This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
There is a way to live successfully on less
The same applies to retirement. Only some people need ten million dollars in their retirement accounts. Some people only need or want one million dollars. Some people want even less because they don’t need more.
How you desire to live is the critical determinant of your required income.
If you’re not caught up with consumerism and don’t mind living a bit differently than many people, then income will likely never be an essential factor.
Recently, I wrote the article How to live on 30k, which talks about how three people (including myself managed to successfully and financially thrive on less than $30,000 a year).
It’s not as complicated as some people think if you’re conscientious about spending, not trying to impress anyone, or living above your means. As soon as you start living above your means, problems start occurring.
It is helpful to learn how to live on a low income and financially thrive because it helps you learn how to thrive with more income financially.
So many people live paycheck to paycheck and above their means because they have not mastered managing their budget. It’s more complicated than people think because spending more than you earn is easy.
If you struggle to keep track of your expenditures, set up an automated tracking app or manually start tracking your expenditures so you know how much is going in and how much is going out.
The Key Things You Need To Implement To Thrive
It can simplify your life significantly when you don’t get caught up in the income rat race. Though increasing your income to help you beat inflation consistently is essential, it’s not required if you’re saving and investing the necessary amount to fit your needs.
Implement minimalism.
Live within your means (the basics).
Maintain a substantial emergency fund (6–12 months).
Save and invest enough to meet your current financial needs.
Avoid overspending when and where it counts. Look for steals and deals.
The less you spend on accumulating, the more financial freedom you have. Someone from Europe told me today that they noticed that instead of Americans parking in their garages, they are full of stuff.
And this is correct. We tend to be hoarders of things we never use. Instead of investing and saving towards our financial futures, we spend countless dollars on things we don’t need.
To what end do we embrace consumerism? There seems to be no end, but being more conscientious about how you spend and what you spend your money on will alleviate unnecessary strain.
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This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.