What Could Be A Bigger Boost To Your Quality Of Life Than Financial Independence?

I’ve been living frugally for about four years now. I’ve largely eschewed the trappings of success – at least success defined by the modern day developed world. You know, stuff like a bigger house than I really need, a luxury car that somehow gets me from point A to point B “better”, expensive exotic vacations, way too many clothes, more gadgets than I know what to do with and hitting the town every Friday night like a true weekend warrior. I’ve instead learned to not take what I already have for granted.

In the process of avoiding living above my means I’ve completely transformed my life. I built a six-figure portfolio of equity in high quality companies that pay rising dividends to me as a part-owner, and now this portfolio spits out well over $4,000 year in completely passive income. That means that for the rest of my life I’ve got about 1/4 of my annual expenses covered for me – even if I never invest another dime. I’ve essentially guaranteed myself that I’m going to become a millionaire one day. Beyond just the financial aspects that’s a huge burden lifted off my shoulders.

And this point is at the heart of the discussion today. There’s many people along the way that have questioned my lifestyle. Why save well over half of my net income when I could be enjoying that money today? Why not adapt to still saving say 10% or so of my income and enjoy a better quality of life? Well, that’s just it. My quality of life is actively improving with every dollar I put away. I realized a little while ago that I’m not delaying gratification at all by saving so much money, I’m actually hastening gratification. I’m getting closer and closer to all-out freedom every single day.

It’s shocking to me how many people have this formula backwards. It’s automatically assumed more money spent = more happiness. But studies continue to show that isn’t true. Once you have your basic needs met and you can afford a few luxuries like some fancy electronics or organic food you’re probably about as happy as you’re ever going to get. This is because humans adapt to our surroundings – a funny phenomenon known as hedonic adaptation. Hedonic adaptation is the tendency of humans to revert back to some base happiness level after major positive or negative life events. You could win a Ferrari in a raffle tomorrow and probably be pretty stoked for about 30 minutes. After that you’d realize it has four wheels, a seat for your butt, an engine and transmission just like every other car out there. Plus, you’d be pretty bummed once you realize the costs of gas and maintenance.

So money basically has marginal utility built right in. The more you have, the less you’re happiness increases. This eventually meets a point of saturation where even an infinite supply of money would have no net effect on your happiness, and perhaps would quite the opposite negatively affect your happiness level.

But what if there was something out there that actually kept improving your quality of life every single day? I think I found exactly what that something is. And you can’t buy it at a store. It’s called financial independence. Essentially, I’m talking about complete and utter freedom. Freedom to do whatever you want, whenever you want – within reason, of course. With financial independence you’re no longer bound to the hamster wheel where you run faster and faster but seem to never get any further along. This freedom could allow you to be exactly who you are. Whether you enjoy spending more time with family, traveling the world, tinkering on your hobbies or just vegging out on the couch with Netflix all day – it’s up to you. You could essentially own all of your time. No longer would other people own your time, ensuring that you clock in and out on their schedule to pay your bills. What could possibly be a bigger boost to your quality of life than that?

I realized a long time ago I don’t like being trapped in a cave. And that’s exactly the situation you’re in if you’re beholden to anyone else for money. If you continue to spend your money on stuff you don’t need to impress neighbors you don’t care about in hopes of buying happiness you’re never going to end the cycle. What cycle? The cycle of exchanging your dwindling time here on Earth to an employer for money; money you use to go out and make yourself feel better for working so much, after which you need to go back to work to earn more money. We’re all dying one day at a time here. Why spend it stuck in a cave? Step out into the light.

So, I ask you again: what could be a bigger boost to your quality of life than financial independence? A big house? A fancy car? Spending every weekend out on the town? A bigger television? A faster computer? There is no right answer, because there is no possible material item anywhere in the world that could possibly make you happier than being free of whatever chains currently hold you down.

If you’re out there living below your means and investing for your future freedom like I am be delighted to know that you’re improving your quality of life far more than others out there that may jest at your expense. Because you’re the only one who can actually afford that expense. And you’ll ultimately be the last one laughing anyway.

How about you? Improving your quality of life in this manner? 

Thanks for reading.

