08 Sep Are you earning enough money?
Put your hand up if you’re earning enough money.
What? No hands, do you have a rotator cuff injury? What is ‘enough’ anyway? Some would be earning $300,000 a year and complaining. Others could be earning one fifth of that and feeling satisfied.
I started thinking about this recently when I slipped out to wet a line (notice I didn’t say catch fish) with two of my long-standing mates. Rick is a partner in a prominent law firm. I guess that earns him $700K – $900K a year. Steve is a teacher nearing retirement. I guess he earns around $100K.
Rick, somewhat younger than Steve and me, can be intense (he’s a litigating lawyer after all) and was bemoaning the fact his wife recently bent her Porsche, the kid’s private school fees had hit six figures and how p’d off he was not being able to go on the traditional annual holiday to Europe.
Don’t get me wrong. We all love Rick. He has a lot of redeeming features, and he can be highly entertaining.
What it really drove home to me is how differently my two friends treated money. Rick is a consumer – bigtime. The cars, big house, big mortgage, eats out at top restaurants three times a week, expensive holidays (somewhat curtailed). You name it – it’s top shelf and lots of it.
Steve on the other hand learned long ago to make his money work hard for him. He’s comfortable – investment properties, share portfolio, and he’s not living like a monk. Steve has invested in my projects since the early 1990’s. And he did it on a teacher’s salary.
Rick was always too busy being busy. Always more to consume. There’s a lot of pressure on law firm partners to ‘look the part’. Lots of in-house peer pressure too. I haven’t given up on him.
So how are you going? Is your money working hard enough for you or are you over-consuming?
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