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RE: What Does it Mean to Live Within Your Means?
Hey Neal, great post here man. But I do need to make my rebuttal.
No matter how much you make, the key is to spend less than that.
If only having a high income or lots of money was important, then why are there broke NBA players, broke lottery winners, people making $200K+ per year and living paycheck to paycheck?
Certainly earning more is important (and nowhere in my post did I say to not make more money), but without the mindset to know that enough is enough you will always be able to spend every penny you make - and then some.
Oh I agree that you need to send less than you make. My point here is that focusing on making more is easier/more effective than focusing on spending.
So the income + controlled spending is the key. That's what I meant by this line:
In my work I see people all across the income spectrum from people who make 10k/yr to people who make a couple million per year. Basically everyone is broke because they can't control their spending. Parkinson's Law kicks them in the ass. Of course the ones who make more have much nicer stuff. A very small few manage to out-earn their spending habits.
So amassing wealth relies on taming your infinite wants. We have to take this as a given for building wealth regardless of income level. So from that starting point, I think it's better to focus on making more and keeping increases in spending reasonable.