Rental Property Investor · Columbia, SC · Member since 2020 · 302 posts · 186 votes
People think it's weird when you live below your means and buy real estate.
If you can live below your means, you have a great chance to reach financial freedom. In fact, it’s the biggest predictor of your financial success.
But you don’t have to commit to frugal living to make it happen.
So how do we strike that balance between living the life we want to live while also reaching financial independence?
Living below your means is when you spend less than what you make.
In other words, you have money left over at the end of the month. You’re not living paycheck to paycheck. You’re not having to go into more debt to pay for your living expenses.
Why is this important?
Money that is spent can’t go towards building your net worth. Once it’s out the door, it’s not there to go towards saving money, investing, or paying off debt.
Living below your means and frugally (which will mean different things to different people) doesn't mean going without. I live well below my means and am quite happy with what I have and don't feel that I want for anything. Life is full of choices, it is up to you to choose what works for you, just remember you can't have everything and you need to be realistic.
The big reason the idea of living below one's means irks me is because for one example I've personally watched the basic staples that I buy do nothing but go up in price. I've had to shift my lifestyle many times to get by and I know it can be done, but I'm not personally a fan of the "living below your means" advice. However it's a good idea to take stock on where one's money is going and what can be cut or changed.