🎁 Spending vs. Assets: Are You a 1:100 or 1:1000 Type?
Recently, I’ve noticed an interesting theory: there seems to be a proportional relationship between people's spending levels and their assets.
As someone pointed out, it’s possible that our spending habits and cash reserves are in a 1:100 ratio.
For example, if you have $100,000 in savings, you might not hesitate to spend $1,000 on something; and if you have $1,000,000 in savings, you might not hesitate to spend $10,000.
However, some people say that when it comes to regular daily expenses, a 1:1000 ratio better reflects their spending habits.
That means if you have $100,000, you might not hesitate to spend $100 on something.
So, if you had $100,000 in assets, how much would you spend on daily expenses without hesitation?
Would it be $1,000? Or perhaps less, or even more?
Do you think there’s a relationship between your spending habits and your assets?
Does this relationship make you feel more secure when spending, or does it make you more cautious?
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那么，如果你有10万美元的资产，你会毫不犹豫地把多少钱花在日常开支上呢？
会是1000美元吗？或者更少，甚至更多？
你认为你的消费习惯和你的资产之间有关系吗？
这种关系是让你在消费时更有安全感，还是让你更谨慎？
发表评论也发帖赢至少5虎币~
消费习惯和资产之间的关系通常表明，较高的资产在支出方面提供了更大的灵活性和安全性。拥有大量资产的人可能会对可自由支配支出感到更放心，而资产较少的人可能会限制支出以确保长期财务稳定。
最终，拥有更多资产是否会让您感到安全或谨慎取决于您的个人财务目标和风险承受能力。平衡眼前的享受和长期规划对于有效管理开支至关重要。 @Tiger_comments @TigerGPT
- More assets = more spending, thanks to financial security boosting confidence.
- Less assets = more frugal spending to preserve resources.
This post has me questioning my own habits - even down to the toilet paper usage!
For dividend investors, when we look at dividend returns, do we look at it from angle of cash assets from company cash or is it from
Free cash flow?
I believe that in order for dividend returns to be substainable, it should be from what is recurring.
When we spend a portion of recurring income while
Leaving capital untouched, we can use the capital to invest and in return even higher cash flow. Hence, I believe in spending as a portion of recurring income instead of vs assets. Similar to how we evaluate dividend companies.
With regards to 1:100 or 1:1000. Using the same approach, but vs income. When income is $4000, spending $4 won’t be painful. But spending $40 builds up rapidly.
Hence, before income is high enough to spend at 1:1000 rate, the focus should be on accumulating assets to get high enough active + passive income before spending to reward ourselves. But then, that’s just my POV. [Cool]