“Do not save what is left after spending, but spend what is left after saving.” —Warren Buffett
Recently, I pulled into my local gas station. It was evening and there wasn’t much traffic inside or outside the store. In fact, I was the only one filling up.
That was, until another car came speeding around the corner and pulled up to the pump next to me. The engine of the sports car broke the quietness of the evening and was drowned out only by the squeal of his tires and eventually, the volume of the music pouring out his windows.
The driver quickly hopped out of his vehicle wearing a leather jacket and proceeded to fill his tank with premium gasoline.
It was quite a spectacular sight actually. A dark, still evening with no noise around us to speak of. Me, standing next to my white, 2005 Honda Accord. And him, right next to me, taking time to admire his brand new sports car.
We didn’t exchange any words. I don’t even recall him looking in my direction to acknowledge my existence. He was, I think, far too preoccupied with his vehicle.
I know nothing of this fellow or how he came to acquire his fancy new car. And I am passing no judgment on him. This is a story about me—not him.
Because in that moment, a surprising thought entered my head. I remember thinking (for better or worse), “You know, I could drive a car like that if I wanted. I could purchase a fancy new sports car, a leather jacket, even racing gloves if I wanted. But I choose not to.”
And it’s true. There are, I suppose, a few cars on the planet that I could not receive enough credit to acquire. But for the most part, there is nothing stopping me from driving an expensive, flashy sports car around town.
Except for maybe one thing.
The only thing stopping me from driving the same car I encountered at the gas station is I enjoy living within my means.
I like knowing I spend less than I make.
I mean, I could drive a more expensive car. I could buy a bigger house. I could take more lavish vacations or purchase more luxurious furniture. But I find a significant amount of pleasure knowing my expenses do not exceed my income.
Staying out of debt means I am not being hunted down by creditors. It means I am not carrying a financial burden from my past while also trying to provide for the present. It means I have freedom to make choices with my excess income. It means I can save if I want, give if I want, or spend if I want. Because I live within my means, I enjoy a significant level of freedom that others do not.
It allows me to sleep better, carry less stress, and live a more calm, relaxed life.
Our world works hard to convince us to outspend our means and then provides a thousand ways for us to do it—even delivering pre-approved cards of plastic directly to our front doors. And from the outside, a life built on credit may appear the life we desire—with its bright lights, bold colors, and the flashy impressions we are able to make.
But I’ll choose something different for my life. I’ll choose calm and peace and the knowledge that I have chosen responsibly. For there is a wonderful joy to be found in it.
I know there are any number of uncontrollable circumstances that may make this choice impossible for some—tragedy, medical emergencies, or unexpected career downsizing as examples. But for those who still have the choice, I don’t think you’ll ever regret spending less than you make.
Besides, I kinda like my Honda Accord.
Wow, your statement: ‘not carrying a financial burden from my past while also trying to provide for the present’ is a really great summary of the stress that can be shed by getting your financial house in order! It’s the first time I have heard it put this way.
I have been reading a long time, thanks for all the articles, they have helped me greatly!
– The Tepid Tamale
Joshua at his best ;) I really enjoyed this article. Thanks. Sometimes it’s easy to forget that you actually have that choice, and I wanted to thank you for reminding me that. I don’t make much because I work part-time but still I chose to live more simply so I could save up some money and travel in the summer. I know I could make different choices if I wanted to, like say yes to those credit cards, but I won’t. My mom says that it’s better to have little money being free of debt than having a lot of money which is not actually yours because you owe it to the bank. And I’ve always tried to stick to that. It provides you with a peace of mind that no possession will ever equate.
Do not save what is left after spending, but spend what is left after saving. I follow this and this really works to make myself happy from inside. In this blog i have reached while searching “looking for happiness” but i got so many usefull articles with which a person can make his life easier and joyfully.
Joshua, thank you for putting elegant words to the philosophy my husband and I follow. I see my colleagues and friends and family burdened by the financial choices of their past and it makes me so sad for them. Living (well) within one’s means is truly living. Thomas Stanley (Millionaire Next Door) wrote that self-made millionaires have the mindset of a “self-defined environment of relative scarcity” – similar to Buffet’s line, “self-defined” being the key. Thank you for helping us with our self-definition through your writing.
