Hi there, Mrs. 1500 here.
We have been planning a big trip for early summer, and I wanted to know if you are going anywhere fun?
But first, let’s go back to last week’s question, where I asked you What does living below your means really mean?
If you recall, I had recently had a conversation with a neighbor, who is quite the spendy person. She has a new car, new clothes all the time, drinks expensive wine, works out at the tony health club in the tony city down the road, has hired out the yard work, housework, and even has a personal chef 5 nights a week because she is too busy being a stay at home mom to handle the cooking while driving the kids to their 500 after-school activities. Yet she claims she lives below her means.
So I started thinking about what that actually means. I guess technically, she is living below her means if the household income is $100,000 and they only spend $98,000.
Reader Scooze started us off with the sage comment, “Clearly it’s subjective. I save 25% of my salary and wish i could save 30-40%. But I’m too set in my ways, I guess. Haha. I’m sure there are others who would wish for my numbers.” I’m sure there are people who wish for those numbers. Thanks for reading, Scooze!
Jason over at Islands of Investing agreed with me that it is “one of those things that seems obvious until you really think about it!
For me, if you’re living the lifestyle you really want (i.e. doing work you care about), and spending less than you earn, then you’re living below your means. If you hate your work and are only doing it for the money to pay for the huge mortgage or car loans, and are only just getting by, then you probably have a long way to go before you’re truly living below your means.” Continue reading