How To Be Rich and Live Simply

How can I be rich and live simply?

You can be rich and live simply by being authentic and spending on experiences and things that fill you up and create a positive impact. 

Written By Tiffany Woodfield, Financial Coach, TEP, CRPC®, CIM®

How I Approach Living Simply as a High-Income Earner

I remember being a kid and looking at people who I thought were rich.  

They had fancy cars and big houses. They went on amazing trips, and their kids got everything they wanted.  

I felt jealous and told myself that this would be me one day!  

So, I took all the steps to become a high-income earner so I could afford these luxuries. My mistake was that I never paused to question my values and understand what I wanted. Being rich was this “destination” where everything was easy and perfect.  

If only I could get there, I would feel like I have arrived!

Fast forward several years and a lot of internal work later, I became aware of what being rich meant to me.  

For me, “being rich” isn’t the fancy house and car.  It is about a sense of peace and satisfaction with where I am in the journey and not waiting for some destination.  

So while working and earning a high income is great, you can get caught on life’s treadmill and forget your purpose.  

Being rich means you can afford more, but beware of the trap that as you increase your income, you also increase your expenses, and therefore, you are never able to “feel” rich.  You miss the opportunity to choose to live simply. 

So, forget society’s expectations of what you “should” have if you earn a high income.  Ignore the noise and follow your truth, creating your life around what’s important to you. 

What are the key principles of living simply despite being rich?

1 – Acknowledge that living simply means different things to everyone. 

Choose what living simply means to you and use that as your goal post.

2 – Stop judging yourself or others for lifestyle choices.

When we judge others, we often use it as an excuse. 

For example, you might say, “See, rich people are not happier.” This is like a “get out of jail free card” because if you think rich people are not happy, then you can convince yourself not to put in the work to go after your dreams.  

Fun Fact: Being rich doesn’t make you happy or unhappy; it is your thoughts that make you happy.  So make sure you’re aware of yours!

3 – Be curious and accountable for what is important to you. 

Don’t judge yourself if you like nice things; you can love and have beautiful things while living simply.  

4  – Know that the cost of not being aware of your spending is like being on a treadmill going in a direction to either impress others or satisfy some unrealistic expectations and never achieving the goal of living simply. 

How do I avoid the trappings of wealth and maintain simplicity?

To maintain simplicity in your life, you need to be aware of your spending habits and society’s pressures and expectations.  Be aware of the common trap that as you earn more, you spend more, and life never gets simpler.   

What are effective strategies for mindful spending?

Spending can be like a drug, and the hangover is having to keep working harder to buy more. 

Strategies for Mindful Spending:

1. Get a clean notebook and call it mindful spending. Determine how much money you have coming in and going out each month for fixed costs.  

2. Decide how much you can spend on “fun” things in a month and record this amount along with the date in your notebook.

3. Be accountable. Set a day at the start of every month, like the first Monday, when you will spend 10 minutes reviewing your past month’s spending. Did you stick to your number? Write down any “fun purchases” along with the cost of each item. 

4. Rate on a scale of 1-10 (10 being really happy and one being unhappy) how much joy or regret these items bring you. 

5. Repeat each month on the set date with a clean page in your notebook. You will start to see a pattern, and you’ll start to see how creating awareness of your spending is positively influencing your purchases!

How can I use my wealth to positively impact others while living simply?

Determine a cause that is important to you and find ways to contribute. 

If you’re concerned that others will know you contributed, you can also donate anonymously.  Keep in mind that you can impact others in ways other than financial, such as by donating your time or promoting a local business in your community. 

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