The way I see it, there are three ways you can go about dealing with money you earn.
- Live above your means.
- Live within your means.
- Live below your means.
Breakdown of #1
Spend all the money I’ve got; spend a lot of money I don’t got and worry about it later.
Breakdown of #2
Spend all the money I’ve got; don’t spend any money I don’t got.
Breakdown of #3
Spend some of the money I’ve got; don’t spend any money I don’t got; invest and save the rest for the future.
If you answered #3 you win a gold star! If you said, “Number 3 is best but I’m really a 2 or 2 and a half,” then you get a silver star for knowing which is best.
If you answered #1 is how I live and I see nothing wrong with it, what do you think my answer would be?
I subscribe to number three’s logic, however, I’m probably more like a 2 and a half.
Which logic do you subscribe to?