Photo Credit: Sira Anamwong/FreeDigitalPhotos.net

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61 Comments

  1. Another good post… I know so many people who spend money. They have to have the newest TV, game console, laptop or desktop, cell phone etc. These are the same people who are stressed out as they do not have enough money to pay their bills in full on time.
    I have heard these phases a lot over the years ” I am too old to start investing” or “I will have to work until I die”. Another common one is “The stock market is like gambling”, but they go out and buy lottery tickets more than 3 times a week hoping to win big. Investing via the stock market in good quality companies at reasonable prices for the long term is far better than buying lotto tickets in my opinion. The added bonus of investing in these types of companies is that they paid me dividends and these dividends will increase over time.

    Every dividend payment I receive relieves a little stress in my life.

  2. Contentment and planning are important skills DM. We(my wife and I) have also found it incredibly empowering to live below our means and invest our savings. Our parents don’t get it and our friends think we’re crazy, but we’re in it together and we have so many more options than the nay-sayers we know. Because of our efforts only one of us needs to work when our son is born in March. Additionally, we’re planning for some huge trips in the next couple years. A little effort now, yielding (pun intended) years of options……..
    -Bryan

  3. Jason,

    I have absolutely no objection to people spending way beyond their means. If everyone were to hasten gratification, companies in which we invest would be challenged to generate profits and to pay dividends to folks like you and your readers.

    Okay, the “not so nice” side of me just came out!

    Cheers.

    Chuck

  4. I agree with most of what you’ve said here Jason, and think that there isn’t much to lost or traded away while adhering to the basic premise of living below your means and investing in your financial freedom and future. My only add-on point would be that people continue to live in the now, however conservatively they do it. Take advantage of youth and health, and participate in activities and build memories that won’t otherwise be available as you age. For me this entails being active, even if I pay to play in leagues and other events. The health benefits and memories of being active mean so much more than the cost of participating. The same concept can be applied to spending time with friends, traveling and seeing new places, and experiencing new things.

  5. Pursuits,

    Great analogy there to the lottery tickets. I agree completely. It’s so funny how some people look at the stock market like “gambling” when they’re busy off buying lottery tickets. Too funny.

    While I don’t disagree with buying lottery tickets as a form of cheap entertainment, it should only come after saving prodigious amounts of your net income and investing for your future. Otherwise, it’s just senseless.

    I’d rather get my tickets that assure a payout. Dividends are like little lottery wins every single month.

    Best regards!

  6. Fast Weekly,

    You nailed it on the head: options. It’s really all about options and flexibility. Some people call this “F-U money”. I’d be inclined to agree. Having capital on your side is a wonderful feeling, and it’s really freeing. It means life’s speed bumps aren’t going to derail you. Furthermore, you can take a sabbatical if you want. Planning some time off and traveling like you and the wife are doing is the type of flexibility that most people dream about. Enjoy it! 🙂

    Best wishes.

  7. DM,

    As you know, I’m fully on board the FI train and can’t wait for the next train to arrive so that it can take me out of Plato’s cave. When I first started, I was extremely motivated and gunho about making all this happen in a short period of time. After 2 years on this journey, I still feel that way, but I’m finding a better way to balance today/tomorrow. Granted, I’m still saving 70% to 80% of my earned income, but I’ve discovered a lot of awesome tools like travel hacking to enhance my life today. For instance, I’m now making it a goal to travel out-of-state once every month. Next month, I’ll be in Maui. I recently went to Chicago and Sedona.

    Since I’m in the rental game, I’m able to expense a lot of these trips (Chicago was a business trip). Further, the rentals are helping me rack up even more travel points, so when I do travel, I get free hotel/plane tickets. It’s great and making the “delayed gratification” part not seem like a delay at all. Every vacation I get away from work just makes it that much easier to grind through when I get back. I always have something to look forward to.

    You’re doing great and well on your way to early FI! Soon enough, my friend!

  8. Chuck,

    I, like you, also have no objection to people spending beyond their means. As long as it doesn’t hurt me or anyone else I say go for it. I don’t belittle people for not living within themselves. However, I believe knowledge is empowerment. And I simply try to supply some of that knowledge here. What you do with that knowledge is all up to you. 🙂

    Take care.

  9. w2r,

    I hear what you’re saying. I don’t disagree at all. In fact, the article I linked to in the post claims that people are much better off paying for experiences rather than stuff. Experiences tend to be much more beneficial over the long haul to one’s well being, and I concur.

