“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.
Diana says
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.
Kathy says
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.
Millie G says
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.
joan says
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.
Cathy Martin says
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.
Eben says
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.
Samantha says
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.
Michelle Estep says
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.
Lisa says
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.
MChicago says
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!
Chlo says
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/