What Does Affording Mean to You

Buying any one item at any one time cost a certain face value. However, when you extend the opportunity cost of investing instead, it expands greatly by the time you retire. You can extend this thought to equate how many more days, months, or years you must work in order to afford a certain item. This amount will likely make you think twice before buying anything superfluous and not absolutely essential. For those that do not care, spending on superfluous items essentially traps you into the rat race of never ending servitude and work. You work to buy things you do not need which causes you to work some more.

How’s it going everybody this is beat the bush today i’m gonna talk about what it means to be able to afford something now being able to afford something means very differently from person to person at one end of the spectrum someone might think that they can afford the item as long as it will fit in their credit card as long as they can make the minimum payments the

Second step of affordability may not be as bad as putting on a credit card but it’s more like living on a paycheck to paycheck level where if you have enough money for that rest of the month if you have extra then you can go oh yeah i can spend this extra money on whatever it is you can imagine just because you have just enough to buy that item you cannot really

Afford it because you really should not be spending that close to your limit where you have nothing left now the third step of affordability is if you have the cash in hand and yet you have some unpaid off loans such as credit card loan student loans or personal loans this money that you’re spending could have been put into those debts instead this is not really

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Your money because you have debts that you need to repay the fourth and final step that i strive to operate on is that you should not spend any money on anything until you have all your debts paid off and on top of this you need to have enough money to retire on first why is this so important is because every single dollar you save today early on in your career

It’s going to compound greatly so by the time that you’re ready to retire it’s going to significantly reduce the number of years that you have to work so when you look at buying baking expensive items and things that are not very necessary every single dollar you spent it’s going to lengthen the time that you need to work in your working life assuming that you work

Normally saved normally and your target of retirement is around the age of 65 now looking backwards at this you can kind of look at this in terms of whenever you save a certain amount of money you can work less you know like a month or something or a year by the time you do a lot of savings and not a lot of spending and just kind of live your life simply with some

Pleasures of course and you want to keep a good standard of living now the trick is you can do all of this without spending a lot of money and based on my calculations instead of retiring at 65 i am guaranteed to retire earlier than 55 okay probably even earlier than the age of 50 this is 15 years of work that i essentially do not need to do and i can go pursue other

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Interests well maybe it’ll earn money maybe not but then the point here is when you retire early and you’re financially independent you actually do not need this money you don’t need to work at all and you can just live off your of your investments or any kind of residual income so when people mean they can afford it it can either mean their financing it it can mean

They have the cash to buy it or it can mean that they have the cash over and beyond after they reach their retirement goals this last option is of course kind of crazy and people might say oh you’re just skimping on your life and you’re not really living and maybe you’re gonna get hit by a bus way before you actually retire the point here is to be frugal and keep

A very good standard of living this is done by not buying into all the frivolous things you know all the luxury brand items that cost a lot of money but does not give you actual utility value as a frugal person you look at utility value and bang for the buck and value for the dollar the most to me this is the most efficient way to spend your time because if you

Spend it wisely you’re trading your time for money so you want to trade this money for the best value that you can and not just give it away in turn if you spend your money really wisely you’re gonna be rewarded with a lot of time and time it’s the most value asset that you have you have a limited amount of time on earth you can just continue commuting to work and

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Just kind of turning the wheel because you ended up buying into all this luxury goods all these frivolous things that ended up costing you a lot of money which in turn means it’s costing you a lot of time i hope this gets you thinking about if you can afford something or not with this brand new angle don’t forget to give me a like on this video comment down below

Let me know if you ever buy things with this thought in mind if you’re interested in supporting this channel don’t forget to check out my audible link down in the video description below where you can get a free audio book i have a patreon over here if you’re interested in supporting my channel directly and as always don’t forget to subscribe to my channel over here thanks for watching

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What Does Affording Mean to You By BeatTheBush

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