There are two ways to live when it comes to money:
- Spend less than what we make.
- Spend more than what we earn.
There’s a third way too: spend exactly as much as we earn. But we all know life has surprises, and the next unexpected bill will throw us into the second group.
When you think about it, spending less than what we earn makes more sense. Who wants to always be worried about debt? Who wants to feel like they’re always paying for their past? Nobody wants that.
But still, more than half of us spend more than we make. The numbers back this up:
- 61% of Americans can’t cover a $1,000 surprise bill.
- 77% of Americans say they worry about their money situation.
And these figures are only getting worse.
So, why do we choose to spend more than we make? Sure, some people will say it’s just too hard to earn enough money. But most of us could spend less if we really tried. What’s really going on?
Everywhere we look, ads tell us we’ll be happier if we spend more. It’s hard to ignore them. The more we make, the more we’re tempted to spend on nicer cars, bigger houses, and luxury vacations. We end up chasing a better life we can’t afford.
But living simply and staying out of debt is better than living large and owing money.
When you live within your means, you can relax. You don’t live to impress others. You can enjoy the simple things in life. You can teach your family important lessons about money. And you’ll have fewer regrets.
Sure, the world tells you to spend, spend, spend. But I’m here to tell you, there’s a hidden luxury in living frugally, an unexplored path that leads to contentment.
True luxury isn’t owning more, but the freedom to enjoy life fully, unburdened by debt – that’s the less-traveled path of frugal living.
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