Living within your means really brings a deep sense of satisfaction. The closer you stick to your budget, the happier and more content you feel, cherishing what you have rather than longing for what you don’t.
A year and a half ago, I downsized my living situation. While my friends were upgrading to bigger, pricier homes, I moved into a house that was not only 20% smaller but also 45% cheaper. Sure, I invested in remodeling my bathroom—transforming a tiny space into a luxurious spa where I can work from the hot tub each morning—but even with these upgrades, I’m still spending 36% less than I did on my previous home.
Living modestly comes with a variety of benefits. Your biggest expenses typically include taxes, housing, transportation, and food. In my case, driving a $20,000 economy car not only saves on initial costs compared to the average $32,000 car, but it also reduces what I spend on gas and insurance. Not to mention, it’s easier to find parking!
I haven’t updated my wardrobe in years since I don’t need to dress up for work anymore, sticking mostly to jeans and t-shirts. The simplicity extends beyond clothing. By living in a less expensive area, I save on everything from property taxes to lunch out, where a meal now costs me half of what it used to in my old neighborhood.
The lower cost of living means less need to earn as much or save as extensively, reducing work stress and increasing financial freedom. This simpler lifestyle allows for more flexibility, like traveling without worrying about high living expenses back home.
So, what’s the minimal amount you need to be happy? For me, it’s surprisingly less than societal standards suggest. Many think happiness comes from acquiring more, but I’ve found it in having less. This approach not only frees up finances but also aligns more with sustainable living by reducing our environmental impact.
Ultimately, living within your means isn’t just about cutting costs—it’s about enhancing the quality of your life and gaining the freedom to enjoy what truly matters. Whether it’s traveling, spending time with loved ones, or just appreciating a quieter, simpler lifestyle, the benefits are profound and lasting.
