Something that really hit home quite a few years ago was from a book that I read.
The book had an intentional stupid/misleading title (see below).
In the book, it outlined something that most people do.
It is not actually something that I have really done but reading it just cemented my opinion.
In short, how much of the month are you working in order to stand still?
What is the cost of all the things that you don’t own outright and/or pay for monthly?
How much is that when viewed in terms of your working month?
I imagine this hit home a lot harder for some people when Covid-19 appeared,
So…
How many days or weeks do you have to work in a month to pay for all the things you don’t own?
…and after that, how many days are working for yourself?
How many days of your earnings do you actually keep & can spend on yourself?
This whole topic is very personal & subjective.
The biggest questions that it raises for me is:
Do I Need This?
& if so – Why?
This is where it gets hard.
You have to be really honest with yourself.
If you can’t afford to buy it outright:
e.g:
Do you need that new car?
Do you need that bigger house?
Is it for you?
Is it for appearance, status, or ego?
Honestly!
This is also when the balancing act comes into play:
Freedom V’s Debt
What matters more to you? – Having the ‘Thing’ or not having the debt?
It is really a question of do I have it now or do I save for it and have it later?
I am definitely in the latter camp.
Apart from a house, I can’t think of anything else I need now but can’t buy outright.
What about you?
* The book in question was called – ‘The Millionaire Fastlane’ – it is excellent. The author explains that the title is supposed to be misleading to attract the sort of people who need to read it.