How Much Is The Budget To Live A Luxurious Lifestyle
How much money does it take to live a luxurious lifestyle? This article will show you just how much you need.
When buying a house, would you buy the most luxurious apartment in the building or in the adjacent building? How about the nicest house next door to you?
Most would choose the house next door, so we wanted to know how much money it takes to live a luxury lifestyle. Is it enough to keep up with the Joneses?
The Joneses are all wealthy high-net-worth individuals who are living lavish lifestyles as illustrated by the book of the same name by William Roberts and David Chilton. What makes these individuals wealthy?
Wealth is determined by net worth, or the total of all of one's assets minus all of one's liabilities. It is the difference between income (salary and bonus) and expenses (mortgage, rent, food, etc.).
Wealthier individuals are those who have more money left over each month than they put in their savings. Just like an individual who saves $2000/month can start off with $30,000 and still have $10,000 left over to spend, a millionaire who saves $5,000/month can start off with $250,000 and still have $150,000 left over each month.
While everyone strives to save money, wealthy people spend more so they can live a luxurious lifestyle. While everyone strives to live the high-life, wealthy people live it for themselves.
In the past, luxury was simply a status symbol. For example, the wealthy might have silk suits, expensive cars, gated communities, marble kitchens, and the latest home appliances.
And you might think that the price of these things can only be afforded by the wealthy, but we've taken a look at our monthly budgets, and we've found that most people can make this lifestyle a reality. Most of us would love a nice car or a nice home.
It is imperative that one must pay attention to where their money is going in order to live a luxurious lifestyle. It is only by checking our monthly bills and expenses that we can see where our money is going and be better off.
When people realize where their money goes and the consequences that have been observed, they are able to make significant changes to their finances in order to live the lifestyle they want. If we know our expenses, we can determine how much money we should be saving, and then saving money is not an issue.
When we know where we are spending our money, we are able to live a luxurious lifestyle. The other concept to consider is purchasing power.
Buying power is how much money you have to spend. Not all money has buying power.
For example, buying a $5000 purse has buying power whereas a $1,000 purse does not. A $2,000 car has buying power whereas a $10,000 car does not.
If you can spend $5,000/month on living expenses, it is more than enough to live a luxurious lifestyle
When living a luxurious lifestyle, individuals are always focused on the here and now.
And while living a luxurious lifestyle may not be what everyone wants, those who live a luxurious lifestyle are always looking forward to what's next.
In a 2006 article, Nationally Syndicated Columnist James Benedict states that, "I think the older generation and the media doesn't understand what they are talking about with millennials. The world is completely different from what it was when I was growing up."
He continues, "The individual has taken on so many responsibilities today that it's no wonder people aren't as active as they used to be. But the reason people aren't more active is because there is so much on the average person's plate."
Benedict goes on to say, "Nowadays, with all these responsibilities people feel as though they have more time than they do. We no longer depend on our grandparents to take care of things, like the backyard, because we've been raised by helicopter parents."
In other words, "Parents" are more involved in the lives of their children. If you are one of those helicopter parents, congratulations.
You are raising your child to be more like you. It might not be the best thing to raise your child to be just like you, but the reality of it is that we no longer have the familial structure we once did.
That was lost when our grandparents passed. However, what Benedict and most millennials fail to realize is that they are allowing their children to be raised as the helicopter parent they themselves were.
That is, they are raising their children to be stressed out, never to fully enjoy life, and constantly stressed out because the world revolves around them.
Money is one of the easiest and fastest ways to acquire things that you desire in life. I'm also not talking about fancy cars or a really nice house. I'm talking about getting the most out of what you have.
It starts with being smart about your money. The first thing you need to do to get ahead financially is set up an emergency fund. Do this by creating a budget that includes monthly expenses and include a small reserve for unexpected expenses.
An emergency fund will help you handle any unexpected expenses. It will also help you to prevent yourself from going into debt. After you have the emergency fund in place, the next step is to figure out where your money should be going.
Likewise, practice wealthy consciousness by following these three ways:
- Start with a budget
- Learn to live within your means
- Learn to enjoy the now