I was taking a look at this article at Yahoo Finance about a University of Chicago law professor, Todd Henderson. He blogged that making $250,000 or more does not mean a person is rich and “we are just getting by despite seeming to be rich”. He then went on to name expenses like a nice house close to work, a nanny, and a lawn care service.
I completely agree. If I make $250,000 a year but spend $250,000 a year, I am not creating wealth. If I make $50,000 a year, live on $40,000 a year, and save the difference, I do create wealth. BUT, I definitely have more of an opportunity to create wealth making $250,000 a year than someone making $50,000 a year. How?
BY SPENDING LESS. It isn’t that hard to figure out. Spending less than you earn is the first step to surviving financially.
A nanny, a nice house close to his university, and a lawn care service are not necessities. Those are all called “luxuries”. I should know, Mr. BFS and I do have a biweekly housekeeper and a biweekly lawn service during the spring and summer…we know they are luxuries and budget as such. BUT THEY ARE LUXURIES NONE-THE-LESS.
Is Todd smoking something? If my husband and I can somehow save 35-40% of our income when we “only” make $80,000-$85,000 a year jointly (and are happy to boot), I think that a couple making $250,000 a year in Chicago has a fighting chance to build wealth too.
Sure, I do not have kids and childcare is expensive, but I bet there are cheaper options than a personal nanny. I also doubt that childcare is eating up the $165,000 difference between our salaries.
I usually try to be more sympathetic, but I just don’t feel like coddling anyone today. Whether someone is making $20,000 or $1,000,000, I just don’t think they should get coddled when they complain that their LUXURIES are costing too much. I splurge on luxuries, but you will never hear me whine that we can’t make ends meet because our housekeeper costs too much.
Todd, shut the heck up. You are being a whiny brat. That is all.
What do you think? Am I being too harsh?
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 a year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, a rental home, and professional pet sitting. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you). I even have all of my favorite tools on a resource page – I hope they help you too.
This all gives me the time to be with my aging family members, the flexibility to stay close with my friends and family, and it should help if we finally get pregnant too! Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!