WARNING: the video linked below is a Tesla FanBoy. And it’s PG17 for Adult language.
SKIP to the 12:00 MINUTE MARK to the 14:20 point in the video, Stephen Mark Ryan explains Life Style Inflation or Life Style Creep and how he has avoided it, by “paying himself first” and keeping his expenses at zero, or close to zero (AKA “Extreme LBYM”).
“Staying broke is an excellent way to create wealth.”
“Extreme LBYM to build wealth” was my mantra for years.
Today, now that I’m financially comfortable, getting myself to RELAX and be less “extreme” has been a mental “process”.
I find that I have to give myself PERMISSION to be less LBYM.
It IS about balance. The fallacy that is ingrained in us, is that spending more creates more happiness. I actually think for many many, spending more creates less happiness.
I don’t think it requires anyone to make a video to see that saving more and spending less will likely result in the accumulation of money.
I do question whether creating wealth is a desirable goal. A number of years ago, maybe on this very board, there was a long message thread about net worth. I posted then, and still believe, that one’s life’s worth is more important than one’s net worth: how much value does your life add to the world? Some things that don’t contribute to financial wealth, such as good child-rearing or work that helps others but doesn’t make you rich, add value to the world.
I am a professional religious worker, but I don’t think that a person has to be ordained to understand this.
Or if you do accumulate wealth, what are you doing with it? There is research showing that wealthy people are less aware of the needs of others, which I don’t consider a good thing.
I also ask why so people become defensive, or criticize others, in discussions like this. The original post need not be read as a criticism of your habits or life choices.
"I do question whether creating wealth is a desirable goal. A number of years ago, maybe on this very board, there was a long message thread about net worth. "
And what is considered the appropriate net worth of scads and scores of balloons?
Or if you do accumulate wealth, what are you doing with it? There is research showing that wealthy people are less aware of the needs of others, which I don’t consider a good thing.
The definition of wealthy varies considerably.
We have enough that the financial hits of last week (refrigerator failed, expensive car problems, dental surgery, and homeowner insurance coming due) aren’t a serious problem. That doesn’t make us wealthy.
Owning a home that has significantly appreciated may in some minds make us wealthy but it is an illiquid asset that is proving a place to live. Again, not wealth that we “should” or “could” be doing something with it.
We have no regrets about our lifetime of frugal living. We never traded up from our small ranch house, we drove our simple cars a long time, and generally lived a “value” life. The result of that is now, we have zero debt, our kids college tuitions are fully funded with no loans, and we are able to absorb the inflationary price increases with little to no impact on our day to day lives. In retrospect, we would change nothing about our lifestyle choices.
Still living in the house we bought a year after we married (30 years ago). Twins both finished college debt free. House was paid off by the time the kids were 12. Zero debt. Seven figure retirement account. 57 years old. Inflation hasn’t touched us. DH bought a new Highlander last year we owe nothing on it.
LBYM is the only way to live. No luxury cars or designer clothes or desire to keep up with the Joneses. Just the sweet comfort of good sleep and financial security. I go to work in sweat pants daily.
+1. Exactly. No one really escapes inflation. Maybe for a short while you don’t need a new car, don’t get a health insurance increase and your roof is new. But eventually…
Owning their home, kids through college, New vehicle, minimal clothing purchases, eating out very little means that inflation isn’t that noticeable. For those who aren’t struggling inflation for food, insurance, utilities, etc… isn’t as obvious. It exists but isn’t causing stress.
