Sometimes when I speak to certain people who seem to complain about money all the time they just happen to blurt out on how much they have in their entire savings. I would usually hear something along the lines on how last week they had so much money like say $500 in their savings and this week they would only have $50 because they bought some kind of hi tech gadget or went out dining. This always gets a reaction out of me as in my view for a young adult having only $500 in total should be an extreme warning sign that you need to start managing your money better or that $500 is an extremely low base standard to consider as a lot of money. To me, triple digit in funds is considered a lot for an elementary kid.
For myself I kind of built my standards based on how much things cost during a particular age period and how much money I could realistically bring in. Now when you are a young kid I guess most people are the same as most of your money comes from gifts, presents or receiving an allowance from your parents. During that time I would receive about $10 every two weeks in allowance which means I would get $260 a year. Now obviously too as a kid expenses were virtually non existence as anything I would spend money on would be for entertainment or other unnecessary things like candy. What I would want to spend my money on mostly were transformer toys which ranged from $20 – $30 and video games which were about $40 – $70. On top of that, I enjoyed going to the arcades a lot and it was 25 cents per game credit back then. One thing that I learned fast as a kid, the feeling of having absolutely no money left was a horrible position to be in and that it was better to have something saved up as it drove me crazy when I couldnâ€™t say play that new arcade game because I had no money left. Itâ€™s one thing to have the option to do so and another where itâ€™s that you canâ€™t do anything about it position.
With these factors, as a kid what I would consider as a lot of saved up money would be figures within a four digit range like say $2000 as I could buy and do so much with that for a long time and plus I would still have the $260 a year coming in at minimum. I guess you can say that would be like a millionaire status type of feel/position. Three digits was basically considered normal for me as I thought that having half of $260 would be the smart thing to have at minimum and that anything under that means that I am setting myself up to be in that canâ€™t do anything position again which I did not want. I wasnâ€™t actually able to save up a high four figure range back then, but that pretty much established my attitude and standards from then on in regards to money at a particular age to make sure that I wonâ€™t be in a vulnerable position financially as I grew up.
That philosophy has carried on for myself so far which has worked out great. When I was able to start working for the first time as a young teenager that standard went up as well where I then considered savings within a high five figure range to be a lot and four digits was the base standard. Now as a young adult, that standard again changed where a lot of money saved up would be within a high six figure range with a five figure range being the new base standard. Although I have an extremely long ways to go, I would expect it to be no different when I get to that early mid adult age range and by then seven figures would be considered normal and eight figures would be a lot. This type of thinking has worked for me personally and maybe it can for others as well.