Two weeks ago I came across an interesting article on the Mr. Money Mustache blog: “What I’m Teaching my Son about Money”
As is usual for Mr. Money Mustache it’s a very insightful post about money, financial independence, how to achieve it and what to do with it.
I love his blog because he not just tries to educate people about personal finance or money as an end to itself but about money with a purpose. The single most important lesson that can be drawn from Mr. Money Mustache in my opinion is that money is not a scorecard and spending does not need to scale with income. Frivolous spending and buying things one doesn’t need and one can’t afford is what nowadays keeps members of the so-called middle class from living on their own terms and becoming truly independent. Mr. Money Mustache’s attitude can almost be considered subversive today. If it wasn’t for ‘keeping up with the Joneses’ the world could be a much better place and more people could live the lives they actually want to live.
If I had to paraphrase the article in the blog in general in a single sentence it’d be this:
Wealth is a function of creating something of value, living within your means, investing excess money in order to generate passive income and last but not least paying forward / contributing back to society.