I read something interesting where a well known financial expert said “Spend what you need, not what you can afford.”  That resonated with me.  There’s a lot that’s been published about wants and needs. A lot of financial experts talk about the importance of distinguishing the two….take care of your needs first.  But how do you distinguish on wants?   So this twist caught my interest.

As you start making more, it’s likely that you will be able to spend more, barring any big uncontrollable changes in your expenses. The reality is that if you keep spending what you can afford, you won’t be able to save aggressively. And saving early is huge….the power of compounding cannot be underestimated. I see so many people who have simply run out of time…

So as you increase your earnings….watch that expense line. Just because you can, doesn’t mean you have to.  How much more value will you get from spending more than what you are spending now on clothes, cars, trips, eating out, streaming, gyms, services, etc. ?

Now, there are things people value as once in a lifetime experiences: eating at an incredible restaurant, going to a once in a lifetime concert or taking that amazing trip. These are experiences which you will remember always.  But if it isn’t that kind of purchase, there’s nothing wrong with sticking with your current spending patterns. I remember what someone from Texas once said to me about someone who spent a lot…”Big hat, no cattle.”