When I was 20, I was working part-time as a minimum wage lifeguard while attending community college at night while still living rent free in my mother’s home. I had no car, no health insurance, no degree, no good job prospects and no savings. Still, I made the best of my situation by filling my days with work, studying to get straight As, swimming, bike commuting year-round, working out and taking our little dog on long afternoon walks through the woods.
I made friends in night school. Everyone who attended was a few years older than me. They all worked “real jobs” while attending school at night to get a degree that would help them move into better positions. One night, we all went out for drinks after class and talked about our careers and life ambitions. I said that all I wanted was to be able to earn $20K a year so I could afford to get my own apartment, have a reliable car and support myself.
My companions laughed at me. They all told me I was underestimating how much money I would need and more importantly, how much more I would want. They were making over $20K and said it was not nearly enough.
It turns out that they were right because I never expected that one year later I’d meet my future wife, move in with her and her two kids and eventually become the sole provider. Eventually I worked my way up to earning $20K/year and then much more.
Along the way, my wife introduced me to a lifestyle I had never experienced before. Fancy restaurants, middle class homes in good neighborhoods, expensive haircuts, fashionable clothes, cleaning ladies, fine food and lawn care services.
I’ll admit, I enjoyed some of these. But I often questioned how much they cost and if they were worth the stress of debt and living paycheck to paycheck relying on credit cards to finance a lifestyle that exceeds our incomes.
Eventually, my income got high enough and we managed our expenses to get our from under what seems like an impenetrable mountain of debt. Since then, I’ve never let my lifestyle exceed my means.
I will never voluntarily go back to that way of living again.
Although I fantasize how wonderful it would’ve been to grow up rich, one of the most important gifts I received from growing up poor is a keen appreciation for simple luxuries.
I like the linoleum floors in my bathrooms. Sure tile looks better, but I’ve had tile. Anything you drop on tile breaks. The grout is a pain to keep clean. Installing it is expensive. It lasts forever, but the ingests I’ve ever lived anywhere was 4 years, so someone else gets to enjoy “forever”.
I absolutely love my Formica/Corian countertops. When I was a kid, our countertops were covered in shelf paper or were plastic laminate with aluminum edges. I don’t need marble countertops. They look beautiful, but just like tile floors, they are expensive to install and anything that falls on them breaks. I used to dream about having formica counters.
My car is reliable. My Fit is a subcompact, inexpensive Honda. It starts every time, gets great gas mileage and matches my life – small, quiet and suitable.
Some of my more posh tastes I have grown into. I wear better clothes now. I spend a little more on higher quality food. I buy good electronics – not the latest and most expensive – but not the lowest grade either.
In many ways, I haven’t changed that much from the man I was when I was 20. I spend my days primarily by myself. I take my dogs on long walks. I swim. I workout. I read. I study.
Also, surprisingly, I live on less than $20K a year now 30 years later. Inflation adjusted that $20K is now $51K. I don’t spend anything close to that.
I tried lifestyle inflation and keeping up with the Joneses. It didn’t suit me. But I think I had to try it in order to learn that lesson.
