Spend Less. Live More.

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Spend less. Live more. Are these commands compatible or does one suggestion negate the other?

Alexander Hamilton was famously taught to talk less and smile more. It worked for him. I think my ideas could work for you.

The Good Life

I’ve had the opportunity to taste that good life that most people, including a younger me, often daydream about. The pampered life with all of the finer things.

Yes, I’ve drunk Dom Perignon from the bottle like a boss, sipped Opus One with one pinky raised, and I’ve stayed at my share of 4 and 5-star hotels and resorts.

The Loose Correlation Between Spending and Happiness

Don’t take my word for it. Like a good scientist, look at the data. We’ll start with an examination of the 2020 World Happiness Index ChECK, an annual survey that measures the reported happiness of the people in different nations based on a variety of variables.

When you spend less, you can live more. How so? First, when you create a wide gap between what you earn and what you spend, it’s actually much easier to say yes to one-time expenditures. If you take that spur-of-the-moment trip to the Bowl Game, and your savings rate drops from 50% to 45%, the consequences are relatively inconsequential as compared to lowering your savings rate in half from 10% to 5% when you’re living right up to your means.

More important is what happens after a decade or two of living well while spending less. For great detail, see The Tale of 4 Physicians. In summary, one can reach financial independence, that is, the ability to live your life as you choose without any need to earn money indefinitely, in about 15 years.

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