All is well if one does save because just in life’s daily passing we all have surprises so saving is important so you can have money so you have that calm.
Learning the difference between wants and needs, but then allowing yourself for life’s beauty is important. If your life is all about being cheap your life sees $ signs and no beauty.
Strange world we have created for ourselfs where it is common to defiy the laws of physics and spend more money than you earn.
As a young woman, I remember hearing this: “If you can’t have what you love, love what you have.” Because I adopted that attitude, I am now perfectly happy to live within my means, i.e., my Canadian old age pension benefits. I even have enough to donate to charity and to be generous to my friends.
I am trying this on for size.. “how to live on my SS Income”. It is nay on impossible. But I keep trying. Credit Cards are being paid off ever so slowly. But I keep trying NOT to USE THEM. Thanks for the encouraging words from Canada.
Living on you SSI. Splendid! I’m going to try to adapt as well. Thanks for the great idea!
Thanks very much for this post. It is a message everyone needs to hear.
I love this. If you live within your means, wasting little and saving, you can get something fancy down the track, and a lot cheaper through not paying any interest on the debt!
Thanks for the simple reminder that life is less stressful when we live within our means and save.
I agree. A lot of my anxieties were lifted from me when I finally got myself out of debt and built a sufficient emergency fund.
Great write-up, Joshua.
I wouldn’t trade that peace of mind for anything that money could buy.
Granted, that guy you encountered may not be stressed, but I sometimes feel a little sense of pity for those folks.
The fact they need to spend so much to fill some void that’s missing.
Stick with the Honda. Besides, we may all be hailing self-driving cars in a few years anyways.
Cheers!
Great article. This philosophy that has changed my life during the past ten years. We sometimes call it “margin” as well in our house. I grew up in a house that often lived check-to-check it seems. Thankful that some wise people along the way advised me to make some changes and live on a percentage of my income. Now we have some freedoms that so many do not. Thanks for all you do for and share with the world.
When you mentioned that some people may not have the choice because of a medical emergency, that’s were I am. The wonderful part is that between my family rallying to help with the medical expense and following a lot advice from your articles has gotten me thru the toughest part so far. What truly amazes me is how all my stuff had blocked my creativity, to the point I didn’t dream anymore! I couldn’t even think of what wanted out of life. It was just blank. The decluttering is still going on but now I’m dreaming again! Some ideas of what I want to do in this life are coming back! The debt is going down and there really is a light at the end of the tunnel! There’s still a lot to deal with but I’ve got this now! Thank you so much! Keep the great articles coming!
Kathy, sorry to hear you had a medical emergency that made it necessary to go into debt, but your positive attitude about it and how your minimalist lifestyle is helping you through are inspiring!
Congrats Kathy! Medical problems are one thing I think U.S. should help with. I believe in rallying for people and your story is inspiring! I always love giving and know the giver gets so much from doing so! It is a principle that made our country great. If you notice it is the regular folks who help. The volunteers and people giving are workers, regular, middle class people. Those are the ones who care!
Beautiful..impacting…profoundly truthful! Thank YOU!! You’ve no idea how much you’re doing for people through your words!! -p.s. a Honda…is no beater, by any means dude…you’ve got it!! :)
My wife and I love Honda’s. It will be our preferred vehicle of choice with our next purchase. Many family and friend have owned Honda’s and say they will never purchase another brand of vehicle. Just curious what year is your Honda Accord?
This is such a good reminder, especially when it’s so tempting to envy those who have, or appear to have, more than we do. You never know how someone acquired what they have and what potential burdens those things are causing. I’d rather suffer the inconvenience of one vehicle with no car payment and rent a house when everyone says its a waste of money if it means financial peace. Thanks for writing!
