Millennials have taken on at least 300% more student debt than their parents[1]. This is a staggering statistic that highlights the financial struggles that many young people in the western USA are…
When cost of living outpaces working income, the only way to live within your means is to speculate on the future price of those means. Investment is effectively a hedge against inflation.
I work for myself and don’t bother expanding. It all just means that the money I make was only for myself and only within my means.
That works so long as you don’t encounter a tail-risk that blows up your budget. A big medical bill or a major housing repair or some other unexpected liability can immediately threaten all your accrued wealth. Alternatively, a state agency may decide your property is more valuable in the hands of a better-politically-connected business interest and seize it at “fair” market value via eminent domain.
I’m in Texas, and I’ve heard more than a few stories of folks with multi-generational family property on the receiving end of a cattle rancher or an oil tycoon who can just snatch up adjacent real estate.
I’m indigenous Canadian and from the very start of my life I knew I was on my own
That’s a rough way to live. It leaves you vulnerable to the slings and arrows of misfortune and the whims of more powerful neighbors. At some point, you need to be part of a larger community as insulation against long-term risks and regional conflicts.
Otherwise living within your means just means living by the skin of your teeth. It works until it doesn’t.
When cost of living outpaces working income, the only way to live within your means is to speculate on the future price of those means. Investment is effectively a hedge against inflation.
That works so long as you don’t encounter a tail-risk that blows up your budget. A big medical bill or a major housing repair or some other unexpected liability can immediately threaten all your accrued wealth. Alternatively, a state agency may decide your property is more valuable in the hands of a better-politically-connected business interest and seize it at “fair” market value via eminent domain.
I’m in Texas, and I’ve heard more than a few stories of folks with multi-generational family property on the receiving end of a cattle rancher or an oil tycoon who can just snatch up adjacent real estate.
That’s a rough way to live. It leaves you vulnerable to the slings and arrows of misfortune and the whims of more powerful neighbors. At some point, you need to be part of a larger community as insulation against long-term risks and regional conflicts.
Otherwise living within your means just means living by the skin of your teeth. It works until it doesn’t.