It’s true. More often than not, we shaft our future selves by making unwise or non-optimal choices today. Do we all live above our means? What exactly is “living above your means?” Living above our means is more than simply running out of money before each month ends. Honestly living within our means involves incorporating all of our values, future goals, risk, and future cost/spending into our current level of consumption.
It is certainly possible to earn a little more than we spend but still be living significantly above our means. Living paycheck to paycheck, consumer debt, and lack of emergency savings are outward expressions of over-consumption. However, I’ll make the argument that the subtler signs like inadequate future planning, being under-insured and failing to financially prepare for post-working years are all ways we mortgage our future interest for current consumption. In addition, our desire for more stuff (& money) often causes us to work more hours and spend more time away from the people we care about than the return we actually get from additional consumption. Understanding and evaluating the full consideration of our current and future needs will allow for proper planning about how to integrate all of our living costs into our current financial decisions. Continue reading You’re Probably Living Above Your Means