“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.
Kathryn says
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.
Linh Ly says
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.
Judy says
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 :)
Anonlawyer says
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.
Helen says
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!
Kay says
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.
June Doran says
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!
Donna Mcfarland says
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!! :)
Jeff S says
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?
Kathy says
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!
Priscilla says
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!
C. Turner says
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!
Heath says
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.