Does Salary Represent Your Financial Situation?
What do you do for a living? When you are asked about what you do, and you say you do a job, the next thing people like to know is, how much you get as a salary. That's a sensitive question. People may not ask that directly, but they are interested in getting to know that.
Other people may give you a certain level based on the salary you get. In case your salary is not impressive, it is assumed that your financial situation is not that good. On the other hand, when you get a lucrative amount as a salary, other people think that your financial situation is pretty good.
How much you are paid as an employee definitely impacts your financial situation, but is that all? One of my relatives do a job in a company and he is well paid. At the end of the month, he hardly has any money. He spends most of his earnings.
If you look around, you may notice the same thing. Your salary does not represent everything. No matter how much you earn, if you spend more than your income, you may take that money from somewhere else. And you have to pay that back later. It is a clear indication that you will end up in a bad place financially.
Of course, you want to make more money to live a better life. What you do with your income, that's the most important. Do you save money? What would you do with your savings? Do you want to build wealth? What's your plan for that? Do you have any financial goals that you want to achieve?
When you answer these questions, you will not spend your money carelessly. You want to be happy and you want to make your family happy. To ensure the financial security of your family, you save money. There is something more than yourself.
What you earn from doing a job, you spend money to fulfill your needs. Here your budget can guide you on how you should spend your money to get what you want. You will be more responsible. When you have savings, you will start investing in different assets. Slowly you build your wealth and improve your financial situation.
If someone is paid the same amount as you get as a salary, that does not indicate the same financial situation as yours. His financial situation may not be good unless he manages his money to change the financial situation. Only by looking at someone's salary, you will not get the full picture of that person's financial situation.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
About Me
Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.
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there can be people living paycheck to paycheck across the spectrum
(raises hand) Yep, right here. I was just thinking this morning how I've never made more per year in my life than right now, and I've never felt more broke because it's gone as soon as I get it.
There is a huge list of expenses. As soon as people get their salary, they have to pay for those expenses.
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That's reality! At the end of the month, employees wait to get their salary to their bank accounts.
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The spending habits of every individual is what determine his or her financial situation.
A lot of people find it hard to live below their means which always ends them being financially unstable until they curb their spending habit and live below their means.
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If you don't have any control over your expenses, your income will disappear like magic. How you manage your money, that can make a difference in your financial situation.
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Salary doesn't mean everything but it's a metric people use to compare against each other. However, I think it's way more important to see how you use your money as compound interest can be amazing.
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So true. That's what we see in our society.
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