There’s a couple ways to look at this. One is that inflation/costs have gotten so out of control that we’re all doomed to a life of poverty. That may be a little bit true, but there’s another type of inflation going on here. Lifestyle inflation. Sure, you COULD have a $44K wedding, drive new cars your whole life, live in bigger and bigger boxes, etc. But does that make you HAPPIER? I doubt it.

One example of this lifestyle creep is evident when you look at the size of homes in the US. In 1975, the average square footage of new homes built was 1660. As someone who has lived in an apartment about 25% of that, 1660 ain’t bad! Today the average home built is over 2500 square feet. Meanwhile, the average household size has DECREASED since then. We’re buying bigger homes for smaller families.

This isn’t an indictment of the American way, it’s just an observation to be aware when being tempted to claim it’s impossible to get by these days. YOU PERSONALLY have a choice. Do you want to be house broke living in a 2500 square foot home, or do you want to be financially free sooner, living in a 1600 square foot home. (Obviously these square footages are just average examples, the choices in your life will look different).

IN MY OWN LIFE, many of my happiest times have been in the most meager of circumstances. In fact, FEW if ANY of my happiest memories have to do with having spent a lot of money. Yet still, it’s always so tempting to hit buy on more shit from Amazon or door dash your way to an easy meal.

The lesson here is we need to fight the urge of equating spending to happiness. While spending can offer a fleeting endorphin boost, frugality is more likely to support LONG TERM happiness. Frugality leads to financial independence which absolutely can provide long term happiness!

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy