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08-16

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Spending vs. Assets: Are You a 1:100 or 1:1000 Type?
There seems to be a proportional relationship between people's spending levels and their assets. As someone pointed out, it’s possible that our spending capacity and cash reserves are in a 1:100 ratio. For example, if you have $100,000 in savings, you might not hesitate to spend $1,000 on something; and if you have $1,000,000 in savings, you might not hesitate to spend $10,000. However, some people say that when it comes to regular daily expenses, a 1:1000 ratio better reflects their spending habits. ------------ What's the ratio between your spending and assets?
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