3 ms·

That’s the authors point. Unless you are an extreme outlier and buying a LOT of small purchase (like to the point you don’t have time to work), they really are

That’s the authors point. Unless you are an extreme outlier and buying a LOT of small purchase (like to the point you don’t have time to work), they really are meaningless. The big fixed items in your budget really drive everything, housing, medical, education, which have all far outstripped inflation. And the income has remained flat for most people (save tech workers who get great coffee for free).

deleted 8y ago
[deleted]
esotericn 8y ago
Unclear to me that this is the case. Here in London, at least at the low end, it is extremely easy to spend more on entertainment than it is on basic living costs. That goes double if you're sharing a flat rather than renting alone. A room might be 600pm. Spending 20 quid a day just means a coffee, lunch, dinner out or takeaway. You can double your expenditure by just not preparing your own food.
GuB-42 8y ago
Sure, the big fixed items drive everything, but they are the baseline. Saving on housing is hard, and saving on medical and education is more or less impossible. If you have, say, a $3000/month income, resulting in a $2000/month budget and you need $1000/month expense just to survive, that's $1000/month expendable. A $5/day latte ends up as 15% of that budget, that it is 5% of your income is irrelevant because you don't have access to these $2000. 7 of these "small" expenses and you are left with nothing. No extra money for a nice car, a more comfortable home, holiday trips, etc...
- yellow_postit 8y ago
  Not sure savings on those fixed costs are as impossible as you make them out to be, rather they may take substantially more effort than the "skip a coffee" line. Housing -- do more with less. How many people buy houses (or cars) beyond their means or bigger in size than needed? Health -- daily movement is a life long commitment (as is finding time for sleep) and has outsized long term health benefits. No this doesn't address the "hit by a bus" scenario, but in terms of some of the most prevalent chronic health conditions it's amazing ROI. Education -- while there is an undeniable tyranny of geographical circumstances, being able to evaluate using community colleges for prereqs, considering alternatives like trade schools, and taking into account expected lifetime earnings for career path all can play into this fixed expense.
asdff 8y ago
Most people can't do nearly so much about the big fixed costs vs. small daily indulgences.

deleted 8y ago

[deleted]

esotericn 8y ago

Unclear to me that this is the case. Here in London, at least at the low end, it is extremely easy to spend more on entertainment than it is on basic living costs. That goes double if you're sharing a flat rather than renting alone. A room might be 600pm. Spending 20 quid a day just means a coffee, lunch, dinner out or takeaway. You can double your expenditure by just not preparing your own food.

GuB-42 8y ago

Sure, the big fixed items drive everything, but they are the baseline. Saving on housing is hard, and saving on medical and education is more or less impossible. If you have, say, a $3000/month income, resulting in a $2000/month budget and you need $1000/month expense just to survive, that's $1000/month expendable. A $5/day latte ends up as 15% of that budget, that it is 5% of your income is irrelevant because you don't have access to these $2000. 7 of these "small" expenses and you are left with nothing. No extra money for a nice car, a more comfortable home, holiday trips, etc...

yellow_postit 8y ago
Not sure savings on those fixed costs are as impossible as you make them out to be, rather they may take substantially more effort than the "skip a coffee" line. Housing -- do more with less. How many people buy houses (or cars) beyond their means or bigger in size than needed? Health -- daily movement is a life long commitment (as is finding time for sleep) and has outsized long term health benefits. No this doesn't address the "hit by a bus" scenario, but in terms of some of the most prevalent chronic health conditions it's amazing ROI. Education -- while there is an undeniable tyranny of geographical circumstances, being able to evaluate using community colleges for prereqs, considering alternatives like trade schools, and taking into account expected lifetime earnings for career path all can play into this fixed expense.

asdff 8y ago

Most people can't do nearly so much about the big fixed costs vs. small daily indulgences.