I can spend because I’ll always have a job.
1 min read


The argument “I can spend because I’ll always have a job” is a financial fallacy for several reasons. This approach assumes your income is both stable and guaranteed which is rarely the case. Job loss, pay reductions, company restructuring or even economic shifts can disrupt the normal flow of income. This fallacy also fails to take into account expected or unexpected life events such as health issues, family emergencies, and retirement which could necessitate extra financial provisions. Over-spending consistently without saving for emergencies or future events can lead to financial instability, debts and financial distress.

It’s understandable why this fallacy is appealing. In a society driven by consumption, it’s easy to fall into the trap of living beyond our means especially when we feel the reassurance of regular monthly income. It gives us a comfortable illusion of permanent security and prosperity, and allows us to justify impulsive or excessive spending.

An effective financial strategy is maintaining a balanced approach towards money management. This primarily includes living within or below one’s means, regular saving and investing, having an emergency fund, contemplating over insurance covers and planning more thoroughly for the future, like retirement. It’s recommended to have a disciplined budgeting process, a clear view of one’s income and expenditure, and a pattern of smart spending that contributes to long-term financial health and stability.

Further readings:

  1. “Your Money or Your Life” by Vicki Robin and Joe Dominguez. Book Link This book assists in tackling the misconception of permanent income through real-life stories and a step-by-step program for becoming more financially independent.

  2. “Rich Dad Poor Dad” by Robert Kiyosaki. Book Link A popular book that highlights the importance of financial intelligence and planning for the future.

  3. “Financial literacy”. Wiki Link This comprehensive article provides an overall understanding of financial literacy, its importance, and the potential impact on different aspects of life.

  4. “The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying” by Suze Orman. Book Link. Created as a how-to guide, it focuses on altering attitudes about money and taking control of finances.