I’m pretty sure there was a study done that found that people with lower incomes tend to spend their extra money on experiences and such (tattoos, games, etc.) rather than save and invest. And they do that bc they figure they aren’t gonna have the money for long so might as well do something enjoyable with the money when they do have some extra. Whereas people who have higher incomes often have some extra money, so they can make plans and invest with the expectation that they will have more extra money later
Yeah, that’s my experience. I think there’s a kind of anxiety that if they don’t spend it now, some unexpected expense may come along where they’ll have to spend it on that. When unexpected expenses are required, they have to borrow/hustle/pawn/pick up another shift/etc. A lot of people couldn’t even balance a budget if they tried (i.e. they don’t have enough income to cover both expected and “unexpected” expenses).
I’m pretty sure there was a study done that found that people with lower incomes tend to spend their extra money on experiences and such (tattoos, games, etc.) rather than save and invest. And they do that bc they figure they aren’t gonna have the money for long so might as well do something enjoyable with the money when they do have some extra. Whereas people who have higher incomes often have some extra money, so they can make plans and invest with the expectation that they will have more extra money later
Yeah, that’s my experience. I think there’s a kind of anxiety that if they don’t spend it now, some unexpected expense may come along where they’ll have to spend it on that. When unexpected expenses are required, they have to borrow/hustle/pawn/pick up another shift/etc. A lot of people couldn’t even balance a budget if they tried (i.e. they don’t have enough income to cover both expected and “unexpected” expenses).