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Can You Minimalize Your Way to Wealth?
It’s possible, but requires discipline and commitment.
Striving for a high income vs. cutting your spending and investing the maximum possible. Which strategy comes out on top?
It’s not easy to withold buying stuff. Especially when anything you could ever want is just a click or finger tap away. Dave Ramsey is known for making the point that credit cards help numb the “pain” of spending, making it feel like it’s not real money. Until the bill comes due.
Combined with the ease of e-commerce, credit cards make for a potent combination that can lead to fiscal disaster. Making matters worse is the current subscription trend. Not just streaming companies like Netflix, either. Even razor blade companies want you to subscribe for a monthly fee. Wal-Mart just tried to get me to start a toothpaste subscription. It’s getting out of hand.
Diligently investing a part of every paycheck into retirement accounts and personal investments, particularly into S&P 500 index funds/ETFs is probably the best and most assured path to wealth for the average person. The problem is most people in the United States don’t make a high income. The median individual income is only $37,000, while the national average wage index is only around $64,000.