Simple, but profound words, Joshua. If only everyone could step off the treadmill of “keeping up with the Joneses” that is encouraged by the world! Living below one’s means should be taught in school from kindergarten onward. Then, when the inevitable social pressures start, kids would be better equipped to make good choices as they mature. Though I have to say, the worst pressures came in later life for me, when our income increased. In the early years of marriage, we didn’t have much, yet we were happy.
If you’re going to drive an older car, a Honda Accord is a great bet. Mine’s 17 years old and still going strong. I knew I connected with your life philosophy when I signed up for this newsletter – but now’s it’s confirmed – we both drive aging Honda Accords – by choice!
Both you and the sportscar driver could have been living within your respective means, but you’d never know it. (Chances are he isn’t though.) For me simplicity isn’t about our means, but more about keeping things simple.
Yes, Joshua—that is so true. I love living within my means. BTW— I drive a red 2002 Honda Accord with 168,000 miles on it. The car looks and runs great! : )
I paid 5,000.00 for it several years ago and it’s been fantastic :)
This post reminded me so much of the thoughts I’ve been having throughout this past semester at school. I tutor science, and every time I take my phone out to do some calculations with chemistry students, they tell me, “You need a new phone,” because I have an old iPhone. The funny thing is our phones do the exact same thing, like how your car is meant to do the exact same thing (take you from point A to point B) as that man’s. But then when I talk about my travels or eating out at new places, the students tell me I’m lucky or they wish they had my life, because they can’t afford that lifestyle as if they had no choice. Of course, I used to be just like them when I was in my last teens/early twenties, so I tell them it comes down to what we value most.
Great post. I am carrying a financial burden from my past, but i see a path and a goal to reach, 5 years for everything to be paid off. Adjustments to my life now and more adjustments to come. I like the new me. Sure I’m still worried about debt, but I have a clearer picture in my head.
Thank you for your words of wisdom. It is too easy to throw our future away for a moment of pleasure. I felt like you were writing just to me and it was something I needed to hear, especially at this point in my life. Thank you.
Great post—weird pic! lol—the guy looks a bit…propped and stiff!!! @@
AMEN! I tell my 10yr old boy the same thing. I could afford a fancier car but we get around just fine in our 2004 Honda CR-V with 230K miles on it. Trying to get him started early before he catches the “keeping up with the Joneses” mentality so many people seem to suffer from.
This posts comments have proven true for me for the last 12 years. Just the other day I was asking a good friend, what would you do if you had more money at your disposal. A bigger house..no. a fancier car..no. what we came up with that the only thing that either of us would do is give the money to causes that we support already.
We both have been blessed with no medical debt that makes such discussions possible.
I must agree with Toni W. …..there is the laws of physics. There is a reaction to every action. Think before you spend.. also, before you speak. The tongue can get you indebted as well as the credit card.
You are assuming this guy can’t afford his fancy car. I have a sports car and I love it. I have to do a lot of driving for my job and I enjoy having a sporty ride with 6-speed manual transmission. I deliberately chose one that wasn’t too expensive, but it does take premium gas – however since it’s a Honda sports car, it gets good mileage- and I’ll keep it for many years to come. (P. S. Before this car, I had a 2001 Honda Accord which I loved but I wanted something smaller.)
He was not assuming that. He was making a point about himself-feeling a little jealous but remembering he COULD buy that car if he really wanted to but chooses not to.
“I know nothing of this fellow or how he came to acquire his fancy new car. And I am passing no judgment on him. This is a story about me—not him.”
This is a great read and offers some great advice. I think what it misses the mark on is it assumes one has the choice between the Honda and the sports car. That simple choice alone would be a luxury for me (and, I’m sure, others). When I started to embrace minimalism, I heard this a lot: It takes a lot of money to be a minimalist. Posts like this one perpetuate this idea even when I know it is not at all what Joshua meant to do. Reading this advice, and seeing everyone’s glowing response to it, makes me think that maybe it is true. Maybe minimalism only works for those that can afford it. But I hope that’s not true. I don’t want it to be true.
