Thursday, April 19, 2012

Why We Need More Money As We Age

As we grow older we need more and more money. We might be fine with a minimum wage job when we're teenagers, but when we grow up we understand that our expenses are growing with time and so should our income.

The greatest increase in expenses comes with kids obsviously. Having one or two kids, usually can double, triple or multiple our expenses. Your wife has to stay at home when the kids are small, so basically the husband has to cover all expenses from rent to food, clothing and all the accessories.

Not only the expenses increase, but we also have less control over them. You just have to spend. Also when getting older, our healthy slowly degrades naturally, resulting in less work performance sometimes. It's harder to take two jobs than ever before.

In this context, i think it's very important to increase our income as we get older to match the increase in expenses. I hear some people say: "I'll start saving when i'll be 55", i think that's too much. We should start saving much earlier, at 30, i would say. Also it's much easier to go to college when we're young, kids free. Also thinking and trying to put up some business before getting old can benefit us a lot later.

Yes, we need to enjoy every day, but we also should think about the long-term, about the future. Somebody once told me that we have three basic areas in our lives: health, wealth and love. We must succeed in all three of them to be happy. We should preserve and improve our health, have a plan for building wealth and devote time to love.

What do you think? Feel free to sound off in comments.

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