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If it takes 80% of your income to live at a base level of hierarchy of needs, you need roughly doubled income to be able to actually save money, and have it not
by taurath 8y ago
If it takes 80% of your income to live at a base level of hierarchy of needs, you need roughly doubled income to be able to actually save money, and have it not be wasted away on this or that random emergency, which is going to be more frequent.
- dan-robertson 8y agoSo you need to spend at most 40% of your income on food, shelter, etc before you can save anything because you need to spend the 60% on what, occasional emergencies? What do people do when they don’t have that 60% spare? Or is the key that you write “actually save money” and by that you mean saving some significant amount of money? How much do you think that is?
- lxmorj 8y agoI think he means 'save towards intentional use' versus 'save to soften the blows of random hardships, but never really get ahead'.
- taurath 8y agoKeep in mind that that 40% is at a level where you still have to take the bus everywhere, live with roommates in a bad part of town, and not eat healthy. The middle class always spends and can save, being poor means you can’t.