In our society, we are encouraged to spend a large portion of our income on living expenses. We often make the mistake of spending too much of our income and having too many luxuries to get by. This is why we tend to have more money than we need and spend it on unnecessary items.
I don’t think that spending a large portion of your income on unnecessary luxuries is a bad thing. If you want to enjoy life, why not enjoy it? Some luxuries are just necessary to survive. For example, if you want to have a beautiful home then you need to pay the mortgage, which is a necessity. Also, if you want to go to the gym, you need to pay a gym membership, which is also a necessity.
Luxuries are the things you buy to be able to function in life. Examples are clothes, transportation, furniture, and many other things that enable us to survive. Many times, luxuries don’t have a direct economical impact on your living expenses. It’s like saying, “If you want to have a beautiful home, you need the money to pay the mortgage.
This one is a bit iffy because there are a lot of luxuries that don’t directly affect your budget. For example, if you want to go to the gym, then you need to pay for the gym membership, but if you want to go on vacation, you will need to pay for your vacation, and so on.
Yes, but not because its luxuries that you have to pay for. Its because that spending is the direct economic impact of those luxuries.
You need to have a point-of-sale for your home, a credit card, and a line of credit, but you can also make your own budget. Buying a boat is also an investment, so you’d better budget for that, too. If you want to go to the gym, then you really want a membership, but if you want to go on a vacation, well, you can go on a vacation for free.
I think there are two types of budgets. One is the kind where you have to make a lot of decisions because you don’t know what you want to do. The other is the kind where you know what you want to do, but you have to make a lot of decisions to get it. That second is what I think of as a “budget” because in that case you can actually make a lot of choices and get something that you want, with good reason.
In the first sense, you have the freedom to choose your own path, but in the second sense, you have to make the decisions to get the results you want in the first place. I think that’s why it’s such a difficult question to answer.