I Was Happier When I Earnt Less, Now That I Earn More, I Only Think About Money to Pay the Rent
Spending too much money forces you to earn more, and spending less gives you a quiet life.
When I worked for a fishing corporation, my gross salary was only $1,000 per month plus a small bonus. I was left with only $850 net.
In my quota apartment, I paid less than $300 in rent, electricity, and internet. The gym charged me $25 every month. I also paid for liability insurance and a mobile phone contract.
After these fixed costs, I was left with $500 to live on. I was fine with this.
It didn’t take long before my income increased.
Once a quarter I received a modest raise. I had set up a part-time business for this purpose. After a year I should have been earning over $3,000 gross every month.
After two years it was even more. My expenses also increased. I moved into my own apartment and now had to pay rent, electricity, and internet myself.
I had set a budget and still moved to a more expensive apartment.
On top of that, I now had home insurance, three newspaper subscriptions, and an iPhone with a data plan. I moved to a better gym, for which I now pay $55 a month.
I ate out more often, spent a lot of time in cafes, and bought DVDs I never watched and books I never read. Every year I take at least one major long-distance trip.
I used to live on $850, but now I need at least double that. It was supposed to be even later.
Three months ago I started to control my expenses.
It had been a long time since I had done that. Since then, I know I spend about $2,000 a month, including my private health insurance.
Since I started writing down my expenses, I started having a smooth life.
I had probably spent about $2,300 a month by then. It turns out that this is exactly the amount that an average single person working full time in the wealthy part of Europe.
On an average salary and my previous consumption behavior, there would be nothing left at the end of the month.
Yet while I am surprised at how much money I “need” to live on, the ambition to spend like crazy has not fully unfolded for me.
In the last 3 years, my expenses have never increased as much as my income because, deep down, I am a person who leaves the house little and spends less.
Earning more or spending less doesn’t matter
Choosing how we spend our time is what matters.
How much money we have has little to do with how often we smile on an ordinary day and how happy we are.
As long as we spend money only on consumption, we will not feel better with it than without. We need something that comes after money. For some people, including me, this is independence.
Independence is an important factor for some people to keep their money together.
They reduce their consumption so that they can determine their own time more freely, do things that give them pleasure, and say no more often.
Their greatest asset is time.
We all have the same amount of this resource. No one else can buy from it. With money, however, we can choose how we spend our time.
It is not only your salary that is decisive but what part of it you save: the savings rate. It is influenced by two variables: income and expenses. Both are equally important, but I want to emphasize the importance of spending because a dollar saved is worth more than a dollar earned.
To have an extra dollar in my pocket, I have to earn almost two dollars if we take into account taxes and social security contributions.
The dollar saved, on the other hand, has already been taxed and is worth exactly one dollar.
Living with so little money is a challenge that many enjoy. Many turn it into a game where they learn new skills — cooking, gardening, fishing, crafts — to make do with less money.
More consumption forces you to earn more
You will always depend on your next salary or the payment from your customers.
This way of life would also make me unhappy.
Even when you are not tied to a job, but flooded with a pile of money, spending that money doesn’t make you any happier.
I personally know two lottery winners who, after their supposed blessing, bought clothes, cars, and real estate enlarged their breasts, and partied all night. This did not make her one bit happy. Both later said that winning the lottery almost destroyed their lives.
Indiscriminate consumption simply does not bring happiness.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.