$1000 does not sound astronomical except that when 50 of them is $50,000 . Of the 50 choices made to spend (or save) $1000, a family only has control over a limited amount of them. The rest are called for. The government takes away 8 – 10 choices. Food, shelter, and vehicle takes away about 15 – 20 choices. 401K / Retirement funding takes 3 or so more choices away. Debt service of CCs, college loans, medical expenses, take another 10 choices away. Miscellaneous (our spend money) takes probably another 2 – 3 choices away.
So what? At the end of the day a $50,000 salary allows 7 choices per year to spend / invest $1000. These choices are are somewhat scalable with the more that is earned. Understanding this leaves very few choices for building wealth, but identifies how many choices you have to make that decision. What choices will you make?
