“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.
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.
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.
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.
Great post—weird pic! lol—the guy looks a bit…propped and stiff!!! @@
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. 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.
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.
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 :)
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.
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!
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.
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!
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?
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!
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.
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!
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.
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 very much for this post. It is a message everyone needs to hear.
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!
Strange world we have created for ourselfs where it is common to defiy the laws of physics and spend more money than you earn.
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.
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 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.
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