Financial Pressure of “living above your means” is a subject of personal finance and who exactly is judging. Let’s take some examples. People who are dependent on fixed income from a job, parents, government or other sources can personally say “I am living beyond my means” if monthly income remains insufficient against expenditures. We all know how very important it is to save and build a secret emergency fund. An unexpected medical bill, a new home from a divorce or house fire, or a dream opportunity that needs immediate funding can pop up anytime, especially during moments of low income.
Now let’s get back to who is judging. Many times, when we hear someone is living beyond their means, the person most likely recently splurged on a luxury car, house, vacation, boat , party or acts of charity. The fact that they’re able to do any or all of that, means that, it is within their means, provided the cash-flow is ethically derived. One may not be able to afford Gucci tomorrow but as of today, he or she afforded it. What may be considered as living above your means, can be described simply as temporarily desiring or deserving increased comfort, euphoria or a sense of belonging which brings added joy and happiness.
On that note, what happens when we splurge on luxury but fail to meet basic needs or go begging just to fuel that luxury car we just bought? Financial hard times can befall anyone- those living below, within and above their means. There’s no single line of success to anything in life, especially personal finance. How you chose to spend your cash flow today, should be on your own smart terms and better if you are able to maximize ethical earnings, budget wisely, save significantly and maximize a secret emergency fund.
Minimalists have discovered the art of living beautifully on the most minimal budget. And Maximalists have discovered the art of attaining their affluent dreams with minimal startup capital. We should focus more on combined enjoyment and shared knowledge than on the source or sustainability of a neighbor’s massive swimming pool or a friend’s brand new luxury car. Enjoy a rich life of pushing your dreams, socializing freely and living life on your personal terms. Smart finance and greater humanity are two keys to a better world today. Our world needs a much stronger dosage of healthy enjoyment, respect and love.