Relative money buckets

Leaving out edge cases, no matter what your level of financial abundance, there’ll always be things that fall into each of these buckets:

  • Easy to afford. You don’t even think about it. For example, if you work full-time, you can probably buy yourself a coffee without considering your budget.
  • Save for it. You might have to save for a little while, and you’re not comfortable buying things in this price range on impulse, but you know that you’re capable of achieving these savings goals.
  • Hard. You can afford these things, but they’re at the edge of what you consider possible for you. An example might be an expensive holiday that you feel you can only make happen once every few years.
  • Seemingly impossible.¬†Things you don’t consider possible for yourself. A private jet, your own skyscraper in the CBD, etc.
When you’re income goes up a notch, the things you might spend money on drop down into a more achievable bucket, but the buckets remain the same. If you develop a good relationship with the purchases you make in each bucket, that relationship will serve you well no matter your income level.
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