“I make myself rich by making my wants few.”Henry David Thoreau
If you earn a lot of money but spend more than you earn then you are on the treadmill like everyone else. You aren’t wealthy; you just make a lot of money.
Living within your means is real wealth.
If you earn $100k per year and spend $50k and are saving $50k each year, you are wealthy.
It makes a lot of sense:
- You accumulate capital and a safety net over time.
- It’s less stressful because you aren’t living pay check to pay check.
- You avoid debt.
- You won’t get trapped by a job because you can’t afford to leave.
- It’s less stressful.
Being rich can give you control over your time, but another way to achieve financial independence is to be frugal.