How much money do I need is the right question to ask. It points to the real area of concern which is income. As an analyst I have been watching the constant rise of prices over the years. For example years ago believe it or not, a new car cost around $2,500 and a new house around $20,000.
The challenge for everyone is figuring out how to afford things. In order to afford the things you want you need the income.
Conventional Thinking About Income
I’ve studied this problem in terms of financial frustration. Financial frustration results when you are trying to make ends meet and you can’t get ahead.
People try to solve this by doing things like:
- Get a second job
- Get a higher-paying job
- Seek professional financial advice
The evidence trail and even individual experiences show these things really don’t work. They do not address the root problem.
How Much Money Do I Need To Make
A better question to ask is how much money do I need to make?
While getting another job or a higher-paying job is a step in the right direction in terms of increasing income, what people fail to understand is that there are a number of obstacles that hinder people from getting ahead.
You must understand how all of these things are related:
- How much money do I need to buy that item relates to
- Can I afford to buy the item relates to
- Do I make enough money to afford the item?
A Different Approach To Personal Finance
What I’ve come to realize is that because people have very conventional thinking about income, they limit their options.
On a broader scale this is reflected in the way people approach personal finance.
Now it’s really not your fault. You are doing the best you can with what you know. The dominate thinking doesn’t allow room for thinking “outside the box” or to stop and consider what is really going on.
When people rely on the government, the financial sector and the educational system to provide the information they need to know they will never arrive at solutions that work.
Conventional thinking in terms of money and employment will not do. If you really want to get ahead you must totally rethink your strategy. This is where I teach people a different way to look at personal finance from the popular expression “The rich get richer.”