I’ve been pretty fortunate over the years, generally having jobs that have paid me well.
But I’d like to think that that’s only half the story. After all, I was making half what I’m making now and still enjoyed a pretty good life in San Francisco – and I was making one-third of that when I was living in Chicago and I was having a blast then. (Of course the $300 a-month rent made that possible!)
There are times that I’m amazed that I’m able to travel to Africa, with a nice camera, all while not having a job.
But then again, I like to think that some of that fortune comes from the decisions that I make.
I’ve been pretty good about saving money over the years, and not living above my means. I haven’t carried a credit card balance for many years now, I’ve paid off my car and motorcycle loans early, and I’ve maximized my 401k contributions for a long time. This is all because, as I’ve indicated above, I make a pretty decent salary – but it’s also because of the choices I’m making. I prioritize what’s important to me (traveling, friends) and I skip over the things that aren’t (new furniture, new cars). One of the mantras I try to live by is: experiences, not stuff. I try to prioritize experiences that will live with me forever over stuff that just accumulates.
This isn’t always easy, of course. I’m not above temptation of the latest gadget any more than anyone else. But I do try to avoid the temptation when I can. I remove myself from emails from retailers; I try to get rid of the catalogs that get sent in the mail; I avoid Best Buy when possible.. And probably most effectively, I keep myself busy. It’s when I’m bored and find myself window shopping that I’ll end up with some purchase that somehow happened.
This has all been on my mind lately as I look at the economy around the world. For the longest time I’ve been wary of unbridled capitalism – and I’ve been concerned about where growth for growth’s sake would take us. And I’ve been amazed and jealous at the way people have lived their lives. But now I’d like to think that some of that has come crashing down. Unfortunately it’s impacted so many in such detrimental ways but hopefully we’ll be able to find a way to come out of this on the other side with more people conscious of their finances and what they need to keep them in a more healthy state.
Having said all of this, I don’t think I’m impervious to the bad economy. I haven’t been that golden in my activities (did I mention I went to freakin Africa without a job!). And as such, I’ve ramped up my savings over the past 6 months to build up a cushion in case things do go sour.
Hopefully though the more optimistic projections will take hold and we’ll see things start to turn around in the next few months. I hope so. That 401k savings is just not what it used to be!