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.
But it doesn’t mean you have to…
We can live to give and live intentionally, which means only buying into the desires we most care about and desires that will add joy and meaning to our lives.
Debt Follows Everyone By Choice
Too many people with money carry debt with them as they accumulate more money, not because they have to but because they choose to live a lifestyle that doesn’t promote living below their means.
The appearance people desire to portray to the world is often more valuable than their financial portfolio.
Why?
Because many people’s values have altered over time due to societal influences, which negatively impact how they spend their money.
Society teaches us that we must dress and appear successful- without considering how that might negatively influence our long-term financial health.
Most people do not want people to know how broke they really are.
85% of people have a car payment, and according to Dave Ramsey, 77% of Americans hold some debt.
People Earning Six Figures Still Carry Debt
“According to Policy Advice, about 30.7% of households earning over $100,000 in 2020. In 2019, around 15.5% of Americans earned between $100,000 and $149,999; about 8.3% of the population earned between $150,000 and $199,999; and about 10.3% of the population earned over $200,000.”
What does this mean? This means that out of the 30.7% of people earning six figures, many still have a car payment, and many carry debt.
Materialism Will Eat Your Wealth Away
Eventually, I will buy a new car. I might pay cash or not, but I know that when I buy the car, my net worth will remain positive.
I will never go into a negative net worth to purchase a depreciating asset.
Many people consider car purchases differently, though.
They don’t consider how a car will affect their net worth.
Hence, they compromise their net worth and often drive themselves further into debt for something that will not build them wealth in the long term.
Homes, clothes, shoes, tech gadgets, tv, fine dining, luxurious travel, and everything else will eat your wealth if you don’t pump the breaks.
The Best Way To Live
Never stop putting away a percentage of your monthly income, so you never have to concern yourself with living above your means.
If you overuse credit cards, put those away, so you can only utilize cash.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.