How much of my pay should I spend?
About this video
Sal asks students to think seriously about what really makes them happy. He contrasts people with fancy cars and big houses who are often stressed and struggling, with people who live more modestly but are actually richer, saving money, preparing for retirement and sleeping better because they aren't living paycheck to paycheck.
You'll be able to
- explain why people who look rich are not always financially secure.
- describe the benefits of living modestly and saving.
- explain what 'living paycheck to paycheck' means.
Key words
- Living modestly
- Spending on simple, sensible things rather than luxuries.
- Paycheck to paycheck
- Spending all of each pay before the next one arrives, leaving no savings.
- Retirement
- The time later in life when you stop working and live on savings.
Transcript
- Think seriously about the things that really make you happy. When you look at a lot of adults in the world, you'll see some people, they might be driving fancy cars and big houses. A lot of those people are actually really struggling because they bought the fancy cars or the big houses and they're stressed because of it and then you might see other people who maybe they're driving more basic cars or living a little bit more modestly.
A lot of those people are actually richer. They're saving a lot of money. They have their retirement. They're sleeping better at night because they're not as stressed, because they're not living paycheck to paycheck. So think deeply about these things and this is the best time to start.
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