The first question that pops up in my mind is “What is normal?”. And that is the only right question to ask. What you consider as normal, someone else may think it’s a luxury. Or it may be the other way around, what you value high, someone else may call it rubbish.
Normal expenses of a millionaire
Conscious millionaires have a standard of living below their income. Normal millionaires will rarely have expensive cars on their driveway. The extremely rich however, will. In addition, millionaires spend a lot of money on traveling, gaining experiences. The fixed expenses of a villa are higher than a small apartment on the third floor. The same applies to the cleaning expenses of the pool. Millionaires eat out more than others. Their clothing style varies from expensive brand clothing to clothing that everyone wears. Millionaires spend more on clean technology. Charity is an important expense of millionaires. Just look at how much money Bill and Melinda Gates donate to charity. Warren Buffet has given away the majority of his capital. Warren Buffet isn’t your standard millionaire anyway. He drives his own car, he never travels with private jet, even though he owns an airline company and he has a relatively low salary for a CEO. He advises youth to stay away from credit cards and to invest in themselves.
Normal expenses of Joe average
Joe average is working hard to make ends meet every month. He owns a house or lives in an expensive rental with monthly payments. This forms a large portion of his expenses, in addition to the daily groceries and fixed expenses associated with the house. His car forms another large expense. He can save up for one or two vacations a year. He likes eating out a couple of times a year. He has enough money for his hobbies. In general, Joe average does not have enough of a buffer to allow him to take hits. A large portion of these middle class people does not deal with money in a conscious manner. Joe average can deal with a setback, but if he suffers more than one, he has a problem.
Normal expenses of minimums
Minimums are working hard to survive, instead of to live. House rent and all associated expenses are the main expense, followed by daily groceries for food, beverages and personal care. After all these expenses, there’s no money left. Currently, a lot of minimums are out of money. Still, they can form a buffer with the help of the BANK management system and in doing so, invest bit by bit. If you are surviving, escaping this situation isn’t easy.
As you can see, normal is different to everyone. You are the one that sets your standard, no one else. Take a close look into your books. There are so many small amounts written off of your bank account on a monthly basis. Some may have served their purpose in the past, but not anymore. You can easily save money by ending these autopilot payments.
Beware of little expenses. A small leak will sink a great ship