Aren’t You Just Beamin’?
“Always live within your income, even if you have to borrow money to do so.” - Josh Billings
Buying and driving a luxury car can certainly make you feel good. Top down, sun on our face, wind at our back. No cares, no worries!
If life could only be so simple. The reality is that the bills keep coming in.
The challenge, of course, is to balance our purchases with our income. This allows us to become financially free, as the habits and discipline we develop continue to support us, no matter to what level of income we grow.
The rules are the same whether your annual household income is $50,000 or $2 million: maintain a positive balance between your income and your expenses. After taxes and living expenses, save money and invest it in things that appreciate in value. Be careful spending on consumer items that rapidly depreciate in value.
A car is transportation, but we often view it as a status symbol of our position in life. Separating our emotions and feelings of self-worth from our purchases leads us to a balanced financial perspective.
The excessive use of credit and going deeper into debt for things that lose their value is a trap that needs to be avoided at all costs if you are ever going to become financially independent.
Rather than “do without,” however, why not raise your goals and activity level where you create an income stream large enough to support that new car or vacation home purchase?
These are the topics we continually explore in our online community of people who seek financial independence.
Thoughts of Wealth Blog
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