Am I living outside my means?

Question

Ok I am 17 I make $154 a week and I have no real expenses excect for a $15 a month cell phone bill. I am a save-spender I save awhile than I spend it all on what most people would consider luxury items ex. prada sunglasses, pucci bathing suit, bcbg clothing. My dad says that I waste my money, I should be saving it and that money should mean more to me than that. Again I have no expenses. So who do you think is right here?

Answer 1

While you have no expenses, you should be saving at least half your take home pay. And I do mean, save...do not spend it! The reason is two-fold.
1. you are learning to save
2. you are building a financial cushion
The cushion is there in case you lose your job, want to eventually get a place of your own, have car issues, etc. Even if you save half, with half to spend, that is a lot of money to waste and so you shouldn't feel deprived.

Anyone with an income should learn to put some aside that does not get touched except for super large purchases (like a house), loss of job, etc. The amount saved is usually determined by how much you have after bills are met but it is always important to save. As you get older, you will realize that this is wise advice your dad is giving you. He is trying to get you to realize the value of having money to fall back on in an emergency or when money is really needed.

Answer 2

Even thought it's good to enjoy things you like, it wouldn't hurt to be a little more practical. You don't need designer items when there's usually stuff just as good that isn't as expensive. Still, personal taste is personal taste, but the truth of the matter is the older you get, the harder it is to save. Even though you're making less, you can put more money away before you turn 25 than at any other time in your life (because like you said, you don't have any bills), so even though it's good to enjoy the fruits of your labor, start saving up for stuff you might need in the future (car, college, etc). Even just open a free savings account through ING or your bank and put away 5-10% of every paycheck... it'll add up and then you'll have a nice nest egg when you want to move out or get something that's important. All the best,

Brian

Answer 3

You decide what you want to do. But here's a thought:

If you put $100 a week into a broad market fund for the next three months, and struggled on $54 a week (with no living expenses! You are SO spoiled) (total of $1200 invested) & then ignored it for ten years, you'd likely have about $4000. If you spend it on shoes, you'll just have some really old shoes.

Your dad is probably aware or maybe even upset that when he was your age he spent his money on shoes (or whatever) , and realizes now how wealthy he could have been (even if he's rich now, he could have been four or eight or sixteen times richer!)

Good luck...

Answer 4

Your a label whore.... don't worry so am I.
Your paying extra money for a Brand, your paying $500 for a purse that cost $20 if it didn't say prada. Yes, it's a waste of money to keep buying pricey things. But it's OK to have a couple labels- just limited yourself. Only have 1 pair of sunglasses, only have one designer swim suit.... and USE it till it fall apart. I have had my prada for 5 years now so even though I paid a good amount for it, I am getting my money worth. Try cutting your spending down and bank at least 1/2 your pay check. It will help you in the long run and you'll have some extra money for college and more important things. Trust me, if you don't curb your label appetite and spend money wiser it will get worst. I am 29 and own my own house, paid for my own college and car. Lots of my friends are trapped in credit card dept for like 60,000 from buying luxury items and junk. Your dad is just worried that if he doesn't teach you wise spending you'll end up as a homeless and bankrupted adult. And believe me, I know plenty of people who have ruined their lives and finance from over spending.
Prove to your Dad, your responsible!

Answer 5

At 17, you are very close to the point in your life where you will have things like rent, groceries, auto insurance, etc. to deal with. Those luxury items will seem like extravagant wastes in the near future. Your dad may be hinting that you are about to be on your own. Even if you move out of your parents home and into a college dorm, you will still have more expenses than you do now.

Answer 6

Your dad. He's trying to give you little hints that maybe the free ride might be over when you turn 18. Do you even have a savings account? What are you future plans? Mom and Dad will not be around forever and then whose going to take care of you. It's about time for you to start taking on some responsibility for your own well-being. Wake up and smell the flowers before it's too late.

Answer 7

actual, the folk she is touching on are individuals that top off the tanks of their 3 new vehicles, of their at the instant (5 years in the past) refinanced domicile, and have somewhat time job the place they are making just about $one thousand according to month... i've got seen many people who're doing precisely this. Why is it that somebody that has a job which will pay below $15,000 a 365 days demands to have 2 variety new vehicles (a activities motor vehicle and a %.-up truck), that isn't come on the brink of sporting their 4 young ones... And the folk purely won't be able to seem to wrap their minds around the reality that there is month left on the tip of their paycheck... And those human beings choose help - mutually as my kinfolk shops and deals and does each thing we are able to to establish that we are able to nevertheless have money left on the tip of the month?? i do no longer think of so. those are the people who Sarah Palin is discussing. and he or she's fought her way up interior the organization international. She is prevalent with what it rather is opt to scrape and shop. She is likewise painfully precise whilst she discusses people who stay outdoors of their potential.

Answer 8

It depends, how much are you left with after you buy the expensive items. If not a lot then yes you are living outside of your means. If you have enough to cover everything else as if you were living on your own, then good job!

Answer 9

If you have no other bills to pay for, then I wouldn't say you are. Now if you had other things to pay for now or in the immediate future, then yes, you are spending money you probably should not be spending.

Answer 10

This is perhaps the only time of your life when you'll be able to spend money this way.

The time will come soon enough when you will be lucky to afford food and rent.

Enjoy it while it lasts!