You’re Probably Living Above Your Means

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.

moneyIt 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

The Large House Dilemma

This is one article (3 of 3) on choosing the right type of house. Specifically, we are looking at the trade-offs between efficiency, sustainability, and practicality (excluding affordability) when choosing a home.

What size house do you buy when you can afford almost any size? That is the question we are all trying to address. When following the American Dream the answer is always: “Bigger is Better”. But is that really true? Do large homes come with their share of trade-offs? It’s established that most people work backwards when it comes to buying a house. We typically begin with a budget and see how nice/big/small/well-located of a house we can afford and choose the best option. The question then becomes, what do we do when we can afford almost any size house? Even really large houses. Are they still practical? We have already explored how many square feet it takes to be happy and tiny houses, but we’ll spend a little bit of time addressing the costs and benefits of large houses.

dave ramsey houseOur lives are in a constant state of evolution. Our wants, needs, goals and expectations continue to change and evolve as we age and enter different stages of life. We have lived in a large variety of different sized homes over the years and they all have their share of pluses and minuses. Tiny homes and large homes seem to polarize individuals about what is really needed to be happy. This post will examine the excitement and challenges that large homes offer. Will we end up in a large home? I’m not really sure at this point, but I’m certainly learning more about the benefits and troubles of huge home living. Continue reading The Large House Dilemma