their excess income.
- dogruck 9y agoOk, sure, you save your excess income. Then, later, one of two events happen: 1. You spend the savings, and pay consumption tax 2. You die, and pay the estate tax.
- jermaustin1 9y agoThe difference is that in an economic down turn, I am protected by my vast wealth, where a poor person has no savings because they spend every dollar they have on necessities. A consumption tax is always regressive.