    I’m not saying to live like a hermit and never go anywhere. Quite the contrary, me and the girlfriend went to Chili’s just last night for a little 2 eat for $20. My point in the article is to consider the long-term effects of whatever it is you’re spending your hard-earned cash on. And also consider whether or not it’s actually improving your happiness. If your happiness is improving commensurately, then by all means go for it. However, I’d beg to offer that a lot of times the happiness is not being lifted by a commensurate amount because of the marginal utility of money. When you think of it like that you tend to start to see things as a big picture.

    It’s all about designing your life to get the maximum value out of your dollars. And it’s also about making the right sacrifices. Is it worth saving $20 in gas to not see your dying grandmother over the weekend? Probably not. However, is owning a home 700 sq. feet larger than you really need a prudent use of cash? You could make an argument that’s not an effective use of capital.

    I’m just saying to be careful about your financial decisions in terms of how your happiness is truly affected. Be aware of what really makes you happy and maximize your spending in those areas. Trim back the areas that make no difference to your well being.

    Best regards.

  10. FI Fighter,

    It sounds like you’ve got a really cool system worked out there. You’re likely to hit FI way before me, so I hope you share with us what it looks like. 🙂

    I hear you on the balance. Balancing the now with the future is tough for many of us. I’m not as extreme as when I first started out, either. Gone are the ramen noodle lunches and bicycle rides in the rain. I now have a – gasp! – car, and I eat whole foods for lunch and dinner, for the most part. However, there was something really fun and exciting about those early extreme days. I felt like I was on the cutting edge of something. I’ve softened a bit now, but maybe the way I do things now is a bit more sustainable.

    Thanks for the thoughts and perspective!

    I do hope to hit FI soon. I’ve also not ruled out taking a little sabbatical. We’ll see. 🙂

    Take care!

  11. Not to sound corny but the thing that keeps improving my quality of life everyday. -is my wife. I could have all the money in the world an not have it as good as I have now.

    Good Luck
    Roger H

  12. DM,

    Totally. When I first read ERE, I thought Jacob was so badass and wanted to be just like him. Unfortunately, I like my hot showers and even have a smartphone these days… so, everyone just has to find that right balance that works.

    Glad to hear you eating whole foods and driving a car. Take care of that health b/c you have a bright future to look forward to! A sabbatical might be a good idea too.

  13. There are some people who attain retirement age, are financially independent thanks to the pension, but are not happier than when they were working, quite the contrary. It is because they have not figured out what to do with their time and how to value freedom. Patrick

  14. When people talk to me about what I’m doing, they usually object and say something like “there’s more to life than money.” Well, of course — that’s exactly why I’m a dividend growth investor! I’m not trying to become wealthy, I’m just trying to become financially free enough so that I can live my life the way I choose.

    Besides, investing isn’t just a smart and ethical thing to do, it’s very often a fun thing to do. And if I can derive the same enjoyment from buying shares of awesome companies that someone else gets from blowing $500 on a shopping spree at the mall, who’s the real winner here?

    Keep on keeping on, Jason!

  15. Excellent post! I am trying to communicate below to friends and family
    “Be aware of what really makes you happy and maximize your spending in those areas. Trim back the areas that make no difference to your well being.”

    Prepare for some swedish readers as I will link this post on my blog:)

  16. Well I am reinvesting about 85% of my gross intake at this point and I spend as much as I want which keeps getting to be a bit less, mostly due to the limitations of physicality related to happiness you outlined so eloquently above! There is only so much I need to make me happy and that seems to amount to around 11-15% of my gross intake now (just looked at the budget spreadsheet to make sure!), and at some point I would like it to equal around 80-90% of my gross intake but the gross replaced entirely with passive income from investments. Whereas we all need to work and keep active it is another thing to feel like if we stop or pause that something or someone will have the upper hand or that it will threaten us (by perhaps getting fired!). This is the main point to FI, which I have always looked for, and that most folk seem to not really want to think about. In light of all this I just found a way to cut a monthly expense of $120 and am overjoyed at the thought of being able to afford a share of MCD and/or another few dividend growers with that savings!

  17. A great post.

    Just one point though, just as there is a limit to how much extra can make you happy, there is a limit to how “basic” a lifestyle you can live and still be happy. We could all choose to live in the lowest cost home in the lowest cost neighbourhood, eat basic food groups (plain bread, the same cheapest meat every day, the same cheapest vegetables every day etc), and save even more money to achieve FI even earlier. I believe this would make you pretty darn miserable (and of course you might just run over by the proverbial bus just before you were Financially Independent).

