This applies whether you make $30,000 a year or $300,000. For doctors and other “professionals” who command a 6-figure salary, there is always an apparent public expectation that you can afford and should have a fancy house, car, boat, or airplane. That is unfortunate.
There are many trade specialties such as plumbing, carpentry, handiwork, and electric wiring that also command similar income yet we don’t expect a carpenter to drive a BMW or own a million dollar home.
This public image of the profession is detrimental to our financial health. While we can gradually adjust up our lifestyle (to a certain extent) with a higher income, it requires active control to translate a high income to a high net worth. I recommend reviewing The Millionaire Next Door. It is slightly outdated, but the portrayal of wealth was surprising to me.
More concepts to follow!
One thought on “Spend less than you make”
Spend < earn. The most fundamental principle of personal finance. This concept was the personal finance advice in two words I offered on the Rockstar Finance thread: http://forums.rockstarfinance.com/t/best-advice-ever-in-two-words