Look at that!From these comments, one thought has been on our minds, which is "Is it even
worth living below your means?"
We got to the bottom of it, because living below your means doesn't get around limitations
in your life.
Everyone talks about living below your means in order to save money, invest more money
and build reserves.
But no one goes to the bottom of whether it is all worth it and you should not spend the
money much rather directly for the beautiful things in life, because one thing is clear
to us all, sooner or later we all leave this planet.
So we went to the bottom of this question and you can find our answer in this video
and we are sure that you can learn something from this answer, not only in terms of your
finances but in terms of life itself and maybe you will rethink your current approach.
But before we dive deeper, hello and welcome back to our channel!
We are the finance nerds and we help hardworking people like you to achieve your financial
goals with the income you have by sharing our knowledge in personal finance such as
saving money, budgeting and investing, and show you how to make it work for yourself.
And with that being said, let’s start!
"living below your means these days saves you a lot of stress, achieves your financial
goals and has the potential to build great wealth."
This is broadly the principle that everyone espouses when it comes to living below one's
means.
But let's face it, there are always 2 sides to everything in life.
And there are rightly 2 camps: One camp clearly believes that living below
your means is the key, and the other camp believes that you should enjoy your life in
the here and now.
There are advantages and disadvantages to living below one's means:
Among the advantages are clearly that you have more financial security when you live
below your means and can save money, you can more easily achieve your financial goals,
pay off debts faster and you create a certain inner peace with the knowledge that you are
financially secure which also leads to a more relaxed life, less stress and can also be
bolder in life, because you have the financial opportunities if you want to make, for example,
a job change or even perhaps emigrate.
But among the disadvantages is also that you have to make certain restrictions in everyday
life to save the money that makes the advantages possible.
This means that you also have to reduce your needs in a certain way, which can quickly
lead to the feeling that your quality of life is reduced.
You may no longer go out for a fancy meal, no longer go out with friends very often,
reduce other activities such as going to the movies or traveling, and for what?
For the fact that you end up leaving this planet like everyone else and you end up taking
nothing with you except your memories?
In Germany there is a saying: "The last shirt also has no pockets", which means that you
cannot take any material goods with you on your last journey.
How do you see the advantages and disadvantages of living below your means?
Feel free to write us your opinion in the comments!
And now let's see what decision we came to!
After really thinking about and researching the answer to this question for a long time,
we came to the answer that there is no right answer.
Now you're probably thinking to yourself "Well great, watched 4 minutes of video and still
no answer", but let us explain it to you.
There is often no black and white in life, which means there is not always right or wrong.
Because everything in our life is dependent on how we look at life, which is why there
is never right or wrong.
The answer always lies in the middle, namely with you.
Now the question is how you find out for yourself what is right or wrong for you.
And that is relatively easy to answer based on this question.
Just ask yourself the following question: "For example, when you go to bed at night,
do you have a stomach ache thinking about your money, your financial situation, the
bills that are coming this month, or the account balance you currently have?"
If so, then you know what's right for you, which is to start living below your means.
But if you are completely calm about the fact that your account balance is lower and for
example travel and other activities are more important to you, then it is also completely
okay if you don't live below your means, but right in the middle of it.
Because this is also part of the answer: You should never live above your means.
It is therefore important to know your "why", i.e. to determine exactly what you want to
happen with your money.
Of course we, as finance nerds, would advise everyone to live below their means so that
you can invest that money, protect yourself from inflation, build wealth and retire earlier,
but that's our approach and it doesn't mean it has to be right for everyone!
The goal should not be to live your whole life below your means, but to do this only
for a certain time, in order to invest the money in various investments such as real
estate, shares or even your own business with the goal of expanding your means.
Many already live very close to their means and it is also really hard for many to spend
even less money, so here the goal should be to expand his means with cash flow producing
investments.
Therefore, it is only a means to an end and the first step towards your financial goals
to live below your means.
Here we are again at the point: "Know your why".
Remember that if your goal is to build wealth or create a better financial situation, there
are only 3 ways to do it: The first way: Spend less than the average.
The second way: Earn more than the average.
The third way: Invest more and better than the average.
Only those who go one way can expect better results and those who go all 3 are on
the fast track!
With this channel, we therefore want to address those who understand our approach and also
want to live it.
Of course, all others are welcome and who knows, maybe you can take 1-2 things for yourself
and adopt them in your life, even if you have a different approach to life.
Therefore, it means that not all of our tips and advice are a fixed law and everyone is
responsible to decide for themselves what to do with their money and of course may have
different opinions.
But for those who really want to start changing their financial situation now and live below
their means, watch the video in the middle now!
If you enjoyed the video hit the like button and if you haven't already, subscribe to our
channel so you don't miss out!
We hope to see you in the next video.