The way I see it, there are three ways you can go about dealing with money you earn.

1. Live above your means.
2. Live within your means.
3. 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?

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