Challenge Of Living Within Financial Means
Mon Dec 22, 2008, 6:00 am | Leave Comment
New York Times has a story of a couple who were facing the “Challenge of living within one’s means”. It’s an interesting article about how the two lived outside their means. Believe it or not, between the two of them, they are making $250,000 a year. I think that is an excellent income for a family of four.
You can lead a comfortable life on that income if you want to, without any financial anxiety. The couple in the story did not want to.
Some people have all the “luck” to be able to go to college, get a degree – in their case, in one of the disciplines of Information Technology (IT). They start making money and start having families.
However, instead of living within their means and enjoy life – especially when they are pulling in such high salaries – they always worry about bills, credit card bills, mortgage and such.
I think that is a shame. My family of four, making less than one-third of their income, have always lived debt free. We pay our bills on time and in full by the due date, even though we use credit card a lot, all the time.
The article states that “switching to a lifestyle based on your actual income is more challenging than it seems, especially if you have been relying on credit as an income supplement. The maxim to “tighten your belt” implies that self-discipline is the solution, but our financial brains are not so easily tamed.”
I have been saying this in my posts that borrowed money is not your money, whether that money you get from the credit card companies or some place else. You are renting it. You gotta give it back and mind you, on time so that other people can use it too.
That’s exactly what happened to the banks. They gave, gave, gave. They didn’t get it back. Nobody gives a damn to return that money. Granted there are hardships but why borrow for something you don’t need, you can live without.
And when you borrow for something you don’t actually need, you damn make sure that you return it to the owner and on time so that other people can use it when they actually need the money.
Read the New York Times article in full – challenge of living within one’s means.
