Tuesday, October 5, 2010

Living Within Your Means

Most people have heard about "living within your means" but how many people actually practise it?

I have just discovered that it is very hard to live within one's means. As one climbs up the career ladder, or as one ages, one feels obliges to spend more on certain stuff. This can range from food, clothing to holidays even.

It is difficult to live within your means when everyone else is spending like there is no tomorrow. It is difficult to live within your means when friends and colleagues are always nearby and offer a good comparison of the things that you have versus what you do not have.

In fact, I am almost certain that it is not your absolute income that makes you happy. Rather, it is your relative income that makes one satisfied.

The simple lesson: Stop comparing and live the life that you really want to. Comparing gets you no where and only makes you desire for the things that you do not have. The reason why we fail to live within our means is because we keep comparing and our expectations go up. We expect to be able to own certain luxury goods that we could easily do without.

I have failed in this area too many times. This entry is just a reminder to myself and to readers to Live Within Your Means.

2 comments:

  1. Live a simple life - lessons from Warren Buffet

    http://createwealth8888.blogspot.com/2009/03/live-simple-life-lessons-from-warren.html

    ReplyDelete
  2. My belt is a birthday gift from friends in my university days. My long pants and shoes are from SAF emart bought a few years ago...cheap, presentable and lasting.
    My only weakness is cars. I bought a toyota but they would only gimme a discount if i take a car loan. I paid up the car loan in 1 year to enjoy the discount.

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