Session 3 Discussion: Earning, spending, saving

What is the difference between a "want" and a "need"? Give three examples of things that started as wants in your lifetime but have become needs. What does this tell us about lifestyle inflation?

Try to use: discretionary spending, essential expense, lifestyle creep, standard of living

Is it better to earn more or spend less? Is there a point where earning more actually costs you more — in time, stress, or lifestyle expenses?

Try to use: opportunity cost, net income, work-life balance, the rat race, diminishing returns

Financial experts recommend keeping 3–6 months of living expenses as an emergency fund. What would you need to change about your current finances to achieve this? What would it feel like to have it?

Try to use: liquidity, emergency fund, financial cushion, peace of mind, accessible

What cultural attitudes to saving and spending did you grow up with? Do you think your culture's relationship with money has helped or limited you financially?

Try to use: frugality, attitude to debt, financial habits, cultural norm, inherited belief

The "rat race" — working harder to afford a life that keeps getting more expensive. Do you recognize this pattern? How do people escape it?

Try to use: fixed costs, lifestyle inflation, passive income, financial independence, treadmill

If your income doubled tomorrow, what would change in your spending? Would you save the extra — or would your expenses rise to match? Why do most people's expenses expand to fill their income?

Try to use: Parkinson's Law of money, lifestyle inflation, savings rate, deliberate spending