If you’re making enough to break out of the poverty loop, you can probably find a lot of ways to save money. None will save you quite as much, however, as being happy with a lifestyle that doesn’t cost a fortune.
Photo by Jeffrey Beall.
As personal finance site Four Pillar Freedom explains, there’s nothing necessarily wrong with wanting a lifestyle that costs a lot. However, you’ll have a harder time reaching it than someone who’s content with a small home and inexpensive lifestyle:
Consider Person A who wants a large house, several luxury sports cars, a full wardrobe of clothing for each season, new jewellery every month, and whatever other consumer items may be out there. Then consider Person B who simply wants fulfilling relationships and freedom to do work they feel strongly about without the desire to purchase excessive consumer luxury items.
Neither Person A nor Person B is inherently wrong for having their unique wants, but the difference is that Person B needs to spend a lot less money to fulfil his wants. As a result, Person B has a much higher likelihood of reaching financial independence sooner than Person A since their expenses are much lower.
Of course, if all you’ve ever wanted in life is a big home and fancy sports cars, you can go for it. Just understand that you’re tackling personal finance on hard mode. Alternatively, if you simply want less stuff, you can make it easier on yourself to reach financial independence.
Buy Whatever You Want [Four Pillar Freedom via Rockstar Finance]
Comments
One response to “It’s Easier To Save Money When You Don’t Want An Expensive Lifestyle”
I think this is about realism…? Something I have noticed in friends of ours. They want the big house, now. The new car, now etc etc. Instead of going – what do we need now and what will we need into the future – add on some wants; trim, cut massage and mould into a ‘dream’ that you can aim for.
It isn’t all going to happen quickly or even at all but you need that defined goal.
Now my wife and I differ on some things – I am probably more materialistic (I want the new gadget or gizmo she is happy with something that works). Neither are wrong positions but my lust for new is tempered by her more measured approach. So that means I research and plan my ‘wants’ more and I think am better off for it.
We always have a base level for the need with additional wants added on top – these can be removed as needed to fit in with price, time and ability to get… You know what we all do every week with our grocery shop or general purchases – sometimes we don’t need that $5 coffee on the way home and instead wait and make a plunger at home…
TL:DR – Get what you need, plan what you want and budget!