    This position was once explained to me one day by a diabetic, who’s doctor had told them when they were in their “rebel” teen years and eating & drinking without thinking of the impact on their health. The way the doctor put it was:

    You can live a lot now and pay later (ignore the impact of your lifestyle on your health but have a great time)

    You can pay now and live a lot later (have a lifestyle like the proverbial monk and live in “lifestyle poverty” until you are 100.

    OR

    You can live a little as you go and pay a little later.

    I think this is actually the balance that you are trying to achieve, as compared to most people who fall into the live now pay later group. The real question a person needs to ask themselves is just where on the live a little now and pay a little later scale you want/need to be.

    May I also please ask your permission to link to your post in my blog?

    Thanks

  18. “Complete and utter freedom” is a fine thing indeed. Almost as good as getting to spend every day ONLY in the company of people you love and respect.

  19. winning a ferrari isn’t the same as having the money to afford it, but yea I get the point haha

    that said I very much understand this way of life is your view so I applaud you developing a life that you want, so many forget to do that along the way.

    That said, I want to work for some of the luxuries in life and attain more financial controlling interest. It is something that I truly enjoy doing everyday. I think there would be an emptiness in my life if I wasn’t driving forward with that accomplishment.

  20. Whether you live an extremely frugal life, a moderate balance or a live for the moment life, the key is to have a plan in life. There is no one size fits all lifestyle, nor should there be. There is a lot to be said for living a reasonably frugal life, investing for the future yet enjoying the experiences of today. I prefer the moderate approach, but that’s just what fits my lifestyle best. An expression I live by is : There are three types of people… those who make things happen….those who watch things happen… those who wonder what happened! You get to pick.

  21. I think a lot of the negative feedback is that a lot of people are just content with where they are, so why make a change? And going from spending 100% of your income to just 50% is going to be a big shock to their system. If you’re already stuck in the loop of buying the newest fanciest phone every 6 months then all of a sudden trying to keep one for 3 or 4 years is going to make you feel extremely deprived. That’s why so many budgeting and dieting attempts fail. It’s fine for 1 or 2 months but then most of the time you revert back to your previous state.

    Also I think too often people are short-sighted in their long-term goals or just don’t ever set any kind of long term plan in motion. You’re light years beyond the average person who’s goal is to “retire some day”. What kind of goal is that? You have a firm goal and plan in place so you have something to motivate and focus you. I definitely don’t think ER is for everyone, but what can go wrong from reaching FI? Too often FI and ER are considered the same thing but they are two distinct ideas.

  22. I think this is similar to the sports or the gym!

    Strong people take forward slightly and pull it by!
    The weak people do not have long-term goals. They live from hand to mouth. No plan, no goal, no way.

    I find strong people, with goals better!
    And the harder the way to the target, the more respect has this man deserves!

    best regards
    D-S

  23. Have you ever considered that reaching FI might be another hedonic adaptation phenomenon? My wife is a teacher and has off for a few months in the summer, about april/may she starts talking about how tired she is of school and can’t wait for the summer. Then summer comes and about 2/3 of the way thru, she is getting bored and wants to go back to work. I think the human mind tends to always believe “the grass is greener on the other side”. I am not trying to be negative about what you are doing. You have accomplished a lot, and seem to be happy along the way. Just some food for thought. I hope you reach FI and it is everything you hoped it would be!

  24. Hedonic adaptation is one of the biggest enemies of those seeking financial freedom. in about 12 months we’ll be knocking on FI’s door thanks to rejecting the mindless consumerist lifestyle that so many blindly embrace.

  25. Roger H,

    Nothing corny about that. My girlfriend has been incredibly supportive since I started this journey. It’s impossible to quantify something like that, but I’m eternally thankful for the loved ones around me.

    For instance, I moved to Florida to get a fresh start, avoid state income taxes and start a journey to something new. It was shortly after I moved down here that I figured out exactly what that “new” thing would be. However, while this turned out to be a fantastic move financially, I miss my family and friends back in Michigan immensely. So this move positively and negatively affected my quality of life at the same time. I can’t say enough about the power of family. 🙂

    Hopefully your relationships remain strong. 🙂

    Best regards.

  26. Patrick,

    That’s a real shame. I think it comes down to how you identify yourself. I linked an article inside this post that talks about figuring out exactly who you are. I personally do not identify myself by a job. But for others who do, retiring could be quite difficult. Even if you love your job it’s a good idea to have outside interests because you simply never know how long you’re going to be working.

    Cheers!

