Living Way Beyond Your Means
Why are we so worried about what other people think about us?
This guy might be able to afford this
A few years ago I was at the height of my bread business. I had four guys working for me and the business was bringing in about $200,000 a year. Now, I want you to notice two important things right off the bat, I said I had four guys and that the business brought in $200,000, which is before expenses.
For me I thought I was Donald Trump, I would see the checks coming in every week and felt like I was rich. That summer we had just purchased our first home, and it was a decent, modest home. We already had two cars but they weren't "good" enough for the money I was now making (or so I thought). So along with the house, I upgraded my car. I went out and got a brand new, fully loaded, Nissan Armada at the very low price of $55,000!
Since I was never really good with money, I was rolling in a lot of negative equity from other car purchases, which brought my monthly payment to $1200 a month to LEASE the car, it was only $1650 if I wanted to own it. My wife was totally against it, saying we couldn't afford it, I convinced her with all the money I was making and going to make, we could lease for little while and then buy it outright. To this day someone should have drug tested me!!!!
I won't bore you with all the details of how we struggled to pay for this car and how it caused constant tension and stress in our family. In the end I made three payments and they eventually repossesed the car (OUCH!). You're story may not be as extreme as mine but are you in any way living beyond your means?
I wrote a post about living paycheck to paycheck (http://talesofwork.com/blog/2012/01/living-paycheck-to-paycheck/) but what I'm talking about goes beyond that. Back during the time of getting this car we were about two paychecks behind. The thing was that I wasn't looking at the expenses for my business, I really wasn't even making close to that amount. Are you guilty of the same thing? Do you pay for things that you really can't afford to impress other people? Do you live beyond your means because you feel like you work hard and deserve it?
Wake up and smell reality
If you have been living beyond your means it's time for you to wake up and realize what's going on and what you're really doing. The reality is that you can only live this way for so long before it all collapses on your head. What you're doing is hurting yourself, if you have a family, hurting them. You're also digging yourself in a whole that could take everything that you hold dear.
You're ruining any chance of following your dreams
If you have big dreams and big plans you'll never accomplish them with no money and a bunch of debt. Want to move to some amazing place? Can't do it with no money or a bunch of debt! Want to start a business you've been dreaming about since you were a kid? Can't do it with no money and a bunch of debt! Living the good life now means living a life a mediocrity and hopelessness later, forget about your dreams, they'll never happen with no money and a bunch of debt!
When the bubble burst you won't be the only one hurt
We always tell ourselves that we living life the way "WE" want to because it's our life, we never realize all the people who will get caught in the crossfire. For me it was my wife and kids but also my parents who consigned for the car were affected. What do you think that did for our relationship? For you, I don't know but if we looked, you're not the only one affected, so wake up and stop being selfish.
There's a better way to "live"
I know how nice it is to have nice things, to have all the newest, latest gadgets. The only question I have for you is when you get to the end of your life will you remember all the "newest, latest stuff" you were able to buy or will you remember all of your life experiences? Instead of wasting money you don't have, why not create a plan to live within your means, pay off your debt and save for pursuing your dreams. I'm not talking about stockpiling money for when your 60 years old. I'm talking about saving $10,000 so you can move to New Zealand or some exotic place where you really want to live at.
Stop looking at what you have now and how "good" you luck and start looking at the future and truly following all those things that you dreamed about since you were a little kid. Why can't you move? Why can't you start that business? Why can't you travel the world?
Maybe because you've been living beyond your means…
How are you living? Let us know in the comments:
