Sunday, 9 August 2015

Frugal2015

"In his book How to Win at the Sport of Business,” [Mark] Cuban writes that if you’re in your 20s, you don’t need to share a gross apartment with a bunch of friends, but you should live cheaply, even if you happen to be doing well. Paying off bills, debt, and establishing a nest egg is far more important than indulging in a sprawling home or high-end fashion, he says.
“It doesn’t matter where you live,” Cuban writes. “It doesn’t matter how you live. It doesn’t matter what car you drive. It doesn’t matter what kind of clothes you wear. If you use your 20s to pay off student-loan debt, avoid credit-card debt, and build savings, you’ll thank yourself later. The more you stress over bills, the more difficult it is to focus on your goals,” he says.
Whether you’re using your 20s to build your own business or establish a rewarding career, “the cheaper you can live, the greater your options,” Cuban writes."

This is from a story in Business Insider but the advice is true regardless if you are in your 20s or your 60s or in your 40s.
The longer you can live cheaply, the longer you can live without increasing your income. This leaves your life open for interests outside work, or for taking risks with your job, or to make investments.

Or to put it in another way. If you can stop yourself from increasing your standard of living, any extra money that you can make, will be savings for later.
And you know there will be a day when you will need it.

It is always going to rain sometime. Everybody knows that.

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