  27. Token Investor,

    Absolutely. I wrote an article a while back in response to the ‘YOLO’ phenomenon. My point was that it’s exactly because I only live once that I don’t want to spend the majority of my years working for someone else. Some people see YOLO as this rallying cry to live in the moment and buy/do what you want. I see YOLO as a fundamental reasoning for my actions – trying to maximize the value of my limited time on Earth.

    Best of luck in your FI journey! You’re getting a great start so early.

    Take care.

  28. fymb,

    You have a great point there. Many of us work around people that we’re less than thrilled to be around. Imagine the improvement in your quality of life when you limit that type of exposure. While we’ll never be able to completely avoid spending time around people we may find personality conflicts with, it’s wonderful to know those experiences can be extremely limited if we want it.

    Best regards.

  29. Katz,

    You’re doing phenomenal! I’ve never achieved a savings rate like that. I’ve never been able to hit even 80% in one month. I think the closest I’ve come is like 78%. I need to make some more money. 🙂

    It sounds like you’ve found the light. Keep up the great work!

    Take care.

  30. FI UK,

    Well, as I alluded to in an earlier comment there is obviously a balance. I don’t recommend to live like a hermit and avoid spending any money ever. Rather, I simply recommend to be conscious about your spending and be aware of how your well being is really being affected. People automatically assume that the more money you spend the happier you’ll be, and I just try to share the truth that this isn’t so.

    Ultimately, this is all about being happy. I don’t recommend to save for the sake of saving. I recommend to determine what really makes you happy and go for it with everything you’ve got.

    And absolutely, you can link me. 🙂

    Best wishes.

  31. Anonymous,

    You’ve got it. It’s all about designing your life to maximize your happiness. I’ve found that time makes me incredibly happy, and so I’m doing what I can to get my time back. Other people find indescribable joy from owning their own business. The point is to determine what you want in life and go for it.

    Best of luck in your own journey.

    Cheers!

  32. D-S,

    Forming short-term and long-term goals, and then ticking off the boxes along the way is a huge part of success. That’s why I track my goals yearly even as I march towards the overarching goal of freedom. It’s important to know what you want, reverse engineer a way to get there and then do what’s necessary to bridge the gap between what you have and what you want.

    Best regards.

  33. Anonymous,

    I agree. The key is to plan for what you really want in life. Whether that’s to own your own private island, become a doctor or retire by 40.

    And I prefer to be the type of person who makes things happen. 🙂

    Best wishes.

  34. Pursuit,

    Thanks for stopping by.

    I agree. If you can’t plan and put goals in place you likely will not get very far. I’ve heard that if you fail to plan you plan to fail, and I completely concur with that assessment.

    I believe in the power of goals, and that’s why I track mine for the entire world to see. I haven’t hit all of my yearly goals all of the time, but it’s a pretty powerful force to stick to goals you’ve set for yourself. And setting big goals is also important. That way if you shoot for the stars but land on the moon you’re still far ahead of everyone else.

    Best regards!

  35. fiveoh,

    That’s an interesting perspective there.

    I can’t honestly say if I’ll adapt to FI like that. I think there’s a few well publicized cases of people reaching FI and most enjoy it considerably. I would say the one case that maybe surprised people was Jacob over at ERE going back to work. But then you have guys like Pete over at MMM who has been ‘retired’ for about 8 years now and is still pretty happy about his situation.

    I guess it’s all about what you really want in life. For instance, I don’t really get some kind of great sense of happiness or fulfillment from my job. Perhaps it might be different if I was genuinely changing the world or making a positive difference in people’s lives. But it’s just not that way. I want more time and I do eventually want to positively impact other people. And I can’t think of a better way to do that than to become financially independent and make decisions that are no longer based around “how much money can I make?”

    Thanks for the thoughts!

    Take care.

  36. Spoonman,

    You’re so close you can practically taste it. That’s really fantastic. I’m totally jealous of you guys. 🙂

    Remember to keep us little people in tune with what FI looks like. I’m sure you guys are going to really enjoy owning all of your time.

    Cheers!

  37. Absolutely, and definitely agree with the concept of marginal utility as it relates to the spending of money. As you’ve said, designing your life to maximize your current and future happiness by taking a step back and actually calculating the benefits of each action.

    As for the house example, that hits close to home, both with my unintentional rental, and the fact that my fiancee and I are settling on a house in less than two weeks. We specifically under-bought in comparison to the bank’s calculated purchasing power as there is no reason to buy more than we need.

