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Fancy phones and watches are, given the current state of most carriers, not actually _that_ much more significant an expense than a cheaper device month to mont

Fancy phones and watches are, given the current state of most carriers, not actually _that_ much more significant an expense than a cheaper device month to month. You can "buy" that explanation or not, but there's a lot of research and evidence backing up the idea that a huge fraction of the western world lives essentially paycheck to paycheck, and it's not because all of them are less financially savvy than you or I, who just happen to get paid well above average too. A good TV and nice phone are not usually the kind of expenses that drive people into having no savings. If I go grab an example from t-mobile... A brand new, shiny iphone x for somebody with good credit is gonna run us $30/m. That's kinda pricy, so let's go a few generations back and get a refurbished iphone 6s plus - they won't let me go to older generations. That'll cost $22/m. So sure, yes, that cost adds up - but $8/m extra in savings is not going to be the difference between somebody living paycheck to paycheck or suddenly being flush with savings. Never mind reality TV - _actual_ reality is that a large percentage of the population of basically every first world, western, developed country is paid at such a level that any raise is just going to go directly back into the economy because they aren't paid enough for savings to be a high enough priority to happen. This isn't financial illiteracy - both of us put a _lot_ before savings, it just happens that once we've done that we still have a bunch left over. Lots of people don't.

bluGill 8y ago
My advice is you make sure you have your savings in gear and then live paycheck to paycheck. That is you fund your 401k (IRA, HSA, ...), and set aside some emergency savings. However unless you have a specific short term goal in mind you should be spending everything else and enjoying life to the best of your remaining income. Of course that $8/month difference isn't much savings, but it is a lunch out vs heating leftovers one day. Or you can eat leftovers everyday, save that $8/month on the phone and use all of that savings to buy membership at a golf club. This is your life and your choice, what do you want?
- annabellish 8y ago
  >My advice is you make sure you have your savings in gear and then live paycheck to paycheck People don't live paycheck to paycheck by choice, usually. Savings first is not an option if it means not paying rent, bills, or food.
  - bluGill 8y ago
    yes and no. Most people do live that way by choice, but they don't really realize they are making a choice. You need to pay rent, but very few people live in the cheapest apartment they can find. You have to pay bills, but you can make them much cheaper (it means you hang out in local parks because there is no TV, internet, and you avoid even so much as turning on a light). You need to eat, but beans and rice are cheap. How much savings you need is an open question of course. To live as above without income doesn't require a lot of savings, so you start saving less and add some luxury.

bluGill 8y ago

My advice is you make sure you have your savings in gear and then live paycheck to paycheck. That is you fund your 401k (IRA, HSA, ...), and set aside some emergency savings. However unless you have a specific short term goal in mind you should be spending everything else and enjoying life to the best of your remaining income. Of course that $8/month difference isn't much savings, but it is a lunch out vs heating leftovers one day. Or you can eat leftovers everyday, save that $8/month on the phone and use all of that savings to buy membership at a golf club. This is your life and your choice, what do you want?

annabellish 8y ago
>My advice is you make sure you have your savings in gear and then live paycheck to paycheck People don't live paycheck to paycheck by choice, usually. Savings first is not an option if it means not paying rent, bills, or food.
- bluGill 8y ago
  yes and no. Most people do live that way by choice, but they don't really realize they are making a choice. You need to pay rent, but very few people live in the cheapest apartment they can find. You have to pay bills, but you can make them much cheaper (it means you hang out in local parks because there is no TV, internet, and you avoid even so much as turning on a light). You need to eat, but beans and rice are cheap. How much savings you need is an open question of course. To live as above without income doesn't require a lot of savings, so you start saving less and add some luxury.