Let me begin with some obvious, simple facts: Your income doesn’t stay the same as your expenses do. You will never be in the same place with the same dollar amount every month. A small variance from your budget is normal, but it is not good. A common mistake is to assume that because your expenses are higher than your income, your income isn’t good. This is not always true.
The problem with being in the same place with the same dollar amount every month is that your expenses can still exceed your income. You will run out of money before you can pay your bills, but it is unlikely to happen until your expenses exceed your income. If you can afford to pay your bills, but have no money left over to pay your expenses, your expenses will be lower than your income.
This is not the first time we’ve had this problem, but the most common one is people living with roommates vs. renting. If you can’t afford to pay your expenses, you can’t afford to live in the same place. Renting is a great alternative, as long as your income is not too high.
How do you keep your income low? In a world where we have no way to know how much we are earning, we can estimate your income based on how much you spend on work, but with a 3x income ratio, your income should be about $1,000. Do you have an idea what it’s like to live in a place where you can afford to pay your expenses? If it’s a little bit harder to find work, that’s a good idea.
This is a very important question. And the answer is that it’s a combination of two factors: You want to have the lowest variance in your expenses. And you also want to have the lowest variance in your income.
If you want to get married to someone who doesn’t have a spouse, the spouse probably won’t be able to afford the extra income due to the divorce. It’s not hard to see how marriage can be more profitable and less difficult to manage. However, the spouse is never going to have a job.
The problem with having the lowest variance in income, is that you will have more variance in your expenses. You are always going to eat out more. You are always going to go to restaurants more. You are never going to have a vacation or a fancy dinner. This leads to more variance in your expenses, which leads to more variance in your income.
It’s not that the median income in the United States is lower than everyone else’s (in fact it often is). It’s just that the median income in the United States has increased since the end of the Cold War. But we have had the biggest jump since the Cold War. The median income has jumped from $35,000 to over $6,000 per year. So it’s not like we’re stuck in a time loop.
The increase in median income is a result of the fact that the population has grown (that is more people have jobs, more people have families, etc.) The increase in median income is a result of the fact that the economy has grown, which has lifted the median income. It’s not a time loop.
The income is also a function of the economy, which has grown through the current decade. The current economy is producing more than the economy would have been producing a decade ago. That is why the income is higher now. It is because the economy is growing and producing more than it would have been producing.