  38. Can you get her to become FI herself? You will have much more fun roaming the earth with a partner … Just ask go curry cracker!

    Good Luck
    Roger H

  39. Aw, my relatives are all over the US (nowadays Dallas, Indianapolis, Phoenix, Baltimore, and New York–all originally from Chicago), so it’s pretty easy for me to just live in my favorite place. I do especially miss my sister (Indianapolis), but I do get to live with half my friends from grad school, so I’m really lucky.

    And the internet and cheap long distance phone service makes keeping in touch a lot easier even though it’s still only barely possible to actually grow and change with people in other areas. For example, if a friend really gets into a new hobby, you can try the hobby, too, but you will have a different instructor or different teammates, etc. so it’s not quite as fun.

  40. jay p here……

    you should read Gandhis ” my experiments with truth ……

    for gandhi material frugality was the key to inner joy……

    baring the fact that he did not invest in stock market , a lot of his thinking regarding an autere life matches

    some of your ideas………….oh just one point…..unlike you Gandhi was a firm advocate of celibacy !!!

  41. Trying hard to live below my means. The best way is to pay yourself first and then spend the rest. But I have to be careful not to overextend myself and get into a debt (which happened to me).

    Fortunately, my wife supports me and we are improving and rushing towards our freedom!

  42. Exactly, financial independence is best paired with the right disposition of spirit. The money aspect is just the beginning of it. Patrick

  43. How long have you been working in this company : since they threatened to fire me ! Moorea1/Patrick

  44. Great post and perspective,

    I’m still young and went back to school trying to get another degree without falling into tons of debt. I would love to be able to exit the rat race early, like ASAP.

  45. the one thing I hear all the time ” Its only $50.00 a month” for the extra cable tv or something. I would rather have another share of COKE STOCK (kO) Im still buying something I get a buzz seeing that on the statement rather than a few extra perks on the tv Is that to of a simple way to look at stuff.

  46. Best wishes to you as well. I am the guy who wrote to you on your ” about me ” section, saying I have sold my home in Canada, retired at 60 & have moved to Puerto Vallarta to live. We discussed how best to invest the proceeds from the sale. I am the type to prefers to make things happen as well, and can tell you that even though I never became a doctor, or retired at 40 or even own my own island, life is pretty good down here 🙂 and much cheaper than Canada or the USA Cheers

  47. Anonymous,

    I remember that conversation fondly. It sounds like you’re still doing very well for yourself down in Mexico. I actually looked up Puerto Vallarta after our conversation. Looks like a beautiful place to settle down in. Enjoy yourself. You’ve earned it! 🙂

    Best wishes.

  48. SWAN,

    I share your desire to exit the rat race as soon as humanly possible. I realized a long time ago that in the rat race even if you win – you’re still a rat.

    Good luck getting out. 🙂

    Best regards.

  49. Jay,

    Thanks for stopping by.

    Interesting comparisons there. I can’t speak for celibacy, but I can say that I agree with some of Gandhi’s teachings and beliefs. He was a brilliant man, and I can especially appreciate his love of peace. It’s unfortunate that such a peaceful person died a violent death.

    Thanks for the perspective. It’s much appreciated!

    Take care.

  50. Martin,

    I agree with you. Paying yourself first is crucial. If you’re able to set aside savings right away you’ve already limited the amount of money you can possibly spend. And that puts you in a great spot.

    Cheers!

  51. Anonymous,

    I feel the same way. I get such a rush from buying an ownership position in a high quality company. I think that rush is probably akin to what some people experience when they go out shopping for high end clothing or a new car. The great thing is that my rush pays me for the rest of my life, where the rush from buying degradable and depreciating goods ends up costing you more over time.

    Keep up the great attitude!

    Take care.

  52. I feel like we under-bought as well, which is a good thing. Our house cost us 1.4 times our gross income. This allows us to suck away 25% of gross, while paying the mortgage and student loans.

    Though not as high as I would like, it’s still a lot higher than most. (patting self on the back)

  53. dziuniek,

    Nice job on the house purchase. If I ever decide to buy a house I’d love to get one for 1x annual gross income. I tend to view renting cheaply as superior to buying a house for the most part, but I haven’t completely ruled out home ownership in my future. As with anything else, it depends on the price. A fantastic deal would change my mind pretty quickly.

    Keep up the great work with the savings rate. You’re doing awesome. 🙂

    Best regards.

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