But Life Is Expensive...Is Often An Excuse.
I'm sure we've all heard some sort of phrase along the lines of...
āOur parents could buy a house on one income. Today, two incomes can barely cover rent.ā
And honestly, thereās some truth to it.Housing is more expensive. Groceries are more expensive. Cars, childcare, insurance, and basically everything else costs more than it used to.
But I also think thereās another side to the conversation that we donāt talk about enough.
A lot of us have quietly increased our standard of living without realizing how much itās costing us.
Think about what the everyday folks are paying for....
ā¢ $4ā$8 coffees several times a week
ā¢ Restaurants multiple times a week
ā¢ Food delivery because we donāt feel like cooking
ā¢ Two expensive vehicles sitting in the driveway
ā¢ A $100+ phone plan for the newest device
ā¢ Amazon packages arriving every other day
ā¢ Gym memberships we barely use
ā¢ Concerts, sports, vacations and weekend getaways
ā¢ Buy-now-pay-later purchases spread across multiple accounts
None of these things individually make someone financially irresponsible.
Itās the accumulation.
The problem is that modern consumption is incredibly easy.
Want dinner? Tap an app.
Want a new phone? Finance it.
Want new clothes? Put it on a payment plan.
Want a vacation? āBook now, pay later.ā
Want something from Amazon? It can be at your door tomorrow.
Our grandparents didnāt necessarily have better financial discipline because they were inherently better with money.They simply had fewer ways to spend it. Today's middle class is living like the rich back compare to folks in the 1950s. Our standard of living has increased so much...
There was no algorithm constantly showing you things you āneed.ā No monthly subscription for every possible form of entertainment.No food delivery sitting two taps away. No ability to finance practically anything. And definitely no Instagram convincing you that everyone else is living better than you.
Meanwhile, someone can have a $700 car payment, $150 phone bill, $200 in subscriptions, $500 in restaurants and another $300 in random spendingā¦
ā¦and then wonder why they can't save $20,000 for a down payment or invest any $
Yes, the cost of living has changed.
Yes, housing affordability is a serious problem.
But personal spending habits still matter.
If your income increases by $1,000/month and your lifestyle immediately increases by $1,000/month, you didn't actually get ahead.
You just upgraded your lifestyle.
For me, building wealth is about intentionally directing money toward things that can grow over time, ETFs, stocks, real estate, and other investments instead of constantly upgrading my lifestyle.
You don't have to live like you're broke.
You just have to stop spending all your income away, you can enjoy life AND build wealth.
The trick is making sure you're doing both. š
Cheering everyone on.