Hi Leah,
When our kids were small (they are nearing 30 now), their dad was a Mr. Mom, so we were living on one income for about 7 years. He was rolling quarters to buy milk for the kids. We bought very few gifts, went out to very few meals / ice cream treats, etc. There truly was no way to save. But at least we didn’t (have to) spend more than we had.
Now we are in a better financial position, have a little savings and no longer living paycheck to paycheck. I don’t think all minimalism has to be expensive. It depends on your approach. Some like to buy very little but want top quality, for which they spend more. Others buy from thrift stores and some of them are willing to really hunt for good quality in those stores (I will shop there but I’m not willing to “hunt”).
In my experience, once we had our debts paid (house & cars), we don’t have any more expenses than we would have if I hadn’t started heading toward minimalism. I can’t call myself a minimalist yet because current (temporary) circumstances are preventing it. But my husband and I try not to buy things we don’t need. If anyone is careful about acquiring things, it will probably be less expensive to be a minimalist. We have started eating out a little and doing a little traveling in the last couple of years, but we could curtail that if we had financial difficulty.
I do realize that some people are in the same (or worse) position that my husband & I were when our kids were little or they have medical issues that impact their budget. I believe that minimalism can only help. Good luck on your journey to less :)
Living within your means. An idea so crazy, it just might work. ;)
PS. I used to drive an Accord. When it finally conked out after many years of trouble free driving, bought a base Prius. Not sexy, but it gets me where I want to go.
The joy of having de-owned nearly 2/3rds of my belongings over the past six months, thanks to “the More of Less” book and Course plus your Blog, I am now in the position to travel away from home in my 1996 camper. I can let a friend live in my home for half the monthly running costs, giving him the opportunity to pursue his voluntary work full time, which I physically cannot do, although I would love to. This is a win-win situation, enabling both to do the voluntary work we are passionate about, but both now living well within our means. Both “giving”, which is a great feeling.
Simplifying everything is a continual process.
BTW I asked him to invite his mother to enjoy a long weekend or week’s holiday at my home, as I believe she has not had a holiday for a very long time, plus she can bring her dog, as he knows I have two myself and am only too happy to allow her dog. So, three winners – all from simplifying. Oh! One more! Through helping an ex-addict, by asking him to help me in the garden and getting things down from the attic, (during the de-cluttering) I got to know his parents and invited them to have tea – we are English after all! They had a look round my home at all my empty shelves, cupboards uncluttered cabinets etc., then went home and have been going mad clearing things themselves. They gave me the credit. But actually Joshua, You deserve the credit and I am so very grateful to you. PS I had to choose whether to repair my 2003 car recently or to scrap it. I had it repaired and it came back like new. I may get teased about its age, but it’s all paid for and runs sweet; Choice. That’s what we all have. Choice.
I know we’re expected to agree with all of this but I think:
1. You are being judgemental
2. You seem to feel it is important that you “COULD” do those things – a mite insecure I think.
Just my thoughts.
This is a little bit of what I was saying in my above comment. I’m not sure if I would use the word judgmental as much as privileged.
I’m not sure if all of this shared happiness about getting rid of all one’s stuff is much different than those who are happy to have the stuff.
I agree with you. I worry that the minimalism movement wants people to eschew stuff just for the sake of eschewing it even if some of their stuff makes them happy. I think that there is a middle ground between having too much stuff and having to get rid of what you love. I also think that a person should not be judged for choosing material status symbols if they can afford it without going into debt and it makes them happy. Not all people who like certain types of material goods are necessarily terrible superficial people. I say this coming from the perspective of not always being able to afford nice things but I don’t feel like I am a bad person for wanting them.
…and sometimes, the kinder thing for the planet is not to ‘get rid’ of all your potentially useful stuff, but to use it up completely (be creative) which may mean some clutter but also means kindness and respect for the environment. I consider myself to be quite minimal – in that I am not much of a consumer – but my house is certainly not all clean lines and calm spaces! Reduce, re-use, recycle. Make do and mend.
Nailed it!
