Internalist, literally the translation of the Tibetan word for Buddhist. It is no wonder that many people who are trying to get out of debt feel as though they must live like a Tibetan Monk given that most advice associated with getting out of debt promotes giving up the luxuries in life, and living a near internalist lifestyle. Without luxuries however, what is the point of living?
If you really want to get out of debt you have to understand a few of things. The first is that you are not in debt because you live a lifestyle beyond your means, it is because you are careless with how you go about living that lifestyle. The second is that your income is proportional to your hustle, which means that everybody has the ability to earn more than what they are making. The third thing that you must understand is that you must come up with a plan to get out of debt that you are capable of executing, not that some guru or expert dictates is the best method.
The concept of living beyond your means is completely out of whack. The phrasing alone implies that individuals have a cap on their earning potential. To say that one person is living beyond their means because they choose to have a nice car, or a nice house, has nothing to do with how much they make, but everything to do with the amount of time and effort they are willing to commit to get the things they want. When a person lives beyond their means it is usually because they fail to focus on the few things which they truly desire, and spend on everything that goes along with those desires. For example, there are many people who have a passion for high end cars, which is not surprising given the status and marketing efforts that go along with those vehicles. However, many who find themselves driving the latest BMW or Mercedes also feel the need to be seen in places where people will take notice, like high end restaurants, night clubs, or country clubs. What people who have a passion for cars need to figure out is whether it is about the car or about the dinners and partying, it is usually not about both. Once one figures out which is more important, they can focus on only splurging on the actual passion, not the other expenses that seem to go with it. Eliminating the additional expenses that go with particular lifestyle purchases is a major part of battling debt.
Even if one insists on having all of the luxuries associated with ones primary passion, it is not unreasonable to expect an extra amount of effort towards attainment. In other words, if one wants to spend like a rock star, they should learn how to earn like a rock star. This afternoon I had coffee with a high school math teacher for example (he is in every way a rock star when it comes to teaching math.) You would think a teacher’s income would be relatively set, however he started a business to teach diploma prep courses that nets him quite a fair bit of extra cash every year, which affords him the luxuries he chooses. The ability to earn extra money is available to anyone who desires to do so, there is an endless amount of low cost, high paying residual income streams in any industry, you just have to be the one smart enough to find them, and then put that money towards paying off debt. Before you know it you will be debt free, and have enough cash flow for those extra luxuries.
The last thing that everyone needs to realize is that there is no such thing as a cookie cutter solution to becoming debt free. Simply advising anyone to pay off their highest interest rate debt first, then your next highest, all while forfeiting a life style or living within a confined budget is ridiculous and ignorant of individual personality types. Only you will no what works for you, with of course a little guidance. The best thing you can do is to think about something you have been very successful at, figure out what motivated you to succeed, and try to apply that motivation to paying off your debt.
Ultimately, it is truly not about how much you spend, it is about how much you earn. Debt is merely a signal that you need to step up your hustle, and be smart about your spending habits, although not to the point of being a pure internalist.
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I like this article. As a relatively low earner but without any consumer debt to speak of, I find myself being able to afford the finer things I enjoy and feel I need in my life to be comfortable and happy.
I do not drive a nice, expensive car, I drive a sensible A-to-B car. I do not have a bigger house or TV or laptop than I need. What my money goes to is, as you suggest, the things I love. I travel nationally and abroad, and I travel in style. I have a real passion for antique and rare books, and my personal “library” reflects that. While I’m not currently carrying a mortgage (soon though, hopefully), I thoroughly enjoy what I have and not lusting after the things I want but can’t necessarily do immediately.
In my books, managing the debt you DON’T have is easier than worrying about the debt you do have. Planning, saving and prioritizing are the key.
I really enjoyed this article. I agree with you in regards to lifestyle choices. I’m a shopaholic myself but I do restrict myself because I hate the thought of getting into debt it scares me! I guess I have always thought about working my 9-5 job and managing with the income I receive from my job but I like the idea of getting a second job and doing something that I love to earn a bit more money for that extra pair of shoes or to pay down my mortgage (I know the mortage is more important than shoes).
Thanks!