In part 1, I talked about lifestyle inflation and how to avoid it. Building a life of Enough takes more than avoiding lifestyle inflation. It requires a lot of introspective to figure out what is truly valuable to you. This is no easy task. There are two ways to figure this out. The first is to be swept along with the current of consumerism until you wake up one day and realize that you don’t need the fanciest car, the oversized house, or other host of consumer goods that advertisers push onto us. The other is to intentionally look at the things of the world. Then think deeply about what brings value to your life. I recommend the latter for finding Enough.
Historical Failures of Finding Enough
The lives of great generals and conquerors interests me. It’s fascinating to learn about their brilliant victories and lasting legacies. One common thread in their lives is that they don’t know when to stop. Instead of enjoying their kingdoms and the rest of their lives, many of them die uncomfortably on campaign. Alexander the Great famously died from an infected monkey bite while planning an invasion of India. Why wasn’t the entire Persian Empire and Egypt enough for Alexander? The man could have lived comfortably in his native Macedon or one of the many cities named after himself. The Ottoman Emperor Suleiman the Magnificent couldn’t resist one more campaign against Hungary at the age of 71 when he caught an illness and died in a tent. I could list dozens of more examples here, but I believe my point is made: the people of history also struggled with finding enough. Their unending pursuit of more resulted in their early deaths.
The Modern Failure of Finding Enough
Many Americans suffer from a similar predicament. Although Americans are usually seeking more luxury material goods rather than the conquest of India. The financial burden from accumulation adds instability to life. After all, if someone is living paycheck to paycheck, they are at risk of losing their house in the event they lose access to that paycheck. I can point to the many famous professional athletes that go bankrupt after their playing careers. These folks made millions. Even conservative investments would provide a very comfortable lifestyle for them for the rest of their lives. Instead, the ones who go bankrupt throw away their future security on lavish luxuries, only to come crashing down to earth when their playing days end.
Finding Enough = Finding Value
Finding Enough for you all depends on your perception of value. The great Choose FI book gives the example of a dinner fork. You can eat just as easily with a $1 fork as with a $50 sterling silver fork. The authors ask if the silver fork provide 50x more utility or 50x more joy than the basic fork. If the answer is no, then you shouldn’t buy the $50 fork. The key to frugality is to apply this mindset to your current spending. Whatever doesn’t provide the extra value should be cut out. In this way, the things that you truly find valuable are kept. The money going towards things that you don’t value can be better used towards something else (like savings/investment). If spending does not improve your happiness, then it is wasteful spending. That is the crux of living a life of Enough. It is a recognition that a life of continuous spending does not lead to greater happiness.
Further Direction
Finding Enough in your life is only the beginning. It is a good first step into transforming your financial life. As with all first steps, there’s still work to do. There will be a third part to this series, where I’ll discuss what to do next. I’ll be synthesizing financial advice from some of my favorite sources, so keep an eye out for it in the coming weeks! Make sure you let me know what you think by leaving a comment below.