In the not too distant past, there used to be a fairly tried, true, and tested piece of advice for financial stability. If you wanted to be financial stable, all you had to do was live within your means. Or, as my favorite double negative phrase of all time says, “DON’T BUY CRAP YOU DON’T NEED WITH MONEY YOU DON’T HAVE!”

Just a few short years ago, this timeless piece of advice was enough to keep just about anyone in just about any financial situation above water if they were willing to put it into practice. Sure, sure… there were and still are other more sophisticated financial axioms for people who really wanted to get ahead, but if you just wanted to be financially responsible, all you had to do was live within your means.

And up until sometime in late 2008, that was good enough. But then the markets crashed here in the U.S. and around the globe, and like most pieces of conventional financial wisdom, the idea of living within your means went from being a great financial axiom to being not quite enough. In fact, after 2008, most people (myself included) stopped believing in the idea of financial stability completely.

With the events of the last few years as context, I (likely along with millions of other people around the world) started reevaluating my finances a little over a year ago. Continue reading N.U.T. #3 – I live below my means. →