I agree. I have a family member in his 60’s now and very well off due to a inheritance wife has great job etc etc. He drives me crazy when we talk cause he thinks since he chooses to be a minimalist that those that have a few material things they enjoy they are sort of too materialistic. I personally get tired of hearing that from him, not sure I should ask him to quit saying his beliefs over and over or just keep dealing with it.
But yes, I agree those who are quite wealthy seem to be sort of smug but in a different way than most of society. It seems to become sort of a mind game of seeing how much money 💰 I can accumulate. Thanks for hearing my rant
Thank you so much for this post. I’m by no means flashy but I do spend more money than I actually have, mostly on food (oops). I’m starting my new job on the 18th and this has really motivated me to save my wages and spend little :)
Keep up the good work!!
Chloe @ https://girllgonerogue.blogspot.co.uk/
We’re in the same boat as Joshua. My husband and I both have comfortable corporate jobs and make around 250K a year. We both drive Hondas and have no plans to upgrade. We have a nice well-decorated home and take vacations (because we love traveling and make it a priority) but other than that, you will not see a designer item in our possession. We enjoy each others’ company and spend as much time as we can with our daughter and extended family. Those are things that last…our beautiful and happy memories, not our once shiny new toys that age and rust over time!
Hello Koshua,
Your articles have been helping me a ton. Two years ago I lost my oldest son at 12 and I took a leave for 3 months from work and then only worked part time. Long story short I am the bread winner for my family and used credit cards to survive and then last Christmas.1 week from Christmas I found out my long time boyfriend of 8 years was cheating on me. Again I went crazy bought myself a sports car yes with credit. Now fast forward to now two years after going through all this. I am left trying to get out of debt. I’m not saying this all for you to feel sorry for me. I’m explaining how easy it was for me to get where I am now by not thinking and living in the moment. Losing a child makes you realize you better live while u can. Well living this way doesn’t last. I kept telling myself I deserved it. Now I have 60 k debt total. 15 k to bury son, 21k for car and the 5 k for furniture and the rest was living expenses while I wasn’t working. I live in so cal which is very expensive to live. I pay 2 k to live in a tiny old house renting. I make a decent wage. I am living frugal now and I’m getting rid of stuff not buying stuff I don’t need. Considering trading car in but I might lose more then it’s worth. It is my dream car and I bought it used and I can drive it next 15 years. I am paying about 1500 a month in credit cards. So I expect to be debt free in 3-4 years. Any suggestions. Or just keep doing what I’m doing? Thanks for your page. You are literally saving me. I can’t thank you enough.
Michelle, your post broke my heart. I, too, buried a son. My son died four years ago at age 5. It shattered my life. I also experienced the same betrayal you did by my now ex-husband. I truly understand what you have experienced. Losing a child is the worst thing anyone can go through and no one would fault you for going a little crazy. It is wise of you to work to get out of debt now. When my son died, I was in credit card and car loan debt to the tune of about $65k. I was in over my head with my mortgage, too. There came a breaking point where I realized that I could not carry the burden of my grief and my debt. One had to go and it was the debt. It took me three years. I have been debt free for a year now. It was very hard. I sold my house in the process (I barely broke even so that didn’t help much with the consumer debt.) Keep doing what you are doing and I suggest that you listen to Dave Ramsey’s show. I listened every day and it motivated me like nothing else. The people doing their debt free screams would bring me to tears at times. I wanted to be them and finally, I was able to say, I’m debt free!!! You can do it, you really can. You have already survived the worst thing that life can throw at a person.
Thank you Joshua everyday since I have followed your posts I have grown. You force me to stop, listen and reflect on my choices and my life. This post is stop important it is so easy to get lost in the messages of today that create debt on purpose. We don’t have to try it happens almost too naturally. Please keep reminding me to pay attention. It is so worth it to the freedom gained and stressless mind.
I sincerely want to congratulate u cos the article makes the most sense, cos our Morden day society is all about livening to impress others in which they find pleasure. Thanks for the massage jaah bless.
Perhaps he, too, is living within his means. Just heard a news report that top executive salaries continue to increase, widening the income gap even more.
