You can make a ton of money but you can also blow the same amount. We’ve all heard of wealthy athletes or lotto winners going bankrupt. Of course, no one can go through life never spending any money either. This is where balance comes in.
I believe you can live well without overspending. This is my motto and I’ve done it for years. I live in a place that feels like an upscale hotel. We have a gorgeous pool, hot tub, coffee bar, high-end gym and more. I moved into this place before I was making a lot of money and living on a modest salary. And I did this by watching my spending.
I think it’s easy to get into a habit of buying without thinking. People think that just because they can afford it and want it, they should buy it. I hear people say all the time, “It’s only X dollars.” But “X dollars” here and “X dollars” there add up to one big giant X that can quickly turn into debt.
Plus, if you were to take that money that you’re spending on crap you don’t need and invest it, you would greatly increase your net worth over the long run.
Living well means prioritizing your spending. I chose to move to a nicer place and spend less on vacations, clothes etc because I work a lot from home and wanted to feel safe. The other things don’t mean as much to me.
But maybe vacations or owning a nice car mean more to you then having something else like a nicer place. Only you can decide that. But here are some tips to help you with those decisions:
- Think about why you want something. If it’s just to try to impress other people, you may not want to bother. Although I agree that enjoying nice things is one of the pleasures in life and that we should all have a certain level of standards, it should never lead to debt or financial worry. That’s too high of a price to pay.
- We can find nice things at discount. There are so many ways to save, from shopping at discount stores to choosing a smaller place to live in.
- Having a lifestyle plan is one of the best ways to prioritize what you spend your hard-earned money one. For more about this, you can read my article Better Than a Budget: Why You Need a Lifestyle Plan.
Just remember, you can’t buy everything–even if you become really rich. (Even someone like Bill Gates or Mark Cuban don’t own everything.) It’s about priorities. Put what matters to you the most first and your money will grow:)