You wild and crazy guy! Loving my almost 11 year old Honda FIT bought with cash. Living in a smaller condo ” but you could afford so much more.” with mortage paid off after 6 years.
Living debt free was one of greatest gifts given/taught to me by my parent as they lived by that. His given me not only peace of mind but great mobility and flexibility re moving, changing jobs, marrying, divorcing…only once, retiring and now looking at continuing care community.
Thanks, Joshua, for your comment and the attitude in which it was written. Recently I applied for the solar panel program in SC. I didn’t qualify because I was debt-free, retired and living within my means. How ironic that good stewardship was a detriment!
You pointed out that we have choices. Happiness is a choice. A grateful heart is a choice. Choices bring consequences. I’m working on achieving a more minimalist lifestyle. I believe that will reduce my stress and not having as much to take care of will free more of my time.
Enjoyed your article! Thanks! And point well taken. It has always been interesting to me what choices people make, especially when constrained by their “means”. Some folks have awesome stereo/music “toys”, and drive an older car, others – as you used as your example, a flashy car and may give up something else to do that…some take several vacations a year but eat only the cheapest foods. I think a better gauge for people to watch is their % of available credit. If it exceeds 20%, they may want to reconsider charging an expense. For example, if you have $35K of available credit on charge cards, your credit rating is not as good if you are carrying $7K or more on those cards.
Loved this article! There is a point in our lives where peace of mind surpasses the desire to obtain material things to impress who? Good health, peace of mind, and simplicity are more important.
a good article, though some people have no option but to live by ”lesser means” some do it well and some not so well.
I am happy to see that most posters are also like me waging a war on our debt so its easier to live simply
My in laws lived their whole life in a simple, small house, being generous at church but frugal with their own purchases. I remember my mother in law explaining it by saying, ” Well, you can only sleep in one bed, and eat at one table.” So true, no matter how many beds or tables you may own! They have both passed on now, and much to our shock, left a small fortune to their children we never dreamed they had. They have taken any future stress about retirement away from us by eating at one table, and sleeping in one bed! A great legacy for us.
So very true. It gives me such peace of mind to know that I now (since 1/2 a year ago) don’t have any debt at all, and if I have unexpected expenses, like dental work or the washing machine going on strike, it is not something to panic about. Because I have the means to pay for it.
Great article. Living within your means has a trickle effect on your life. Helps live a simpler life which can help increase your overall health. I know it has helped me.
Loved this!
This was a great post! Thank you for this. Please continue to blog.
Excellent Post. thank you.. Keep it up please
The first paragraphs definitely sounded like you were passing judgement… the way you painted the whole picture. One of my main beefs with many minimalism writings I read.
Wow! It’s always nice to read a great article and then find a comment from Debbie Downer. There’s one in every crowd…
Congratulations on being the only reoccurring email that I actually get excited to see in my inbox! I am constantly forwarding your articles to friends and family. Keep up the awesome articles! It keeps me on track; always re-thinking what truly matters.
I don’t own a thing and nothing owns me.
I must be missing some kind of an expensive jean or did I completely misunderstand what life is?
The desire to own things is non existent, the urge to purchase zero, the need to have people compliment me on my hair is nil! Niet!!
My lack of interest may shock you but it’s taking me awhile to understand that the emptiness inside me was the exact equivalent of the amount of things I had!
Let me back up a bit. I get it, look good=feel good! But yet, what I was craving was a deep connection to my mature responsible adult self. Once I realized that big house, nice car, big money was not cutting it for me, my quest to find was did cut it began.
MY answer: feel good about me, period!!!
Minimalism took a life of it’s own.
Eating healthy, stretching, singing and dancing and caring was top priority. And LOVE, oh how I love to love. Love tasting, walking, talking, hearing, touching, writing, learning a language and an instrument. Reading, playing with children, working, traveling and so much more.
I was hooked on being. My simple, basic, authentic self. Nothing more.
Now my compliments are about my kindness and my selflessness.
Ahhhh, what a wonderful world we live in. I don’t NEED to do anything.
I do what I WANT to do,
simpleness.
Sent from my iPhone